Friday 10 July 2015

Paytm unveils P2P fund transfers

Seeing the huge potential of cashless transactions through e-wallet, mobile payments and commerce venture Paytm is the latest company to jump on the person-to-person (P2P) money transfer bandwagon. 

After online shopping, this space has seen good traction with mobile payment firms like M-Pesa and Oxigen, and certain banks joining the fray, to offer ease and convenience of the cashless mode and promote cash-less and paperless transactions while making merchant payments. While banks have deployed point-of-sales (PoS) terminals at various merchant outlets and launched mobile payment apps, others like Vodafone M-Pesa launched a mobile app recently to carry out transactions like cash deposits, money transfers, and make mobile and utility bill payments. 

"We did a quiet launch for select users in April, and are now rolling it out to all Paytm users. We saw good traction in this space with a million transactions in a day," Paytm founder and CEO Vijay Shekhar Sharma told TOI, adding that it is now sprucing up security for money transfer transactions. This would benefit tier-2 and -3 markets, where consumers are not very digitally savvy. 

To enhance security, an SMS-based password will be sent to the user transferring money from the mobile wallet. The ease of use and convenience will be more for a Paytm user, Sharma claimed, and the scale being bigger. Paytm now has a user base of over 80 million. He added the money transfer facility will also be available on Apple Watch, and Android Wear. 

"Our focus is beyond remittances...on day-to-day needs of consumers where cash is spent or a transaction takes place," he added.

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