The KYC (Know Your Customer) verification deadline for digital wallet services was extended for six months from February to 31 August, and there are still users who have not done it yet.
Expecting users to take the trouble to get their KYC done for each of the digital wallet services they use is not feasible and private companies will have to bear the costs of getting to customers to get the verification done. To that end, PhonePe, a digital wallet service, is reportedly rolling out a doorstep KYC verification service for its customers.
If customers do not do their KYC, they won’t be able to use these digital wallets for making online transactions. This, in short, becomes a problem for these digital wallets as they will be losing customers if they do not go along with the procedure.
As reported by The Economic Times, PhonePe CEO Sameer Nigam said that PhonePe will use its existing network of 8,000 agents to do the physical KYC of its customers. As per the report, he also said that these agents are already working with the company to onboard offline merchants on PhonePe.
A partial KYC can also be done by generating an OTP on a mobile number but this does not complete the procedure and users have to submit their Address and ID proof along with other documents.
The report also reveals that not only is it expensive for companies to provide users with physical KYC services, it is also difficult for agents to schedule a time slot for meetings with customers. As customers have to be willing to go through with this process for multiple wallets.
This offline KYC verification service was first introduced a long time back by another major player in the market, Paytm.