The Indian e-commerce payment system and digital wallet company - Paytm, is targeting an average monthly inter-bank account transaction of Rs 60, 000 crore through its platform by the end of this year. This will be accomplished through a new feature of bank transfers option which will be added to the mobile application.
The e-wallet company is already offering an option to transfer funds between the user's mobile wallets, has expanded it to bank transfers using UPI and IMPS. Unified Payments Interface (UPI) and Immediate Payment Service (IMPS) are run by the National Payments Corporation of India (NPCI) and facilitate real-time inter-bank transactions.
"We have simplified the product for the users allowing them to transfer funds by using the wallet or any connected bank account," said Deepak Abbot, senior vice president at the SoftBank- and Alibaba-backed company. "We are trying to promote this product for all recurring payments like tuition fees, rent payments, and others'.
Addition of this option to the Paytm platform is a crucial development for Paytm. It claims that the new option will facilitate around 5 million peer-to-peer transactions in a day.
The Reserve Bank of India has made it mandatory for all the customers of the bank to provide KYC requirements for transfer of funds using wallets, this feature allows even non-KYC Paytm users to transact directly through bank accounts.
Apart from the bank, customers can now use the Paytm Payments Bank account for transferring their funds.