Almost 6 months after receiving a semi-closed prepaid wallet license, and five months after Mobikwik launched theirs, One97's digital payments company Paytm has launched its semi closed mobile wallet Paytm Cash Wallet. This wallet differs from "Paytm Cash", its closed wallet system: while the closed wallet can only be used to purchase services provided on Paytm, it cannot be used to purchase third party goods and services. More on the types of wallets below. The semi closed wallet allows Paytm to allow users to pay postpaid and utility bills using the wallet, and bring on board third party vendors and expand the portfolio of goods and services on offer, and build the digital goods marketplace it has planned. In addition, as per the FAQ's, it plans to allow customers to shop of websites on third party websites and apps. Bear in mind that the wallet space is getting crowded: telecom operators like Airtel, Vodafone and Idea Cellular have their own wallets, as do other companies like My Money, Mobikwik, Atom, Payworld, Paymate, Oxigen, Times ofMoney, Zipcash, among others. Online marketplace Flipkart has also applied for a prepaid wallets license. Transitioning Users & Cash In Inactive Accounts The tricky part of the launch of this wallet for Paytm will be transitioning users from the closed wallet (explained below) to the semi closed wallet. They cannot just transfer the cash from the closed to the semi closed wallet, so we wonder how they will manage the confusion around customers having both wallets at…
