Paytm is closer to offer insurance products on its platform as its parent One97 Communication Ltd has set up two insurance units- Paytm Life Insurance Ltd, and Paytm General Insurance Corporation Ltd reports Livemint. The publication found out the development in company’s ministry of corporate affairs’ filings. The publication reports that company’s founder Vijay Shekhar Sharma, and senior executives Shankar Nath and Madhur Deora will be director of these units.
Competition: In online insurance space, there are a host of platforms which are offering insurance solutions. With this service, Paytm will compete with likes of EasyPolicy, Bankbazaar and PolicyBazaar. In terms of payment wallets, MobiKwik also plans to venture into newer domains of personal and consumer finance with a focus on lending and insurance. While these companies are aggregators, Narayan Murthy’s Catamaran Ventures-backed digital insurance company Acko General Insurance is the first insurance company with an online-only policy, which also received the final license from IRDAI in September last year.
Paytm and lending
In a separate development, The Economic Times reports that the company is also launching a credit scoring product called Paytm Score, which will find out user’s credit score based on their transactions and payment behaviour. This move is in line with its interest in credit or loan segment.
Remember, Paytm has a payments bank licence but they are not allowed to give out loans from their own books but are allowed to partner with other financial institutions to source loans for them.
In November last year, Paytm acquired a stake in a Mumbai-based lending startup CreditMate for an undisclosed amount. CreditMate enables two-wheeler loans to customers with no formal credit history. In the same 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.