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If you are a fin-tech startup and willing to apply for mobile wallet license, Government has published new regulatory norms for PPI license. In this article, we will discuss the Mobile wallet license requirement as well the business flow of mobile wallet.
Table of Contents
A mobile wallet is a process in which no plastic cards are used, i.e., debit card or credit card. In this way, all the information of debit card and credit card are carried in a digitalized form. Mobile devices, i.e., smart phones, tablets, smart watches are used for making payments. In this process, the money is collected and retained by the entity, i.e., the particular application which you are using for making the payment and the same money is paid to the merchants who are the part of this acceptance.
It is an application which either comes in-built or is needed to be installed on smartphones. It is a type of storage container which stores the debit card or credit information.
In other words, it can be understood as the process by which payment is made digitally without using the cash.
After the application is installed/stored on your smartphone and the user of the application enters his payment information, this wallet will store this information by linking a personal identification format of the card holder. This application uses the technology known as Near-Field Communication (NFC) and this technology uses the radio frequency that communicates between the devices.
Not all devices use this technology, i.e., Near Field Communication, but for them, there are some other alternatives. The main benefit of using mobile wallet is that the issue of debit cards and credits cards being stolen is not with the mobile wallet, and also the payment time and waiting time can be reduced if the transaction is done through mobile wallet application.
For using a mobile wallet and making payment the user has to first load the money in the wallet through internet banking or your debit card or credit card and then pay to transact.
The Mobile Wallet service took place in 2006 in India, but it was boosted in the year 2016 during the time of demonetization. The Government of India is also aiming to make the society cashless, and this is one of the steps towards the same.
Some of the Services offered by Mobile Wallet are as follows:
Prepaid payment instrument can be classified under the four categories:
RBI has specified some requirement which is required to be fulfilled before issuing prepaid payment instrument, those requirements are:
The requirements of RBI to be fulfilled are:
Any individual who is over the age of 12 years is eligible to hold the Mobile Wallet account.
With the amount of benefits one can get from Mobile wallet, its use is slated to get more and more in the coming times. However, there needs to be more awareness about its use among common people in order to not be fooled by others. In case you need more information on it, contact Enterslice.
Read our article:How You can Also Make Your Wallet Like Paytm?
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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