Following the Reserve Bank of India’s (RBI) recent direction mandating full KYC compliance for digital wallets and Prepaid Payment Instruments (PPI), MobiKwik, on Wednesday announced it would invest Rs 400 crore over a period of five years for KYC compliance.
Of this, Rs 100 crore will be invested over the next 12 months, for their current over 2 crore users.
KYC (or Know Your Customer) is the process of obtaining customer information to verify identity and ensure services are not misused.
Bipin Preet Singh, co-founder and CEO of MobiKwik, said,
“We have set a target of achieving 2 crore full KYC wallets within the next year and we are expecting an expenditure of around Rs 50 per customer.”
Bipin had earlier said that with full KYC, a user will have access to the entire financial system through a wallet, spelling a promising future for the industry. According to him, the digital wallet is the new king of fintech and these guidelines are a testimony to the growing influence of digital wallets in the Indian financial industry.
Bipin today said,
“RBI’s new norms further enrich PPIs and demonstrate our government’s allegiance to digital payments and commitment to the growth of the industry. Collaboration and competition are also going to drive the digital payments industry to its next phase.”
The company also announced plans for Aadhaar based e-KYC and will contract over 7,000 field staff for the same.
MobiKwik’s competition, Paytm announced today it had added more than 120,000 physical KYC points across India in line with the RBI’s new guidelines.
This will allow its customer base to get their KYC done across 1000 towns in India.
In this regard, Paytm has also introduced a ‘Nearby KYC Points’ section in its app which would direct the user to nearby partner shops and locations.
Renu Satti, MD & CEO – Paytm Payments Bank said,
“Our approach has been to build a large and inclusive ecosystem that impacts the lives of the widest set of users. The Paytm KYC will be an enabler for consumers to gain access to inclusive payments and banking services. With that in mind, we have launched the most aggressive and far-reaching customer KYC drive in the country. This is one of our milestones towards onboarding half-a-billion customers and achieving financial inclusion.”
In an earlier interaction with YourStory, Renu had said that Paytm will invest close to $500 million in KYC operations.
She had also mentioned the company’s plan to deploy more than 100,000 banking outlets and KYC points across the country.