Welcome to the future. Starting from now, we will pilot through the next 10-15 years. Be a part of it.
Have you heard the concept of e-money? Let me tell you what it is.
Imagine this situation. You are using a mobile service that allows you to carry cash in the mobile, allowing you to pay your bills through a secured transaction and through your hand held device, which even if displaced, the money remains with you.
This is the future we are talking about. This is e-money[1]?
Imagine this; someone refills a coupon worth Rs. 111, from a local kirana store or a mom-and-pop shop by filling in his mobile with the required denominations, almost like a pre-paid VAS, for using this accumulated money for payment/(s).
Post-Paid Vs. Pre-Paid
The post-paid connection by virtue of its right, can secure a mean by paying the utilities online and other things online, and it is charged against the mobile-wallet[2], and redeemed from the telecom carriers at the end of a stipulated time or period.
The pre-paid connection by virtue of its relationship of 6 months with the carriers can have this mobility of the currency, in the virtual world.
Connections with the bank
A pass code or a magic code is an intermediate transition for bank and the mobile or hand held device owner. E-Money can be stored, in the m-wallet, by electronic transfer, internet banking, direct debit/ credit, financial institutions, or mobile carriers directly through a bank. Even then, it requires a pass code for getting the transferred money activated for payments, as well as storing e-money in the mobile.
Security Features
There will be a two way security features. One for the money credit and debit level, the other for the transaction level. The pass codes unique to the device holder will be run to increase the money amount in his mobile, or reverse it to the accumulation of the bank account, which again should be a current account. If any transaction is made, the e-money gets depleted or vice-versa. The method of sending the e-money from mobile to mobile should not be a feature, rather a way to pay to the current account. Let us imagine that a person is forced to make a payment under some odd circumstances, and then there should be a full-proof mechanism for getting the payment in a delayed mode for 2 working days, so that even if the hand held device is stolen, it does not encourage the use of the e-money. Tracking mobile to mobile transactions are not only cumbersome, but also require additional features of security, which should not be provided at the first level. A person will qualify for the mobile to mobile level of payment, under special circumstances for honorary members or executives, who have been using a mobile for more than a year or so, without losing the hand set, and are at least thirty years old.
Advantages and Disadvantages
The m-wallet concept can make an instant payment with a greater efficiency. It saves time. Cash is not in use, so the person can happily roam around. It also avoids inflation due to the circulation of e-money.
The m-wallet concept cannot take into account the vulnerability to the mobile users for fraud and security in its initial stages. A proper sense of security has to be done, so that fire walls are not breached. There is no concept on the rotating credit facility.
There can be different types of surcharges like the flat fee for a type of industry, or for a type of transaction. It can also be on the total volume of the transactions, but for a flat fee.
Critical Issues to be addressed
 The sense of security to the owner is an important part. TRAI rules on the cap of the transactions and the RBI guidelines will form a well-defined schema for the mobile users.
Enabling third party intermediate Devices
 For paying the bills for the retailers, there should be an intermediate third party device which will store the e-money from the carriers. At the end of the stipulated period, the mobile carriers disburses the amount from its shell to the corresponding retailers via this machine.
Risks and Mitigation Strategy
Hacking is an important factor. It can be mitigated through proper security testing. A competition for the hackers might be a good way to the stabilization of the product. Security enabling bio-metrics or master recognition software should be used.
Success Factors
The success factors depend on the words of the masses. A pilot project can be used to devise new methods and methodologies for the correction of errors in the process. India can be able to embrace it fully within 10 years’ time.
M-Wallet is a vision of the future. A process of cashless transactions, which is inevitable in the longer run to curb inflation, felling of the trees, and speeds up the process of instant payment.

[1] E-Money as the name suggests is the name of the process of transactions happening in the virtual world, from hand held devices like mobile, i-pad, etc. through a series of security features.
[2] Mobile-Wallet is the name for the mobile purse or money floating in the hand held device

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