In the ramp up for launching its payments bank, Paytm said that it will be integrating features of the India Stack into its operations. India Stack is a set of APIs that allows governments, businesses, startups and developers to create solutions and utilities which can help India go paperless, cashless and presence-less.
Right now, India Stack consists of the Unified Payments Interface (UPI), Aadhaar authentication, eSign, eKYC and Digital Locker. The Goods and Services Tax Network (GSTN) will be the latest addition to this later in the year.
Paytm says it has already implemented eSign and eKYC for its mobile payments and commerce solutions. Now as part of its startegy, all payments bank customers of the company will be able to load their Paytm wallet through any UPI-enabled app. Customers will also be able to transfer money to any bank account from their existing bank account through Paytm’s UPI interface. All Paytm merchant QR codes will be UPI-interoperable and this means that all merchants in Paytm’s ecosystem can accept payments from other UPI apps.
Transfer to Paytm Payments Bank
Earlier this week, the company said users of Paytm’s wallet services, which are currently run by Mobile VAS company One97 Communications, will be shifted to Paytm Payments Bank Ltd. The transfer of account to the Payments Bank will be done without explicit consent of the customer, though they have the right to decline the transfer by December 21, 2016, as per the notice.
In case a customer declines the transfer to a new company, they will have the option to transfer the money out of the wallet into their bank account, but what is clear is that if the account isn’t transferred to Paytm Payments Bank, customers will not be able to transact with the wallet.
Following the demonetization of Rs 500 and Rs 1000 notes, Paytm has been aggressively launching products to help people transact digitally:
– This week, Paytm said that it will now allow feature phone and non-internet users to pay through the wallet via a toll free number.
– Earlier last month, Paytm had launched a virtual App POS where a merchant could accept card payments through the Paytm App. This required users to enter card details including CVV and 3D Secure or Verified by Visa password. However, it was pointed out by users that product not being secure enough, given the potential that the merchant could have a screen reader application, or an application that logs the information entered. It subsequently withdrew the feature.
– Later that week, Paytm updated its mobile application and included a feature called “Accept Payments” where merchants have to type in a mobile number for the recipient, who is sent an SMS, who has to click on a link, be taken to a website, and then has the option of paying via credit/debit card, or netbanking.
– Capitalizing on the demonetization move, the Android app was updated to support 10 Indian languages: Hindi, Tamil, Telugu, Gujarati, Marathi, Bengali, Kannada, Malayalam, Oriya and Punjabi.
– It has also introduced VIP membership, essentially for KYC enabled accounts. These accounts receive cashback on purchases for a certain period of time and offer special offers, other than increasing the account transaction limit.