Finacle kicks off Paytm’s payment banking operation

Narayan Murthy’s Infosys the major software giant will provide a software solution to Paytm for its payment banking system. Mobile wallet and e-commerce company Paytm has selected Infosys' Finacle to boost its payment banking business. Paytm will leverage Finacle’s proven platform for its deposit products and payments platform, enabling it to rapidly roll out innovative offerings.

This is the first such deal for Infosys since the issue of the payment bank licence last year. Infosys' Finacle is part of EdgeVerve Systems, a wholly owned subsidiary of Infosys. The company’s software is used by banks in 92 countries, with a reach of over 848 million customers.

Paytm has entered into a one-year contract with Wipro to help it build a core banking system that meets accounting and regulatory requirements and manage integration of things such as anti-money laundering. Paytm will build customer-facing applications.

Payment banks can accept demand deposits and savings bank deposits from individuals and small businesses, up to a maximum of Rs 1 lakh per account. The company last year had set aside $250 million for the payment banking business. It is planning to recruit around 3,000 people for the new business operation.

RBI had issued 11 in-principle licenses to start payment banks in August 2015, three have reportedly pulled out which are Tech Mahindra, Sun Pharma, and Investment and Finance Company.

Paytm is an Indian e-commerce website headquartered in Noida, India. It was launched in 2010 and is owned by One97 Communications. The firm started by offering mobile recharging, adding bill payment and e-commerce, with products similar to businesses of  Flipkart, Amazon, and Snapdeal. In 2015, it further added booking bus travel. Paytm also launched movie ticket booking by partnering with Cinépolis in the year 2016.