Paytm, the Indian-based digital payments company, is gearing up to invest Rs 5,000 crore during the next three years as it aims to expand the services provided via its mobile platform.
BGR, citing Paytm, said the company is investing to enhance its bank transfers and other payment options. The company said it has moved bank transfers under a new My Payments feature on the app, and will now allow users to transfer money from one bank account to another. Paytm is relying on UPI and IMPS methods to enable the transfers.
The report also noted that an app upgrade has made it easier for customers to make recurring payments.
“Paytm is aiming to process Rs 60,000 crore in monthly bank transfers alone by the end of this year … The company is also planning to invest Rs 5,000 crore in its core business, expecting to increase the number of transactions from one billion to two billion this year,” Paytm said in a statement. The company noted that it has been busy educating customers on how to link a bank account and how to use the bank transfer service to pay for things like rent, fees and salaries.
In April, Paytm revealed that it received $445 million from SoftBank and Alibaba. According to reports at the time, SoftBank planned to invest $400 million in the company, while Alibaba was slated to provide $45 million. Combined, the funding would value Paytm at about $1.9 billion.
SoftBank is particularly interested in Paytm Mall, the brand name of Paytm’s online marketplace. “We believe Paytm Mall’s offline-to-online operating model, combined with the strength of the Paytm ecosystem, is uniquely positioned to enable India’s 15 million offline retail shops to participate in India’s eCommerce boom,” said SoftBank in a statement.
The investment was announced on the same day as separate reports that said Paytm is looking to diversify its offerings and focus on bank-to-bank transfers, as the company expects enhanced Know Your Customer (KYC) rules will put pressure on transaction volume.