Paytm Payments Bank has tied up with Mumbai Dabbawala Association, to introduce instant payments for their dabba services through Paytm QR code based digital payment system.
As per the partnership, the facility claims to offer the dabbawalas to collect payments from over 2 lakh Mumbaikars through Paytm QR based platform without the complexity of handling cash payments, reports ET.
It will also help these dabbawalas to avail personalised banking including cash deposits and withdrawals at ‘Paytm Ka ATM’ outlets. It will also allow them to earn up to 4 per cent interest on their savings account and around 6.85 per cent on wealth management accounts.
The Mumbai Dabbawala Association boasts a strong network of 5000 dabbawalas who deliver home-cooked food to hundreds of customers daily.
The Alibaba-funded company is aiming to acquire a major market share in domestic market and become the world’s largest digital bank through a suite of banking and financial products.
Payments Bank was launched on November 23, 2017. It has zero charges on online transactions and no minimum balance requirement. Currently, the Paytm bank offers around 4 to 7 per cent interest rates on savings accounts.
The Paytm Payments Bank has set a target to open 200 million accounts across current and savings account, and mobile wallets. It has also proposed to set up 33 controlling offices and 3,000 access points by March 31, 2018. The bank plans to set-up 31 branches with a network of cash deposit machines and onboard 1,00,000 agents to provide banking services.
Last week, the digital payment major had claimed to sell massive 52 million movie as well as event tickets in 2017, which is considered 6X jump in selling entertainment tickets over 2016.
In January this year, Paytm Payments Bank has also tied up with IndusInd Bank to introduce a linked Fixed Deposit. The facility of which it claims to offer the customer a hassle-free and paperless saving experience with 6.85 per cent annual interest.
In May last year, Paytm had raised $1.4 billion from Softbank at a valuation of $7 billion. The investment was one of the largest fund-raising events for any internet company in the country.