Introduction

Closed-Loop Wallet

Closed-Loop Wallet API suite enables businesses to implement merchant-specific digital wallet solutions that can only be used within the issuing merchant's website or mobile application. This prepaid payment instrument provides a controlled, branded payment experience that drives customer loyalty and repeat engagement.

Unlike semi-closed-loop wallets, closed-loop wallets are not regulated by RBI and operate within the merchant's ecosystem, making them ideal for businesses looking to create a seamless, integrated payment experience for their customers.

Key Highlights

• Merchant-specific wallet usage only
• No RBI regulatory requirements
• Enhanced customer retention through integrated experience
• Cashback and loyalty program integration

Implementation Benefits

• Easy to Integrate: Simplified implementation process
• Merchant Control: Complete control over wallet features and experience
• Customer Retention: Enhanced loyalty through integrated payment experience
• Flexible Features: Support for cashback, promotions, and loyalty programs

Key Features

Merchant-Specific Usage

The wallet can only be used on the issuing merchant's website or mobile application, ensuring complete control over the customer payment experience.

One-Click Payments

• Instant payment processing using stored wallet balance
• Pre-fetched wallet balance display during checkout
• Seamless transaction completion without redirections

Load & Pay Functionality

• On-the-fly wallet loading during checkout
• Flexible payment options when wallet balance is insufficient
• Immediate transaction processing after successful loading

No Cash Withdrawal

Cash withdrawal is not permitted, ensuring funds remain within the merchant ecosystem for future purchases.

Advantages

• Enhanced Customer Retention: Closed-loop wallets keep customers within your ecosystem, encouraging repeat purchases and building long-term customer relationships through integrated loyalty programs
• Simplified Compliance: Since closed-loop wallets are not regulated by RBI, businesses can implement wallet solutions without complex regulatory compliance requirements.
• Complete Control: Merchants have full control over the wallet experience, including branding, features, and customer journey optimization.
• Increased Transaction Success: With funds pre-loaded in the wallet, transaction success rates improve significantly compared to traditional payment methods.
• No Limit: No restriction on limit of wallet balance or usage of wallet supporting high ticket size transactions

Load & Pay Journey

For Transaction Amount > Wallet Balance:

1. Insufficient Balance Detection System identifies when wallet balance is insufficient for the transaction

2. Add Amount Option Customer can choose to add the required amount to complete the purchase

3. Payment Instrument Selection Customer selects preferred payment method for wallet loading

4. Transaction Completion Wallet is loaded and original transaction is processed immediately

Semi-closed loop or Open loop offerings

Wallet/Card management

• Co-Branded cards with PayU PPI as issuer with Rupay and Master
• Virtual/Physical card, personalized / non-personalized card availability
• Single and multi-wallet support
• API and SDK Availability for Integration
• Under RBI purview and compliance handled by PayU as PPI Issuer

Wallet/Card Redemption

• Click Payment, Pre- Integrated with PayU PG
• Reloadable using other payment methods / Just In Time Funding
• Transaction Limit and Beneficiary Management

Customer Incentive

• Pre-Integrated with PayU’s offer engine
• Cashback rule creation and redemption
• Redeem Cashback with other wallet balance

Report & analytics

• Reports availability through Portal / Email
• Get customized reports as per the requirement