Online mobile wallet start-up PayTm is now looking to apply for a payment banking permit, which marks the first official announcement from a company for the service, Economic Times reported.
Paytm, which earlier started as a online recharging platform has quickly diversified into other modes of payment, the most recent being its mobile wallet offering. The company recently tied up with Uber which allowed customers to pay via its mobile wallet,a service which saved Uber from getting into the tedious task of getting a 2-point verification system, a must in India.
Paytm has also announced that it will go solo in getting the banking permit issued and will not partner with any of the existing banks. Amit Lakhotia, VP of business at Paytm, told Economic Times,
Out of the total of 30 million mobile wallets in the country, 18 million are Paytm wallets and we feel we are better poised to do this on our own.
Lakhotia further said that since Paytm doesn’t have cost structure barriers unlike banks, it will be able to provide better offers and incentives to its customers, including high interest rates.
Apart from announcing plans for a banking permit, Paytm also announced its global expansion intentions. The company aims to expand to South-East Asia starting with Singapore. The company will offer its mobile wallet systems for transportation and taxi services in the beginning, which will be on similar lines with the one it had with Uber in India.
Announcing the same, Chairman Vijay Shekhar said,
Being a highly penetrated smartphone market, it (Singapore) will be a great second market (after India) for Paytm,
Paytm will operate under the brand name One97 in Singapore, which will be a fully owned subsidiary of the Indian parent company.
Earlier in November this year, Paytm Chairman and Managing Director Vijay Shekhar had voiced the fact that his company aims to cross the $1 Billion GMV (Gross Merchandise Value) mark, by the end of current fiscal.