Paytm Payments Bank's route to profitability
With 12 months in operation, Paytm Payments Bank is diversifying its product scope beyond payments, aiming to rapidly scale in the merchant and consumer space June 26, 2018 | Chris Kapfer
Paytm started as a prepaid mobile recharge website in 2011, but has emerged over the last 12 months into a full-fledged digital payments play under the Paytm Payments Bank which was launched in May 2017 under a restricted banking licence. Payment banks in India are stipulated by the regulator to reach micro businesses and low income households. The bank is designed in a way to bring half a billion Indians on to the mainstream economy. It is well known that the bank wants to build scale first and continues to be in an “investment mode”. Paytm Payments Bank aims to digitise the payments process through the entire customer consumption cycle, and build products and services for the unbanked and under banked people by radically simplifying payments processes in regards to product functionality, marketing and process automation. Furthermore, use cases drive penetration which is the key agenda. Initially, the payments bank only had a savings account and digital debit card but has begun to diversify their business model and product range. The payments bank is ranked among the top 20 digital banks in the Asia Pacific, Middle East and Africa in The 2018 Asian Banker Top Digital Banks and FI Ranking. Modularising complex financial products for the Indian market The bank’s expertise is modularising complex financial products for the Indian market such as the popular Super Liquid Gold,which allows customers to invest for as low as $0.02 (INR1.00). This amount can be redeemed at any point of time, fr... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Keywords:Digital Bank, Payments Bank, UPI, KYC, Technology digital bank, payments bank, UPI, KYC, technology
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