The global payment firm, PayPal is seeking a Prepaid Payment Instrument licence in India. Some of the internal sources reveal that the digital payment’s world leader is all set to enter Indian digital wallet market with Paypal wallet.
This move from PayPal comes after it evaluated many investments and acquisitions of wallet companies in the country.
The Reserve Bank of India has placed a halt on submissions of new applications. The cessation would stay since September till the RBI releases its new guidelines. However, as per the reports, PayPal may already have applied for the PPI licence.
Recently, some companies successfully managed to get the licence. Amazon and Pine Labs got their licences in March. But the list didn’t have the name of global payments leader. A source close to the industry says that Paypal even discussed its application with industry alliances.
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Furthermore, PayPal denies any comment on the matter. The company says that it never releases any statement on speculations and rumours. The RBI regulator when asked about the same, denied disclosing the application status under the Payments and Settlement Systems Act.
PayPal even was in talks with some PPI licence holder companies like FreeCharge as Snapdeal was to drop it. But these discussions never reached any decisions. Then PayPal tried to speak with Amazon’s PhonePe for investment. PayPal entry in wallet space seems to have better chances as Amazon India got the PPI licence this March. The company applied for the same last year in March only.
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Back in February, PayPal India’s head Anupam Pahuja in an interview suggested that soon PayPal can offer a local product to India. He said that the company has 192 million users in 200 different markets and yet no domestic product for India.
Industry experts weren’t expecting Amazon to become and independent wallet player. Some of them also believe that this could be because other e-commerce companies have their own wallet. An anonymous source says that the core idea of these biggies getting wallets is to lure the audience with offers, discounts and cashbacks.
Another point worth noting is that the RBI is going to be stricter with its guidelines to the licence issues. Many of the permit holders are even bothered about some of the rules and the entire KYC norms. These rules may push up the customer acquisition costs and hurt the ease-of-use of these wallets.