Use Case

Digital Wallet Onboarding

Fast-track identity verification for fintech apps and payment wallet providers. Enable tiered KYC that scales from minimum verification for basic wallets to full video KYC for premium accounts, all within a seamless mobile-first experience that keeps drop-off rates low.

The Challenge

Speed vs. Compliance: The Fintech Dilemma

Digital wallets operate in a hyper-competitive market where every second of onboarding friction costs users. Yet regulators demand rigorous KYC at different transaction tiers. Wallet providers are caught between the need for frictionless sign-up experiences and the obligation to perform thorough identity verification before unlocking higher transaction limits.

  • High-volume onboarding creates verification backlogs that delay account activation by hours or days
  • Complex KYC flows cause 40-60% user drop-off during the verification step
  • Tiered compliance requirements (minimum KYC, full KYC) demand different verification workflows
  • Mobile-first users expect native app experiences, not clunky browser redirects
2min

Average time to complete full KYC verification through BASEKYC's optimized mobile-first flow, from session start to approval

The BASEKYC Solution

Verification That Moves at Fintech Speed

Progressive Verification Levels

Implement tiered KYC that matches your product structure. Start users with minimum KYC for basic wallet access using just a mobile number and OTP, then seamlessly upgrade them to full video KYC when they need higher transaction limits. Each tier unlocks incrementally without forcing users to restart the process.

Mobile-First Experience

Our WebView SDK embeds directly into your mobile app, delivering a native-feeling verification experience without browser redirects. Camera access, document capture, and video sessions all happen within your app interface. The UI adapts to screen size, orientation, and device capabilities for consistent performance across Android and iOS.

Instant Approval for Minimum KYC

For basic wallet accounts, BASEKYC performs automated identity checks in seconds. OTP verification, PAN validation, and basic liveness checks run concurrently, granting instant account activation. Users can start transacting immediately while their full KYC upgrade runs asynchronously in the background when triggered.

Key Features for This Use Case

Regulatory Framework

Digital Wallet Compliance Requirements

Prepaid Payment Instruments in India are governed by tiered KYC requirements that dictate wallet functionality, transaction limits, and balance caps. BASEKYC supports every tier from minimum KYC to full KYC wallets.

RBI PPI Master Direction 2021

The RBI Master Direction on Prepaid Payment Instruments (RBI/DPSS/2021-22/62) defines three wallet tiers: Small PPIs (up to INR 10,000 balance with minimum KYC), Medium PPIs (up to INR 2,00,000 with OTP-based verification), and Full-KYC PPIs (up to INR 2,00,000 with fund transfer capability). Only full-KYC wallets can perform peer-to-peer transfers and bank withdrawals. BASEKYC enables seamless tier upgrades through progressive verification.

Minimum KYC Wallet Requirements

Under RBI's PPI guidelines, small PPIs can be issued with minimum KYC comprising mobile number verification and a self-declaration. These wallets are capped at INR 10,000 monthly loading and INR 10,000 outstanding balance. Conversion to full-KYC must be completed within 24 months, failing which the wallet must be closed. BASEKYC triggers automated upgrade reminders and facilitates instant video KYC for tier conversion.

PMLA Reporting for PPI Issuers

PPI issuers are classified as reporting entities under PMLA and must file Cash Transaction Reports (CTRs) for transactions exceeding INR 10 lakhs and Suspicious Transaction Reports (STRs) with FIU-IND. Under PML Rule 7, wallet providers must maintain customer identification records for five years after account closure. BASEKYC maintains encrypted, audit-ready verification records that satisfy PMLA retention and reporting mandates.

Interoperability Mandate

RBI's circular on PPI interoperability (RBI/2021-22/91) mandates that full-KYC wallets must be interoperable across UPI and card networks. This means PPI issuers must ensure robust identity verification before enabling interoperable transactions, as the liability framework shifts to the issuing entity. BASEKYC's full-KYC video verification provides the compliance foundation needed to activate interoperable wallet features with confidence.

Implementation

Go Live in 3 Weeks

1

Week 1: SDK Integration & Tier Setup

Embed the BASEKYC WebView SDK into your mobile app. Configure minimum KYC and full KYC verification flows, set up tier-based routing rules, and map wallet tier thresholds to the corresponding verification requirements.

2

Week 2: Mobile UX Testing & QA

Test the full verification flow on Android and iOS devices across varying network conditions. Validate camera permissions, document capture quality, video session stability on low-bandwidth connections, and seamless tier upgrade transitions.

3

Week 3: Staged Rollout & Monitoring

Launch to a percentage of new sign-ups, monitoring drop-off rates, verification success rates, and average session duration. Optimize the flow based on real user behavior data, then scale to 100% of onboarding traffic.

Further Reading

Onboard Users in
Under 2 Minutes

Give your wallet users the fastest path to full KYC. Reduce drop-offs, accelerate activation, and stay compliant at every tier.