Post Supreme Court’s verdict of restricting Aadhaar usage by private entities, tech giants are setting up physical infrastructure to provide KYC (Know-your-customer) services for users. For example, Paytm put many on-ground executives for completion of users’ KYC process post the verdict. Amazon has also started rolling out doorstep KYC services for its e-wallet users especially after RBI mandated the collection of all verification-related information of users before February for e-wallets. Smaller e-wallet players are finding it difficult to convert their existing users to KYC compliant users as the Aadhaar option would only cost a fraction of physical verification.
According to RBI data, transactions through mobile wallets marginally declined in November, both in terms of value and volume. The decline in transactions came after mobile wallet companies stopped using Aadhaar for e-KYC to enrol new customers following the Supreme Court order. While the transaction value declined 14% to Rs 16,108 crore in November from Rs 18,786 crore in October, transaction volume registered a 5.7% drop to 347.32 million in November as compared to 368.45 million in October. The cost of conducting physical KYC has gone up to Rs 100-150 per person from Rs 15 per person under e-KYC.