Paytm To Extend Arms To Wealth Management Sector

The homegrown largest digital payments company Paytm has decided to foray into wealth management and is in the final stages of integration with multiple asset management companies (AMCs) said a top executive of Paytm Money, the wealth management arm of Paytm.

Paytm Money, which will be going live as a separate application on the app store, will start with 12 AMCs and eventually bring in more than 25 after the formal launch. The company has already received initial registrations from interested consumers.

“One hundred percent of the initial registrations received are from retail customers and around 90% of them are from mobile phone users showing promising signs of people’s growing comfort with financial transactions on the mobile phone,” said Pravin Jadhav, Senior Vice-President with Paytm Money.

As per initial plans, the company is all set to start with mutual funds, which have been riding a huge wave of early adoption across Indian markets and plans to take the product to places where physical distributors are not present.

“We will begin with mutual fund investments from AMCs in direct mode. These plans come with no hidden commissions, thereby enabling users to earn up to 1.5% per annum higher returns on their investments as compared to investing via other distribution platforms,” said Jadhav.

Hoping to see a strong growth potential, the company has been on a hiring spree with already a 50-member team working across products and technology based out of Bengaluru. “We expect to double the headcount by the end of the year,” said Jadhav.