31 May 2016, NEW DELHI: PayTm targeting to launch payments bank by this November through its entity PayTm Payment Bank Ltd. with an initial funds of Rs.300 crore, said PayTm founder Vijay Shekhar Sharma on Monday.
The entity is planning to become second highest revenue origin for the parent firm (One97 Communications Ltd) after the core payments business in the next two years. The bank will look to grow its business in 12 cities in north-east and central India during the first year of its business. Bihar, Uttar Pradesh and Madhya Pradesh will top the agenda
According to sources and reports by HT Media, Sharma said, “It is not an easy business and is a long-term game. It should take any payment bank three to five years to make money. If you have enough volumes, you could reach there faster. The company (One97) and I will continue to keep funding the bank till it is profitable.”
Commenting on launching of innovative products by the company, Sharma said, “A common person’s savings is the money kept in his savings bank account. He does not have the luxury of wealth management… we will bring some incredible wealth management tools and we will create a money market fund here, which will not have any lock-in period or any penalty for breaking the bond”.
The company kick-started as a mobile recharge site and utility bill payment platform in 2010. Being a consumer brand of India’s leading mobile internet company ONE97 Communications, PayTm expanded its offerings with wallet payment and wallet to wallet and wallet to bank transfers for many leading internet based companies like Bookmyshow, Makemytrip, FoodPanda, IRCTC among others.
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