India-headquartered mobile wallet company Paytm believes the launch of its payments bank can drive the company to achieve its target of 500 million customers, Bloomberg reported.
In an interview with the business title, CFO Madhur Deora said the company aimed to provide services to more than a third of India’s population. The company currently enables mobile payment and online shopping through its platform, but will extend this to include a wider range of services within the next two months after its payments bank licence was confirmed by the Reserve Bank of India (RBI) in January.
Paytm, backed-by Chinese eCommerce giant Alibaba’s affiliate Ant Financial, is targeting 200 million customers within a year and 500 million in the medium term. The company recently reported 177 million people had used its wallet services during 2016.
Deora believes the next stage of its growth will be driven by the company’s entry into wider banking services brought about by the launch of its payments bank.
The company is one of several to have secured licences from the RBI, including traditional finance providers, IT companies and India’s postal service. Leading telcos Vodafone India, Bharti Airtel and Idea Cellular also secured permission.
Although several of the companies have voiced their intent to launch banking services, so far only Airtel launched a live service.