Patym, a mobile payments and commerce platform, has selected the Finacle core banking solution offering IT major Infosys, for its new payments bank business.
In 2015, Paytm obtained "in-principle" from the country’s central bank to state payments bank.
The company will leverage Finacle’s platform for its deposit products and payments platform, allowing it accelerate the launch of new products.
Paytm Payments Bank CEO Shinjini Kumar said: "After considering multiple core banking solutions, Paytm is happy to announce that we have chosen Infosys Finacle as the core banking solution for our payments bank.
"With its large deployment base in India including some of the largest banks, Finacle has proven to be a scalable solution and we are confident that it will be able to support our aspiration to be a large and robust platform for small value, high volume transactions for millions of Indians."
With the Infosys solution, which is APIs driven, Paytm will be able to integrate its payments bank services rapidly across its existing wallet business.
Finacle with its integration adaptors, along with its compliance to industry standards, is expected to reduce integration costs for Paytm, apart from simplifying its banking transformation process.
EdgeVerve customer & operations president Andy Dey said: "Payment banks are set to revolutionise the Indian banking space, helping take basic banking services to a huge unbanked and underbanked population in the country.
"Paytm has played a pioneering role in the growth of mobile payments and e-commerce in India. Backed by our proven solutions and global best practices, we are confident of powering Paytm to deliver banking services in an easily scalable and cost-efficient manner."
Paytm will also be able to easily create and offer a comprehensive bouquet of CaSa (Current Account and Savings) based products by using product factory capability provided by the Infosys’ banking solution.
Finacle is a banking solution from EdgeVerve Systems, a wholly owned subsidiary of Infosys.