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Infosys’ Finacle software to be used by PayTM’s Payment Bank

India: PayTM, a leading mobile wallet company will use Infosys’s software “Finacle” for its payment bank services. However, PayTM got payment bank licence in 2015 along with 10 other companies including Aditya Birla Nuvo Limited, Airtel M Commerce Services Limited, Fino PayTech Limited, Reliance Industries Limited, Tech Mahindra Limited, Vodafone m-pesa Limited, etc.

Infosys has closed their first deal since the payment bank licenses were issued last year. Moreover, the company is also looking to sell their banking software to other payment bank license winner.

TechSci Research analyses that couple of the license winner of payment banks named Sun Pharma and Cholamandalam Investment and Finance Company had already withdrawn the idea of not setting up the bank, PayTM is focusing towards taking advantage of setting payment bank and deploying best-in-class software and services to take the lead. PayTM is already dominating the mobile wallet in India and now it is venturing into payment bank segment, this strategic move by the company would expected to enhance the overall market share in the country.

According to the recent report published by TechSci Research, “India Mobile Wallet Market Forecast and Opportunities, 2020”, India Mobile Wallet market is projected to surpass USD6.6 billion by 2020. With increasing awareness level of mobile wallet, rising smartphones coupled with growing internet penetration and increasing acceptance of mobile wallet as a payment mode are driving the mobile wallet market in India. Banking sector accounted the largest end user segment followed by retail, telecom and transportation. With increasing awareness level of mobile wallet, rising internet users coupled with the increasing security measures is driving the mobile wallet market in India. Furthermore, Tier I cities including Delhi, Mumbai, Kolkata, Bangalore, Pune, etc., registered the highest number of mobile wallet users and net baking users, while Tier II cities such as Jaipur, Lucknow, Chandigarh, Indore, Patna, etc. are the emerging cities in terms of using different more of payment across the country.

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