PhonePe has decided to start a doorstep know-your-customer (KYC) service for its customers, the Times of India reported. Despite the greater cost associated with physical verification of users, Supreme Court’s verdict barring using Aadhaar for e-KYC and the approaching deadline (August 31) for customers be fully compliant with KYC norms mean that PhonePe has little choice. The original deadline was February 28.

To comply with RBI laws, a full KYC needs to be done and the wallets need to remain active so that consumers can continue using digital wallets for online transactions. A full KYC includes submission of various documents, including identity and address proofs. A partial KYC, on the other hand, can be done based on an OTP to a mobile number. Wallet players were expecting video-KYC as an alternate option, but RBI has not approved such a method yet, the report said.

An e-KYC would have cost ₹15 per verification, but a physical KYC costs at least ₹100. It is also difficult for agents to schedule meetings for verification with the customers, especially because customers have to go through this process with multiple wallets, TOI report continued.

“We are planning to start a pilot to do physical KYC of our customers using our existing base of 8,000 people,” co-founder and CEO of PhonePe, Sameer Nigam said, according to the report. These 8,000 people are already onboarding offline merchants on PhonePe. Amazon had started a similar process for its Amazon Pay users earlier in the year.