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Paytm and Alibaba have entered into a commercial agreement to allow Paytm to deploy Alipay’s technology via AliCloud. The agreement will allow both firms to integrate their existing platforms to work with each other, reports Mint.
A Paytm spokesperson confirmed the development to MediaNama.
Paytm will invest about Rs 120 crore for deployment, which will essentially allow Alipay’s global customers from China, Japan, US and the UK buy from Paytm’s merchants and Indian Paytm users to buy from merchants listed on Alipay. The companies will operate on a commission basis.
Inmobi, Alipay and Paytm: In September last year, mobile ad network Inmobi partnered with payment companies Stripe, Alipay and Paytm to enable payments over its advertising discovery platform Miip. With this partnership, Stripe would be handle payments in the United States, Alipay in China and Paytm in India.
Hiring for payments: Note that Paytm appointed Varun Khullar as head of partnerships for its payments bank earlier this month. Khullar would lead partnerships and build partners in insurance companies, banks and nonbanking financial institutions. Paytm also appointed Vikas Purohit in a leadership position for its payments bank, and said it planned to hire 3,000 people for the same business.
RBI nod: In August, the RBI granted “in principle” approval to 11 applicants for payments banks, from 41 applications that it received, out of which Paytm was one. Paytm has a mobile payments and commerce business, and a semiclosed prepaid wallets license from the RBI, which it got in August 2013. The company said that it reached 100 million wallet users, and 75 million transactions per month the same month. Alibaba’s payments business Alipay owns 25% in Paytm.
Prepaid card: Last month, Paytm has partnered with ICICI Bank to launch virtual prepaid cards which could be used by wallet users at both offline and online stores for purchases. The 16digit virtual card could be accepted at retail organizations which accepted Visa, MasterCard and RuPay. In October, Paytm started allowing recharges to its wallet through over 1,800 Bank of Maharashtra ATMs