Paytm payments bank to become operative next week: Vijay Shekhar Sharma

[rahul1117kumar]

Paytm founder Vijay Shekhar Sharma on Friday said that the company will focus on expanding its operations in banking and build upon its distribution and customer base. ”We want to expand the network across the country and increase the penetration. We want to expand this to deposits and current accounts. I think 2017 will be the year for us to expand into banking. We have to build distribution, reach and customer base,” Sharma told BTVi.

Sharma said that the Paytm Payments Bank will become operative next week. Talking about expanding customer base, he said by 2020 the company targets to reach a customer base of 500 million.

Post-demonetisation, Paytm saw a surge in its customers owing to the digitisation push by the government. “I think what we saw small shops, and people who traditionally didn’t get access to digital payments, opted for digital payments. It’s very encouraging,” he said.

Hoping for a global outreach, he said, “Traditionally Indian companies have found global customers, which are business to business customers, but not consumers. How about a consumer technology company coming from India, and that is the shot we want to take.”

Paytm payments bank to become operative next week: Vijay Shekhar Sharma

 

[rahul1117kumar]

Paytm hopes to start payments bank by month-end

Paytm Payments Bank , which got the final approval from the Reserve Bank in January, hopes to start operations by the month-end, PayTm founder and chief executive Vijay Shekhar Sharma said here today.

"If the RBI blesses us, we will be able to have our bank by this month-end. Banking must be made available to everyone, the money that the customer puts in isn't a liability but an asset," Sharma said at the India Today Conclave here.

Stating that banking in the present form is outdated, he said, "Versace suits will not change the banking model. Our payments bank will be built on a new model that will be focussed on bringing financial services to the hundreds of millions of unserved/under-served."

Taking a swipe at the way banks have dealt with loans given to industrialists and especially in dealing with the big-ticket defaulters, Sharma said, "the present financial system penalises a sincere person, but if someone speaks the language of those in the corridors of power, he takes a loan of hundreds of crores and fails to pay it back, he will still manage to live in London or such locales."

Sharma expressed belief that with greater
penetration of mobile Internet connectivity, his business will grow further.

Paytm currently has about 21.5 crore subscribers, Sharma said adding as against this SBI has 20.7 subscribers.

Paytm does about 20 crore transactions a month, while according to RBI data, all other e-wallets put together do 19 crore transactions.

"You can undermine a business but not a technology; it is a tsunami," he said on online payments and smart phones. To further deepen this, we need better Internet network and telecom connections, he added.

PayTM: Paytm hopes to start payments bank by month-end, Telecom News, ET Telecom