Alibaba-backed PayTM, which just got a payment banking license approved by RBI, is soon going to start a new feature which will enable its users to repay their loans through its portal. It will kick off this new service with Gold loans repayment options.
The company has tied up with Manapurram Finance and Muthoot Fincorp to start offering the service.
Once it start this new service, it will introduce some other facilities for the ease of customers, such as renewal of insurance policies. To offer insurance renewal service, it has tied-up with SBI General Insurance.
As reported earlier, the company is going to form a new entity named PayTM Payments Bank, which will be responsible for these new finance and banking related services. It has already formed a beta team to carry out operations and aim to disrupt the finance sector of India by using data from its existing companies.
According to industry experts, the online financial services market size with respect to loans is about Rs 4,500 crore, while the online lending range varies between Rs. 30,000 to Rs. 3 crore.
Financial services has limited penetration in the Indian market and PayTM is looking to tap into this market by targeting the masses and offering them a range of financial services.
PayTM was founded in 2010 by Vijay Shekhar Sharma as an online mobile recharge portal. Now, it offers recharge on the go for your mobile, DTH, data cards, utility bills, bus tickets and has also launched mobile shopping portal.