How You can Also Make Your Wallet Like Paytm?
Digital Wallets and Payment wallets 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 licenses from the Reserve Bank of India for Payment Wallets.
With a crunch on cash holdings in sight, 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. As per RBI, you can start three types of Wallets:
This is a type of wallet which 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
Closed wallets are wallets which 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
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 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.
Generally, RBI after scrutiny of documents and facts gives a license in 90-120 business days. And then, you can use the wallet in your app!
Interested in Integrating Wallet or Building Something like Paytm? Enterslice can help you with a Prepaid Wallet License.