OTC payment simplifier

Cash payment is becoming obsolete.

Card payments r growing rapidly.

Mobile wallet payments r increasing in number...

With the advent of mobile wallet payments, it is very clear that it will replace card payments very soon. 

Now how do we increase the usage of wallet to accelerate the growth?

Let's analyse the problems of wallet payments.

This is not the result of any market study or research... Rather it is just sharing of personal experience.

Firstly, how payments have evolved.

1. Centuries before, barter system was the only way to purchase any products.
2. Later it slowly got released by monitory currency of large numbers...
3. Then after the invention of technology after several centuries plastic currency (cards) replaced the cash transactions.
4. Now mobile wallet is emerging.

Transformation from 1 to 2 and 2 to 3 took several decades (even centuries). But 3 to 4 appears to be a quick transformation ...

We don't need to investigate what's good in 4 and what's bad in 3... It will be pointless... Coz both r good and bad in some aspects. I would say both r equally balanced..

But my personal opinion is whether can we make 4 even stronger? 

Anyhow because of growing startups and inventions we will see a 5th type of payment option sooner. But we cannot let it go with the same disadvantage which I felt on mobile wallet payments.

Let me stop the buildup and come back to topic.

Now, what is the problem in wallet payments (or soft cash)??

1. In the barter system there is no price tag for any product. And people in those era does not require a price tag.
Later some period there came a pricing in numbers for every products which introduces cash transaction. And people get cash in hand by way of wages or salary. Which was easy for them to pay everything in cash.

2. Later when salary was credited directly into back people want to do two step process for any purchase. One is to withdraw cash from account and then pay for our purchases. Excess cash withdrawal will result in idle cash.

3. Later introduction of debit card for purchase which reduced the two step process to one step since people need to withdraw cash and have it in reserve (thought it is practically possible to make card payment every time, it was helpful to a certain extent)

4. Later introduction of credit card. (Interesting facts and history of credit card will be posted in my next blog post).
This again went back to two step process. One is making payment while purchase and credit card bill payment. This increased liquidity so this process was adopted by public much faster.

The reason why explained all these is to understand how every payment method was adopted and what made public to adopt the new methods. Let's think about the wallet payment system.

Mobile payment system introduces a three step process which is even more complicating. In the step we need to load cash into our wallet through credit card, then we need to make payment (only to those merchants who will access such payments), and make payment to credit card. Another disadvantage is that if we load cash into our wallet through our bank account is, it will not fetch any interest rather money lying in Bank account will fetch some amount of interest.

We have to overcome all these challenges and build a robust system or another payment method and enjoy multiple interventions while purchasing.