Monday December 16, 2019
Home India Popular App P...

Popular App Paytm likely to merge Wallet Business with Payments Bank Operation

0
//
Paytm Logo. Wikimedia Commons

New Delhi, Dec 5, 2016: One97 Communications, the firm that owns Paytm is merging the virtual wallet business with payments bank operation. Reserve Bank of India has also awarded `in-principle’ approval to Vijay Shekhar Sharma, the founder of One97 Communications to set up a Payments Bank. But, how exactly will the Paytm Payment Banks work? Well, it is basically the transfer of business.

Wallet business will move to payments bank while One97 will be managing the sales part for the wallet business. The transfer will be complete once payment bank licence is obtained.

Alibaba Group and its affiliate Ant Financial pumped in USD 680 million into Paytm’s parent One97 Communications last year, taking its total shareholding to over 40 percent in the country’s largest mobile wallet operator Paytm with close to 160 million customers.

Look for latest news from India in NewsGram.

However, the Chinese entity will not have a direct shareholding in the payments bank. A spokesperson from Paytm said, “We are working hard towards the launch of the payment bank and expect it to launch in due time. We are working with Fidelity, Infosys and Oracle to deploy a scalable platform that will be able to meet the requirements of the bank when it launches. There are no timelines.”

Go to NewsGram and check out news related to political current

RBI had initiated the era of differentiated banking with SFB (small finance bank) and PB (payments bank), and 21 entities, including 11 for payments bank, who were given in-principle nod last year.

However, three big firms ie. Tech Mahindra, Cholamandalam Investment and Finance Company and a consortium of Dilip Shanghvi, IDFC Bank and Telenor Financial Services — backed out of the payments bank licensing race.

Further, last month Airtel became the first entity to go on board with the Payments Bank operation. With the onset of government’s demonetisation move, virtual wallets like Paytm, Freecharge and Mobikwik have seen a rise in their users.

– prepared by Shambhavi Sinha of NewsGram. Twitter:  @shambhavispeaks

Next Story

Amazon Delivers 50% of Packages itself Now: Report

Amazon's deliveries will probably reach 6.5 billion by 2022 for $10 a package, the analysts said

0
Amazon
The Number doubled for Amazon in just the last year alone, from delivering about 20 percent of all of its own packages to now about half (46 per cent). VOA

In a serious threat to package delivery giants like FedEx and UPS, Amazon is now delivering 50 per cent of its packages itself especially in the urban centres globally, media reported.

According to Morgan Stanley estimates reported first by CNBC, analysts estimate Amazon Logistics — the company’s in-house shipping and delivery service — will soon overtake UPS and FedEx in the total volume of packages delivered in the US.

Jeff Bezos-led company still relies on third-party couriers for last-mile deliveries in rural regions.

Amazon Logistics now ships more than 2.5 billion packages a year in the US, while FedEx ships 3 billion and UPS delivers 4.7 billion.

Amazon’s deliveries will probably reach 6.5 billion by 2022 for $10 a package, the analysts said, meaning a massive loss of $65 billion in revenue for UPS, FedEx and the US Postal Service.

Amazon’s number doubled in just the last year alone, from delivering about 20 percent of all of its own packages to now about half (46 per cent).

After losing air-shipping contract of global courier company FedEx amid competition, e-commerce major Amazon has added 15 cargo aircraft to its fleet, aiming to reach 70 planes by 2021.

Amazon
In a serious threat to package delivery giants like FedEx and UPS, Amazon is now delivering 50 per cent of its packages itself especially in the urban centres globally, media reported. Pixabay

In a bid to expand its airborne ambitions, e-commerce giant Amazon is investing $1.5 billion in building a three million square-foot Prime Air airport outside Cincinnati in Kentucky as a parking garage for a 100 cargo jets.

ALSO READ: Whatsapp Releases a New Beta with Many Tweaks

“We’re investing $1.5 billion in our new air hub to get you your packages faster. Three million square feet, and it’s going to create 2,000 jobs. And if you’re guessing that driving a front loader was fun, you’re right! #amazon #prime,” Bezos tweeted recently.

Amazon has a few dozen planes flying several hundred flights per week while UPS and FedEx have hundreds of planes flying thousands of flights. (IANS)