Update (August 12th 2013): Upasana Taku of Mobikwik informs us that "since 23rd July MobiKwik flow now asks user to explicitly click on "Create Wallet" button before a new wallet account is created." The process flow they've shared with us indicates that they inform the user that a wallet is being created, but it does not give the user an option other than creating a wallet. This is still terrible consumer practice. Earlier: Online recharge company Mobikwik is creating wallet accounts for users transacting with external merchants. I discovered this last week, when while buying a Coup Card online from BrownPaperBag: they first created a Mobikwik wallet for (I was sent an account number and a password via SMS). This was followed up with my transaction amount being first credited to my account, and then debited. When I saw the credit and debit messages, I mistook them for two debits, and called up the merchant, asking about why I've been debited twice. Then I noticed that it had been a debit and then a credit - and this is something I've never seen before with any payment transaction. This is what Bipin Preet Singh, Founder and CEO at MobiKwik had to say when we asked his for a statement on this process: "We are not creating mobikwik accounts, these are wallet accounts created only for the purpose of transacting on third party merchants. These wallet accounts are not the target of any promotions from MobKwik. Also, user is being appropriately and…
