How Video KYC is Revolutionizing the Digital Payments Sector

How Video KYC is Revolutionizing the Digital Payments Sector

Know your Customer or more commonly known as the KYC process is one of the pre-requisites when dealing with a financial sector organization. And the digital wallets (e-wallets) segment is no exception. With the recent advancements in technology and the world going digital, we have seen a significant jump in the number of people using digital channels for payment purposes. According to a report the mobile wallet market size value is projected to reach $7,580.1 billion by 2027 compared to $1,043.1 billion in 2019. Growing at a CAGR of 28.2% from 2020 to 2027. This is just the beginning. With Gen Y changing the way we make payments rest assured digitization is here to stay.

The Reserve Bank of India (RBI) being one of the governing bodies for the financial sector in India is also working towards contactless financial transactions and permitted Video KYC recently. Video KYC solution is the boon to the pandemic’s bane, especially for digital wallets.

The e-wallets and digital payment platforms can use a Video KYC solution to its advantage and deliver end-to-end delightful customer experience.

Transforming the KYC Process - Benefits of Video KYC

Faster and Easier Customer Onboarding

E-commerce payment system and digital wallet companies have a huge user base (Paytm and PhonePe combined user base is close to 250 million in India) with customers from all walks of life. Video KYC for Paytm or any other e-wallet is a step towards making customer acquisition a simple and fast process. Customers can easily schedule an appointment from the app itself and get on a video call with the official to complete their KYC. As for the company, they can just use APK and SDK to further boost KYC completions. 

Reduce KYC Cost

Now that the KYC documentation, verification, etc can be done remotely, companies do not have to invest in hiring field agents and bearing the additional costs of transportation and fuel. Since the video KYC takes only minutes rather than days, you get to onboard more customers in less time. Thus, also reducing the customer onboarding cost while allowing the companies to scale from tier 1 to tier 2 and 3 cities as well.

By having a secure Video KYC software you can let your employees use their own device without compromising on data security and privacy. Thus, saving the cost of providing and maintaining individual devices for the agents.

Dropoff Reduction

Combine your video KYC software with an omnichannel customer engagement platform that allows you to set automatic reminders, followup with customers whose KYC is due, or who have to get a repeat KYC done because of limited KYC duration based on the expenditure criteria.

The best part is that you don’t have to worry about low internet connectivity as you get to complete the process even at the speed of  60kbps. And if due to any reason the verification call is not completed you can always reschedule it and start from where you left off.

Accelerate KYC Process

No more long waiting time, going through the hassle of getting photocopies of all the documents, and then submitting it. Video KYC has significantly reduced the time taken to get things done from days and weeks to as low as 3 to 4 minutes. This essentially means that now your KYC officials or verifiers will be able to handle and complete more requests than ever before. Thus, creating a win-win situation for both, the customers and the company.

Ensure Customer Convenience

Do away with having to visit a nearby mobile recharge shop or a retailer to submit the documents or have a KYC field agent visit your workplace to collect and verify your address proof, PAN card, Adhaar card, etc. Video KYC allows you to book an appointment, get your documents verified, and be done with the whole process at the customer’s preferred time and from the comfort of their home while using their preferred device (laptop, tablet, or smartphone).

No Compromise on Security & Compliance

Get a technology partner who understands and has experience in providing a robust, secure, and compliant video KYC software solution. Being the business of dealing with money and having access to sensitive information like customers’ PAN card or Aadhar details, it is imperative to have a solution provider that adheres to compliance and regulations.

As for preventing money laundering or identity theft and authenticating the customer information, you need to have a video KYC solution with features like face verification, geo-location, document verification, and a liveliness test, to name a few.