Alibaba’s PayTM plans to enter the asset management market

PayTM, the Alibaba-backed Indian smartphone payments platform, plans to enter the asset management market… The group, which has attracted more than 170 million users since it started seven years ago, said its aggressive strategy to disrupt traditional finance would soon extend to loans, wealth management and mutual fund products. The move could give PayTM an even larger slice of the rapidly growing ecommerce market in India… Its popular smartphone app, which is used by millions of Indians to pay for services, bills and tickets, accounts for a quarter of digital payments. From next month, PayTM users will be able to open savings accounts and use their phones to deposit and withdraw cash at about 3 million shops that already accept PayTM payments… PayTM funds are expected to work like Yu’e’bao, a money-market fund controlled by Alibaba’s financial affiliate Ant Financial, which has attracted more than 300 million smartphone-based investors in China. Yu’e’bao allows customers that use Alipay’s epayment system for online shopping to direct cash into investments for returns that beat those offered by bank accounts.

 

Aliya Ram

Food4Brains

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