Paytm Money, after receiving the approval of the Securities and Exchange Board of India (Sebi) last week, is all set to commence operations in the next six to eight weeks along with a dozen or so asset management companies (AMCs). The country’s largest payments platform under the umbrella of Paytm, which earlier added fraction of its share to Employee Stock Ownership Plan of One97 Communication ,is on the brink to develop into its wealth management arm.
Starting Independent Application
There are 43 asset management companies (AMC). We will integrate with 10-12 of them before commencing operations, and try to get 30-35 AMCs within the next 12 months,” said Pravin Jadhav, senior VP for business at Paytm Money. “It will start as an independent application on the app store.”
Planning to enter into Equity
The entity is planning to start with mutual funds and later enter asset classes such as equity. Jadhav said he is planning to build Paytm Money, unlike the parent Paytm app, as an engagement product where consumers will come for much more than only transactions. With the falling interest rates, consumers will eventually be forced to look for wealth management, he said.
Yu’E Bao the biggest money market
Yu’E Bao in China has become the biggest money market fund in the world with assets under management of more than $200 billion. The fund is being promoted by Ant Financial, which uses surplus funds lying in customers’ payment accounts.