Overview

Paytm was one of the pioneers of the digital revolution in India. With a current user base of more than 126 million, Paytm is on a mission to bring half a billion Indians to the mainstream of the economy using mobile payment, commerce, and soon-to-be-launched payment banking services. The company primarily offers mobile payment services to consumers and enables merchants to receive payments through its QR code, point of sale and online payment gateway offerings.

Paytm Payments Bank (PPB) had chosen Infosys Finacle, a part of EdgeVerve Systems, to power Paytm’s new payments bank business. Paytm leveraged Finacle’s proven platform for its deposit products and payments platform, enabling it to roll out innovative offerings rapidly.

Implementation Process

Paytm was to leverage Finacle’s proven platform for its deposit products and payments platform. Modernised APIs used by Finacle enabled the bank to rapidly integrate its payments bank services across its existing wallet business. The solution’s readymade integration adaptors and compliance with industry standards reduced integration costs and simplified Paytm’s banking transformation journey.

Finacle’s open API-driven platform also initiated collaboration with industry players in the banking and non-banking space. The Finacle solution also offered ease of harnessing data to create tailored customer engagement. The solution also provided integration adaptors with many third-party applications like Anti-Money Laundering, which allowed the bank to become operational rapidly. Audit logs created by Finacle ensure that all the minute details of a transaction are captured, and the reports and dashboard enable easy tracking at the transaction level, which becomes very important for business. The solution’s product factory capability helped Paytm to easily create and offer a comprehensive range of CASA (Current Account and Savings) based products and services in addition to its existing Wallet offering. The scalable features provided by Finacle equipped Paytm with the necessary tools to meet future growth needs and seamlessly manage expansion in its operations.

Benefits Achieved

The focus of Paytm Payments Bank has always been financial inclusion. In this endeavour, the bank, clubbed with the entire Paytm ecosystem, continues to provide its customers with an easy, hassle-free digital experience. The ecosystem as a bundled offering has helped PPBL to bring onboard digital savvy Indians who were otherwise not exposed to traditional banking.

The PPB savings account has several features that differentiate it from others in the market: zero minimum balance, free digital transactions on the PPB banking ecosystem, building a network of over 100,000 Business Correspondents, and a free virtual debit card for every customer. One of the differentiating features of Paytm Payments Bank is its open banking offering. Using UPI and the open API-based core platform, PPB enables its customers to manage all their accounts held in other institutions through its app. The customers can see real-time balances and even conduct transactions on their external accounts within the Paytm Payments Bank interface. PPB also allows customers to pay for purchases on online portals such as Amazon directly from their savings account.

Conclusion

PPB’s vision and philosophy, combined with its flagship savings product, have enabled millions of digitally savvy customers to access the financial ecosystem. Paytm has over 330 million registered Digital Wallet users, of which 65 million have opened savings accounts; the rest are wallet users PPBL provides a secure digital wallet that allows the consumer to make payments at over 87,000 online merchants and 21.1 million in-store merchants. It is a remarkable story of financial inclusion — in just 18 months, the bank opened 42 million savings accounts, many of them for customers who haven’t been exposed to financial services before. Now, those customers can save, make, and receive payments and build a transaction history which enables them to apply for credit.

Key Facts:

• Bank Name: Paytm Payments Bank
• Bank Founded In: 2009
• Vendor Name: EdgeVerve (An Infosys Company)
• Solution Implemented: Finacle Core Banking Solution