Digital wallet is doing quite good, lately there had been news that the company is seeing month on month increase of 100% in respect of digital gold sales. Now, after the Payments Bank, the company is likely to venture into yet another arena with the issue of money market fund upon RBI approval.
The step is likely to move the available digital cash into the company's newly floated funds for earning interest income. The digital wallet company is likely to enter into competition with Banks with the launch of the money market fund. For the same, the largest digital payment solutions provider, Paytm has applied for a license with the RBI. The company with such forays is likely to disrupt the Indian financial services ecosystem.
On the start, the company expects to rope in its already 250 million users. Currently the money market fund market in India is primarily pre-dominated by ICICI Bank and SBI.
In a reporting to Bloomberg, Paytm Founder said that he has investment plans worth $1.6 billion over the next 5 years time and intends to upscale the Payment Bankswealth management, lending and insurance verticals GoodReturms.in