Pyatm, one of India’s leading player in online payments sector has decided to invest Rs 350 crore to further develop its payments bank arm. According to the media speculations, Paytm is speeding up its operations so that it can take the curtains of from the product by Diwali.
During his interaction with one of the renowned dailies, Shinjini Kumar, CEO, Payments Bank, Paytm informed that Paytm is infusing Rs 350 crore in its payments bank arm, which is looking to start operations by Diwali this year. The capital will be primarily utilised to build the platform's technology infrastructure and physical branch presence in rural areas. Company’s plan is to show this initial capital is adequate for rolling out a payments bank as it is not looking to open too many branches in one go. It has got separate solutions to address urban and rural consumers as both have different sets of challenges.
As per the development, Paytm has partnered with Infosys to use services of its Finacle platform for the payments bank. According to Kumar, the company is working on partnerships with financial service providers as it plans to sell financial products such as insurance and mutual funds to consumers of its payments bank.
After getting delayed for numerous times, finally, Paytm has pin down a specific date for the release, Kumar stated that the product is more likely to hit the market by Diwali. However, experts feel that it will be a big challenge for Paytm to sell financial product. The company has to face so many barriers that might affect its revenue and on top of that, Paytm can’t even lend money and earn interest on it.