Payment Wallets - my take on it

Paytm, PayUmoney, Mobikwik, Freecharge, Oxigen - there are so many payment wallets around these days and they claim to offer so much to the buyer. Discounts, cashbacks, reward points in addition to faster payment times and added security. Here's what I as a regular online shopper think about it all.

1. Paying utility bills / recharges- Wherever cashbacks and discounts are offered on utility bill payments, I think this is a pretty good idea. Sites like Paytm have offers that sometimes give a good Rs.100 cashback - which is quite something. And you get all the convenience of online transaction with the necessary security. Some like Payumoney have a very neat website design that makes the transaction seem simpler.

2. Paying for Taxi / Cab services like Uber or Ola or others - Another wonderful idea, I think. Making the transaction cashless saves you the trouble of always having to keep change in your pocket or the risk of the cab driver not returning the necessary change. And its convenient and safe too - you are not left hunting around your bags for the money or change.

3. Online shopping - Ah! This is where these players would plan for most of their business. When you have money lying in a wallet online, the temptation to spend it on shopping online is too great! And then they offer you cashbacks - ridiculous cashbacks that leave me drooling :P! 

               But then it also determines where I shop from. For eg: if A site offers 10% discount on the MRP of a product, and B site offers 5% discount, but with additional cashback of 10% on a particular wallet, I definitely choose B. Because I know that I can use the cashback on other transactions easily, and it gives me an overall 15% discount benefit. Overall, although paying through a payment wallet during online shopping offers various benefits, shopaholics like me need to watch out for overspending.

These wallets are still new in India and hence the offers are presently too good to be true. Over time, these cashbacks and perks may reduce - whether consumers will still opt for them then, is a question. Also, online marketplace laws and regulations have recently been put in place - lawmakers are critical of the discounts offered. And then my online shopping habits will be brought under control. Until then, I am making hay while the sun shines. :D