Paytm Payments Bank turns profitable in second year of operation

Paytm Payments Bank Limited (PPB)  has posted profit to the tune of Rs 19 crore within second year of its operation in fiscal 2019. The bank had reported  loss of Rs 20.7 crore for the fiscal ended March, 2018,

PPB, which was incorporated in August 2016, formally began its operations in 2017.

Satish Kumar Gupta, MD and CEO of Paytm Payments Bank, said the bank performed “exceptionally well” in the last year. He claimed that PPB was the first payments bank in the country to announce profit, that too within two years of its operations.

As of April 2019, the bank has more than Rs 500 crore deposits in its savings account.

PPB claims to lead mobile banking transactions with over 19 per cent market share as of March 2019. Nearly a third of the total mobile banking transactions in India are powered by PPB and it processes over Rs 3 lakh crore worth of digital transactions on an annualised basis, the company said in a statement.

The majority of PPB earnings accrues from investing in government treasuries and FDs, besides commissions on facilitating payments across its saving bank accounts and its e-wallet holders. The e-wallet, which had a deposit of Rs 1700 crore, was able to generate 6-6.5 per cent interest for the company.

Gupta said that the deposits are expected to rise three-fold by the next financial year end.

Earlier, RBI data on payment banks revealed that Paytm Payments Bank and Airtel Payments Bank together command over 88% of the deposits in payment banks in India in 2018.

In December last year, Paytm witnessed over 240% rise in deposit to Rs 371.4 crore (48% of total deposit) from Rs 107.3 crore in March, added the report. In total, payments banks hold around Rs 780 crore in deposits, including savings and current accounts till the end of last year.

PPB now aims to introduce more products and features on its platform to increase the monthly processing of savings account payments from Rs 24,000 crore to Rs 40,000 crore in FY’20.

Paytm Founder Vijay Shekhar Sharma holds 51 per cent share in Paytm Payments Bank, while the rest is held by One97 Communications.

Besides Paytm, Airtel, Fino and India Posts are the other fully operational payment banks. There has been doubts about the earnings of the payment banks as they cannot generate revenues by lending. Besides the transaction size is always going to be small.

They are hoping to bring more people from the unbanked segment, which stands at 233 million, within their fold to achieve the scale.

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Source: https://entrackr.com/2019/05/paytm-payments-bank-turns-profitable/

Facebook Stablecoin launch may bypass RBI regulations ban on crypto transactions

With Facebook’s reportedly planning to test its virtual currency codenamed Libra, it is likely that the move will lend legitimacy to use of digital currency in the country. But the fluid regulatory situation with regards to cryptocurrency has cast doubt about the efficacy of such a plan.

Last week Bloomberg reported that Facebook is building Stablecoin, a cryptocurrency pegged to the US dollar or a basket of currencies, making it less prone to swings in price. The product could eventually allow users to transfer money for remittances via WhatsApp through Stablecoin. India, given its expanse, has been chosen as the testing ground for the product.

The social media giant has, so far, chosen not to comment on the reports.

Anyway, given the size of the company, this was enough to cause a flutter in the relevant circles.

Facebook is expected to allow peer-to-peer transaction of its cryptocurrency and the proposed currency system would not require to use banks to transfer money to buy or sell digital currency, a report in ET said quoting leaders in cryptocurrency startups.

The foray shall not be aided by the regulatory policies in the country which continue to be ambiguous. In April 2018, the Reserve Bank of India had banned entities from providing services in virtual currencies to any individual or business.

Companies represented by the Internet and Mobile Association of India are fighting a case in the Supreme Court against the regulator’s ban. The next hearing on this case is scheduled in the second week of July. The court had also directed the government to come out with its own set of policies.

However, there is no law in the country which prevents users within a platform from exchanging digital tokens. Facebook is likely to initially operate within the ambit of this rule.

Nitin Sharma, founder of Incrypt Blockchain, has been quoted as saying that for the Facebook project to be deployed on a large scale in India, regulatory approval may eventually be a major impediment. Facebook will be faced with challenges of making the link between the crypto Stablecoin and rupee to be real to derive any value for its users.

Not everyone at the forefront of fighting for pro-cryptocurrency regulation in the country is, however, enthusiastic about Facebook’s plans. The fact that the company shall deploy a centralised approach by allowing transactions only within its various platforms, defeats the purpose altogether, said a bitcoin trader.

These are still the early days for Facebook. Moving beyond traditional payments to add blockchain-based Stablecoin transfers would represent a huge shift for the company. There is still no clarity about the wider rollout of the cryptocurrency by the company and hence it needs to be treated with caution.

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Source : https://entrackr.com/2019/05/facebooks-stablecoin-may-not-have-a-smooth-run/

Role of RPay platform in developing Pop pay

Overview of Pop pay

Pop Pay is structured and developed to bring Caribbean Island closer to being a cashless society.

Pop Pay is a secure and smart way to carry electronic money in smart phone, giving the convenience of paying for anything, anywhere on-the-go.

Pop Pay brings easy to use options that are designed to be accessible, convenient and simple backed by reputed partners to provide security and a credible and reliable customer experience.

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Building up a digital wallet that would be cherished by all individuals

Transactions dependably give you the following dimension of rivalry for flawlessness. Purchasers are getting increasingly more depended on the savvy gadgets. Driving the race of savvy gadgets, advanced cells have made a flawless space in the lives of individuals.

The excitement fragment, as well as individuals is overwhelmingly utilizing the innovation to purchase and offer everything extending from basic need to booking tickets for their weekend.

What exactly a mobile wallet?

A portable wallet is a monetary instrument that enables organizations and people to get and send cash by means of smart phones.

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It is a kind of web based business model that is created with cell phones inferable from their accommodation and simple access. A mobile wallet is additionally called portable cash or a versatile cash exchange.

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Are digital payment methods replacing money in our humanity?

The inclination for cashless payments offline and one-contact payments online is changing the internet business scene. Purchasers need to have the capacity to pay whenever, anyplace and with least issue. Versatile wallet innovation is a main thrust behind this change as it enables purchasers to utilize their cell phones to make buys in a hurry utilizing Near-Field Communication (NFC) Technology.

As far as digital payment solutions, however, and as in each circle of innovation, purchasers expect continually progressively “canny” payment solutions. That is, omnipresent methods for paying for merchandise and enterprises that are speedier, less demanding, versatile and, most importantly, secure.

Top digital payment methods

Apple Pay

With 87 million clients worldwide starting at 2017 there’s no denying that Apple Pay is driving the path in digital payment innovation. In this exceedingly competitive scene, Apple keeps on furnishing clients with what they want: a sheltered, brisk and simple approach to pay on the web and in a developing number of in-store areas.

Apple Pay is a type of mobile wallet innovation that enables a purchaser to make buys in physical shops, on the web and in-application, all without rounding out extensive structures and payment data. As usual, Apple gives the market what it needs. A streamlined, simple arrangement acknowledged in actually a huge number of areas (both physical and advanced) in the UK.

PayPal

PayPal is another commonly recognized name that any online customer or web based business entrepreneur alike would perceive.

Continue reading Are digital payment methods replacing money in our humanity?