Can traditional banks partner with Paytm & profit from the synergies it offers  

Is the time ripe for picking up a stake in Paytm for investors or partnering with the company as it appears to weather the storm it is undergoing?

Perhaps the traditional banking firms if they want to leverage the digital spread and prowess of this financial delivery system can explore the possibilities for mutual benefit, but chances that it could be a shrewd decision to mount scaling of operations using the digital platform, which otherwise would take a longer time and be costlier if it wanted to develop this platform on its own.

Sources in the banking sector are watching the space after recent directives on

Paytm Payments Bank, the OCL/Paytm had mentioned that it is accelerating its partnership with third-party leading banks to distribute payments and financial services.

Those watching the banking sector are of the view that this would prove to be a major opportunity for any bank, as Paytm has been trusted by millions of users in the country.

For traditional banks, it is an opportunity to offer their products and services with a technology-first approach of Paytm. With the technology that Paytm brings to the table, it will take traditional banks a long time to reach that scale of innovation. So partnering with Paytm will be a win-win situation for both, people in the banking sector feel.

The RBI confirmed through its Frequently Asked Questions (FAQs), that Paytm QR, Soundbox, and Card Machine, will continue to operate seamlessly for all merchant partners. This illustrates that One97 Communications Limited which owns the brand Paytm is now back to steady business.