Paytm seeks to transform payments bank into small finance lender

Signage for digital-payments provider Paytm, operated by One97 Communications Ltd., is displayed at a shop selling printer cartridges in Mumbai, India, on Friday, Jan. 27, 2017. Photographer: Dhiraj Singh/Bloomberg

Indian financial technology (fintech) giant Paytm is planning to transform its payments bank into a small finance bank, which it believes is a more profitable growth model, according to a report by The Times of India.

Paytm founder and CEO Vijay Shekhar Sharma told TOI that that the payments bank – Paytm Payments Bank – will approach the government for an license to allow it to lend to consumers using technology-enabled low-cost operations. Sharma holds 51 per cent share in the bank.

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