How good is it to invest money through Paytm?

WhatsApp, Paytm & co: The background to the mobile payments revolution in India

Slowly but surely it is becoming apparent that India is taking on a pioneering role in the spread of mobile payment methods. As reported in the article Transfer money with WhatsApp: Online banking via WhatsApp starts, India's third largest retail bank, Axis, has set up an online banking service for WhatsApp. In order to be able to use the service, customers must first have installed the PingPay app.
With the new mobile payment service it is possible to transfer up to 700 euros. In parallel to WhatsApp, payments via twitter, facebook, e-mail and SMS are also supported.

by Ralf Keuper, blogger and columnist

A few months ago, the Chinese e-commerce group Alibaba acquired an indirect stake in India's largest mobile wallet provider, Paytm.

Paytm's investment network gives an impression of the interplay between the large e-commerce companies in Asia, which is difficult to understand for outsiders. Paytm is officially owned by One97 Communications, an Indian e-commerce company. In addition to the financial arm of Alibaba, Ant Financials, including Ratan Tata and Intel, are co-owners of One97 Communications.

In addition, Alibaba invests directly in Paytm through Ant Financials. The confusion is increased by the fact that the Japanese telecommunications company SoftBank holds a third of the shares in Alibaba (another major shareholder is Yahoo, by the way). SoftBank tried to acquire a stake in Paytm a few months ago. Only a few days ago it became known that Alibaba was planning a stake in the second largest Indian smartphone manufacturer Micromax. In addition, Alibaba intends to take over other Indian e-commerce companies. Alibaba and its main shareholder SoftBank are getting in each other's way with increasing frequency.

If you look back at the development of the last few months, it becomes increasingly clear that the large e-commerce groups are in the process of consistently expanding their digital ecosystems. It seems as if they do not want and need not wait for standards for mobile payment to be set up. Instead, they define their own through their digital ecosystems.

In this respect, the Axis Bank move makes perfect sense. In this way, Axis can avoid the clutches from Alibaba & Co. for the time being. India is on the way to becoming, if you will, the “main theater of war” for the implementation of mobile payment methods.

The course or outcome will not remain without consequences for Europe. In this respect, the question arises once again whether the mobile payment solution of the German Credit Association, Pay Direkt, is not already a big blow

Ralf Keuper (banking, business graduate and FinTech expert)

Ralf Keuper is a banker and has a degree and has been working in various positions in the banking sector for around 15 years. With his blog bankstil, he is also one of the top 10 bloggers in the FinTech sector and advises banks on digital transformation and FinTech startups on entering the market. Keuper has worked as Senior Consultant Banking at COR & FJA AG and Senior Consultant Banking & Financing at Steria Mummert Consulting AG.

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