After Paytm replaces its app PoS feature with P2P payment system for merchants, Paytm to merge its wallet service with payments bank.
Under the updated feature of P2P system for merchants, merchants can choose the “Accept Payment” option on the Paytm app and enter the customer’s mobile number and amount details. This will trigger a secure link sent by SMS to the customers so they can enter their credit or debit card details on their own mobile phone.
The app will authenticate the transaction through bank security protocol and bank will send OTP or passcode. Customers will have to enter the received code to complete the two-factor authentication as mandated by RBI.
And as in this new approach, Paytm, is preparing to merge its wallet service with the eponymous payments bank—the licence for which is owned by its founder Vijay Shekhar Sharma — once it receives regulatory approval.
“As per the directions of RBI, the company will transfer its wallet business to the newly-incorporated Paytm Payments Bank Limited (PPBL) after receipt of necessary approvals,” a spokeswoman for Paytm told ET.
“The (payments bank) is in the process of obtaining final licence from RBI and will commence operations after obtaining due approvals,” the Paytm spokeswoman said.
Paytm has been one of the main gainers in the push towards digital currency following government’s move to demonetize higher value currency notes.
Wallet companies like Paytm have registered a spike in user base as well as the number of transactions. According to data shared with Elargir Solutions, Paytm claims over 5 million transactions on a daily basis with a peak of Rs 120 crore worth of transaction in a single day.