Wallets - Doubts

These days wallets such as Paytm, Mobikwik, freecharge are very common and lot many other small wallets are in the market. I am interested in few things

- How safe is money in wallet? I am not concerned about company going bankrupt but more concerned about wallet company running away with my money or money got debited from my wallet but did not reach merchant or suddenly my balance becomes 0 or my account is blocked and there is no way for me to withdraw money etc.
- What would happen to the money after the death of individual? Can I nominate someone. If I have not done nomination, can the money be claimed by legal heir.
- What would happen if my mobile no. is no longer valid? This can happen in case when I lost my mobile or my phone got disconnected because I switched my mobile or some dispute with telecom operator.
- Some wallets such as Payzapp can be accessed only using mobile app. What If my phone got damaged and I do not want to purchase a new smart phone?
- Is there a way to lodge complaint against these companies in case of any issues? Can I approach Banking Ombudsman or any other authority appointed by RBI?


Active member
In my opinion it is not a viable business.

They are burning venture funds money.

Sooner or later will go kaput.

Use it to enjoy discounts, no need to park money more than 3 digits.


Staff member
A user can always contact the support department of wallet companies for issues like money not reaching the intended account etc.

As far as I know these wallets do not offer any nomination facility. If there is any credit balance in any wallet, a legal heir can claim it. In such a case, the legal heir will have to contact the support will all important documents.

Most wallets have dual login options. A user can login either using his email and password or mobile and OTP. If both are not available, the user should contact the support.

I am not sure whether RBI accepts complaints against wallet companies. However one can approach consumer forums for such complaints.

Many wallets are either backed by regular banks or payment banks. Money with payment banks like PayTM Payments Bank, India Post Payments Bank and Airtel Payments Bank is protected by DICGC insurance.

I agree with Atiker and feel that standalone wallets have no future. Only wallets that are attached to business like bank (ICICI Pockets), telecom (Airtel), ecommerce (Paytm) will survive.

Wallet companies are focusing only on customer acquisition. There is little customer loyalty in such businesses and as soon as the customers find better deals and discounts, they jump from one wallet to another.

The same is the case with Indian ecommerce companies like Flipkart and Snapdeal. After burning billions of dollars, they are nowhere near making a dollar of profit.
I called up Payzapp customer care and tried to find these answer. Don't know how true is this but following are my understanding based on conversation.
- If you do not have access to sim, there is no way to login to your account. If you know your Payzapp card details, you can use that to shop at any merchant.
- You can only log in on device which contains your sim. If I lost my smartphone and dont want to buy new one, I would probably need a friend who would lend me his mobile and allow me to put my sim in it and login to my Payzapp account.
- In case of death, I could not understand much. The executive was saying the money can be transferred to source account only. Inspite of asking multiple times about the process or documentation, he just told me that money can be transferred to source account only.
I expect lesser people will use Paytm now that they are charging a 2% fee to refill the wallet with a credit card. I can then easily use my card everywhere rather than use wallet whether offline or online. Even cab services like Ola and Uber now accept credit cards so there is no reason to use wallets anywhere.