After PM Modi’s demonetization step Paytm gained huge popularity and became a common payment method for many Indians, Although after the normal circulation of cash in the country Paytm transactions have reduced in big number, Paytm is still taking positive steps and it is now moving from payment wallets and turning into a full-fledged banking entity.
The company has announced to set up 1 lakh ‘Paytm Ka ATMs’ in next three years to help users do deposits and withdrawals in Paytm Payments Bank accounts. “We believe this hyper-local model of banking will play a crucial role in enabling hundreds of millions of under-served and un-served customers to gain access to quality banking services,” said Paytm.
In the first phase, Paytm will open 3000 outlets in selected cities including Delhi NCR, Kanpur, Lucknow, Allahabad, Varanasi, and Aligarh. Over the next 3 years, Paytm says it has invested Rs. 3,000 crore for opening the ATMs.
Paytm also introduced a dedicated ‘Bank’ section on its app in which many banking services such as digital debit card, passbook will be available for users.
Paytm will use its vast merchant network to set up the ATMs — Being accepted at millions of shops across the country Paytm will upgrade some of the shops into mini-bank branches. Paytm says these outlets will have “local banking correspondents” who will help people in making their bank transactions. Paytm wants to focus on Indians that are using their wallets without having bank accounts.
This is a great step from Paytm but the execution is what that will matter most in this task but if Paytm can pull it off with good management this can change Indian banking system.
