Paytm has delayed the launch of its payments bank to the end of August from April, founder and chief executive officer Vijay Shekhar Sharma told reporters on Tuesday.
The wallet-cum-e-retailer is in the process of submitting its final proposal to the Reserve Bank of India.
Payments banks are allowed to open current and savings accounts with a limit of R1 lakh per account, but cannot lend or issue credit cards to customers.
“We will have branches for our Paytm Bank, but not everywhere. We might have branches in some cities which will function as headquarters, but there will be no bank-teller counters here,” said Sharma.
Paytm said it has tie-ups with 85,000 merchants where consumers can pay via their Paytm wallets. The company wants to reach 4 million merchants mark by the end of the next financial year.
Sharma said Paytm seeks to reach non-banked sections and is targeting 500 million users.
Additionally, Paytm will also be launching debit cards for users without smartphones and about 1 lakh ‘ATMs’ across India. Sharma said that unlike traditional ATMs where users go to withdraw money, these can be a person, a shop, even a petrol pump outlet where users can go and access their accounts.
The company says it is looking at deeper integration with Alipay, and is working on a system whereby Indian users will able to use their Paytm accounts at foreign merchant outlets that accept Alipay as a mode of payment. Sharma says he expects the integration to be live by October.