Indian mobile commerce network Paytm has enlisted Wipro to help it build the technology platform for its forthcoming payments bank business.
Last year Paytm - which is 40% owned by Chinese Web giant Alibaba - was one of 11 applicants to get in-principle approval from the Reserve Bank of India to set up so-called payments banks.
Designed to help boost financial inclusion, payment banks will be able to take deposits of up to Rs 1 lakh, issue debit and ATM cards, and facilitate online transactions, but are not allowed to lend money.
Paytm has given Wipro a one year contract to help it build a core banking system that meets accounting and regulatory requirements and manage integration of things such as anti-money laundering. Paytm will build customer-facing applications itself.
Shinjini Kumar, CEO, Paytm's payments bank, says: "They [Wipro] have a demonstrated track record in banking technology in India that will be important in ensuring that our innovative solutions are integrated with core banking systems in a compliant and secure manner, creating the right platform for service delivery at large scale."