Money Transfer Applications Essay Example

resources can include various forms of identification like ID cards, social security cards, driver's licenses, health cards, payment cards, loyalty cards, website login information, and more. The wallet also allows storage of non-personal validation such as tickets for public transport or events, car and hotel keys, gift cards, and coupons. The digitized assets in the wallet can be represented in different formats including numbers (like credit card numbers), passwords, digital certificates, QR codes, images of the owner or other types. These representations are linked to the owner's sensitive personal information which emphasizes the need for strong security measures in mobile wallets (Henry ; Steiger, 2016).

Strong security is crucial for mobile wallets due to the sensitive nature of personal data. Security features are necessary for the vault of a mobile wallet, and these requirements may vary depending on the contents stored within. Differentiating between a loyalty card and more valuable items such as a personal ID or car key is important. It is also necessary to distinguish between a mobile wallet and a wallet service.

The administration provided by the wallet administration is crucial for connecting the business to a specific stored value in the mobile wallet. While the mobile wallet itself is merely a container for storing digital assets, it does not give them any significance. It is only in the business context of an administration that the digitized value becomes meaningful; otherwise, it is pointless. In the case of payments, for example, the credit card number is a digitized value that can be stored in a mobile wallet. The business connection for this credit card number is the payment service provided by a bank (and/or

the card scheme). The bank associates the card number with the customer's account and authorizes the payment transaction.

The bank acts as the provider of the installment administration. The previous content has hopefully provided understanding of what a versatile wallet is and the basics of its functionality. In the next post of my portable wallet series, I will discuss two fundamental groups of mobile wallets: proximity wallets and remote wallets.

Literature Review

'Time is Money.' This is the statement made by Benjamin Franklin, thus connecting these two concepts. Moreover, these are exactly the two concepts that the Mobile Wallet aims to combine, saving time while spending and transferring money (Henry ; Steiger, 2016).

A mobile wallet is a payment method that allows you to make payments in both online and physical stores. Unlike online payment services, which are used for online shopping, a mobile wallet can be used in brick-and-mortar stores as well. It provides an easier alternative to swiping your card or using cash to pay. So, there's no need to worry about forgetting your wallet anymore! However, like anything new, there may be both excitement and apprehension.

Advantages

According to Prashaant, A., ; Sharma, N. (2015), the following are some of the advantages:

1. Usability – It resembles a single tick pay with no compelling reason to fill in card numbers and passwords without fail.One can interface their MasterCard, charge cards and financial balances and pay promptly with no bother to enter the subtle elements every time.
2. Straightforward entry – There will be no need of physical wallet as we do on account of money or cards.Likewise mobile wallets are moving up to permit you
   

to store your archives digitally like your Driving License, Andhra Card, Pan Card, and so forth.

• Disadvantages
1. Versatile system network is the greatest obstruction. System issues and dependable and quick web availability are not accessible in the greater part of the creating nations.
2. More than availability, security issues are at the cutting edge these days. Individuals are constantly under the apprehension of abuse of their cash by programmers and fakes. They generally feel more secure to have money. Again there are likewise issues of wholesale fraud that should be tended to. Issue of pick-stashing will be supplanted by these worries.
3. Enough bolster frameworks are not accessible. In nations like India, there is insufficient budgetary consideration and monetary education. Unless that develops, there is no utilization in getting increasingly propelled innovations.

This is a Smartphone application. People may have concerns about the battery life of their smartphone as a reason to avoid using this app.

• The United States does not have efficient dispute resolution processes. People's experiences with customer service representatives are also not encouraging.
• There are multiple wallet administrators and it is still unclear if payments to other wallet administrators will be possible or not. For example, Airtel Money should be able to pay SBI Buddy.
• Replacing everyday transactions with cash is easier said than done.

Using a mobile wallet to pay a conductor for a ticket in a crowded transportation system may not be practical. It is possible but difficult, especially in countries like India where frequent small transactions occur, ranging from Rs. 5 to Rs. 10. These transactions need to be handled carefully without any misunderstandings as they make up a significant portion of spending in India (Henry & Steiger, 2016).

It is a difficult task to incorporate mobile wallets into Indian life, but similar reservations were found when plastic money was introduced. However, we must have hope and adapt to this change. Albert Einstein once said, "The world as we have made it is a product of our thinking.

It cannot be changed without changing our thinking." Just as plastic money became a common thing 10 years ago, mobile wallets will be the next big thing. It is important that we overcome our fears, change our mindset, and start embracing these technological advancements to improve our efficiency in payments and money management (Varshney ; Vetter, 2001, January).

Elizabeth Warren emphasizes the importance of balancing one's cash for financial stability. One notable advantage of mobile phones is their ability to utilize a mobile wallet, which securely stores and receives money through a virtual wallet accessed on the phone. The use of a mobile wallet brings various benefits such as lower transaction fees compared to traditional methods, fostering partnerships between mobile network providers and financial institutions, and encouraging innovation in the mobile financial market by service providers (Henry & Steiger, 2016). A mobile wallet serves as a profitable payment tool that offers several advantages including upgrading consumer accounts and displaying reward points earned at the end of purchases. It simplifies both the merchant's and buyer's purchase process by allowing loyalty points to be included or redeemed at the point of sale instead of using cash or credit. Moreover, it provides consumers with purchase data and retail offers based on previous purchasing behavior. Notification messages are also sent regarding insufficient funds or overdrafts, while enabling consumers with multiple debit/credit cards to select the specific card offering maximum value in terms of rewards, interest rates, or redeemable coupons.In addition, the mobile wallet has the capability to automatically open a prepaid debit card for payments at a specific store or location, as well as for a designated retail category. Based

on the purchased item and location, it also suggests available accessories in the same store or nearest retail location. Furthermore, it provides banks with the ability to adjust credit limits through straight-through processing (STP). If a bank requires STP or delays crediting, consumers have the option to select an alternative banking partner that offers a more direct and expedited STP process.

The introduction of a versatile wallet is a representation of the rapid development of technology in today's society. This advanced technology caters to the needs of the mass population and allows for secure means of carrying money. In a fast-paced and technologically advanced lifestyle, having a mobile wallet is essential for individuals to have a convenient and wealthy financial existence. It eliminates the need to carry cash or cards in crowded market areas, making shopping and transactions with large amounts of money much easier.

The mobile wallet is an effective solution for this concern (Prashaant ; Sharma, 2015). These applications also make accessing accounts easier. However, in developing countries like India, where people are resistant to technological advancements and stick to traditional thinking and lifestyle, these mobile wallets are not very relevant. These advancements are more significant in areas where people are more adaptable to changes and accept the developments happening in society.

In order to utilize any applications, it is important for individuals to first recognize the importance of cell phones (Henry ; Steiger, 2016). We must not forget that there are people around us who are unaware of even the basics of using a simple cell phone. Another concern is the significant risk associated with fraudulent activities. There has been a rise in digital crimes

and frauds occurring frequently in today's era.

Given the widespread use of mobile wallets in our population, there is a concern that malicious individuals could access account details and harm our economy instead of contributing to its growth. Therefore, it will take several decades for our country to reach a point where we can confidently use mobile wallets without fear of deception. According to Prashaant & Sharma (2015), when using a mobile wallet for payments, the money in the wallet is typically restricted to a specific e-commerce website. For instance, pay tm wallet cash can only be used on their own site, not on other e-commerce platforms. If all e-commerce companies collaborate, then mobile wallets would be beneficial in India where fraudulent transactions are common.

The payment is made securely and there is no need to worry about the wallet or be stressed if the wallet is in a crowded place.

Conclusion

Money transfer apps have revolutionized the world and are enabling businesses to process transactions faster, thus creating a global village. Mobile wallet apps have increased security in large cash transactions, making the process easier. Other mobile apps like Mpesa have also advanced money transfer capabilities. With current technological advancements, it is expected that the technology will continue to improve in the future.

References

1. Donovan, K. (2012). Mobile money for financial inclusion. Information and Communications for Development, 61, 61-73.
2. Patel, R., Kunche, A., Mishra, N., Bhaiyat, Z., ; Joshi, R. (2015). Comparative Review Of Existing Mobile Payment Systems. International Journal of Applied Engineering Research, 10(7), 16873-16884.
3. Prashaant, A.,

; Sharma, N. (2015). Vodafone's M-Pesa-A Mobile Wallet Revolution. FIIB Business Review, 4(2), 26-29.

J. (2016). U.S. Patent No.

9,367,838. Washington, DC: U.S. Patent and Trademark Office.

Varshney, U., ; Vetter, R. (2001, January).

A framework for developing mobile commerce applications is discussed in the Proceedings of the 34th Annual Hawaii International Conference on System Sciences, 2001. (pp. 10-pp). IEEE.