In a major decision The Supreme Court of India announced that the Aadhar linking deadline has been extended indefinitely. While this led to a sigh of relief for the general public, the decision has not gone down too well with the Mobile Wallet Companies.
The Supreme Court’s decision to indefinitely push Aadhaar linking of bank accounts and telecom services is a setback for mobile wallet companies such as Paytm and MobiKwik that are trying to complete mandatory KYC (know your customer) verification of their customer base.
Prepaid payment issuers (PPIs) were relying heavily on the Aadhaar interface to accomplish KYC of their customer base. But in the wake of the Supreme Court’s decision on Tuesday, consumers may hesitate to share biometric details with these companies, industry insiders said.
Speaking about the development, MobiKwik CEO Bipin Preet Singh tweeted,
“Timing could not be worse for this SC decision, it’s leading to all sorts of confusion,”
With the top court’s decision to indefinitely extend deadline for mandatory linking of Aadhaar for services, times are only expected to get tougher for the mobile wallet industry.
It prima facie appears that such directives by the Supreme Court have not only created ripples in the Indian mobile wallet industry but have become an impediment to the future growth and expansion of mobile wallet companies such as Paytm, MobiKwik.