Tag: paytm payments bank

Paytm Payments Bank rolls out ‘Paytm Transit card’

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Paytm Payments Bank (PPBL) has rolled out a ‘Paytm Transit Card’, aiming to equip millions of Indians with one physical card for all their everyday needs — from travel in metro, railways, State-owned bus services, toll & parking charges to payments at offline merchant stores, online shopping and more.

The first phase of rollout is being launched in collaboration with Hyderabad Metro Rail, Ahmedabad Metro and the Delhi Airport Express Line.

The card linked to the Paytm Wallet can be used for all transactions of a user — from travel in metros, buses and trains, to pay toll and parking charges, payment at offline and online stores to withdrawal of cash from ATMs.

Users can top up the Paytm Wallet account to use the card and do not need to maintain any separate account. Satish Gupta, MD & CEO of Paytm Payments Bank said, “The launch of the Paytm Transit Card will enable millions of Indians with the power of one single card that takes care of all transportation as well as banking needs. This will drive financial inclusion and accessibility for all. We are glad to be a part of the NCMC initiative and will continue to work towards the digitisation of the transit ecosystem in the country while driving the adoption of smart mobility solutions.”

With this launch, users won’t have to worry about carrying multiple cards for different purposes and just use the Paytm Transit Card for all their payments.

The launch of the Transit Card is aligned with the firm’s initiatives to bring out products that make banking and transactions seamlessly operable for all Indians. ‘Paytm Transit Card’ would help promote National Common Mobility Card (NCMC) and the Digital India initiative further.

How it works

The physical card will be delivered at the doorstep of the user or can be purchased at designated sales points. The prepaid card is directly linked to the Paytm Wallet, where users can just top-up the wallet to use the transit card and do not need to create any separate account.

The Paytm Transit Card is already live in the Delhi Airport Express line and Ahmedabad Metro. With the Paytm Transit Card, people can use the same card in these metros as well as other metro stations across the country.

Paytm Transit Card is the firm’s second product in the mass transit category after the success of PPBL FASTags. .

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One 97 Communication’s Paytm Payments Bank explores possibilities for conversion into SFB

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Paytm Payments Bank, an associate entity of the recently listed Paytm (One 97 Communications), is exploring possibilities for conversion into small finance bank and providing more services and offerings to customers.

According to Vijay Shekhar Sharma, Founder and CEO, Paytm, a conversion into small finance bank would help it solve a number of payment problems and also facilitate more services to its customers.

Solve payment problems

“A banking licence is an opportunity or decision which the regulator Reserve Bank of India gives to entities….so it would not be right on my part to comment on applying for a banking licence. But if we can become a small finance bank then we can solve a lot of payment problems and there are a lot of other things we can do,” Sharma said when responding to a question of whether the company would apply for a banking licence moving forward.

He was addressing the annual session and AGM of the Indian Chamber of Commerce virtually on Thursday.

Also see: UPI AutoPay sees robust consumer acceptance

The plan to consider applying for conversion into a SFB was disclosed in the draft red herring prospectus filed by One 97 Communications (Paytm) with SEBI before its initial public offering (IPO).

Five-year track record necessary

According to existing RBI guidelines, for ‘on tap’ licensing of small finance banks in the private sector, existing payment banks with a successful track record of at least five years can apply for conversion into SFB. An internal working group of the RBI had recently also suggested that a successful track record of three years may be considered sufficient for such conversion.

It may be recalled that Paytm Payments Bank got its licence to operate as a payments bank from RBI in 2017.

As per information available on its website, Paytm Payments Bank has over 100 million KYC customers with 0.4 million users added every month.

Payment-led model preferable

As at end-March 2021, Paytm Payments Bank had 6.4 crore bank accounts and demand deposits of ₹3,200 crore (including savings accounts, current accounts, fixed deposits with partner banks and balance in wallets).

Also see: Paytm Money launches Margin Pledge feature

According to Sharma, a payment-led credit business would be far more scalable as compared to a bank-based credit model as the payment-led model helps ascertain the creditworthiness of a customer.

“It is an obligation for a company like Paytm to discover and serve the underserved population by providing them access to finance,” he said.

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Paytm Payments Bank launches India’s first FASTag-based metro parking facility

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Paytm Payments Bank Ltd (PPBL) has enabled the country’s first FASTag-based metro parking facility in partnership with Delhi Metro Rail Corporation (DMRC).

As an acquiring bank for the parking facility at the Kashmere Gate metro station, PPBL will facilitate the processing of all FASTag based transactions for cars having a valid FASTag sticker, thus eliminating the hassle of stopping and paying cash at the counter.

Additionally, Paytm Payments Bank has enabled a UPI-based payment solution for 2-wheelers entering the parking site, thus digitizing the entire parking payments at the site.

With the implementation of the PPBL powered FASTag system, car owners are no longer required to tender cash and parking fee is deducted directly from the wallet or account linked with the FASTag of the respective vehicles. Two-wheeler owners can also pay their parking fees digitally at the metro station via a simple UPI payment.

Also read: Paytm Money launches wealth and investment advisory marketplace on its platform

Mangu Singh, MD, DMRC, said in a statement, “This is another step towards digitalization in the DMRC’s endeavour to provide solutions to our customers especially in these times when contactless transactional methods are the need of the hour.”

PPBL will digitise parking facilities across the country with Kashmere Gate metro station being the first one to be powered by the bank’s digital payment solution.

The bank is closely working with various municipal corporations across several states to initiate FASTag-based parking facilities both at organised and unorganised sites. The bank is also in discussion with various stakeholders to implement digital payment solutions for parking areas at shopping malls, hospitals, and airports.

Also read: How supply chain control towers will transform Indian retailing

Satish Gupta, MD & CEO, Paytm Payments Bank Ltd said, “It has been our endeavour to expand the FASTag network in our country and empower our users with seamless & hassle-free travel. In this quest, we are excited to partner with the Delhi Metro Rail Corporation for enabling digital payment solutions at their parking facility. We will continue to work with other parking providers across the country to adopt a safe and contactless payment solution by implementing the FASTag system.”

Paytm Payments Bank is already India’s largest issuer of FASTags and acquirer of toll plazas for the National Electronic Toll Collection (NETC) program.

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Paytm Payments Bank may soon apply for conversion to Small Finance Bank

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Paytm Payments Bank, an associate entity of IPO-bound Paytm, may consider applying for conversion into a Small Finance Bank (SFB) on completion of the required time period under law.

If the firm is successful in conversion, Paytm Payments Bank will be able to undertake additional banking activities such as lending.

The plan to consider applying for conversion into a SFB has been disclosed in the draft red herring prospectus filed by One 97 Communications (Paytm) with SEBI recently for the digitial financial services major’s ₹16,600 crore initial public offering (IPO).

Currently, under the existing RBI guidelines for ‘on tap’ licensing of Small Finance Banks in private sector, existing payments banks with successful track record of at least five years can apply for conversion into SFB.

Moreover, an internal working group of the RBI had recently suggested that a successful track record of three years may be considered sufficient for such conversion.

It maybe recalled that Paytm Payments Bank got its licence to operate as a payments bank from the RBI in 2017.

Net profits

Meanwhile, for the year-ended March 31,2021, Paytm Payments Bank, which has the largest scale among all payment banks, had recorded net profit of ₹17.88 crore on sales of ₹1,987.84 crore, financial data disclosed in the prospectus showed.

One 97 Communications owns 49 per cent equity interest in Paytm Payments Bank, while the rest 51 per cent is owned by Vijay Shekhar Sharma.

The objective of a payments bank is to widen the spread of payment and financial services to small business, low income households, migrant labour workforce in secured technology driven environment. A payments bank is like any other bank without involving any credit risk. It can carry out most banking operations but cannot provide loans or issue credit cards. It can accept demand deposits up to ₹2 lakh, offer remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and the third party fund transfers.

As at end-March 2021, Paytm Payments Bank had 6.4 crore bank accounts and demand deposits of ₹5,200 crore (including savings accounts, current accounts, fixed deposits with partner banks and balance in wallets). As of March 31, 2021, more than 50 percent of its registered merchants (over two crore20 million) hold an account with Paytm Payments Bank.

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Paytm Visa physical debit cards soon; Paytm Payments Bank eyes 45 lakh cards in FY22

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Paytm Payments Bank has enhanced the debit card experience with this offering by making the entire process digital.

Paytm Payments Bank will launch physical debit cards issued by Visa. Currently, it offers physical debit cards by Rupay, and virtual debit cards by Visa to customers. Paytm said that Visa physical debit cards will allow customers to use these at over 50 lakh Visa acceptance points and will allow them to tap and pay for contactless transactions. Paytm Payments Bank has already issued over 45 lakh virtual debit cards. It has now set a target to issue over 10 lakh physical debit cards by the end of this fiscal. Paytm is among largest issuer of RuPay Debit Cards in the country, which can be used by customers at all the major online merchants which accept Rupay cards

How to apply for physical debit cards by Visa?

Through the Paytm Payments Bank section on the Paytm app, customers can apply for a physical card. They can set the PIN once they receive the card. This debit card will let customers avail Visa offers, along with features such as international payments and ‘tap-and-pay’ transactions. According to the company’s management, this is another step to democratise the digital financial ecosystem in the country. “Physical cards will help more people have another payment method to rely on whenever they are out buying services or shopping. This partnership will allow millions of our customers to avail the benefits of Visa debit cards along with the power to make international transactions,” Satish Kumar Gupta, CEO & Managing Director, Paytm Payments Bank Ltd, said.

Paytm IPO on cards

Paytm is planning to come out with an initial public offer worth $3 billion later this year, PTI reported citing sources as saying. Upon successful launch of IPO, Paytm would be the largest such offer. Coal India’s Rs 15,200 crore-IPO launched in 2010 is the country’s largest public issue till date. The SoftBank and Alibaba-backed company is looking at raising around $3 billion (over Rs 21,700 crore) at a valuation of well over $25 billion, the sources privy to the development said.

Paytm registers 97.5 crore digital transactions in Mar’21

Last year, Payments Bank had enabled banking services through Aadhar authentication by integrating the Aadhaar enabled Payment System (AePS). It also launched the Direct Benefits Transfer (DBT) facility, enabling customers to receive the benefits of over 400 government subsidies directly into their Paytm Payments Bank Savings Account. Paytm registered over 97.5 crore digital transactions in March 2021, led by the transactions on Paytm Wallet, Paytm FASTag, Paytm UPI, and internet banking over the last several quarters.

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Fino Payments Bank goes live with enhanced deposit limit of Rs 2 lakh for MSMEs, small traders, others

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Fino Payments Bank has 410 branches and more than 25,000 banking points. (Image: Fino Payments Bank)

Fino Payments Bank on Wednesday announced increasing its end-of-the-day account balance limit to Rs 2 lakh for customers including MSMEs, small traders, and retail customers. The bank, which became profitable in the fourth quarter of FY20, went live with the enhanced limit effective May 1, 2021. The move was in line with the Reserve Bank of India’s (RBI) announcement last month to increase the maximum balance limit at the end of the day for payments banks to Rs 2 lakh from Rs 1 lakh earlier in order to boost financial inclusion. “After reviewing the performance of payments banks and to encourage their efforts for financial inclusion it was decided to enhance the limit of maximum balance at end of the day from Rs 1 lakh to Rs 2 lakh per individual customer,” a notification by RBI on April 7 had said.

“The increased deposit limit allows our customers to save more money in their account. Further, our existing sweep account mechanism continues with our partner bank wherein customers can save funds in excess of Rs 2 lakh,” said Ashish Ahuja, COO, Fino Payments Bank. Up to Rs 2 lakh in the Fino account, the existing savings interest rate will be applicable while funds in the sweep account will get interest rates as set by its partner bank Suryoday Small Finance Bank.

Also read: RBI’s relief measures for MSMEs: 4 key takeaways from Shaktikanta Das speech; experts opine mixed bag

Fino Payments Bank’s micro ATM and AePS enabled financial services distribution network including 410 branches and more than 25,000 banking points allow people to open a new bank account, get debit cards, do deposit, withdrawal, or money transfer transactions, pay utility bills, loan EMIs, and buy health, life and motor insurance. Unlike regular banks, payments banks are not allowed to lend money to their customers, they can’t open Fixed deposits or recurring deposits, and also can’t allow a balance of more than Rs 1 lakh in any account. Currently there are five other RBI-approved payments banks operating in the country viz., Airtel Payments Bank, India Post Payments Bank, Paytm Payments Bank, Jio Payments Bank, and NSDL Payments Bank.

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Paytm payment gateway registers 750m monthly transactions, surpasses pre-Covid level, says company

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Paytm continued to remain the distant third player in UPI transactions in February 2021.

Paytm on Monday announced that its payment gateway is the largest processor of business payments with over 750 million monthly transactions now. Adoption of online payments for sectors such as BFSI, retail and direct-to-consumer (D2C) e-commerce, utilities, edtech, food delivery, digital entertainment, gaming and online shift of businesses during and post covid times had enabled growth for the payment gateway even as its transaction volume had long surpassed pre-covid levels, the company said in a statement.

Adoption of payment instruments issued by Paytm Payments Bank, including Paytm Wallet and Paytm UPI contributed about 60 per cent to the total transactions registered on the gateway. Also, Paytm PostPaid and EMI services which were launched last year registered 25 per cent month-on-month growth, Paytm said. “Our systems have the capacity to manage up to 2,500 transactions per second which ensure stability when our enterprise merchants see spikes during special events and sales,” said Praveen Sharma, Sr. Vice President, Paytm.

According to RedSeer’s August 2020 report on digital payments in India, Paytm is the largest player in the merchant payments space with a 50 per cent market share followed by Phonepe and Google Pay. However, as per the monthly UPI transaction data from the National Payments Corporation of India (NPCI), Walmart’s payment arm in India PhonePe continued to remain the dominant UPI app for a third straight month in February 2021, cornering an impressive 42.5 per cent share of the 2,292.90 million UPI transactions.

Also read: Digital lending: Government blocks 27 fraud lending apps offering instant credit online

Paytm remained the distant third player in February as well recording 340.71 million transactions involving Rs 38,493.52 crore. It had processed 332.69 million transactions worth Rs 37,845.76 crore in the preceding month. Google Pay, which had lost the top spot to PhonePe in December 2020, had retained the second-largest UPI app in February processing 827.86 million transactions worth Rs 1.74 lakh crore.

India’s digital payments are likely to grow at a CAGR of 27 per cent during the FY20-25 period. The digital transactions are expected to jump from Rs 2,153 lakh crore in FY20 to Rs 7,092 lakh crore in FY25, according to the India Trend Book Report 2021 launched last week by the Indian Private Equity and Venture Capital Association (IVCA) and Ernst & Young. The payment gateway aggregator market is expected to grow at around 19 per cent CAGR from Rs 9.5 lakh crore in FY20 to Rs 22.6 lakh crore in FY25 while the merchant payments segment is likely to see 52 per cent growth from Rs 4.7 lakh crore to Rs 33 lakh crore during the said period.

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UPI volume, value contract for first time in 10 months even as YoY growth nearly doubles

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UPI transactions had exited 2020 with the Rs 4-lakh-crore value mark in December.

Unified Payments Interface (UPI) transaction volume and value have witnessed a contraction in February 2021 — the first time since April last year. From 2302.73 million transactions involving Rs 4,31,181.89 crore processed in January 2021, the number of transactions declined to 2,292.90 million worth Rs 4,25,062.76 crore in February 2021, according to the data from the National Payments Corporation of India (NPCI). UPI transactions in April last year had declined to 999.57 million amounting to Rs 1,51,140.66 crore from 1,246.84 million transactions worth Rs 2,06,462.31 crore in the preceding month.

However, the year-on-year growth in UPI transactions stood at 73 per cent in February 2021 even as the value nearly doubled by 91 per cent. February 2020 volume stood at 1,325.69 million transactions worth Rs 2,22,516.95 crore. The number of banks going live on UPI also increased from 146 in February 2020 to 213 in February 2020. UPI transactions had ended 2020 on a high note with the total value storming past the Rs 4-lakh-crore mark in December to Rs 4.16 lakh crore across 2,234.16 million transactions.

Also read: IPO-bound Flipkart rejigs leadership; appoints Unilever veteran Hemant Badri as Senior VP Supply Chain

While the NPCI is yet to release bank and app-wise data for their February UPI transactions, Walmart-owned PhonePe had remained the leading UPI-app in terms of volume and value in January 2021. The company had processed 968.72 million transactions involving nearly Rs 1.92 lakh crore. In fact, PhonePe’s volume was over 100 million transactions higher than Google Pay’s 853.53 million transactions worth Rs 1.77 lakh crore. On the other hand, Paytm Payments Bank had remained the distant third player with a volume of 332.69 million worth Rs 37,845.76 crore. The combined transaction volume of the three leading UPI apps stood at 93.5 per cent share of the total January volume of 2,302.73 million while the value share stood at 94.5 per cent of Rs 4.31 lakh crore.

Importantly, among India’s top 30 UPI remitter banks witnessing UPI transaction failures due to technical reasons, public sector lender Union Bank of India had the highest failure in January. From 10.75 per cent technical decline (TD) in December, the failure rate jumped to 12.89 per cent in January for Union Bank of India. Andhra Bank and Indian Bank recorded the second and third highest TD rate of 10.40 per cent and 9.83 per cent respectively in January.

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Paytm Payments Bank helps 2.6 lakh FASTag users get back wrongly deducted toll charges, BFSI News, ET BFSI

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Paytm Payments Bank on Tuesday said it has won 82 per cent of dispute cases on behalf of FASTag users with toll plazas in 2020 and facilitated refund of wrongly deducted toll charges to 2.6 lakh customers. The payments bank said it has set up an automated dispute management process which identifies incorrect deductions and immediately raises claims to reverse the extra charges.

Paytm Payments Bank MD and CEO Satish Gupta said in a statement, “It has been our endeavour to empower our users with seamless and hassle-free travel on road. In this quest, we support our users in every possible way, including fast redressal of any grievance they face with toll plazas.”

The company continuously strives to ensure that customers are always charged the correct toll amount, he added.

Paytm Payments Bank claims to be the top issuer and the largest acquiring bank under the National Electronic Toll Collection programme.

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Union Bank of India, Syndicate Bank post highest UPI failure rates; Paytm sees lowest decline rate

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Andhra Bank and Indian Bank recorded the second and third highest TD rate of 10.40 per cent and 9.83 per cent respectively in January.

Public sector lender Union Bank of India continued to witness the highest failure rate for UPI transactions among India’s top 30 UPI remitter banks due to technical reasons in January. From 10.75 per cent technical decline (TD) in December, the failure rate jumped to 12.89 per cent in January for Union Bank of India, data from the National Payments Corporation of India (NPCI) showed. 85.95 million UPI transactions were processed by Union Bank of India during the month out of which nearly 80 per cent were approved while 7.36 per cent were declined due to reasons including invalid pin entered by customer, incorrect beneficiary account, exceeding per transaction limit or permitted count of transactions per day or amount limit for the day, etc. Andhra Bank and Indian Bank recorded the second and third highest TD rate of 10.40 per cent and 9.83 per cent respectively in January.

Among the top 30 UPI beneficiary banks (bank of the account holder who is receiving money) as well, Indian Bank recorded the second-highest TD rate of 5.50 per cent while Syndicate Bank topped the tally with 8.65 per cent. Karnataka Bank posted the third-highest TD rate of 3.18 per cent among UPI beneficiary banks in January. State Bank of India, which posted the highest TD rate of 9.08 per cent in December, improved it to 1.52 per cent in January.

Also read: Flipkart leads Q4FY21 international net sales for Walmart

Paytm Payments Bank recorded the lowest TD rate of 0.05 per cent on 145.61 million transactions in January among remitter banks. In terms of transaction volume, the top remitter banks were SBI (664.75 million), HDFC Bank (206.65 million), Axis Bank (173.38 million), and ICICI Bank (152.06 million). Among beneficiary banks, CITI Bank saw zero transactions failing due to technical reasons on 5.94 million transactions. Paytm Payments Bank (368.90 million), SBI (354.61 million), Yes Bank (273.95 million), ICICI Bank (237.59 million), and Axis Bank (207.61 million) saw the highest volume among beneficiary banks.

Walmart-owned digital payments company PhonePe was the highest UPI app in January processing processed 968.72 million UPI transactions involving nearly Rs 1.92 lakh crore. PhonePe volume was more than 100 million transactions higher than Google’s 853.53 million transactions worth Rs 1.77 lakh crore. Paytm Payments Bank, however, remained the distant third player with a volume of 332.69 million worth Rs 37,845.76 crore.

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