As Know-Your-Customer (KYC) norms continue to affect wallet services, Paytm aims to push bank transfer services in diversification drive.
Now, Paytm, the largest online payment service in India, is looking to facilitate money transfer from an account to another through Immediate Payment Service or IMPS.
Paytm has been looking to diversify its business by offering new payment options for users since the Reserve Bank of India (RBI) rules mandated KYC compliance for peer-to-peer ( p2p) and merchant payments starting March 2018.
Anticipating the slump in its overall business due to the KYC rules, the company has been pushing platforms like the Unified Payments Interface (UPI), QR code-based solutions to users.
“We have been working on becoming a full-stack payments player. The focus on money transfer clearly shows we want people to make transactions on our platform using whichever solution they like. Our offline payments have also scaled through the Paytm QR code feature, enabling merchants to accept payments directly into their bank accounts, ” said Kiran Vasireddy, COO, Paytm.
While Paytm looks to enter new domains, other players are too contemplating different strategies to sustain. For instance, Mobikwik will soon become a financial service company.
The new KYC rules have had an adverse impact on domestic digital wallets. Moreover, the entry of global giants like WhatsApp and Google to the segment decreased their customer base.