www.pay...om

Why paytm payment bank could be break through?

It is the first of its kind payments bank. Already airtel and postal payment bank got license but they unable to attract customers.

Paytm already has large customer base. And paytm payment bank is add on service to all paytm customers.

Benefits

1. Easy registration process, directly linked to aadhar.
2. Rupay debit card.
3. Interest on saving account.

These are some of the obvious benefits.

There are no transactions fees as of now. But sooner it will be imposed.

Paytm payment bank will also have branch network. ATMs.

The major problem today is that Payments are not easily linked to bank account. Mostly wallets are preferred for small amount payments. But this has to change.

Government this year launched BharatQR code. This is Integrated code for all banking payments including Visa and maestro card payments.

The real problem is transaction charge,which we call merchandise discount rate. This is actually a big problem when it comes to increasing digital payments in India.

The solution is to use banking payment platform of NPCI.

Here paytm payment bank becomes more relevant. UPI based payments will be the major payment platform.

Paytm payment bank is now linked to UPI platform.

The takeaway is that, those 2-3% transaction charges can be done away with now.

This will boost small payments.

Paytm QR code is now linked to a bank. Now through this code one can pay directly from paytm payment bank.

On other hand, the business people, small traders will be able to transfer money (received from customers) directly to their bank account with help of paytm payment bank.

There is right now no other application in India which can perform such task at, such a large scale. Even though there are alternatives, but paytm is famous among people.

Airtel payment bank or postal payment bank likely not to do well. Because they are not well at marketing and positioning products into market.

Jio money is upcoming competitor to paytm payment bank, as Jio money is likely to be launched in December. Jio can significantly do well if they Market their product properly.

As of now more than one crore paytm payment banks account had been opened. This was when paytm payment bank opened beta version.