With the government demonetising Rs 500 and Rs 1,000 notes, the common man is finding it hard to cope up with the shortage. The situation is leading people to digital wallets to pay for their daily necessities. Well-known players in this space such as Paytm and Mobikwik have the largest reach with presence in local shops as well. As a result, more and more users are migrating to digital wallets and the services have seen a boost in users base since November 8. So if you are looking to start using e-cash, it makes more sense to sign-up for one of the major digital wallet services as they have wider acceptance.
For example, Paytm can be used to pay for auto-rickshaw rides, at local general stores, phone recharge, to pay electricity bills and even at smaller eat-out stalls. Mobikwik offers similar services. Paytm claims to have over 8 lakh partners including Big Bazaar, Mother Dairy, Thyrocare, Bharatgas, Domino’s, Pizza Hut, Croma and more. MobiKwik has partners such as Big Bazaar, Grofers, Big Basket, Lemontree, Makemytrip, IndiGo, Cleartrip and Yatra etc.
But the biggest advantage with these digital wallets services is that they offer cashback as well as discounts which can be used to pay for more stuff. You can easily sign-up for a digital wallet using just your phone number. However, you can only store a maximum of Rs 10,000 as e-cash in your wallet if you have not signed-up for e-KYC. With e-KYC, you can push up the maximum limit to Rs 1 lakh. Digital wallets use up money from your debit/credit card to load themselves up with e-cash. But if you have your card saved on your smartphone, we recommend you to set-up a strong password. Transferring money to a friend via digital wallet is also easy and requires phone numbers for the transfer to take place.
However, if you have not signed up for any one of these wallets yet, here’s how you can:
• Paytm has an ‘Add Money’ option along with several other ones like ‘ Pay or Send’, ‘Passbook’ and ‘Request’. You can add money in you Paytm wallet using Debit card, Credit card, ATM card or Net Banking.
• Payment is easy. Once you have money in your Paytm wallet, you can just scan code to pay for utilities, or send e-cash to another mobile number.
• Mobikwik requires the same process to fill in e-cash in app’s native wallet. Once you have logged in using your mobile number, you just need to load up your wallet with cash using credit/debit card. The e-cash can be used at a number of places, including to pay for utilities such as gas, electricity etc.
With demonetisation, both Paytm and Mobikwik have seen a record hit in payment transactions. Paytm says it hit 5 million payment transactions a day, a record for the company with a 700 per cent increase in traffic 3x growth in downloads. This adds up to around Rs 24,000 crore, more than any other payment network in the country. Rival MobiKwik claims to have seen an 18X increase in overall transactions, and over 2000 per cent increase in addition of money and transaction value.