Paytm has played a huge role in saving from the hassle of cash transaction and lack of it when demonetization hit the country. It has since then worked really hard to increase its foothold in the country and to be a major player in the coming years it is going to launch its full-fledged bank on May 23. It has secured its final approval from the RBI and is in its final stages to open a bank.
Renu Statti who is currently the vice president of business at Paytm has been appointed as the CEO of Paytm Payments Bank. Mr. Vijay Shankar Sharma said that the company is on course to transfer the Paytm wallet users to the newly launched Paytm Payments Bank.
It was last year that Paytm decided to separate its e-commerce portal from the wallet business and has since then operated them separately. It times of demonetization Paytm wallet saw a huge increase in the number of users and it led the company into thinking about future plans sooner than expected. Paytm was bought by One97 Communication in August 2016 with Vijay Shankar Sharma the CEO of One97 currently holding 51% stake in Paytm.
He says the time has come when the company moves towards bigger objectives in its business life and it is the perfect time for it to convert into a full-fledged bank. The Paytm wallet users will be transferred to the new Paytm Payments Bank and the ones who would like to not be transferred can remain as it is.
The company was looking forwards to launching a bank from 2015 when it got the nod for it in August 2015 but it as delayed due to lack of funds and other investments. Then came One97 and has since then worked strongly in favor of creating a new bank. Companies which also bagged the license for creating a bank are Aditya Birla Nuvo, Fino Pay Tech Ltd, Vodafone m-pesa and Reliance Industries. It is to be seen how the Paytm Payments Bank fares in a market which is already saturated with many banks.