As announced by the CEO Vijay Shekhar Sharma, Paytm finally got a formal approval from RBI to start their payment bank soon. Though it was supposed to launch ahead of Diwali, approval from RBI caused the delay. Paytm is among eleven companies to get the payments bank license.
In addition to this, he also stated,
At Paytm Payments Bank, our aim is to build a new business model in banking industry, focussed on bringing financial services to 100’s of millions of un-served or underserved Indians,
Paytm has already gathered the maximum share of the market after demonetization.
The bank will focus more on transaction rather than lending or money deposits.
Last year, Paytm also announced to launch virtual debit card service linked to the user’s wallet in a partnership with ICICI Bank which is yet not implemented.
In December, Vijay sold 1% of his holding in One97 Communications for about ₹325 Crore. The money will be used to develop technology infrastructure and to reach even the remote parts of the country.
What’s more interesting to know is that how are they going to make money?
Their revenue model is unique on its own. A Paytm spokesperson confirmed that Paytm would be making money through the data generated by the transactions over UPI and wallet, which would be used for cross-selling financial services on the platform.
There are tons of monetization strategies available; you just need to build an engaging platform with a good amount of users and money will eventually flow in.
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