State-run telecom service provider BSNL has launched Speed Pay, a prepaid card-linked mobile wallet service that allows even non-bank account holders to load cash and pay for products and services.
Speed Pay allows users to load cash at any BSNL outlet apart from letting them transfer funds into the wallet from a bank account. Funds can then be transferred to any bank account or withdrawn at BSNL outlets.
The wallet was developed in partnership with tech firm Pyro and with collaboration with Visa to allow customers to use the card as a debit card for shopping online and offline.
BSNL’s mobile wallet can be treated as a parallel banking ecosystem given its vast coverage in the country and also because customers without traditional bank accounts can load money into the wallet.
Customers will be charged a 1% transaction fee for transferring money to a bank account of withdrawing it. There will be no charges for wallet to wallet transfers and while the daily limit for cash withdrawal is Rs 5,000 in the case of verified customers that can go up to Rs 1 lakh.
Speed Pay is currently available across 1,000 BSNL outlets in Andhra Pradesh and will soon be available at 45,000 locations across the state. By the end of the September, the wallet service will be available across Kerala, Karnataka and Tamil Nadu.
The government’s move to launch a digital wallet through BSNL seems to be a supplement to its Jan Dhan Yojna which is pushing for financial inclusion of rural masses. With 930 million active mobile phone users in India, Speed Pay can truly become an alternative bank.