Yeldi Softcom receives semi-closed wallet licence from RBI

The company is looking at launching more products, including highly secure NFC handsets to replace use of hard cash

Yeldi Softcom, a payment srervices company, announced that it has received semi-closed wallet licence today from the Reserve Bank of India (RBI).

The licence opens up a new league of possibilities in terms of the products that could be launched by Yeldi Softcom to bring in further avenues to carry out cashless transactions. The acquisition of the licence will enable Yeldi to target a larger audience to promote the use of digital wallets, said the company.

A semi-closed wallet is a payment instrument that is accepted by a predefined set of merchants that have been contracted specifically by the issuer of the semi-closed wallet. The merchants usually display the logos of the payment instruments that they accept.

Considering that semi-closed wallet does not allow users to withdraw or redeem cash, the interests of participating retailers and merchants are protected in terms of guaranteed sales, added the company.

Ra Arjunamurthy, chairman and managing director of Yeldi Softcom stated, "Most semi-closed wallet service providers require its customers to have a debit / credit card or a Net Banking account. But when it comes to adding money to Yeldi's products - cash could be remitted over a designated counter to add money to the wallet." The company's products can also be used by the unbanked population of the country.

Lakshmideepa Arjunamurthy, CEO of the company stated: "We already have B2B and B2C products and already in the process of planning further launches that will leverage this license. This is a huge opportunity for us and will definitely slingshot us on a much faster growth path".

The payment services system of the company has NFC technology to deliver its services. While product development started in 2008, commercial operations started only in mid-2015. The company developed its core NFC technology in association with NXP Semiconductors, a Netherlands based technology company and the forerunner in the NFC technology space.

The company is also in the process of launching various products including prepaid payment systems in association with Banks (AXIS Bank in India and NDB Bank in Sri Lanka), customer loyalty programs for all kinds of retail businesses like food and beverages outlets, convenience stores, multiplexes, beauty parlours, apparel stores, etc. It is also planning to launch secure access solutions for residential enclaves, townships and condominiums, an app-based payment solution that will replaces hard cash and highly secure NFC handsets for both corporates and consumers, it said.