Mobile Wallet

What Does Mobile Wallet Mean?

A mobile wallet is a type of payment service through which businesses and individuals can receive and send money via mobile devices. It is a form of e-commerce model that is designed to be used with mobile devices due to their convenience and easy access.

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A mobile wallet is also known as mobile money or a mobile money transfer.

Techopedia Explains Mobile Wallet

A mobile wallet primarily enables an individual to pay as well as receive payment using a mobile device. Typically, a mobile wallet is delivered through several payment processing models. This includes, but not limited to:

  • Mobile-based billing – A user generally sends/receive payment via their mobile service provider (or in the same invoice).
  • SMS-based transactions – The transaction is initiated by sending an SMS short code. In this case the payment can be credited/debited from the configured bank account, credit card or mobile service.
  • Mobile web payments – Allows a user to send/receive payments via a mobile app.
  • Near-field communications (NFC) – This uses a mobile app and special hardware built in to the mobile device to interact with a payment-processing terminal.

Regardless of the model used, a mobile wallet service is generally delivered by and in collaboration with mobile service providers and banks (or other financial institutions).

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Margaret Rouse

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.