E-Wallets Soon to Become Invalid
E-wallet companies struggle with RBI regulations to complete KYC process and will soon become invalid.
The Indian government has changed laws regarding online payments in the country. Mobile wallets are online wallets where people can store money. They can use this wallet to make payments online. E-wallet companies are struggling to follow the RBI’s rules of customer verification or KYC.
KYC means “Know Your Customer” which include the customer's ID and address details. Almost 80% of the users have not completed this process. Earlier the process of KYC was easy because all the details were available on the Aadhar card. Since the Supreme Court banned private companies from using Aadhar details, it has become very difficult for them to complete the KYC process.
Customers have to submit various documents to make use of the e-wallet service. That’s why they have switched to easy modes of online payments such as UPI. UPI helps to transfer money from one account to another directly.
E-wallet companies such as Amazon Pay, Paytm and Mobikwik have decided to stop e-wallets and switch to UPI payments.
