KYC deadline ends: Mobile wallets likely to lose 40% of their user base

Companies such as Paytm have demarcated almost $500 million to get the KYC process done for its 280 million-plus customers

After spending close to a billion dollars to acquire more than 500 million customers, mobile wallet firms fear losing almost 40 per cent of its user base, with the deadline for know your customer (KYC) registration ending on Wednesday.

According to industry watchers, mobile wallet firms, including Paytm, Amazon Pay, PhonePe and MobiKwik, fear losing a chunk of their user base. Some like Amazon Pay have seen a 30 per cent drop in customers, with most members not updating their KYC details, they added.

Prepaid Payment Instruments (PPI) aim to digitise low-value, low-risk and high frequency transactions. 

“Customers see KYC