Online recharge and utility payments platform Freecharge is adopting Aadhaar as the primary KYC (Know Your Customer) tool for opening and upgrading wallets.
FreeCharge said in an official release that consumers who enrol for a wallet with Aadhaar authentication can increase their wallet balance to Rs 1 lakh from Rs 10,000. Under the existing RBI norms, consumers can only hold Rs 10,000 in a mobile wallet above which a full KYC, similar to what is needed for opening a bank account, is required.
Consumers can opt for their authentication by walking into any branch of FreeCharge’s wallet partner Yes Bank or any of the latter’s 30,000 banking correspondent points.
The company will soon be launching an on-demand doorstep KYC service on pilot basis in metros and scale it up across the country by using Snapdeal’s delivery reach. The service will also be rolled out on FreeCharge’s strategic partner and Payments bank licensee FINO in the future, the company said.
“We will leverage Aadhar ID authetication, for paperless, secure KYC, to be completed in a few minutes. We are innovating to bring new models of go to market – for instance doorstep authentication – where customers can request for an agent to come to their home for a doorstep biometric authentication. Within a week we hit the 1million mark and now leveraging Aadhar enabled KYC gives us access to the pool of over 900 million KYC ready consumers,” Govind Rajan, Chief Operating Officer, FreeCharge and Chief Strategy Officer, Snapdeal said.
FreeCharge had launched its wallet service with Yes Bank last month, enabling consumers to make payments for transactions on both Freecharge and Snapdeal. It also partnered offline large format retail chain Shoppers Stop to offer enable customers make payments across all Shoppers Stop stores in the country through the wallet.