Paytm Now Lets You Pay Traffic Challans Online

 

In a new development, digital payment service Paytm has now introduced another service on its platform easing every day payment hassles. The platform now has an option to pay traffic challans online. This service is now live in Mumbai, Pune and Vijayawada, and will be expanded to other cities soon.

This option is currently not reflecting on the app for now in the mentioned cities, but is live on the website. If you own a vehicle, you can now use the option ‘Traffic Challan’ to pay for challans obtained for violating any kind of traffic rules. This includes everything from jumping a red light, over-speeding, not wearing a helmet, ignoring traffic signs, driving without a valid licence and so on.

Once the challan is generated against your vehicle’s registration number, log into Paytm, enter the city name, challan/ vehicle number, and choose your payment method. After verification, you can then pay for the challan online, and this will generate a digital invoice and the customer’s surrendered documents will be dispatched via postal services by the respective police department.Paytm Now Lets You Pay Traffic Challans Online
Speaking on the announcement, Kiran Vasireddy, Snr. Vice President – Paytm said in a statement, “Traffic challan payments in India largely happen at select counters and in cash. We are glad to partner with the state traffic police departments to enable challan payments on the go. This is a new stride in our vision to add convenience to every payment use-case in the country.”

This furthers the government’s initiative to making payments cashless, and eradicates the hassle of going to the police department for paying the challan. Plus, the documents are delivered at home, easing the otherwise cumbersome process for vehicle owners and the police.

 

Paytm Payments Bank Integrates UPI to Simplify Transactions

 

HIGHLIGHTS
Paytm Payments Bank will integrate with UPI, the company said
The payments bank account is separate from the Paytm Wallet
Wallet users can only use UPI to reload cash in the wallet
Paytm has announced that the Paytm Payments Bank will adopt the Unified Payments Interface (UPI) to simplify transactions. The Paytm Payments Bank account holders will be able to send and receive money using an @paytmbank virtual payment address. Merchants that support UPI will also be able to accept payments from Paytm Payments Bank customers via this mechanism.

The company has not stated when this will be enabled, but it’s a somewhat moot point, as the bank is still only available via invitation – most people will not have an account as of now. Unlike the wallet, the Paytm Payments Bank can offer interest – and is in fact offering 4 percent interest on deposits – and can also issue debit cards, which can also be used for cash withdrawal from ATMs.Paytm Payments Bank Integrates UPI to Simplify Transactions

Wallet customers are not being automatically onboarded as bank customers. Paytm’s wallet does allow you to reload money using the UPI. When you go to the add money page, along with common options such as debit and credit cards, and netbanking, there is also a UPI option where you can enter your existing VPA, to send a cash request.

The Paytm Payments Bank on the other hand will allow you to create a new VPA, linked to that account or any other bank account that supports UPI, and allow you to send and receive money using your VPA.
Airtel launched the first payments bank in India earlier this year, which offers 7.25 percent interest but does not have a debit card, so you can only cash out at certain Airtel retail stores. The company also stated that it plans to integrate with UPI, but has not so far.

“We will soon enable seamless creation of UPI IDs on our platform so that users can send and receive money to each other, and for merchant payments,” says Renu Satti, CEO, Paytm Payments Bank. “It will be one of the most important components of our payments platform and enable us to bring cost-efficient digital payment services to every Indian. Our significant consumer base makes us well-positioned to become a large issuer of UPI handles, driving its adoption in the country.”

Disclosure: Paytm’s parent company One97 is an investor in Gadgets 360.

 

Paytm Says It Has Crossed 200 Million Users, Added 700,000 Wallets in a Day

Spurred on by demonetisation and a move towards a “less-cash” India, mobile wallets have been some of the companies that have witnessed a boom in the last few months. On Monday, Paytm founder Vijay Shekhar Sharma tweeted that the company has crossed a major milestone – 200 million wallets. It claimed to have crossed the 100-million mark in August 2015, a year after the wallet launched.

Paytm Says It Has Crossed 200 Million Users, Added 700,000 Wallets in a Day

In a blog post, the company noted that it started 2016 with 122 million users – over the course of the entire year, it grew to 177 million, or about 55 million users. In the last two months, it’s added the remaining 23 million, which shows just how much of a boost demonetisation gave to Paytm.

In the tweet, Sharma mentions that the company has a milestone of 500 million by 2020; that’s an additional 300 million users in three years, which should be possible if the company continues to add users at the same rate. However, there are some challenges to this – for one thing, according to Statista, the total number of smartphone users in India in 2020 will be 444 million – and many of these new users will be in rural India with low-end devices. Capturing this market will not be easy, and of course, it’s unlikely that a single company will serve all the users in the market.

 Interestingly, the tweet revealed a few more details about Paytm. Among other things, it points out the number of new wallets (in million) as 0.7. Sharma tweeted that this is the number of wallets added in a single day – going by that, the target of 500 million seems even more likely, but once again, the external factors of demonetisation are playing a big part in spurring Paytm’s growth.

Another detail revealed in the tweet is the total number of cash in wallets Rs. 899.11 crores. The total number of wallets with money or a saved card is 106.8 million. Based on this, you can see that the average wallet balance is just Rs. 84. Since some people are keeping larger amounts in their wallets (for Uber’s minimum balance, or day to day spending), from this you can infer that most people are using the wallet simply as a processor, topping it up with a saved card whenever they need to make a spend, instead of keeping money in the wallet. What this will mean for Paytm, once the cash situation normalises in India, will be interesting to see.