Monetize Your FinTech Ideas with Money Wallet License

  • May 22, 2023
  • Dushyant Sharma
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With the rapid penetration of digital payment systems and the ongoing financial technology revolution in India, particularly after demonetisation, there has been an unprecedented level of ease in monetary transactions all across India. Some of the big names in the field of digital payments are GPay, Paytm, MobiKwik, PhonePe, Dhani, Amazon Pay, and others. Even, today, most banks have their own fintech platforms that allow their customers to pay to others right from their mobile banking app.

At present, the fintech industry in India is estimated at USD 65 billion with a CAGR of nearly 22%. The fintech industry has exhibited exponential growth in its size over the last few years. India is slowly moving on its way to become a center for several Fintech startups. A few of them are Pine labs, Faircent, and PayU.

If a wonderful fintech business idea has been brewing in your mind, it’s time to put it into action by seeking a money wallet license. Yes, due to the government’s initiative towards promoting digital payment, getting a money wallet license has become easier like never before.

Let’s get to know more about what a money wallet license it and how it can help you pursue your business dreams like never before.

What is a money wallet license?

Also known as prepaid wallet license, a money wallet license is necessary for businesses that want to start a payment wallet service in India. This is as per the guidelines stated in the Payment and Settlement Systems Act of 2007. This can be obtained in the form of a Certificate of Authorization, which is known as Payment Wallet License or Money Wallet License.

What are Prepaid Payment Instruments (PPIs)?

Prepaid Payment Instruments (PPIs) are instruments that contain superior monetary worth. They can be used by people buy products and services at a set amount. These instruments contain a standard amount that a user can choose to pay from. The stored amount can be made available in the form of cash, debit, or credit card.

 

How to begin a wallet business in India?

To kick off a Prepaid payment instrument, popularly known as a prepaid wallet, it is necessary to secure a Prepaid Wallet license or Money Wallet License in India.

There are different types of money wallets popular in India like:

·         Debit Card

·         Credit Card

·         Paper Vouchers

·         Mobile accounts

·         Smart Cards

·         Magnetic Strip Cards

 

What are the different types money wallet licenses in India?

There are mainly 5 types of money wallet license or prepaid wallet licenses popular in India.

·         Closed Wallet: These wallets are provided by a business to a user for the purpose of buying goods or services entirely.

·         Semi-Closed Wallet: A semi-closed wallet allows businesses to deal with a specific group of sellers.

·         Semi-Open Wallet: A semi-open wallet allows users to buy products at stores that take digital cards.

·         Open Wallet: These wallets can be used to buy products and services anywhere

·         Cross-Border Transaction: The given guidelines are meant for people with permission to utilize PPI instruments ruled by foreign exchange.

 

What are the benefits of a payment service provider license?

There are lots of advantages associated with a digital wallet license.

·         Prepaid Wallets work virtually and it is impossible for lose or steal them.

·         One has the freedom to pay any amount such as Rs. 1573 or Rs. 169.27 through a mobile payment license.

·         Payment wallets enable instant execution of the transactions, as opposed to net banking transactions, where it takes from 12 to 24 hours to transfer the amount.

·         No hidden or additional charges are levied by a money transmitter license.

·         No requirement to submit an activation fee, annual or monthly fees, just like net banking or the annual charges of debt cards

·         Enjoy several rewards while using the wallet

·         Instant credit of the amount in the wallet from credit/debit card, net banking, etc.

·         Option to enable auto-pay service to avoid delayed payment of utility bills.

 

What are the eligibility criteria of getting money wallet license in India?

Below are the eligibility criteria to obtain a money wallet or e-wallet license in India.

1.    For banks and Non-banking financial corporations:

o    There is no minimum capital limit for banks and NBFCs. An approval from RBI is still needed prior to the use of PPIs.

2.    For Non-NBFC

o    The non- NBFCs or other entities must have the net value of at least INR 5 Crore to apply for prepaid wallet license.

3.    Entities authorized by FEMA:

o    There are no minimum capital limitations on FEMA authorized entities. However, they can only enable PPIs for a set number of current accounts.

 

What are the documents required to get a money transmitter license?

The following documents are required to obtain a digital wallet license:

·         Applicant’s ID proof

·         Address proof of the registered office

·         Certificate of incorporation

·         Memorandum of Association

·         Complete details of the management

·         Audited balance sheet of the company

·         Information related to the statutory auditors

·         Bankers of the company

·         Address of the banks of the company

 

What is the procedure to apply for a digital payment service provider license?

To get a digital wallet license, the applicant has to follow the below given steps.

1.    Establish your business as an organization

2.    Complete the application for money wallet license

3.    Submit the application

4.    Application screening is done

5.    Once accepted, approval will be granted

6.    After the receipt, submit audit report to RBI

7.    RBI will assess the report and application

Once, the eligibility criteria are fulfilled by the applicant, the mobile payment license will be granted.

 

The Conclusion

Are you looking to give wings to your fintech ideas by securing a money wallet license in India? If yes, registrationwala.com can help you at every step of your application to get an e-wallet license in India. Call us today or write to us and our team will get back to you at the earliest.

 

 


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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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