The virtual card, which will have a 16-digit number, just like a physical debit or credit card, will expand Paytm’s reach significantly from 35,000 merchants currently using its digital wallet to 1.5 million merchants, who accept all kinds of electronic payments through plastic cards.
However, the company might face some challenges as RuPay is not currently offered by each and every bank in India and users might find the procedure too complicated. Once rolled out, a Paytm consumer will be able to see the 16-digit number in the application settings. The company is also exploring the option of issuing a physical card, which can be used at offline retail merchants.
The company is backed by Chinese ecommerce company Alibaba’s financial arm Ant Financial.
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