Wipro will implement core technology solutions for Paytm’s payments bank business, which is expected to be rolled out in the second half of 2016.
Mobile wallet and e-commerce company Paytm (One97 Communications Ltd), led by Vijay Shekhar Sharma, received in August an in-principle approval from the Reserve Bank of India to set up a payments bank.
According to the company, Wipro will also manage integration of other key systems such as anti-money laundering solution and regulatory reporting solution, and will play a crucial role in helping Paytm interface its existing systems with the core banking solution. Wipro is also expected to put in place and manage data centers for the payments bank to ensure smooth functioning of the new unit, Paytm said in a statement.
Shinjini Kumar, CEO designate (Paytm Bank), said: “They (Wipro) have a demonstrated track record in banking technology in India that will be important in ensuring that our innovative solutions are integrated with core banking systems in a compliant and secure manner, creating the right platform for service delivery at large scale. We are a young and agile organisation and the Wipro team has demonstrated agility and flexibility that will be necessary to make this partnership meaningful.”
Payment banks can accept demand deposits and savings bank deposits from individuals and small businesses, up to a maximum of R1 lakh per account. The company had last year set aside $250 million for the payment banking business. It is planning to recruit around 3,000 people for the new business unit.
Paytm has hired Saurabh Sharma, a former Airtel executive, to head merchant and agent acquisition and Vikas Purohit, formerly with Amazon India, to lead banking operations.
Soumitro Ghosh, president, India & Middle East markets, Wipro, said, “Paytm is making steady strides towards its larger vision of financial inclusion in the country. Its payments bank is another step in this direction and we are happy to partner with them in their endeavour.”
Paytm, the consumer brand of mobile internet company One97 Communications with 120 million wallet users, is funded by Ant Financials (AliPay), Alibaba Group, SAIF Partners, Sapphire Venture and Silicon Valley Bank.