What is the difference between a closed and semi closed mobile wallet?
Closed wallet: A closed wallet is offered by a retailer to purchase goods from their store only. Many e-retailers, like Myntra and Flipkart, have their own digital wallets. Telecom companies also offer closed wallets, like Airtel Ltd’s Airtel Money, Aircel’s Mobile Money and Tata Teleservices’ Ltd’s mRupee.
Semi closed wallet: Semi-closed wallets allow you to make purchases across multiple vendors as per their approved merchant vendor listing. MobiKwik, PayU, Oxigen and Paytm are examples of popular semi closed wallets. As per RBI guidelines, you can deposit Rs. 20, 000 in your wallet with minimum KYC and up to Rs. 1 lakh by providing full KYC details.
Open wallet: Open wallets are provided by all banks, allowing all functions of semi closed wallets plus additional benefits of cash withdrawals at ATMs. Open wallets can only be issued by banks as of now.
Closed wallets are more like pre-paid wallets, where your money moves out of your account, to the wallet, and then to the merchant’s account. With semi closed and open wallets, your money stays in your bank account or Credit Card.
Just like your regular wallet allows you to store more than just cash, you can also store loyalty card information and digital coupons along with cash in your digital wallet.
Wallets don’t give you any returns. You need a Fixed Deposit for that. Want to check out Fixed Deposit offers? Click here to compare and apply.