According to Economic Times, PayPal is interested in getting a license for mobile wallet and has even held discussions with some industry associations for the same. PayPal has declined to comment on any speculation or rumor revolving around the matter. PayPal is also said to have held talks with Flipkart s payment platform PhonePe for an investment. Prior to this report, there had been rumors about PayPal buying a 25 percent stake in Freecharge, which the latter denied saying that there is no discussion or proposal regarding this.
PayPal s entry to the mobile wallet would mean more integration of apps and services popular in the country. With its major holding in the US, the services in PayPal include the likes of Spotify, Hulu and Steam. Its slight presence in services for India would be the integration of its payment system on OYO Rooms for international bookings in Malaysia and other South Asian countries. PayPal was spotted as a payment option in Uber recently, but the company denied any integration as such. Paytm, for example is integrated in various services like Uber, Zomato and Amazon India. ALSO READ: Paytm targets offline merchants with new QR code-based service, ties up with Samsung
The development comes at a time when digitization is being pushed by the government and private players milking it. PayPal would be competing against players like Paytm, Citrus Pay, FreeCharge, Airtel Money, MobiKwik and soon to join Amazon, which received RBI s approval for a mobile wallet in India. ASSOCHAM sees the mobile wallet market in India to achieve a growth of 141 percent reaching Rs 30,000 crore by the end of 2021-22. Even as the mobile wallet business is booming in the country with the leader Paytm registering over 200 million users, RBI s recent guidelines may make things a little tough. ALSO READ: RBI s new guidelines for wallet services: Strict regulations, customer security, access to interoperability, and more
RBI s fresh guidelines for mobile wallet companies in India include having a minimum net worth of Rs 25 crore that needs to be maintained at all times. Mobile wallet companies are also required to convert all non-KYC wallets to full KYC wallets within a period of 60 days from the date of issue. More strict rules include maintain separate login details for their PPI account and other services offered via the mobile wallet. Also, these companies should ensure that their apps do not work on rooted devices. RBI s move is appreciated as mobile wallets still receive warnings about not being secured enough in India.