Following RBI’s refreshed guidelines for mobile wallet operators in the country, Paytm has been ramping up its team as well as stepping up investments to ensure that all of its 250 million customer wallets (and 250 million new ones) are KYC-compliant. The leading mobile wallet provider has announced a $500 million investment in KYC compliance over the next three years. This comes days after Paytm said that it was hiring 10,000 temporary executives to handle its KYC (Know Your Customer) accounts.
“We will be investing $500 million into KYC operations in the next three years to build the most dominant KYC compliant wallet and payments bank in the country. We are expanding our KYC network across the country to enable all non-KYC customers to become full KYC customers and continue to avail all services including P2P [peer-to-peer],” Renu Satti, managing director and chief executive officer of Paytm Payments Bank, told Moneycontrol. Satti was appointed as the head of Paytm Payments Bank earlier this year.
Paytm currently has 250 million wallets, which include both KYC and non-KYC accounts. KYC is a process through which banks obtain information about customers and verify their identities to ensure safest and secure transactions. Until now, KYC compliance was mandatory for accounts that held above Rs 20,000. However, the new guidelines issued by RBI earlier this month state that accounts with Rs 10,000 are required to be KYC-compliant. Thus, Paytm will have to quickly bring more of its customers under the KYC ambit. For that, it is setting up 100,000 (payments) banking outlets and KYC points.
RBI has further stated that all mobile wallets would become inter-operable in the next six months. It implies that a Paytm customer can transfer money to Mobikwik or UPI or any other payments interface. The new guidelines also remove any caps on transactions. Now, an unlimited amount of money can move between the bank and the wallet. “A single KYC done by us will now be valid for wallet, bank and other financial services. This will give us a significant edge over standalone wallets,” explained Satti. Also, “ inter-operability will bring new customers to our platform,” she added.