I would say financial services is a gourmet meal. It is not a fast forward two-minute noodle. My answer would be we have just finished the appetiser and the main course is starting. It will include a number of courses (financial products) because now we (Paytm Payments Bank) are becoming from a young company to a company which will earn its own money, find a breakeven, run on its own course and that is the joy and the thrill of building up. – Vijay Sharma, CEO, Paytm Payments Bank

About Bank

Product stack analysis

Table 1: Unique value propositions offered by Paytm Payments Bank

Marketplace integration:

1. Paytm Mall: Paytm Mall app is a B2C e-commerce model that allows customers to shop from over 100K sellers. This service is embedded in the main Paytm mobile application and is also available on a separate app. Paytm Mall offers its services in seven Indian languages to capture different segments.
2. Mini app store: In 2020, Paytm launched a Mini App Store to support Indian entrepreneurs and developers who do not want to pay a hefty amount to develop a mobile application and commissions to the app stores. These mini apps are not full-fledged mobile applications; they are custom-made and web-optimised websites that act like native apps. The capability also helps users save data and memory on their smartphones.

The application developers have various payment options to choose from:

1. Zero charge payment options: Paytm Wallet, Paytm Payments Bank, and UPI
2. 2% charge option: Net banking, credit cards and debit cards

Moreover, the Paytm Mini App Store also offers business growth insights for the vendors with the following features:

1. A dashboard to track all payments
2. An option to initiate refunds
3. Download transaction reports
4. View bank statements

With more than 600 mini-app service providers and 15 million customers, the company’s mini-app store truly resonates with the spirit of technological innovation and open banking initiatives. With the launch of the Mini App Store, Paytm has a market reach with over 15 million users on the Mini App Store alone.

How can you match up with Paytm Payments Bank:

1. Create an end-to-end product stack with personalised and gamified value-added financial services such as insurance, credit services, and expense management tools to make your customer’s journey more holistic and increase platform engagement.
2. Integrate third-party services and products to create a one-stop-shop for all consumer needs. This will increase revenues and platform engagement.

Top priorities for Paytm Payments Bank:

As a leader from the Paytm Payments Bank, you could focus on two key areas to enrich your banking journey:

1. Paytm customers can buy Gold and register for IPO using the main mobile banking application. However, to perform stock, ETF, and equity trades, they are required to download another mobile application- Paytm Money. To make customers’ finances simple, you could integrate these services on the main banking application. This reduces the time taken to navigate between applications – it simplifies tracking and allows customers to manage all their financials on one single platform.
2. As the next step in your digital transformation, you could launch technologically advanced services like wearable banking. This will help you to truly embed yourself in every aspect of your customers’ lives while operating from behind the scenes.

Endnotes:

Paytm Payments Bank

Paytm will become a full-stack financial services group in the next few years: Vijay Shekhar Sharma – The Economic Times