Why prepaid?

Improve customer retention

  • Merchant will be able to have own white labelled wallet and can run cashback and loyalty programs for customers
  • Helps to increase Brand Awareness as well as Brand Recall

Frictionless payments

  • One-Click Payment for Customer using wallet Balance
  • Customers can set up subscription on wallet


  • Use of wallet / card balance within merchant app/website as well as outside
  • Reduction in handling cash

Operation optimization

  • Personalized and non-personalized co-branded cards for customers or employees for expense management
  • Automation of ops and expense management processes

Merchant Wallet advantages

Merchant Wallet is a white-label prepaid instrument offering to Merchant. Merchant can provide this offering for purchasing of good and services to its customers.

This wallet can be of the form of digital wallet to be used for online transaction or physical card for offline/online stores.

Advantages of Merchant Wallet:

  • Improves Customer Experience
  • Faster Payments (one-click)
  • Enhanced Brand Royalty
  • Builds Customer Retention
  • Increases customer repeat transaction probability
  • Incentivisation to Customers with minimization cost

Types of Merchant Wallet

The following types of wallet supported by PayU:

Closed loop wallet

Closed Loop Wallet is issued by merchants to customers allowing them to purchase goods and services on respective merchant only. Customers can be onboarded seamlessly on a closed loop wallet. It doesn’t come under purview of RBI guidelines and hence doesn’t require any KYC for customer onboarding.

Also, there is no limitation of amount/transactions on this wallet as per compliance (risk limitations can be applied.

Semi-closed loop wallet or Open loop card

Semi-Closed Loop or Open Loop is a prepaid instrument issued to customers no restriction on its usage on any merchant.It is part of RBI guidelines and for any customer to be onboarded, KYC of the customer is required. Limits for amount that can be stored in a wallet of a customer also varies whether it is min KYC or full KYC customer.

Use cases include:

  • Virtual/Physical cards
    • Use reloadable card for payments
    • Rupay and Master Card network for issuance
    • Personalized and non-personalized cards
  • Employee Benefits
    • Single/Multi wallet allowance support
    • Pre and on-the-fly funding support
    • Track and manage spend
  • Family Cards
    • Add on card support
    • Main card holder can fund the other cards
    • Control usage of other cards linked to main card
  • Fleet management
    • Manage various expenses of your fleet staff using multi wallet
    • Central control
    • Limit management