Reserve Bank of India, the apex body that governs Indian banking related activities has given a mobile wallet license to Reliance Payment Solutions, a subsidiary of Reliance for its prepaid payment instrument i.e. Jio Money.
The license comes in when other companies like Idea Cellular and Flipkart (PayZippy), are awaiting a license for their prepaid wallets.
The development was first reported by Medianama.
Like any other mobile wallet, Reliance’s Jio Money is a semi-closed prepaid wallet that will enable mobile based transactions, where customers can store money and use it for purchasing goods and services, can’t withdraw money from the wallet.
R-Pay offers two services i.e. R-Pay Card and R-Pay Wallet; R-Pay card is a prepaid account in which one can load money, pay for purchases and send money to other R-Pay users and to Bank accounts. Whereas, R-Pay Wallet is a virtual digital wallet that stores R-Pay Card, credit, debit cards and bank accounts details and facilitates payments at online and physical merchants.
R-Pay Wallet is offering two types of plans i.e. R-Express which will allow users to load or spend INR 10,000 per month and R-Premium which allows users to load or spend up to INR 50,000 on a daily basis.
A few others who have already received prepaid wallet licenses include Tech Mahindra’s MoboMoney, One97 Communications (Paytm) and MobiKwik. While another company, Beam Money had surrendered its prepaid wallet license this year.Iamwire believes that the market of Online Payment Systems in India is warming up, there have been many activities in this segment in the past few years, including new payment gateway launches, mergers, investments, etc. and the action continues to grow. Iamwire also believes that there’s a lot of potential in Mobile Payments and mPOS.
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