New Delhi: Customers will soon be able to transfer money from one e-wallet to another e-wallet as the Reserve Bank of India (RBI) has issued fresh guidelines on interoperability of prepaid payment instruments such as e-wallets recently.
It will be a huge boost to customers who depend significantly on mobile e-wallets as they will now be able to transfer money from one e-wallet to another e-wallet. For instance, if you are a Paytm user, you will now be able to send money to a person who has a MobiKwik account as well.
It may be noted that a large number of individuals who use wallets such as MobiKwik and Oxigen are mostly denied at shops as most of the retailers use Paytm. However, the new move will make it easier for individuals who use MobiKwik and other wallets.
Customers should note that after the implementation of the guidelines, you can just have one e-wallet will all your details. For instance, some existing services ask for payments through different e-wallets. However, you can now pay for any service through a single e-wallet account.
In a nutshell, your single e-wallet will act like a bank account in terms of digital payments, reported livemint.com, adding that customers will also get a Rupay, Visa or MasterCard card from the particular e-wallet company.
After the implementation, customers will be able to transfer funds to any other e-wallet or bank account—it will apply to both online service or through point of sale (PoS) terminals or swipe machines at brick-and-mortar stores.
How to avail the benefits?
For those customers who are looking to use the interoperability feature will have to get a full KYC done. So, you will need to submit a valid identity and address proof to your e-wallet service provider. Once they have completed the KYC process, they can seamlessly use the interoperability service.
The entire move might open up new doors for the digital wallet and payments industries and customers can now choose from a wide range of e-wallets without any limitations. For instance, many people use Ola Money because ride-hailing company Ola does not accept Paytm. However, the customer will soon be able to use his single e-wallet to make payments for any service.
It may be noted that the move may also create a level playing field for digital wallet companies. While companies like Paytm enjoy dominance, there are others which have not been able to garner such a high customer base. With the move, the digital wallets industry may see more competition and more discounts.