What you always wanted to know when Paytm becomes payments Paytm is an Indian payment and commerce company based out of Delhi NCR, India. Launched in August 2010, it is the consumer brand of parent One97 Communications. The name is an acronym for "Pay Through Mobile."
In 2015 Paytm received a license from Reserve Bank of India to start one of India's first payments banks. At the time, the bank intended to use Paytm’s existing user base for offering new services, including debit cards, savings accounts, online banking and transfers, to enable a cashless economy. The payments bank would be a separate entity in which the founder Vijay Shekhar Sharma will hold 51%, One97 Communications will hold 39% and 10% will be held by a subsidiary of One97 and Sharma.
Paytm is also approved as an operating unit for integrated bill payment system Bharat Bill Payment System, allowing multiple payment modes for consumers.
In 2015, Paytm became the first Indian company to receive funding from Chinese eCommerce company Alibaba, after it raised over $625 million at a valuation of $1.5 billion. The Alibaba Group was the biggest stakeholder in Paytm parent company One97 Communications.In August 2016, Paytm received an investment from Mountain Capital, one of Taiwan-based MediaTek’s investment funds, which valued Paytm at of over USD$5 billion.
The company employs over 13,000 employees as of January, 2017 and has 3 million offline merchants across India. It also operates the Paytm payment gateway and the Paytm Wallet.
Paytm has invested $5 million in auto rickshaw aggregator and hyperlocal delivery firm Jugnoo. It has also acquired Delhi-based consumer behavior prediction platform Shifu for $8 million and local services startup Near.in for $2 million.Paytm has also spent over INR 200 crores to become the title sponsor of the Indian Cricket team.
The money will be transferred to the Paytm Payments Bank Limited as the wallet business will become part of the new company. It will happen automatically, and you need not do anything. Other banks too have their wallet businesses apart from their usual business.
Will the Paytm app change?
In 2015 Paytm received a license from Reserve Bank of India to start one of India's first payments banks. At the time, the bank intended to use Paytm’s existing user base for offering new services, including debit cards, savings accounts, online banking and transfers, to enable a cashless economy. The payments bank would be a separate entity in which the founder Vijay Shekhar Sharma will hold 51%, One97 Communications will hold 39% and 10% will be held by a subsidiary of One97 and Sharma.
Paytm is also approved as an operating unit for integrated bill payment system Bharat Bill Payment System, allowing multiple payment modes for consumers.
In 2015, Paytm became the first Indian company to receive funding from Chinese eCommerce company Alibaba, after it raised over $625 million at a valuation of $1.5 billion. The Alibaba Group was the biggest stakeholder in Paytm parent company One97 Communications.In August 2016, Paytm received an investment from Mountain Capital, one of Taiwan-based MediaTek’s investment funds, which valued Paytm at of over USD$5 billion.
The company employs over 13,000 employees as of January, 2017 and has 3 million offline merchants across India. It also operates the Paytm payment gateway and the Paytm Wallet.
Paytm has invested $5 million in auto rickshaw aggregator and hyperlocal delivery firm Jugnoo. It has also acquired Delhi-based consumer behavior prediction platform Shifu for $8 million and local services startup Near.in for $2 million.Paytm has also spent over INR 200 crores to become the title sponsor of the Indian Cricket team.
The money will be transferred to the Paytm Payments Bank Limited as the wallet business will become part of the new company. It will happen automatically, and you need not do anything. Other banks too have their wallet businesses apart from their usual business.
Will the Paytm app change?
- No. The user experience will remain the same as the app will continue to work as it does. You will continue to use it to pay for taxi, fuel, food, etc. the same way
- The wallet business will get transferred to the new company but will keep running as it is.
- Only if you opt to open an account with the new payments bank of the company. Otherwise your wallet will keep working as it is. The company will give you an option to open a separate account.
- You will earn interest on your money if you choose to open a payments bank account.
- A payments bank cannot lend or give advance to customers. It can issue cheque books and debit cards but not credit cards. There is a limit on the money you can keep in your account.
- You cannot keep more than Rs 1 lakh in the Paytm payments bank. The purpose behind these banks is to provide quick and basic banking services to the people at the bottom. Airtel too is launching a payments bank.
- Paytm Payments Bank has set itself a target of 200 million accounts, across current and savings accounts, and mobile wallets, within 12 months of the launch. It aims to touch half a billion accounts by 2020. Paytm already has close to 150 million electronic wallets.
- The bank will sell products such as loans, wealth management and insurance to drive revenues.
- Payments banks are not allowed to lend themselves, but many are banking on cross-selling banking products through partnerships.
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