Limitations

When recharging the e-wallet balance online, chances are that the bank server might be down. In case of slow Internet speeds, this model might not work. Especially in rural areas, Internet subscriptions may have no coverage. Connectivity is achieved by making long-distance calls to nearby cities. This results in slow and unreliable access (Rao 2004). Analysis of e-governance also describes the general resistance of people to change. People don't wish to change, and skill shortages and low information technology literacy add to this. The high cost of Internet use is another hindrance (Backus 2001). These are the reasons for the failure of e-governance in India.

Another limitation is username and password theft (Chou et al. 2004). If we lose our mobile phones or if someone gains knowledge about the username and password, that person might get access to our e-wallet balance. This is the same disadvantage as in the present card system. If the card falls into the wrong hands, unauthorized access might occur. A challenge also lies in preventing forgery (Vatanen 2001). This chapter does not incorporate the financial implications of implementing this model.