While the use of digital payments is rapidly increasing in the country, important news has emerged for small businesses accepting payments through QR codes. Millions of small businesses across the country may be required to complete the re-KYC process by September 15, 2026. Failure to complete this process on time could result in the digital payment facility being discontinued.

Payment companies are currently in the process of verifying merchant networks. However, it is estimated that approximately 30 to 35 percent of small merchants will not be able to complete re-KYC by September 15th. Therefore, this process is likely to impact 1 million small online merchants.

This could particularly affect grocery stores, small retailers, and local shopkeepers. Merchants accepting payments through QR codes face greater difficulties. Re-KYC delays are likely due to a lack of required documents, a lack of complete information about the process, and a mismatch between names or other details on documents and online data.

On the other hand, it's expected that 85 to 90 percent of merchants using Soundbox will complete their re-KYC on time. Because payment companies are in constant contact with these merchants, the process is much easier. This process has also increased the pressure on digital payment companies like Paytm, PhonePe, and Google Pay to complete merchant re-KYC. Because the in-person verification required by RBI regulations cannot be completely delegated to a third-party agency, companies must perform verification in the field.

This challenge is more pronounced in rural areas and smaller towns. Therefore, it's important for merchants accepting payments via QR codes to immediately check with their payment companies about their re-KYC status and the required documents.

PC: India TV