Paytm has tied-up with LIC to enable insurance premium payments via the platform. It did not specify whether the service would be rolled out pan India or to specific cities and states. The press statement also does not mention how many users currently use the service to pay for their insurance premiums.
MediaNama has reached out to Paytm for more details, and will update this when we hear from them.
Paytm already allows this feature for over 30 insurance companies including ICICI Prudential Life, Reliance Life, Max Life Insurance, HDFC Life, among others. It aims to achieve a run rate of 30-40 million policies by the end of 2018.
UPI driving Paytm’s growth
In July, Paytm said that its annual run rate of 5 billion transactions was driven by UPI and adoption of digital payments in Tier 1 and Tier 2 cities. This constituted 50% of the company’s total user base. Note that the company has said before that UPI transactions do not generate significant revenues; Paytm only makes Rs 25 paisa per transaction. “These [UPI] transactions are not for revenue for us…it does not even help us cover our technology cost” but at the same time said that it is “trying to become the preferred app for UPI transactions.”
In September, Paytm claimed that it had 9 million listed offline merchants and that 5 million of them were accepting payments via UPI. It said Bangalore and Hyderabad contributed the largest to UPI payments, followed by Delhi, Pune and Mumbai.
Paytm’s own insurance offerings
Paytm set up two insurance units of its own — Paytm Life Insurance Ltd, and Paytm General Insurance Corporation Ltd — in February. Paytm CEO Vijay Shekhar Sharma, senior executives Shankar Nath and Madhur Deora were to be directors of these units. Paytm had said in June that it would offer life insurance of upto Rs 5 lakh to retail partners.