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Paytm: Navigating the Transition from an...

Sahay, Arvind, Tiw...

Case

Paytm: Navigating the Transition from an E-Wallet to a Payments Bank

Sahay, Arvind; Tiwari, Tara

IIMA-MAR0501 | Published March 7, 2019 | 14 pages Case

Collection: Indian Institute of Management, Ahmedabad

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Learning Objectives

In 2015, Paytm- India's largest e-wallet had been pushed by RBI, the central bank regulator in India into becoming a Payments Bank. In 2018, it had come under the scrutiny of RBI for not abiding by the KYC norms and was also questioned over the cash backs offered to customers for bringing them on board. There were two other regulatory challenges that Paytm payments bank had to deal with. The Supreme Court of India had invalidated use of Aadhaar for online verification and the Payments and settlement Systems Act, 2018 was on the horizon. The case revolves around the future strategy to be adopted by Paytm Payments Bank to become self-sustainable and profitable given the regulatory and customer adoption challenges. To get a full picture, this case should be used in conjunction with the HBS case on Paytm that covers events till November 2016.

To understand the Payments Banks model; how, and whether, it add value to the earlier business and revenue generation model of Paytm? To understand the Regulatory and Customer adoption challenges facing Paytm Payments bank as it moves into new areas beyond payments. To come up with the action plan for Paytm Payments Bank to make its customers' transition from Paytm wallet to payments bank.