Mobile wallet firms fear losing 40% of their customer base due to KYC norms
Firms such as Amazon Pay have seen a 30 percent drop in their customer base.
July 08, 2019 / 06:29 PM IST
Mobile wallet firms fear losing close to 40 percent of its user base due to the deadlines around the Know you Customer (KYC) registration.
A Business Standard report said that firms such as Amazon Pay have seen a a 30 percent drop in their customer numbers.
The report quoted Sunil Kulkarni, co-chairman of the PPI committee of the Payments Council of India (PCI), saying that the KYC registration is seen as a cause of friction and customers would need further motivation for digital transactions. This is mainly due to compliance requirements.
Sriram Jagannathan, co-chairman of the PPI committee, said that a smoother digital KYC experience would encourage the process of transacting through PPIs.
Mobile wallet firms such as Paytm have invested sums as large as USD 500 million to get KYC process done for its 280 million-plus customers.
The report stated that only 45 percent of the customers have completed the full KYC compliance process so far.
The RBI directive requires wallet companies like Paytm, Mobikwik, Ola Money, Amazon Pay and Sodexo to meet full KYC (know your customer) norms for all their customers on or before February 28.
Minimum KYC comes with certain restrictions where the customer will not be able to send money to other wallets or any bank accounts, and not be able to keep more than Rs 10,000 in their wallet. The remaining transactions of making online purchases, bill payments or bookings can be done with the existing money in the wallet.