Paytm Payments Bank (PPB) has partnered with the National Payments Corporation of India (NPCI) to launch a RuPay-powered digital debit card.
With the PPB Digital debit card, customers will now be able to transact at all merchants who accept credit and debit cards. The RuPay-powered digital debit card will be issued to all customers who have opened their bank accounts with PPB.
Existing Paytm users need to complete a KYC process to become an account holder with PPB. Following this, they will be issued a free digital RuPay card.
This debit card will come with a free insurance cover of up to Rs. 2 lakh in the case of death or permanent total disability.
“Our customers will now be able to pay across all online platforms with our digital debit card and experience the same convenience that they have been accustomed to across the Paytm ecosystem,” PPB MD and CEO Renu Satti told PTI.
Major online platforms like Ola, Flipkart and Amazon do not allow users to pay for transactions using Paytm wallets currently. With these digital debit cards, they will now be able to make transactions on these platforms as well.
PPB is also looking to partner with other full-service banks to offer additional services to its customers and rolling out a full bouquet of services, including term deposits, retail and SME loans.
As a payments bank, PPB can take a demand deposit of up to Rs. 1 lakh per customer, but it cannot undertake lending activities.
PPB launched its services in May this year. Paytm founder Vijay Shekhar Sharma owns 51 percent stake in PPB while One97 Communications – which runs Paytm – owns the remaining 49 percent.