Paytm looking to become a full-service bank through partnerships
Paytm's rise to prominence during the demonetization-phase fuelled its ambition to get into the banking business. Subsequently, Paytm acquired the status of a payments bank but did not have the capacity to lend due to regulatory restrictions. Now, India's largest e-wallet service provider is in talks with full-service banks for a partnership which would allow it to offer services like loans and term deposits.
Paytm is India's largest e-wallet service provider and has a user base of over 250 million.
Paytm is looking to partner with not one but several banks according to Renu Satti, the CEO of Paytm Payments Bank. Till now, Paytm could only take savings deposits and remittances, but an expansion into full-service banking could see the company reach new heights. Bolstering Paytm's ambition is the founder Vijay Shekhar Sharma and the reputation he holds in the market.
"Anything which we cannot offer, we will be partnering with the banks. Whether it's going to be a loan, or a credit card, or a term deposit, and other services," said Renu Satti to Reuters.
Billionaire businessman Vijay Shekhar Sharma owns a majority share in Paytm Payments Bank. Sharma founded One97 Communications and enjoys commendable backing from investors. Sharma's company currently counts Chinese e-commerce giant Alibaba and Japan's SoftBank as its major investors. Given this kind of reputation, it can be reasonably assumed that Paytm will get the partnerships it is looking for.