• 10 months ago
#NDTVProfitExclusive | #Paytm is looking for banking partner. Who's ready to team up?


Here's Pragatti Oberoi with the exclusive details.


Read: https://bit.ly/3wwxK0J

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TV
Transcript
00:00 Paytm's business has been out there, a lot of things have happened ever since RBI placed
00:05 restrictions and last Friday when RBI actually increased or extended the deadline for this
00:12 to 15th March, it also announced that Axis Bank will have the nodal account.
00:17 Now the real question here or the interesting bit here is that while Axis Bank will get
00:22 the nodal account of Paytm Payments Bank, there are other businesses as well where there
00:28 is a lot of scope and a lot of banks are now.
00:30 Now sources are telling us that three main places or businesses of Paytm Payments Bank
00:36 or what banks are eyeing.
00:38 Now the first one would be the banking partner.
00:40 While Paytm is looking at having three banking partners, the front runners for this would
00:45 be Yes Bank, Axis Bank and HDFC Bank.
00:48 That's what we are getting from our sources.
00:50 One thing to note or remember here is that none of the deals are finalized yet.
00:54 We are still waiting to hear from them as to what it is and which banking partner will
01:01 Paytm go with.
01:02 But these are the front runners in this game because once these banking partners come in,
01:06 it will be specifically for the UPI transactions, which means that the virtual payment address
01:10 or the VPA that has at the rate Paytm, that will have to change depending on which banking
01:15 partner they take over.
01:17 Next we have the fast tax business.
01:19 So now for the fast tax business, what has happened, the Indian Highways Management Company
01:23 or IHMC has been given the charge of driving the whole Paytm fast tax business.
01:28 So what IHMC as per our sources has done is that it has divided the 248 toll plazas among
01:37 nine banks.
01:38 And of these, the main names are HDFC Bank, Yes Bank, IDBI Bank, IDFC First Bank and Kotak
01:43 Mahindra Bank.
01:44 There are four others as well, but we still don't have a clarity on those names.
01:48 The third business, Paytm Payments Bank, another lucrative business is going is the NCMC cards
01:54 business and for this while we do not know where the deal is or what are the conversations
01:59 of the stage, we have an idea from our sources that SBI is going to be the front runner for
02:04 this particular business.
02:05 As far as others are concerned, for example, there are other non-bank lenders and payments
02:10 banks also in this particular business because non-bank lenders had a collaboration and partnership
02:17 with Paytm.
02:18 These are also in our focus.
02:19 For example, Airtel Payments Bank, sources told us that while they are not exactly seeing
02:25 this, the Paytm's downfall as an opportunity of increasing their business, they have definitely
02:29 started an integration of soundbox, QR code and current accounts and this particular thing
02:34 is in the pilot stage or the testing is in pilot stage at this point.
02:38 They are also looking at secondary banking accounts because according to sources, it's
02:42 a very good opportunity for Airtel Payments Bank in this space because as a consumer or
02:46 a merchant, everyone may not be comfortable in having the small ticket transactions in
02:50 their main bank account.
02:51 So having a secondary bank account helps them.
02:54 As far as the non-bank lenders are concerned, Sriram Finance and Poonawalla Fincom had their
02:58 partnerships with Paytm.
03:01 Now while they are still assessing and in a wait and watch mode as to how to take this
03:06 forward, Sriram Finance we know may talk to Axis Bank very soon.
03:10 While they haven't shared the details, sources are told us that a conversation is expected
03:14 with Axis Bank because in the analyst call after the Curbs with A, Paytm did say that
03:20 for the time being they are halting on fresh lending but they did not clarify as to when
03:24 it will start.
03:26 So that's what we have from our sources.
03:27 We will bring you more updates as and when we have them.
03:30 [Music]

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