Prepaid Wallet License in India - Enterslice

Prepaid Wallets in India

A Guide to Licensing of Prepaid Wallets in India by Enterslice Copyright Š 2017 Enterslice ITeS Private Limited. Share Alike. Attribution Required.

What is Prepaid Wallet?

Prepaid Wallets are payment instruments that facilitate purchase of goods and services, including funds transfer, against the value stored on such instruments.

There are three types of Wallets

1. Open Wallet 2. Closed Wallet 3. Semi-Closed Wallet

Open Wallet This is a type of wallet which can be used to purchase of goods and services and also permit cash withdrawal at ATM's.

All Visa and master cards fall into this category.

Examples:

Where you can use Open Wallet?

Swipe at Merchant Locations and POS

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Withdrawing Cash at ATMS

Purchase Goods and Service from any Merchant

Closed Wallet Closed wallets are the wallets which are issued by a company to a consumer for buying goods and services exclusively from that company.

Examples:

Where you can use Closed Wallet?

To Receive Refunds for Returns and Receive Cashbacks

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Purchase Exclusively from Issuer Merchant

Pay Sellers on the Marketplace of Issuer Merchant

Limitations: Cash Withdrawal is not Possible. Strictly to be redeemed for goods or services from issuer

Semi-Closed Wallet It is a wallet that can be used to buy goods and services, as it is a payment instrument that are redeemable of clearly identified merchants that contract specifically with the issuer to accept the payment instrument.

Examples:

Where you can use Semi-Closed Wallet?

Pay to affiliated Merchants for purchasing goods and services

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Purchase goods and services from the Wallet issuer

Transfer Money between Users

Limitations: Cash Withdrawal is not Possible. Strictly to be redeemed for goods or services from issuer

Allowing Cash Withdrawal is the reason Paytm has taken Payments Bank License now.

Benefit of Wallet System People want access from wherever they are, whenever they need it. With e-Wallet you have the option of pay electricity bill, telephone bill, recharge of prepaid mobile, booking of bus and movie tickets etc. It is safe, easy to use and fast.

Few Case Studies

Successful Wallet Companies in India

Paytm (Now Payments Bank) ● ● ●

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Founded under the implemented idea of Vijay Shekhar Sharma and has got the first mover advantage in the mobile industry.

Paytm was launched in 2010. Initially started as a prepaid mobile recharge website.

Funding: The company has been backed up by Alibaba group and Ratan Tata.

The firm raised $575 million from Alibaba group for a share of 25% in the company.

Now Payments Bank License allows Paytm to Open Savings Account and allow to do everything a Banks do. (Except Lending, Eg: Issuing Credit Cards)

MobiKwik (Semi Closed Wallet) ● ● ● ●

Started in 2009, Raised a $250K Seed Funding Total $126.5 Million Funding 35 Million users and 100000 merchants (retailers) and 20000 merchants (online) use Mobikwik for payments MobiKwik Systems Private Limited, the parent company of MobiKwik has gone on to become India’s leading Mobile Wallet company.

BHIM - (Open Wallet, Uses UPI) ● ● ● ●

Launched by Prime Minister Sh. Narendra Modi An initiative to enable fast, secure and reliable cashless payments through mobile phones.

17 Million Active Users ₹ 960 Crore in Transactions till Feb 2017

Ola Wallet - (Closed Wallet) ● ● ● ●

Founded by Bhavish Aggarwal and Ankit Bhati in 2010 $1.67 Billion in Funding 600,000 Vehicles in 110 Cities Issued Ola Wallet for Pay as you go Credits and performing Recharge etc.

Have plans to start your own wallet?

Enterslice has helped entrepreneurs like you start their NBFCs and Prepaid Wallets.

Process Analysis of your requirements We will study your Business Model and suggest you the best wallet. Price varies from Closed to Open Wallets

Analysis

Execution

We Execute We prepare all the documentation, guide you through the process, help you in complying with RBI Guidelines and apply for final license with RBI. TAT: 90-120 Days

Making Starting and managing business easier Enterslice is Cloud based CA and Legal Platform driven by AI

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Customer Helpline: +91 9069142028 (IVR) Email: info@enterslice.com Website: www.enterslice.com