It's Like PayPal But Pays Interest, and India's Banks Are Afraid

  • E-Wallet startups threaten to disrupt banks’ deposit stream
  • Their entry is expected to reduce heavy reliance on cash
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A fleet of Indian startups and telecom operators want customers to ditch their boring bank accounts and put their money into digital wallets. Their sales pitch: It pays interest, it’s secure, and it’s easier to pay for a cab or order takeout without running to the cash machine.

“If they can give discounts or other offers, then I will go for it,” said Neha Mungekar, 28, a Mumbai-based urban planner who does a lot of online shoppingBloomberg Terminal and is considering leaving money in an e-wallet offered by PayTM Mobile Solutions Pvt. or another provider after hearing the accounts can now pay interest.