With around 220 million customers, Indian payment and commerce company, Paytm, launched its payments bank on Tuesday. They are offering cashback offers and interest rate of 4 per cent on deposited capital. The bank also offers zero balance accounts and online transactions free of charge.
The interest rate offered by Paytm is slightly low compared to its rival digital commerce firms. Airtel Payment Bank offers 7.1 per cent interest on the deposited money. The company aims to reach a new height of 500 million customers by 2020. This Indian based company is backed by Chinese firm Alibaba and Japanese conglomerate SoftBank.
After Airtel and India Post, Paytm becomes the third company to launch a payments bank. Every customer opening a payments bank account will receive a cashback of Rs.250 on depositing Rs.25,000 in the account. Initially, Paytm payments bank accounts will be on invitation-basis only.
Let’s see if the payments bank is as successful as the mobile wallet.