Paytm has launched automatic recurring payments, a new feature that lets users configure the payments service to periodically pay for recurring expenses automatically. The feature which is branded as ‘My Payments’ is similar to standing instructions one can add to their bank accounts. Paytm expects ‘My Payments’ will be used to make high-value payments in a variety of cases.
Through My Payments feature, recurring transfers can be done from any bank account to any bank account, at no additional charge. Paytm users who have not completed their KYC can also avail the facility, something that significantly expands the feature’s accessibility. Also, there is no upper or lower limit to the number of payments or amount that can be transferred. Similar to Paytm’s recently launched bank to bank transfer we speculate this is also using UPI for enabling transactions.
Designed to drive more transactions
In a statement to the press, the payments company indicated that it is eyeing a substantial increase in the number of transactions and transaction value. According to Deepak Abbot, senior vice president Paytm, the feature is not designed to be a major revenue source rather peer-to-peer payments are supposed to help increase customer retention and also expand use cases.
Paytm currently processes 1 billion transactions every quarter and it aims to double that figure to 2 billion. This could turn out be a challenge with the recent dip in wallet usage following the enforcement of RBI’s KYC norms. The company also aims to process Rs 60,000 crore in monthly bank transfers by the end of 2018. This also seems like a steep target considering that in the month of March the complete UPI ecosystem saw a total transaction value of 24,172 crores.
Paytm and KYC
Last month, the company had revealed that more than 100 million of its wallet customers have completed their know-your-customer (KYC) process, as mandated by the Reserve Bank of India. To put this number in context, as of November 2017 Paytm had 282 million registered users. This means that slightly more than a third (around 35.7%) of Paytm users have fully operational wallets with KYC at the moment.