BENGALURU: The last few years has seen internet companies moving into payments business and the latest to jump into the fray is online food delivery startup Swiggy. The Bengaluru-headquartered company has launched its own wallet – Swiggy Money. According to a notification in its FAQ column, the wallet will initially be used to credit amounts for the cancelled orders.
Later, Swiggy Money will function as a usual digital wallet for transactions. The wallet is powered by ICICI Bank and is a fully Reserve Bank of India (RBI)- compliant Prepaid Payment Instrument. This essentially means that users have to complete a minimum KYC customer by entering governmentissued identification information to use the service.
With minimum KYC, a Swiggy Money user can transact up to `10,000 while a full KYC allows the user to load up to `1 lakh. Industry analysts say business isn’t the usual for banks anymore and digital platforms today have more hold on a customer, thanks to the advantage of consumer database, power of analytics, and faster processes.
“Whether it is Ola or Swiggy, they have created customers at a far greater pace than any bank, and they have a better understanding,” said a senior official with a staterun bank, “The reason they get into financial services is because they need revenue models. Barring deposits, clearing and wholesale lending, other services will move to fintechs.”