Homegrown digital payments giant Paytm has introduced My Payments feature on its app to enable Paytm users to schedule and make recurring, high-value payments and other monthly remittances without any hassle.
In a media statement, the company shared that now bank transfers can be done from one bank account to another without any charges. Besides, even non-KYC Paytm users can avail of this facility.
With the addition of My Payments, the company aims to process $8.9 Bn (INR 60,000 Cr) in monthly bank transfers by the end of this year.
Deepak Abbot, senior vice-president, Paytm, explained that many Paytm users make regular recurring payments such as house rent, maid/driver’s salary, milk or newspaper vendor payments, etc online. Because of this, Paytm has witnessed a major surge in its bank transfers service. With My Payments, the company has simplified the process. It expects the segment to grow by six times owing to a rapid shift in consumer behaviour towards online payments.
Speaking to Inc42, Deepak also explained that there was no upper or lower limit to the total number of payments or the amount of money that can be transferred under My Payments. “We want to ensure that our consumers are able to automate all regular payments without worrying about minimum balance requirements or transaction limits,” he added.
Under the My Payments feature, customers can schedule monthly bill payments and other remittances to individuals as well as businesses for a particular day of the month and choose to make them recurring.
On the security front, the app will require the express consent of the user to process any payment on his/her behalf. This is to ensure that customers are aware of all deductions from their bank accounts.
Earlier, Inc42 had reported that Paytm is ready to amplify its game to the next level with plans to invest over $745.16 Mn (INR 5,000 Cr) in its core business. It plans to increase the number of transactions done on its app from 1 Bn to 2 Bn this year.
The company plans to use the investment to focus on user acquisition and education. “We will also invest heavily in products that would help us build on top of our existing services,” Deepak added.
Paytm has been continuously expanding its product portfolio and recently added Paytm Tap Card to enable offline payments. It has also introduced a new version of Paytm app to personalise the app experience for the user, showcasing frequent use cases in a customised view.
The company recorded a four-fold jump in its annualised gross transaction value (GTV) from $5 Bn in March 2017 to $20 Bn (INR 1.3 Lakh Cr) in March 2018.
Indian Digital Payments Space
Credit Suisse in a report predicted that India’s digital payments industry, which is currently worth around $200 Bn, is expected to grow five-fold to reach $1 Tn by 2023. Another report by Google and the Boston Consulting Group said that the digital payments industry in India is projected to reach $500 Bn by 2020, contributing 15% to India’s GDP.
With entrants like Google Tez, the beta-version of WhatsApp Pay, and Amazon Pay, the digital payments sector has been buzzing in the country. Indian giants in the space continue to be Paytm along with Flipkart’s PhonePe among others.
With competition heating up, companies are focusing on continuous innovation beyond cash-backs etc to retain and increase customers. Paytm has been one of the frontrunners in innovating its services and product portfolio with features that give it an edge over others.
With My Payments, which enables scheduled bank transfers for KYC-compliant as well as non KYC-compliant customers, Pautm is looking to witness a manifold increase in its transactions.