It looks as though Alibaba-backed eCommerce startup Paytm is officially making moves to ensure it launches its payments bank this year as planned.
In an effort to standardize its core banking system, Paytm has partnered with Wipro, an IT services company that will ensure the upcoming bank adheres to all accounting and regulatory requirements, Entrepreneur reported on Monday (May 2).
Shinjini Kumar, CEO designate of Paytm’s payments bank, said:
“They [Wipro] have a demonstrated track record in banking technology in India that will be important in ensuring that our innovative solutions are integrated with core banking systems in a compliant and secure manner, creating the right platform for service delivery at large scale. We are a young and agile organization, and the Wipro team has demonstrated agility and flexibility that will be necessary to make this partnership meaningful.”
Wipro will also assist the mobile payment system’s soon-to-be bank with the management of data centers and the integration of key systems, like anti-money laundering and regulatory reporting.
Earlier this year, TechCrunch reported that Paytm was planning to raise $400 million to help support the launch of its new payments bank venture.
The news came shortly after Paytm reportedly secured nearly $680 million from Alibaba, amounting to a 20 percent buy-in. This closely followed an undisclosed investment by Alibaba and Ant Financial in Paytm earlier in 2015 — funding that reportedly left the Indian company with a valuation of around $1 billion.
“Paytm is making steady strides towards its larger vision of financial inclusion in the country,” Soumitro Ghosh, president of India and Middle East markets for Wipro, said in a statement. “Its payments bank is another step in this direction, and we are happy to partner with them in their endeavor.”