India’s largest e-wallet company, Paytm allows customers to use gift vouchers even if they haven’t completed their Know-Your-Customer (KYC) formalities. Using this option customers can still load money to their wallet.
Ewallet companies have been in crisis since RBI asked them to complete KYC norms before March and it has affected their business as the customer base dropped massively within a few days.
Paytm has been working around the latest directive of the RBI for mandatory KYC, where users can load money into their accounts through gift vouchers on the platform.
“The RBI’s directives are very clear for wallets and KYC but companies offering a gift voucher after the new rules is a grey area. Players opting to give a choice of vouchers are doing this to disguise load money into accounts so that non-KYC users can continue using the platform to pay merchants,” said a representative of Paytm.
The company’s move to issue gift vouchers is a strategy to minimize the damage to its non-KYC ewallet user base.
Paytm has been trying to migrate users from a pure-play e-wallet to its channel on the Unified Payments Interface, or UPI, platform
But these gift vouchers won’t let you send money to others or send it back to your bank accounts. To tackle the current crisis due to the implementation of new KYC norms, Paytm and other ewallet players have started to diversify their business into other fields.