Mobile wallet and e-commerce company Paytm has selected Infosys Finacle to boost its payment banking business. Paytm will leverage Finacle’s proven platform for its deposit products and payments platform, enabling it to rapidly roll out innovative offerings, Infosys announced on Wednesday.
Infosys Finacle is part of EdgeVerve Systems, a wholly owned subsidiary of Infosys.
Paytm (One97 Communications), led by Vijay Shekhar Sharma, received in August last year an in-principle approval from the Reserve Bank of India to set up a payments bank.
Commenting on the development, Shinjini Kumar, CEO, Paytm Payments Bank said, “After considering multiple core banking solutions, Paytm is happy to announce that we have chosen Infosys Finacle as the core banking solution for our payments bank. With its large deployment base in India including some of the largest banks, Finacle has proven to be a scalable solution and we are confident that it will be able to support our aspiration to be a large and robust platform for small value, high volume transactions for millions of Indians.”
The company had recently roped in Wipro to manage the integration of other key systems such as anti-money laundering solution and regulatory reporting solutions. 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.
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.
Just recently, Paytm hired Saurabh Sharma, a former Airtel executive, to head merchant and agent acquisition and Vikas Purohit, formerly with Amazon India, to lead banking operations. Paytm is currently having a user base of more than 126 million and is backed by Ant Financial (AliPay), Alibaba Group, SAIF Partners, Sapphire Venture and Silicon Valley Bank.