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Optimus_Prime
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Sarkar said:So 2nd payment bank is live
It's Indian Post Payment Bank (IPPB)
Sourabhs20
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Good first airtel now paytm.
rahul1117kumar
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Paytm to merge its wallet service with payments bank
One 97 Communications, the parent company of digital payments provider Paytm , is preparing to merge its wallet service with the eponymous payments bank—the licence for which is owned by its founder Vijay Shekhar Sharma —once it receives regulatory approval.
The Noida-based company had incorporated Paytm E-commerce Pvt Ltd and Paytm Payments Bank Ltd as separate entities in August. The company also operates an ecommerce marketplace, which is expected to be spun off and serve as an entry pad for online retail operations of Chinese ecommerce giant Alibaba, according to sources aware of the plans within the company.
“As per the directions of RBI, the company will transfer its wallet business to the newly-incorporated Paytm Payments Bank Limited (PPBL ) after receipt of necessary approvals,” a spokeswoman for Paytm told ET. She declined to comment on the entry of Alibaba into the Indian ecommerce sector through the Paytm marketplace, terming it as 'speculation'.
Alibaba’s digital wallet Alipay is in a technology-sharing partnership with Paytm. The combined entity of Alibaba and its subsidiary Ant Financial hold 40% stake in One97 Communications, having invested about $680 million in the company.
“The (payments bank) is in the process of obtaining final licence from RBI and will commence operations after obtaining due approvals,” the Paytm spokeswoman said.
The central bank has granted an ‘in-principle payments bank licence’ to Sharma, who holds a 51% share in the payments bank, with the balance owned by One97Communications. Sharma, in an earlier interview with ET, said he had made an Rs 112 crore investment for his majority stake in the payment bank. The Chinese conglomerate Alibaba does not directly own a stake in the soon-to-be launched payments bank.
“All banks have their own mobile wallets, so it should not be a problem for Paytm to have its wallet business merged with the payments bank business. However, the company has to segregate the wallet business from its ecommerce business as it might cause aregulatory hurdle,” said Bhavik Hathi, managing director of consultancy firm Alvarez & Marsal.
Paytm has been one of the main gainers in the push towards digital currency following government's move to demonetise higher value currency notes.
Wallet companies like Paytm have registered a spike in user base as well as the number of transactions. According to data shared with ET, Paytm claims over 5 million transactions on a daily basis with a peak of Rs 120 crore worth of transaction in a single day.
A recent report by consultancy and research firm EY India on ‘Alternate Revenue Models for
Payments Banks in India’ states that “adjacent revenue opportunities for payments banks would be to explore expanding this ecosystem by partnering with ecommerce players and offering assisted services to customers through their business correspondent network,” allowing for micro savings accounts and increasing the use case for associated digital wallets.
Paytm recently came under public scrutiny as the debate on demonetisation and increase in wallet signups brought to fore claims of Chinese investors benefitting from the move in India. ET had reported that Swadeshi Jagran Manch, which has been campaigning against inflow of Chinese goods into India, had said it will ‘study’ the relationship between Paytm and Chinese internet company, Alibaba Group. Alibaba’s digital wallet Alipay is in a technology-sharing partnership with Paytm.
Paytm to merge its wallet service with payments bank - ET Telecom
One 97 Communications, the parent company of digital payments provider Paytm , is preparing to merge its wallet service with the eponymous payments bank—the licence for which is owned by its founder Vijay Shekhar Sharma —once it receives regulatory approval.
The Noida-based company had incorporated Paytm E-commerce Pvt Ltd and Paytm Payments Bank Ltd as separate entities in August. The company also operates an ecommerce marketplace, which is expected to be spun off and serve as an entry pad for online retail operations of Chinese ecommerce giant Alibaba, according to sources aware of the plans within the company.
“As per the directions of RBI, the company will transfer its wallet business to the newly-incorporated Paytm Payments Bank Limited (PPBL ) after receipt of necessary approvals,” a spokeswoman for Paytm told ET. She declined to comment on the entry of Alibaba into the Indian ecommerce sector through the Paytm marketplace, terming it as 'speculation'.
Alibaba’s digital wallet Alipay is in a technology-sharing partnership with Paytm. The combined entity of Alibaba and its subsidiary Ant Financial hold 40% stake in One97 Communications, having invested about $680 million in the company.
“The (payments bank) is in the process of obtaining final licence from RBI and will commence operations after obtaining due approvals,” the Paytm spokeswoman said.
The central bank has granted an ‘in-principle payments bank licence’ to Sharma, who holds a 51% share in the payments bank, with the balance owned by One97Communications. Sharma, in an earlier interview with ET, said he had made an Rs 112 crore investment for his majority stake in the payment bank. The Chinese conglomerate Alibaba does not directly own a stake in the soon-to-be launched payments bank.
“All banks have their own mobile wallets, so it should not be a problem for Paytm to have its wallet business merged with the payments bank business. However, the company has to segregate the wallet business from its ecommerce business as it might cause aregulatory hurdle,” said Bhavik Hathi, managing director of consultancy firm Alvarez & Marsal.
Paytm has been one of the main gainers in the push towards digital currency following government's move to demonetise higher value currency notes.
Wallet companies like Paytm have registered a spike in user base as well as the number of transactions. According to data shared with ET, Paytm claims over 5 million transactions on a daily basis with a peak of Rs 120 crore worth of transaction in a single day.
A recent report by consultancy and research firm EY India on ‘Alternate Revenue Models for
Payments Banks in India’ states that “adjacent revenue opportunities for payments banks would be to explore expanding this ecosystem by partnering with ecommerce players and offering assisted services to customers through their business correspondent network,” allowing for micro savings accounts and increasing the use case for associated digital wallets.
Paytm recently came under public scrutiny as the debate on demonetisation and increase in wallet signups brought to fore claims of Chinese investors benefitting from the move in India. ET had reported that Swadeshi Jagran Manch, which has been campaigning against inflow of Chinese goods into India, had said it will ‘study’ the relationship between Paytm and Chinese internet company, Alibaba Group. Alibaba’s digital wallet Alipay is in a technology-sharing partnership with Paytm.
Paytm to merge its wallet service with payments bank - ET Telecom
The company also operates an ecommerce marketplace, which is expected to be spun off and serve as an entry pad for online retail operations of Chinese ecommerce giant Alibaba,
So Ecommerce will be sold to Alibaba after some time?
So Ecommerce will be sold to Alibaba after some time?
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greylala91
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Airtel will have an advantage over paytm ad they can use their airtel relationship centres for banking services. Paytm should have to start from scratch...
rahul1117kumar
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Paytm to transfer wallet business to payments bank
Digital payments firm Paytm today said its wallet business will soon be transferred to its payments bank but quashed social media rumours that the m-wallets will stop working after January 15. “There are some rumours circulating that you will not be able to use the Paytm Wallet after 15th January! Nothing could be farther from the truth. On the contrary, Paytm Wallet users will soon enjoy additional benefits through Paytm Payments Bank Account,” Paytm said in a blog post.
The hoax message claims that since Paytm is converting into a payments bank post January 15, users will not be able to transact with their Paytm wallet money, it said. The company noted that the Paytm Wallet will soon be transferred to the newly incorporated Paytm Payments Bank automatically but added that the m-wallets will work even after January 15. Stating that this is just a “transfer of ownership of wallet to a new company called Paytm Payments Bank Ltd”, Paytm said customers will be given an option to open a separate bank account when the bank launches its services.
Paytm further said: “You are not required to open an account with Paytm Payments Bank to use the wallet.” “After the movement, we will be able to offer our customers a host of new services and features such as savings accounts where they will earn interest as well in addition to being able to avail all the current services,” a Paytm spokesperson said. Also, login details, wallet balance and user experience will remain the same.
In case users choose to discontinue their Paytm wallets, they can send an email to [email protected] or log in to Paytm.Com/care to notify the choice of opting out and redeeming the balance by a one-time transfer to their own bank account. In case a user’s wallet has been inactive for the last six months and has zero balance, it will not be transferred to the Paytm Payments Bank Wallet unless they specifically give consent for the same while logging into the app, web or by e-mail.
Paytm to transfer wallet business to payments bank - India.com
Digital payments firm Paytm today said its wallet business will soon be transferred to its payments bank but quashed social media rumours that the m-wallets will stop working after January 15. “There are some rumours circulating that you will not be able to use the Paytm Wallet after 15th January! Nothing could be farther from the truth. On the contrary, Paytm Wallet users will soon enjoy additional benefits through Paytm Payments Bank Account,” Paytm said in a blog post.
The hoax message claims that since Paytm is converting into a payments bank post January 15, users will not be able to transact with their Paytm wallet money, it said. The company noted that the Paytm Wallet will soon be transferred to the newly incorporated Paytm Payments Bank automatically but added that the m-wallets will work even after January 15. Stating that this is just a “transfer of ownership of wallet to a new company called Paytm Payments Bank Ltd”, Paytm said customers will be given an option to open a separate bank account when the bank launches its services.
Paytm further said: “You are not required to open an account with Paytm Payments Bank to use the wallet.” “After the movement, we will be able to offer our customers a host of new services and features such as savings accounts where they will earn interest as well in addition to being able to avail all the current services,” a Paytm spokesperson said. Also, login details, wallet balance and user experience will remain the same.
In case users choose to discontinue their Paytm wallets, they can send an email to [email protected] or log in to Paytm.Com/care to notify the choice of opting out and redeeming the balance by a one-time transfer to their own bank account. In case a user’s wallet has been inactive for the last six months and has zero balance, it will not be transferred to the Paytm Payments Bank Wallet unless they specifically give consent for the same while logging into the app, web or by e-mail.
Paytm to transfer wallet business to payments bank - India.com
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