Unocoin will now allow its users to buy Bitcoin using the PayUmoney Wallet apart from the existing NEFT, IMPS and RTGS transfers from bank accounts. However to buy Bitcoin with PayU money, Unocoin users will have to create a registered PayU wallet.
Interestingly the company mentions both the Unocoin wallet and PayU wallet must be registered under the same mobile number. Note that my colleague Salman ran into a some verification problems when he tried to to create a bitcoin wallet. So it’s probably a good idea to keep this in mind. More details here.
User will need to load the PayU’s wallet through cards or internet banking to log into the Bitcoin wallet and select the buy option. Once the payment is confirmed, the user will receive the requested amount of Bitcoin in their Unocoin wallet.
Last month, the Bitcoin startup released a set of APIs which would will allow individuals and companies to generate bitcoin wallets and buy, sell, send and receive bitcoins and allow merchants to accept and request payments through bitcoins.
It also released features such as a merchant point-of-sale (POS) app, a mobile trading app, an auto-selling feature for remittance users, systematic investment planning (SIP) to mitigate against volatility risk, integration with NETKI to simplify Bitcoin addresses, an over the counter (OTC) desk for large traders, and integration with Purse.io for discounts on Amazon.
Unocoin raised $1.5 million from Blume Ventures, Mumbai Angels and ah! Ventures along with international investors such as Digital Currency Group, Boost VC, Bnk to the Future and FundersClub in September. It also secured $250,000 in funding from Barry Silbert’s Bitcoin Opportunity Corp back in 2014.
Note that the Reserve Bank of India is yet to make up its mind about the digital currency. The RBI issued a warning that it will not regulate any Virtual Currency including Bitcoin in India and warned people who were dealing with the currency in India of the risks involved, saying that they’re exposing them to financial, legal, operational and security related risk.