Paytm Payments Bank to introduce UPI-powered service
Paytm Payments Bank, which recently made its official debut, is all set to launch a UPI-powered payments service for its customers. It is expected to go live by August. Paytm Payments Bank will be the latest to join the UPI bandwagon, with 50 banks already live on the platform.
Approximately 50 banks are already registered with the National Payments Corporation of India’s payment system. Paytm customers using the service will enjoy seamless connectivity between their accounts held in different banks, along with the additional benefit of having an e-wallet. Customers can also receive and make payments using their Aadhaar numbers only.
Once launched, the service will allow its customers to transact using a virtual payment address issued by the bank. Commenting on this, Renu Satti, CEO of Paytm Payments Bank, said:
We will soon enable seamless creation of UPI IDs on our platform so that users can send and receive money to each other, and for merchant payments. It will be one of the most important components of our payments platform and enable us to bring cost-efficient digital payment services to every Indian.
The report further states her as having added, “Paytm owns the country’s largest payment ecosystem with a vast loyal consumer base and more than 5 million offline mere factors will offer us the edge once chants. These factors will offer us the edge once we launch UPI on our platform.“
The Paytm Payments bank was introduced last month. In the first year alone, it targets to open 31 branches and 3,000 customer service points in a bid to attract 500 million customers by 2020. The Payments Bank comes under a new format of banks that have been permitted by the Reserve Bank of India.
Customers who open an account with Paytm Payments bank are allowed to deposit sums up to Rs 1 lakh. While Paytm can provide debit cards, online banking and mobile banking and other services to its clients the payments bank is not permitted to lend out money. However, financial services including loans, insurance, mutual funds and pension funds among other things, can be offered by the Noida-headquartered bank by partnering with a financial institution.
UPI ecosystem includes almost all major public and private banks and payment gateways such as BillDesk, Razorpay, CCAvenue, PayU Money and Citrus Pay that supports UPI-based payments.
Paytm Payments Bank to introduce UPI-based service