Open Wallet: Allows you to buy goods and services, withdraw cash at ATMs or banks, and transfer funds. These services can only be jointly launched with a bank. Additionally, it allows users to send money to any mobile number bank account.

Semi-open Wallet: Allows you to transact with merchants that have a contract with the semi wallet company. A user cannot withdraw cash or get it back; he will have to spend the amount he had loaded.

Closed Wallet: More prevalent with e-commerce companies. Here, a certain amount of money is locked with the merchant in case of a cancellation or return of the order, or gift cards.

Semi-Closed Wallet: This does not permit cash withdrawal or redemption, but allows users to buy goods and services at the listed merchants.

UPI: Unified payment interface is a payment system that allows you to transfer money between any two parties. This way you can pay directly from your bank account to different merchants without the hassle of typing your card details, or net-banking or wallet password.

BHIM: Bharat Interface for Money (BHIM) is a UPI based service to enable money transfer using just a mobile number. It is an instant payments application meant for sending money as well as requesting for payments.

Read: Cash is Passé

olmdesk@outlookindia.com