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Update: PayU CEO Nitin Gupta spoke to MediaNama and said that the wallet licence will allow them greater user experience and would cut on some of the commercial expenses associated with getting a wallet licence from RBL Bank. He added that it is the company’s priority to shift their balances from the existing wallet on RBL Bank to their new wallet and customers will have the option to take out money into their accounts.

Gupta also said that the wallet will also have an offline presence and customers can pay for purchases on PayU’s POS terminal. “The POS terminals can accept wallet transactions. It’s just a matter of changing a line in the back end infrastructure,” he added.

PayU has more than 5,000 terminals in the country since its launch and is adding 1,350 terminals later this month. It has more than 10 million registered users in India and more than 175,000 online merchants.

Earlier: Payment gateway aggregator PayU has got a semi-closed prepaid wallet licence from the Reserve Bank of India (RBI). Note that the company already has digital wallet in place called PayU Money which was issued by RBL Bank. Some of PayU Money’s clients include Myntra, MakeMyTrip, OYO Rooms, GoIbibo and BookMyShow.

Currently, the wallet allows users to send and receive money, pay electricity and gas bills among others, recharge mobile phones and DTH connections. It also allows users to make direct payments to merchants by entering a phone number, email or merchant ID.

We have written to the company for comments on what their plans are with the new wallet licence and will update once we hear from them.

Recent players who got a wallet licence: Despite many saying that wallets’ business would be hurt after the implementation of the unified payments interface (UPI), there seems to be a rush to obtain a wallet licence.

Last month, Chennai-based Yeldi Softcom got a semi-closed wallet licence from the RBI. Yeldi is a payment services company that uses NFC technology to deliver its services. Other players who got a wallet licence from the RBI last year include Eko India Financial Services, Card Pro Solutions and Paul Fincap Private Limited.

Around the same time, telecom operator Aircel through its subsidiary, Aircel Smart Money Limited, secured  five-year prepaid mobile wallet license from the RBI enabling them to provide mobile wallet services to its subscribers, s reported by the Economic Times.

In September 2015, mobile VAS and Internet products company Spice Digital launched a mobile wallet called SpiceMudra which would focus on domestic remittances.

Interestingly, Eko has partnered with RBL Bank for the launch of its wallet services.

PayU POS Terminal: In June, PayU launched its POS terminal in a bid to acquire more offline merchants.  Note that PayU Biz’s head of business Rahul Kothari said that the company would also be looking at payment through a wallet or an OTP. Perhaps the wallet licence will help.