On Monday, mobile payment in India got a major boost. Only, no one noticed. The country’s central retail payments corporation extended interbank mobile payment service for merchants.
Until now, the little known payment method could be used to transfer money between two individuals and wasn’t used by many due to an unwieldy process one has to go through. But now, the national payments corporation of India (NPCI) backed by 50 banks in the country has extended this to merchant payments.
The National Payments Corporation was set up in 2009 by Reserve bank of India to act as an umbrella organization for retail payment systems. India’s largest Bank State Bank of India, ICICI Bank and Standard Chartered bank have enabled merchant payments through interbank mobile payment service (IMPS) already. Someone still needs to do something about simplifying the process (startups?)
However, this does not change the fact that mobile operators in India are not allowed to operate mobile wallets unless they become banking correspondents in partnership with banks.
Last week, the RBI said that mobile network operators will not be allowed to set up cashless wallets unless they partnered with banks and became banking correspondents. The central bank said that operators must not be allowed to bypass the banking regulations.
Telecom companies in the UK recently received clearance from the European Commission to operate mobile wallet services.
How does this impact companies like EzeTap?