320 Mn+ registered users. 1 Bn transactions per quarter. $20 Bn (INR 1.3 Lakh Cr) annualised gross transaction value (GTV). 7 Mn offline merchant base. $2.3 Bn in total funding. The homegrown decacorn: Paytm’s journey, from a mobile recharge platform to launching an ecommerce arm to finally introducing Paytm Payments Bank, has been nothing short of spectacular.
Launched in May 2017, Paytm Payments Bank is the country’s third payments bank to go live, after Airtel and India Post. Its emergence has given Paytm a new identity of an umbrella organisation offering a host of digital payments services to its customers.
For the banking neophytes, conceptualised by the Reserve Bank of India in 2013-14, payments banks are essentially a new model of banks that can accept a restricted deposit of up to $1,533 (INR 1 Lakh) per customer. While they are barred from issuing loans and credit cards, these banks are allowed to operate both current and savings accounts and can issue services such as debit cards, mobile wallet, ATM cards and net-banking.
It was in 2016 that the RBI offered its in-principle nod to 11 entities for establishing payments bank operations. Among them were Fino Paytech, Airtel, India Post, Paytm, Cholamandalam Distribution Services Ltd, Tech Mahindra Ltd, Reliance Industries, and National Securities Depository Limited and others.
So far, while the founder Vijay Shekhar Sharma has been at the forefront of every other vertical Paytm is into, Paytm Payments Bank has got its ambitions driven by CEO and MD Renu Satti. Under her leadership, Paytm Payments Bank is now on a mission to bring digital and financial inclusion by enhancing access to banking services in rural India.
With a target of reaching 500 Mn bank accounts by 2020, the country’s third payments bank is aggressively trying to set up more than 100K banking outlets by the end of this year. It is also in the process of adding a wide range of financial products to reach a larger audience on both retail and the corporate ends.