Paytm sets up investment and wealth management unit for its users

Paytm | Photo: Wikimedia Commons
Mobile-first financial services platform Paytm on Tuesday announced the setting up of yet another company, ‘Paytm Money Limited’, a wholly owned subsidiary of One97 Communications, the firm that owns the Paytm brand, to build investment and wealth management products for its users. 

Paytm Money will be the fourth consumer brand from the company after Paytm, Paytm Mall and Paytm Payments Bank.

The new brand will deal in money market fund where users would be able to store cash and earn interest. 

The company said there would not be any hidden fees or commission. “India will be a mutual fund-first market, we are in discussions with leading AMCs to offer mutual fund investments in the direct mode for our users,” Jadhav said.

“Paytm would the investment advisor, there are no hidden margins or commissions, so the net return on investment is higher. While there are multiple ways Paytm can earn revenues, we are at this point making sure that our investments are in the direct mode. At this point we want to ensure that we are letting investors invest for free. Typically an advisor can generate revenues from advice or transactions or subscription fee,” he added.

The firm is awaiting some approvals from Securities and Exchange Board of India  and would start operations shortly after getting the final nod which is still a few weeks away.

“We started as a payments platform and expanded customer offerings to deposits with Paytm Payments Bank. Today, with Paytm Money, we have taken the next logical step in the direction of wealth management. We aim to increase the size of wealth management customer base and bring simple and easy to understand wealth products to our consumers,” Paytm founder Vijay Shekhar Sharma said.