New Delhi: One of India’s largest digital wallet services providers, Paytm, on Wednesday announced that it is finally launching Foreign Exchange (Forex) services – Forex cash and Forex card – giving customers the provision to access top 20 international currencies on its platform. The development comes after Paytm had in April said it is seeking to foray into forex service, in a bid to expand its business.
It may be noted that the company had received AD Category II from the Reserve Bank of India (RBI), which is a licence required to become an authorised dealer. This is another venture by the digital payment company to expand its product portfolio to attract more customers.
What is the service all about?
Issuing a statement after the launch of service, Paytm said it has launched a prepaid multi-currency Forex card, which can be used to order Forex cash anytime. The same will be delivered to the customer’s doorstep in the next 48 hours or individuals can even choose to collect it from any partnered seller’s outlet across the country. Worth mentioning that $250,000 can be stored in the card by a customer during the course of a year and the limit on foreign currency notes will be capped at $3,000 per year.
How to avail service?
Giving an insight on how customers can avail the services, Paytm said that it will allow individuals to “lock-in” in the current exchange rates at the time of placing an order by paying a 2 per cent of the total payment, while the rest of the payment can be made at the time of delivery. Paytm went on to explain that customers will not have to pay any extra commission or service charge on the Forex purchases but it should be noted that a GST of 18 per cent is applicable on the transactions. Customers seeking to check their Forex card balance can do it either online or in most ATMs in foreign locations.
As of now, the Forex Card/cash service is only available on its website and the company has said that it will soon extend the service to the mobile application. According to technology portal Inc42, the company has partnered with CentrumDirect, a foreign exchange service provider, for launching the services.
Paytm has been riding on the wave of digitisation in India and grew exponentially after the government’s demonetisation exercise. After consolidating its digital payments business since 2016, Paytm has moved on to conquer many other segments including retail, banking and other services such as ticket booking. With the fresh initiative, the company plans to further enlarge its footprint in India and aim to become one of the top technology firms in the country.