Paytm’s new venture payments bank is gearing up for its upcoming launch with a wide range of services for customers. The launch is scheduled for Diwali this year.
The ecommerce company has reportedly collaborated with IndusInd Bank, ICICI Prudential, and HDFC Mutual Fund in order to offer services in the area of banking, insurance, and mutual funds.
Commenting on the development, Vijay Shekhar Sharma, founder, Paytm said, “We are tying up with IndusInd Bank to create a ‘super-liquid FD’, and with ICICI Pru, HDFC Mutual Fund, & Reliance Mutual Fund to create money market funds.”
Sharma’s payments bank is expected to partner with a few more BFSI (Banking Financial Services and Insurance) companies to facilitate cross-selling of banking products for its customer-base.
The company is reportedly planning along the lines of offering a 6% return to its customers on their savings bank account. In addition to that, the users will also have an option to invest their entire savings in a money market fund product.
“For customers whose savings bank account crosses INR 1 Lakh, we are giving them an option to convert it into a money market fund. This fund will be available at zero transaction and breakage fee and will be available immediately for their use,” he added.
In August 2015, Paytm received a license from the Reserve Bank of India to set up a payments bank. In April this year, IAMAI appointed Paytm Founder Vijay Shekhar Sharma, as the Chairman of the newly formed Payments Banks Group at IAMAI.
Noida-based mcommerce company Paytm started out as a mobile payments and recharge business. The company has built its ecommerce marketplace during the last two years by selling apparel, footwear, smartphones, bus tickets, and movie tickets. Paytm is backed by investors including Alipay, Alibaba Group, SAIF Partners, Sapphire Ventures,and Silicon Valley Bank.
In August 2016, it raised $60 Mn from Mediatek’s Mountain Capital in its latest round of funding. Sharma plans to invest the new capital in his banking venture.
This development was first reported by ET.