Paytm, the leading India-based mobile payments service operated by One97, has introduced a big new feature that lets 25 million users transfer money to bank accounts.
Mobile wallets, like that of Paytm, have grown in popular in India, where credit card adoption is low and many services, including online retailers, process a lot of cash-based transactions. (India’s billion-plus population is estimated to have just 450 million bank accounts, with many unused.) Wallets are at the intersection of that, providing greater reliability than cash, but without requiring users to get bank accounts.
Now that it allows users to transfer money into their bank account (or that of a friend), Paytm’s wallet becomes a more versatile way of managing small cash floats.
Those using the new Immediate Payment Service (IMPS) service can transfer a maximum of 5,000 INR per day, and up to 25,000 INR per month. The minimum amount per transaction is 1,000 INR, and the sender should have at least 2,000 INR in credit.
Paytm intends to accompany its IMPS launch with plans to open 50,000 retail outlets across India where Paytm users can load money into their wallet. Next up will be peer-to-peer payments, which is currently limited to Android devices but will launch across iOS too.
One97 today said the organization landed financial backing from businessman Ratan Tata, chairman Emeritus of Tata Sons — the holding firm behind the $100 billion dollar-valued Tata Group.
The company declined to reveal the size of Tata’s “minority” investment, but it did reveal that it plans to grow Paytm’s total registered wallet number to 100 million by the end of the year.