Paytm has formally launched its Payments Bank today, and at a press conference in Delhi right now, Paytm founder Vijay Shekhar Sharma shared some numbers:
- 28 crore registered users
- 18 crore wallets
- Rs 250 crore annual transactions
- 50 lakh merchants…going to touch 60 lakh in a few months time.
- Rs 80,000 crore annual transaction value, and should be doing 100,000 lakh crore by the end of the year.
In addition to this, Paytm Payments bank has 120,000 biometric devices and is doing 250,000 KYC. “Aadhaar has been a boon for us,” Sharma said at the press conference, “because the cost of KYC has gone down.”
Paytm currently has 1.3 million UPI customers, within two weeks of its launch – when they haven’t rolled out to everyone – and Sharma said that they’ll bring 6 million merchants on UPI within a year.
IMPS on Paytm Payments Bank is in beta. “We are doing 2.5 Lakh (250,000) IMPS transactions per day, and have 9% of IMPS market share transactions within 3 months. We expect to be one of the largest IMPS and UPI users in the country,” Sharma said. There are no transaction fees on online transactions, and Sharma said that this is not just a launch offer. There will be no online transaction fees for a consumer in perpetuity. In addition to this, Paytm is launching a Zero Balance account, and said that they’ll never charge for a zero balance account ever.
For deposits, there’s a 4-7% interest rate on savings account, and up to 7% on a linked sweep out Fixed Deposit. There’s no fee for Fixed Deposit creation and breakage.
Rupay Debit Cards
The company is issuing RuPay debit cards for every account holder today and will be launching cash withdrawal points with business correspondents across the country. “We will have 1 lakh Paytm ATMs across the country by March 2018, with human banking, on day one after the launch. This is a business correspondent led business model,” Sharma added. The company is planning 31 branches for the Paytm Payments Bank.
“We will offer small and microloans from partner banks, mainstream banks, private sector banks, for as low as Rs 2000. Our average ticket size is Rs 2000, and will go as high as Rs 20,000,” Sharma said. “We should do 1 crore businesses with loans across 600 districts by 2018.”
Earlier this month, ICICI Bank and Paytm partnered to offer short-term credit to users. The credit given to customers will be interest-free for 45 days and the bank says that it will give loans up to Rs 20,000. Initially, this will be allowed for select ICICI Bank customers who are on Paytm and will be extended to other bank customers as well who use Paytm.