Following the footsteps of its investors- Alibaba and its affiliate Ant Financial Group, Paytm has partnered with financial institutions to start its service of lending money to vendors and consumers on its platform. The company aims to disburse small loans to 500 million individuals and enterprises by 2020.
Just like Ant Financial’s model, loans on Paytm’s platform could be borrowed using debit cards.
Commenting on the development, the company’s Founder, Vijay Shekhar Sharma said, “It is amazing that in China they disburse billions of dollars of loans. We have learned that model can work here. That is why we are excited about it and will continue with it.”
The company is aggressively increasing the number of merchants on its marketplace, and claims to get about 110,000 vendors on board by the end of the year. Further, it also maintains that the number will shoot up to 1 million over the years.
The year 2015, has been quite abuzz with the news of Paytm’s strategic moves. For example, in the month of August, Paytm made a strategic investment in NDTV Gadgets 360. Within the same span of time, it entered into a multi-level partnership with mobile advertisement platform InMobi. Going further, the mCommerce company managed to receive a license from the Reserve Bank of India to set up a payments bank. As per the regulations, the license would be valid for 18 months, a time frame within which the company has to comply with the requirements under the Payments Banks Guidelines and fulfill other conditions as issued by RBI. And last but not the least, a couple of days ago, it acquired Near.in, a hyperlocal on demand home service provider, with an intention to gain a foothold on the O2O segment.
The moves made by Paytm are clearly vocal of its serious attempts to establish its presence across sectors. The company is taking lessons from Alibaba and strategically employing them in the Indian market. The growth trajectory of Paytm has been impressive- starting as a mobile wallet, it went on to capturing the mCommerce space and now with its entry into the online money lending service, it is clearly geared up to make its presence felt in the Fin-tech sector as well.Category Business News