Together with RBI, we will provide a whole new banking model to the world: Vijay Shekhar Sharma, PayTM
Over the next few years, Sharma expects 500 million Indians to use the newly launched Payments Bank service by PayTM
PayTM launched its mobile banking solutions last week, the PayTM Payments Bank with a 4 per cent interest rate on savings deposit. This is in sharp contrast to the 7.25 per cent rate offered by Airtel Payments Bank. However, PayTM Founder and CEO, Vijay Shekhar Sharma's ambitions are long term and he says that this is just the beginning for the product.
Over the next few years, he expects 500 million Indians to use PayTM's banking service. His motto, he says, when asked how he plans to compete with established BFSI institutes, is, 'No fear, no greed and no entitlement.'
PayTM recently received $1.4 billion investment from SoftBank and Sharma wants to use this new influx of money to continue building new financial products. For example, he informed that PayTM will soon be integrating an invoice facility within its service.
"Our bank is more secure than any other nationalised bank. We cannot invest your money in risky investment assets. The business model is different. We, along with RBI, will provide a whole new banking model to the world," he claimed.
When queried further about this, Sharma further explained that PayTM would only invest in government bonds with the money deposited with the company. "We will not become a risky investment asset, I can assure you," he reiterated.
Meanwhile, Sharma informed that the company has no plans to offer an IPO for atleast the next three years. "History books should say that everyone who put money on me made a lot of money in return," he declared.
The demonetisation process served as a catalyst for PayTM's extraordinary growth, making it one of the most valued start-ups with the company seeing 255 million transactions, up nearly 5 times, in the post demonetisation era.
"If not for demonetisation, we would have taken two years to reach our current numbers," he admitted. However, PayTM did face some flak for carrying out print ads thanking PM Narendra Modi for initiating the demonetisation drive. Sharma, however, characteristically, shrugs it off. "I have no past regrets," he said about the incident.
Sharma was speaking at the latest edition of NDTV's Off The Cuff with media veteran Shekhar Gupta, Founder and Editor-in-Chief of The Print, held in Mumbai on Monday.
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