Paytm, slated to transform into a payments bank by Diwali, is planning to take financial inclusion further by creating customised products like loans and insurance for the rural poor. For that, it is trying to partner with banks and non-banking financial companies, for which talks are currently in advanced stages.

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"We are in talks with several providers of financial products like loans and insurance. The idea is to provide a consolidated demand from our customer base to the provider of financial products like loans and customise such products," said Ruchita Taneja Aggarwal, who recently joined Paytm as its lead of banking operations.

The digital wallet has not been charging fees to merchants or services providers, a reason why it has become so popular. And even post becoming a bank, Patym's strategy will be not to earn money from every transaction.

Rather, it eyes volumes large enough to reach out to the maximum number of people, generate data, customise financial products and earn from those offerings.

"Transaction fee from customers is something we are extremely cautious about. We are not approaching the bank business with the money attitude with an eye on breaking even fast. Our primary aim is to take financial products to those who so far didn't have access to such products," Aggarwal said on the sidelines of a banking conclave organised by the Confederation of Indian Industry (CII).

Paytm is now in aggressive negotiations with banks and NBFCs who will offer loans and other products. Such financial products would not be standard off-the-shelf offerings, but customised based on the data generated through Paytm's huge transaction quantities.

"The two things that we would be focusing on are the velocity of transactions by making payments easy for our customers for their day-to-day requirements from paying school fees to utility bills, or groceries, or even train tickets. The velocity of the transactions would then allow us to generate and analyse data helping us to improve customer service, financial education and customised products."

Paytm would be customising financial products for rural people residing in tier 5 and tier 6 centres that will help them earn enough to beat inflation and save money for productive purposes like children's education. "Up until now financial inclusion meant only opening bank accounts. We want to take it beyond. Offering customised financial products to these people would help us to go beyond conventional ideas of financial inclusions."

In the run to becoming a bank, Paytm has been in an aggressive expansion mode.

It has tied up 8 lakh small merchants and service providers and plans to reach a target of 1 million by year-end, said Aggarwal.

"Tracking closer to about 75-90 million transactions a month, we are present in 20 cities now having 135 million users expanding up to tier 3 and 4 cities."