Paytm to launch new messaging service by end August

Payments app, Paytm is said to preparing for launching its new messaging service to compete with WhatsApp by the end of August. 

Reuters reported that the Paytm chat app will offer its digital payment option inside the app which can be used ''to buy everything from food to plane tickets.''

The option to transact digitally is already offered by WeChat on its chat platform which is quite popular in China.

WhatsApp had earlier shared its plans to integrate payments in the app and is said to be  working on person-to-person payments in India within the next six months.

According to the report, ''Paytm's messaging service will allow users to send audio, video and pictures and text.'' The company had not yet acknowledged the development officially. Paytm has a user base of over 225 million.

Also, Bharti Airtel backed rival messaging app Hike recently rolled out its Hike Wallet. It is now possible for Hike users to make free and instant bank-to-bank transfers thank to Unified Payments Interface (UPI) support enabled in Hike 5.0. The transaction does not require the other party to be on Hike.

In another move, the digital payments firm recently introduced its payments bank-- Paytm Payments Bank.

The bank offers zero fees on online transactions, no minimum balance and a free virtual debit card, and an annual interest of 4 per cent for all saving accounts.

According to commentators, Paytm, with the backing of Japan's SoftBank and China's Alibaba, wants to attract people in India to use a messaging service embedded in its payments app, which is already used by many to buy everything from food to plane tickets.

Paytm's messaging service will allow users to send audio, video, pictures and texts, said the source.

According to a 2016 report by Boston Consulting Group, digital payments in India are set to jump nearly 10 times by 2020 to $500 billion.