Paytm to launch mutual funds, insurance, banking services via payments bank

The firm, owned by One97 Communications, is also providing the option to transact offline with a physical debit card.

Business News : Mobile-first fintech major Paytm is planning a major push in the financial services sector. In the following couple of months, the Vijay Shekhar Sharma-led company is planning to launch services including mutual funds, general insurance, life insurance and a number of banking services via its payments bank.

The firm, owned by One97 Communications, is also providing the option to transact offline with a physical debit card. “There is a lot of interest among consumers for physical debit cards. Within a time period, we have received orders from 850 towns. We are in the process of setting up banking outlets that will provide deposit, cash withdrawal, money transfer and other permitted banking services to the segment of customers who require assistance,” said Renu Satti, managing director and chief executive officer, Paytm Payments Bank, said.

The company is set to add more than 100,000 Paytm banking outlets to expand the reach of its banking services. It has committed $400 million over the next three years to expand offline distribution network by allowing trusted local partners to act as potential cash-in and cash-out points.

“Some of the services, especially wealth management, lending and insurance, will be provided in partnership with other banks and financial institutions after due regulatory approvals,” Satti said.

Paytm Money, the company set up recently to deal in money market fund, is in discussions with asset management companies to offer direct mutual fund investments.

Initially, the company will not charge any fee or commission from users who invest in mutual funds via Paytm Money. The company, however, is keeping plans under wraps and has not yet revealed if it would set up a separate app for the services.

→ Paytm Mutual Funds , Paytm Insurance  ←

Paytm crosses 200 million wallet user base

Since demonetisation the company claims to have made rapid strides in the online wallet sector

 

Latest News - Mobile wallet major, Paytm announced today that its user base has crossed 200 million users. The company said that within three years of launching the Paytm Wallet, it has become most widely used and accepted payment method in the country.

Since demonetisation the company claims to have made rapid strides in the online wallet sector by laying stake to the top position. In the last 12 months, the company has managed to launch a variety of offline services, which have increased the usage of phones at various points.

Paytm wallet has moved from just mobile phone and DTH recharges, electricity, gas and water bill payments, to using it at milk booths, grocery stores, pharmacies and parking among other places.

"Reaching 200 Mn registered users and more than half a million users on a daily basis is a great showcase of the country's trust in our payment solution and reaffirms our belief in the need for a quick and easy cashless payment method. Going forward, we would continue to drive strong consumer-focused innovation in the category to reach the widest set of merchants and consumers in India," said Deepak Abbot, senior vice-president.(read more...)

Digital India: Why people are ignoring bank UPIs and flocking to Paytm instead

Post demonetization, people flocked to digital wallets for mobile payments instead of bank apps

Long before demonetization and a scramble to find alternatives to cash, India had laid out a unique tech infrastructure for a digital economy.

Bill Gates was so impressed with it on a recent visit that he exclaimed: “India is on the cusp of leapfrogging!”

But leapfrogging only happens with mass adoption. Although Aadhaar had identified and authenticated a billion Indians, and UPI made mobile payments as simple as sending a message or mail, banks dragged their feet over it.

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• Slip between the cup and the lip

• The Paytm tipping point

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To a question from Tech in Asia on how the Paytm app will be different from UPI-powered apps by traditional banks, Vijay Shekhar Sharma pointed immediately to customer experience. “Banks are not great at rolling out UPI,” he said. But for Paytm, “this is the truest opportunity to build something designed for unique Indian needs.

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Cash-short payment options grow

Quickly changing tack and game plan, online marketplaces and mobile wallets, 48 hours since the announcement of banning Rs 500 and Rs 1,000 notes, have been busy pushing old and new digital payment options.

The aim is to hold on to their cash-based customer base, as well as maintaining their gross merchandise value targets.

Online mobile wallet major Paytm is adding a feature of geo-locating all the offline points where their wallet is accepted. Snapdeal is now accepting payments via their mobile wallet, Freecharge, on delivery of the product.

With the cash on delivery (COD) customer base accounting for 60 per cent of total transactions, online marketplaces are eager to retain this customer base but minus the hassle of getting the cash back into the company. So, instead of COD, they are opting for mobile wallet on delivery, so that people who have stopped shopping as they are staunch believers of COD can have the satisfaction of paying only when they get the product at their doorstep. This, it is hoped, would help online marketplaces get back the customers they fear losing.

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Paytm payments bank to miss Diwali date

Mobile wallet company Paytm is likely to miss the Diwali target for commercial launch of its payments bank as it is still awaiting the final clearance from the Reserve Bank of India (RBI).

“We’re awaiting the final application approval from RBI. We have everything ready. As soon as the approval comes, we will do a ‘beta’ launch of the bank, which is within the company. By the end of the year, we will have a commercial launch of the payments bank,” Vijay Shekhar Sharma, founder and chief executive officer of Paytm, told Business Standard in a telephone interview.

Paytm has shifted its deadline for opening its payments bank thrice since April. Sharma, who has got the licence in his name, is expecting the launch by the year-end.

Paytm, which was among the 11 recipients of payments bank licence, plans to start the project with an initial capital of Rs 300 crore. After the initial euphoria, three out of the 11 recipients withdrew their applications. However, Paytm hopes to make it one of the biggest businesses in its portfolio and the second largest revenue earner after wallets.

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