Airtel’s Payment Bank: Is It Different From Normal Bank or Paytm?

Airtel’s payment bank will let you withdraw/deposit cash and make digital payment via mobile app.

Airtel Payment bank will compete with traditional banks, and the upcoming Paytm Payment bank. (Photo: The Quint)

Airtel’s Payment Bank on Thursday was officially rolled out pan India by the country’s Finance Minister Arun Jaitley, along with Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises.

The telecom operator has confirmed that over 2,50,000 banking points, via Airtel retail store, will be available to consumers spread across 29 states. One can open savings account, deposit and withdraw cash from these access points.

Here’s everything else you need to know about what Airtel Payment Bank is offering:

What Airtel Payment Bank Offers

• User’s mobile number will be their bank account number
• 2,50,000 Airtel stores will function as banks
• More than 1 million merchants are already accepting Airtel money
• Payment Bank app is available on Android and iOS devices
• Online debit card for purchases with no extra transaction charges
• USSD-centric payment in 12 languages via feature phone also available
• Deposits of savings account holders will get interest rates up to 7.25%
• Get one minute of Airtel mobile talk-time for every rupee deposited while opening savings account

Airtel Payment Bank vs Paytm Payment Bank vs BHIM

There has been a tremendous kick-start of digital payment providers post demonetisation in the country.

While Paytm was the first beneficiary with this currency ban move, other players have come into the market such as Bharat Interface for Money (BHIM) by NPCI. But with Airtel entering the banking game, it changes the dynamics of payment ecosystem in India for the future.

Also Read: Decoded: Everything You Need to Know About PM Modi’s BHIM App

With more than 300 million prepaid/postpaid subscribers under its belt, and one of the widest network pan India, the telecom operator has more than one reason to be optimistic about its chances as a banking entity.

However, it remains to be seen if digital banking via a telecom company is accepted as a monetary institution, trusting them with their hard-earned money.