Mobile payments
Also called: Payment apps · Topic: Payment Systems and Digital Finance · NCERT: Class 7, Ch 8 "Banks and the Magic of Finance"
Meaning
Mobile payments are payments made through a mobile phone, using bank apps, wallets or UPI apps such as BHIM. They allow instant transfers and balance checks at any time. Class 7 NCERT notes that they reduce "the need for physical passbook updates" and let users "track transactions anytime". During COVID-19, mobile payments allowed contactless, cashless transactions. With UPI, money moves directly from one bank account to another. No wallet balance is needed.
Example
Kumar buys fruit from Piyush. He scans Piyush's QR code in a UPI app, types ₹120 and enters his UPI PIN. Kumar's account is debited, Piyush's account is credited within seconds, and both get a confirmation.
Don't confuse with
- E-wallet: a wallet holds money that was loaded into it in advance. UPI mobile payments move money straight between bank accounts.