Paytm founder Vijay Shekhar Sharma has announced that the company will invest INR 5000 crore in its payment and financial services businesses. Paytm accounts for nearly one-third of the 190 million UPI transactions as of today. The company is looking forward to doubling quarterly transactions from 1 billion per quarter to 2 billion per quarter by end of 2018. “These are early build-ups, so they will take a lot more money than other categories. This year, we are looking at more than Rs 5,000 crore of investment, including payments and financial services. The majority will be in financial services,” Sharma told in an interview to the Economic Times.
While there was an initial impact of a 10 to 15 percent fall in transactions due to the KYC mandate by RBI in March, the company recovered the numbers in March and grew again in April. The number of user transactions on Paytm every year increased from 18 in Jan 2017 to 34 in Jan 2018. Sharma said that creating new types of loans, newer types of insurance and the newest way of doing wealth management will take time since it is a regulated environment where licenses will be the key. Paytm have also partnered with ICICI Bank to launch post-paid services.
Paytm had started its KYC operations one year ago. They were building their model with financial services in mind much before the KYC obligation came on. Now the wallets are being issued by Paytm Payments Bank.
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