What could be the effects of e wallets or mobile wallets like oxigen ,Paytm or freecharge on an economy ?
The e wallets or mobile wallets like paytm , freecharge,oxigen do not make
money or print money . In that logic they are no different
than your credit
card or debit card issued by a banking institution or financial institution .
They are basically pre paid instruments
use online payment gateway to pay actual
money which is used to buy real goods and services through electronic medium by
use of internet.Basically they are a part of IT(Information Technology) act 1999.
e wallets in India
These e wallets are not likely to have any effect on
inflation or NPA’s(non performing assets)/ real economy or currency markets.
But by altering any cash deal that world have gone unrecorded under it, it
would make such dealings noticeable and thus taxed. It play a very crucial in
controlling black money .
In India these mobile wallets are required to hold their
money in government approved securities or an bank account in a regular bank.
This keeps the money safe and unleveraged as divergent to a regular bank which
can influence their deposits several times over.
In certain African nations mobile apps like m-pesa actually
became superior than the banking sector which affect the constancy if their
financial sector. This is not likely to happen in India because India has a
much better banking sector and persistently high inflation makes keeping money safe
and sound in a mobile wallet instead of investing it expensive.
These are also very helpful for a developing country because
it made services more ease and flexible .They also make various services in
reach of various people either they belong to a remote areas too. They also
play a very important role in improving the GDP(Gross Domestic Product) and npa of a
country.
