Paytm is one of the most popular digital wallet payment systems in India. There are many more but this is one of the most popular one. This is a digital wallet owned by One97 Communications Ltd. It will be a part of Paytm Payments Bank Ltd. The founder of paytm that is Vijay Shekhar Sharma has applied for a bank licence and he has a stake of 51%. Since this is one of the most popular payment wallets in India, it has a huge user base, also it offers lots of discounts, which makes it very popular option for the users.
As per RBI, the reserve bank of India, it will be changed to a bank after receipt of necessary approvals; the process is already on since last year. Since the process is on it will happen very soon. As per statement issued by RBI, It is about to get a final licence from RBI and then start functioning, the operation all over India.
Mint was the first organization to report in 2015 that paytm will come up with separate arms for e-commerce and payments. That is paytm will be concerned with the wallet and the e-commerce business will be under One97 Communications. So there will be 2 arms of the same company looking after different things, Subjected to necessary approvals which are pending from RBI.
One97 Communications Ltd will hold 49% in Paytm Payments Bank and other by Vijay. They will not have any external share holder. Said the company spokes person. So it is not going public, by selling its share as of now. They have made a investment of 220 cores in paytm payment and Sharma has invested 112 crores out of that as per reports by mint. It could go up to 400 Crores in next few months, Subjected to approvals from RBI.
Paytm is very optimistic of the growth and after demonization scope has increased a great deal. 200 million accounts new account are expected. Paytm already has a base of 150 million user making use of its services. This is one of the largest wallet systems in India. It is also very user friendly which makes it very popular.
Mint has also reported that One97 is also planning to sell loans, insurance and wealth management services to grow revenues. They can do cross selling but not direct lending as per norms. Since some restrictions apply they need to be careful choosing the type of services they can offers.Paytm is planning to pay interest to the users on parked funds. Also not charge merchants for transfer of funds to bank. This will make it more popular. Also it is likely to break even in 3 to 5 years as per the promoter Sharma. From RBI 11 banks have already received licence. Airtel Payment bank was the first one to start operations. The same is expected with paytm to in the near future and that will grow their system a great deal.