Paytm Payments Bank aims to bring 500 million Indians into ‘mainstream economy’, offers zero-balance account, free IMPS, NEFT, RTGS, UPI transactions
Digital transactions major Paytm, on Tuesday, launched the Paytm Payments Bank – India’s first ‘mobile bank’ – and claimed that it hopes to become the world’s largest digital bank with at least 500 million accounts by 2020. The online financial service provider also announced a slew of lucrative offers for customers who wish to transact through the Paytm Payments Bank.
The country’s first digital bank was inaugurated by Union finance minister Arun Jaitley inaugurated at an event in Delhi. Paytm, which has seen an unprecedented surge in its business and the personal fortunes of its founder, Vijay Shekhar Sharma, ever since Prime Minister Narendra Modi stunned the nation with his demonetisation move last year and forced Indians to switch to a digital, cashless economy, has claimed that its motto now is to build a new business model in the banking sector.
After the launch of the online banking service, Paytm founder and CEO Vijay Shekhar Sharma said, “We are unveiling our money market fund, launching our debit card and we’ll have the capabilities to allow enterprises to open business accounts. Digital payments was our entry point, we want to become a vertically-integrated financial services company.”
Speaking about Paytm’s goal of achieving 500 million Indian customers within two years, Sharma said: “It’s a moon shot target. It’s not worth aiming something lesser than that and I do believe that the number of resources and investments and the team that we are chasing we should be able to achieve 500 million customers for our Paytm Payments Bank.”
To help its customers in being eligible to access a Paytm Payments Bank account, Paytm is planning to invest around USD 500 million in KYC (Know Your Customer) – and is also planning to set up KYC centers across the country.
Paytm will, predictably, be supported by the government’s financial technology with incentives, initiatives like digital lockers and user authentication based on Aadhaar numbers.
Paytm Payments Banks, besides its offer of zero charges on all online transactions and no minimum balance requirement, will also provide free RuPay digital debit card to every new account holder.
The Paytm CEO said: “India is at a cusp of a financial revolution and demography & access to financial services will create a ton of jobs in the country and Paytm is very proud to be a part of this financial services revolution.”
While Sharma owns the majority share of the digital Payment’s bank, One97 Communications – which is backed by the Alibaba Group Holding Ltd and Jack Ma’s Ant Financial – holds the remaining 49 percent of the share. The new digital bank is made with the company’s revenue from its digital wallet – which clinched over hundred million customers after Narendra Modi-led Central government put a ban on the currency notes of higher denominations.
“We will launch share trading and insurance products very soon. We want to become an internet-age financial services company. Buying insurance and investing through our wealth management products will become widely accessible through the payments bank,” said Sharma.
Key features of the Paytm Payments Bank are:
a)Quick and paperless account opening
b)No extra charges of IMPS, NEFT, RTGS, or UPI
c)Free RuPay digital debit card on opening an account
d)Personalized banking at more than 1,00,000 Paytm ka ATM locations