From what goes on in the market, it seems that, cash went out of fashion ages ago. Companies are bending over backwards to find ways for us to make payments. Instead of relying on credit or debit cards, now you can make every payments through a virtual wallet.
What Is A Virtual Wallet?
Basically, it’s a home to your online money. You make payments through money stored in your wallet without practicing your credit, debit card or net banking. Once you've stored the money in a wallet, you can use it to make payments - to the wallet provider or to third party services depending on the type of wallet. Some wallet services such as Paytm are built around their own stores where you can buy goods, recharges for your phone or pay your DTH bill. You can also use these wallets to make payments at other websites - BookMyShow and JustEat.in both support Paytm.
Why Paytm Wants To Increase The Wallet Limit?
In the fast paced life of major metro and urban cities, a consumer’s cost of living and mobile penetration is erupting very high. Due to which nowadays, customers are crossing the rupees 10,000 limit set by central bank. Half a million Paytm customer spend more than 10K , which might inflame to a million in uprising times. This results in a crazy demand for Paytm offers and coupons.
According to Economics Times, around 85 million curious patrons use Paytm mobile wallet, for the effective transaction of huge money. Adding to that, in the month of March this year, credit and debit cards issued by all banks witnessed 150 million transactions. The founder of Paytm Vijay Shekhar Sharma confirmed that the comparable figures for the same month for Paytm were 75 million. Therefore, Paytm has requested RBI to increase the wallet limit from Rs 10,000 to Rs 25,000.
How Would It Benefit Paytm?
In accordance with legitimate RBI norms, for a customer to hold 10K in a mobile wallet, a very minute details like a mobile number and email verification is sufficient. But for anything higher, a full KYC, just like in a bank account, is obligatory. But Paytm officials believe that it could exceed to 25K, which might make its volume of transactions to overtake all POS transactions put together by the end of this year. Paytm vision sketches itself, as india’s largest consumer facing platform with a mobile marketplace that aims to have half a billion Indians on the Paytm platform before 2020. Market rivals like MobiKwik and Oxigen have stood in support to enhance the mobile wallet limit.
Challenges
Banks which have done a full KYC of their valued customers, have also started providing mobile wallets, which gives them an extra edge unlike those of mobile wallet providers. For example, HDFC Bank, have started marketing this as key advantage over third party mobile providers.
What Is A Virtual Wallet?
Basically, it’s a home to your online money. You make payments through money stored in your wallet without practicing your credit, debit card or net banking. Once you've stored the money in a wallet, you can use it to make payments - to the wallet provider or to third party services depending on the type of wallet. Some wallet services such as Paytm are built around their own stores where you can buy goods, recharges for your phone or pay your DTH bill. You can also use these wallets to make payments at other websites - BookMyShow and JustEat.in both support Paytm.
Why Paytm Wants To Increase The Wallet Limit?
In the fast paced life of major metro and urban cities, a consumer’s cost of living and mobile penetration is erupting very high. Due to which nowadays, customers are crossing the rupees 10,000 limit set by central bank. Half a million Paytm customer spend more than 10K , which might inflame to a million in uprising times. This results in a crazy demand for Paytm offers and coupons.
According to Economics Times, around 85 million curious patrons use Paytm mobile wallet, for the effective transaction of huge money. Adding to that, in the month of March this year, credit and debit cards issued by all banks witnessed 150 million transactions. The founder of Paytm Vijay Shekhar Sharma confirmed that the comparable figures for the same month for Paytm were 75 million. Therefore, Paytm has requested RBI to increase the wallet limit from Rs 10,000 to Rs 25,000.
How Would It Benefit Paytm?
In accordance with legitimate RBI norms, for a customer to hold 10K in a mobile wallet, a very minute details like a mobile number and email verification is sufficient. But for anything higher, a full KYC, just like in a bank account, is obligatory. But Paytm officials believe that it could exceed to 25K, which might make its volume of transactions to overtake all POS transactions put together by the end of this year. Paytm vision sketches itself, as india’s largest consumer facing platform with a mobile marketplace that aims to have half a billion Indians on the Paytm platform before 2020. Market rivals like MobiKwik and Oxigen have stood in support to enhance the mobile wallet limit.
Challenges
Banks which have done a full KYC of their valued customers, have also started providing mobile wallets, which gives them an extra edge unlike those of mobile wallet providers. For example, HDFC Bank, have started marketing this as key advantage over third party mobile providers.
No comments:
Post a Comment