In its plans to overpower WhatsApp and Google’s payment businesses in the country, Paytm has tweaked its app’s user experience and brought multiple payment methods, including bank-to-bank transactions under its ‘Money Transfers’ option.
Paytm is now positioning its app as a ‘super app’ for payments by enabling large transactions and multiple modes of payment under one option.
Paytm has budgeted Rs 250 crore to promote money transfers and expects transactions under this to account for one-third of total transactions by the end of the year. The new look of the app went live for Apple iOS users on Sunday and will go live for Google Android users on Monday.
With the RBI’s new know-your-customer guidelines hurting digital wallet businesses, this move by Paytm is also likely a push from the company to enable large transactions like bank-to-bank payments by making it seamless.
According to Paytm senior vice-president Deepak Abbot, Paytm has so far separately offered money transfer options between its payment bank and other banks; payments bank account to payments bank account; bank account to bank account under UPI; and digital wallet to the bank account.
While the company has so far focused mainly on peer-to-peer transactions on the digital wallet and peer-to-merchant transactions through QR codes, it is now also looking to capture large ticket-size use cases such as payments for house rent, to suppliers, and even for salaries of the unorganized workforce. The instant money transfer will not be charged.
Paytm COO Kiran Vasireddy said, “Money transfer can often be a tedious process and we want to make it easy for people without having to log into their banking apps to send money.”