Nonetheless, with this latest update Paytm initially try to cater the domestic player like Hike messenger who has now 100 million users in India.
Mumbai: India's leading digital payments firm Paytm plans to launch a messaging service by the end of this month to compete with Facebook Inc's WhatsApp, a source familiar with the matter said on Tuesday. The company will convert its payment users to messaging and help businesses connect with consumers. We all knew that Paytm is backed by Japan's SoftBank and China's Alibaba. Now, maximum of teens in India using Paytm to buy everything from plane tickets, movie tickets, and even foods. The reports, quoting sources, said Paytm's messaging service will allow users to send audio, video and pictures and texts.
The move is somewhat like an opposite of the current market trend, where the messaging apps are adding payments feature into its app.
Paytm, which has over 225 million users on its wallet app, reportedly plans to introduce the messaging feature within the next two weeks. According to the report of February, WhatsApp had about 200 million monthly active users in India. WhatsApp itself has been looking at moving into digital payment services in India.More news: Tillerson says U.S. is willing to talk to North Korea
Because of some updates and limitations on WhatsApp, some of Indians started using another Indian messaging app, Hike.
E-payments in India surged after the government demonetized high-value currency notes late past year.
Paytm hasn't responded to the reports as yet.