Indian e-wallets are gasping for breath
The mood in India’s e-wallet Industry is sombre as firms face a potential loss of up to 80% of their business due to a new regulation.
The deadline to complete the mandatory know-your-customer (KYC) process and linking e-wallets to a government-approved identity proof, ended on Feb. 28. Since then, people who didn’t finish the verification process have been unable to load money from their bank accounts.
Till now, using an e-wallet involved merely downloading the app, registering one’s mobile phone number, and linking it to one’s bank account. Now, customers also need to complete a more detailed KYC procedure within a year, which involves visiting a company-approved centre and getting documents physically verified. With this additional step, the industry has lost its most important pull-factor: convenience.
This puts the e-payment market’s rapid expansion—it was expected to grow to $1 trillion by 2023—in jeopardy.
Photo courtesy of Simone McCourtie.