The mobile payment aggregator Paytm is all set to separate its e-wallet and e-commerce segments as it will merge the payment section with Paytm Payment Bank in which the founder may possess 51% of the stakes out of total shares in Paytm which is owned by One97 Communication Ltd under the supervision of Vijay Shekhar.
A few days back RBI had issued a notice regarding the license renewal which included an in-principle payment for the bank as the previous year’s Paytm Payment Bank is currently under process for receiving the final license. The last stage to start the operations will only begin when RBI provides the license in its final terms. According to Vijay Shekhar Sharma, the owner as well as the recipient of the final license stated that “As per the directions of the Reserve Bank of India (RBI), the company would transfer its wallet business to the newly incorporated Paytm Payments Bank Ltd after receipt of necessary approvals.”
It had earlier been clarified that the e-wallet platform was determined to split its business segments into two as it was planning to create a new extension or module. So, the new firm of Paytm Payment Bank will take control and look after all payment related business, whereas the e-commerce section will be operated by One97 Communications. As of now, a sum amount of Rs. 220 crores have already been invested in the respective payment bank firm though individually by Sharma and One97.
Ahead of the 2017 launch, Sharma is willing to invest Rs. 112 crores in all sets by November, where in total it is most likely to rise by 400 crores INR. The amount will be deployed in tranches after looking forward to launchingthe payment bank thus attributing the delay to the pending approvals by RBI.
At present, the company has pulled its sleeves to open as many as 200 million accounts apart from the existing accounts along with bringing saving accounts as well as mobile wallets within 12 months from the launch in 2017. Its sole target is to touch 500 million by 2020 as currently, it boast of having 150 million users e-wallet users. Further, it also plans to minimise or eradicate charges taken from the merchants when they transfer money from their current account to payment bank account.