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Prepaid Wallet License

How You can Also Make Your Wallet Like Paytm?

Prepaid wallet

Digital Wallets and Payment Prepaid wallet are the new show in town with players focusing on this segment post demonetization. In this post, we will not talk about a Software stack to build a solution similar to Paytm, but on the process of obtaining prepaid wallet license from the Reserve Bank of India for Payment Wallets.

With a crunch on cash holdings insight, most people are rushing to cashless transactions. An effective way to transact a payment is through a prepaid wallet, which helps transactions to be carried out with transparency, availability, and accountability. The RBI helps in classifying cashless fund transfer or transactions using cards or mobile phones as prepaid payment instruments.

Types of Wallets

You can start four types of Wallets:

Open Wallet:

This is a type of wallet that can be used to purchase goods and services and also permit cash withdrawal at ATM’s. These wallets can be used for the purchase of goods including financial services such as funds transfer at merchant locations, also cash withdrawal at automated business correspondents or ATMs.

Examples: Master Card, Visa, Rupay

Semi-Open Wallet

This type of wallet allows users to buy and purchase goods but not withdraw funds. This type of wallet requires loading money and can be used for facilitating any form of purchase.

Closed Wallet:

Closed wallets are wallets that are issued by a company to a consumer for buying goods and services exclusively from that company. Mostly these function as an account where money gets credited in case of a refund due to cancellation or return of a product or service. It is issued by an entity for purchasing goods and services only from that entity, and it doesn’t allow cash withdrawal or redemption.

Examples: Big-Basket Wallet, Clear-trip Wallet, Amazon Wallet

Semi-Closed Wallet:

It is a wallet that can be used to buy goods and services through a payment instrument that is redeemable from clearly identified merchants that contract with the issuer to accept that payment instrument. This type of wallet does not permit cash withdrawal or redemption by the holder. Thus these instruments can be used to buy goods and services by identifying merchant locations or establishments in which the issuer accepts the payment instruments.

Examples: Paytm, MobiKwik

Once you’ve chosen the type of Prepaid Wallet according to your needs, you can then start with the Process of Registration with Reserve Bank of India. RBI[1] needs documentation on expected benefits to the financial systems, operating risks, systems in place to mitigate the risks, amount of finance required, sources of finance, amount of own capital proposed, amount of borrowings expected from banks, the rate of return on investment, etc.


The prepaid wallet license issued in India will be having minimum six months validity from the date of issuance or activation. Interested in Integrating Wallet or Building Something like Paytm? Enterslice can help you with a Prepaid Wallet License.

Read our article:All You Must Know About Semi Closed Wallet

Ashish M. Shaji

Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.

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