Just after announcing funding from Ratan Tata, Paytm has introduced Immediate Payment Service (IMPS) on its platform. With this Paytm users can now use their mobile wallets to transfer money into any bank accounts.
The company has also announced plans to open about 50,000 retail outlets where over 25 million Paytm users will be able to load cash in their mobile wallets.
To avail the wallet to bank account transfer facility, a user has to be mobile or email verified and must be registered on the system for over 45 days. The balance in the Paytm wallet must be a minimum of Rs 2,000 and the transaction amount must exceed Rs 1,000. The daily upper limit for wallet to bank account transactions is Rs 5,000 and the monthly limit is Rs 25,000.
Speaking on the development, Amit Lakhotia, Senior Vice President, Paytm said,
With the introduction of IMPS, we aim to encourage users to hold funds in their Paytm wallets and also expand the scope of what they can do with this money. The fact that they can now use the funds in their wallets to transfer money into banks and not just for wallet-to-wallet transfers will be a true game changer. This move will set the pace of our economy to become a cashless economy.
Paytm had got statutory approval from apex banking body to roll out payment bank service. IMPS offer an instant, 24X7, interbank electronic fund transfer service through mobile phones. It is an emphatic tool to transfer money instantly within banks across India through mobile, internet and ATM.
“IMPS has been fuelling phenomenal growth in the PPIs space, and created an ecosystem to facilitate instant payment system in the country. Partnering with Paytm will further boost the overall usage of IMPS among the users of wallet customers and fulfill the needs of making payments in safer and convenient manner. The 24x7 anytime and instant confirmation features of IMPS will support Paytm wallet customers to increase the scope of wallet money usage,” says Mr A P Hota, MD & CEO, NPCI.
With IMPS service on its platform Paytm is planning to have 100 million wallet users by year end.