New Banks 183

Paytm plans to unveil payments bank before November

Paytm-LogoIf everything goes as planned, Paytm would launch its payments bank with an initial capital of Rs 300 crore before November.

According to reports, founder of One97 Communications Ltd Vijay Shekhar Sharma, one of the 11 recipients of payments bank licence is contemplating to unveil Paytm Payment Bank Ltd which is likely to emerge as the second biggest revenue source for the parent firm after the core payments business in about two years.

Paytm Payment Bank will be 49% owned by One97 and 51% by Sharma.

“Venturing into banking domain is not a cake walk and is a long-term game. It usually takes four to five years for any newcomer to make money,” said Sharma. “One97 and I will continue to keep funding the bank till it is profitable,” he added.

Notably, three out of the 11 recipients have already withdrawn their applications, triggering concerns around the business model of payments banks.

According to the plan, the proposed bank is eyeing to grow its business in 12 cities in north-east and central India. If sources are to be believed, Paytm Payment Bank will rely on loans, insurance and wealth management to drive most of its revenue.

“Paytm will introduce a few wealth management tools for those who can’t afford to have the luxury of wealth management,” said Sharma.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top