Business

Good News! Soon Interoperability Between Mobile Wallets Possible

News World India | 1
1396
| } October 9 , 2017 , 19:26 IST

In the era of digital growth where the millennials are more dependant on the digital modes of payment than hard cash, mobile wallets like Paytm and MobiKwik being the most used mediums of money transfer.

Though, due to restrictions on interoperability between mobile wallets, the usage of the available mediums was confined. In a game-changing decision, Reserve Bank of India announced the upliftment of the restriction.

RBI has ensured the mobile wallet users that the implementation of interoperability amongst KYC compliant Prepaid Payment Instruments (PPIs) will take place within the six months after the Master Directions are revised on October 11, 2017.

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After the hurdle is removed, one mobile wallet user would be able to exchange funds with the user of another mobile wallet with ease. For instance, Paytm user will be able to send or receive funds to a FreeCharge or MobiKwik user.

RBI's move was welcomed by the mobile wallets with open arms as it is more than likely to bring a boom to digital payment in India. Apart from the users, the move will benefit the merchants as well.

Bipin Preet Singh, Founder and CEO of MobiKwik has admitted that interoperability was one of the main reasons which made the adoption of digital payments in India difficult. He stated, "RBI’s latest direction in this regard will provide a homogenous environment for the growth of mobile wallets."

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After the implementation of interoperability in coming 6 months, the users would be able to refrain from downloading multiple mobile payment apps as a single application would serve the purpose.

The RBI's vision of bringing inter-operability into the usage of PPIs will help in migrating electronic payments and ensuring safe, secure, authorised, efficient and accessible payments by mobile wallets.