India Post Payments Bank Set to Launch FASTag Service, Aims to Attract Paytm Fast Service Customers

In the guidelines issued for FASTag users, the National Highways Authority of India (NHAI) has omitted Paytm Payment Bank from the list of authorized banks. Consequently, vehicle owners who possess FASTags from this bank will need to obtain FASTags from alternative banks. This decision impacts nearly 20 million motorists.

Indian Post Payment Bank is currently in the process of developing FASTag services and is set to introduce the service in the near future. V. Easwaran, the MD and CEO of the company, disclosed this information during an interaction with MoneyControl.

V. Easwaran mentioned that there is a significant influx of individuals engaging with the Post Payment Bank. He indicated that the bank is actively developing FASTag services, which are poised for imminent launch. Furthermore, he articulated the bank's goal of achieving a 30% surge in new customers by the year's end.

A significant number of individuals are actively engaging with the Post Payment Bank. According to statements made by V. Easwaran, the Indian Post Payment Bank is currently developing FASTag services, which are expected to be introduced shortly. Additionally, he stated that the bank aims to achieve a 30% surge in new customers by the conclusion of this year.

When questioned about the challenges faced by payments banks since their inception in India, he highlighted the unique market dynamics in which these banks operate. He noted that each payments bank has carved out its own niche within the market. In recent years, the payments bank sector has seen significant evolution.

In addressing this matter, he emphasized the notable transformations observed in tier-2, tier-3, and tier-4 cities, where payments banks have made significant strides. While acknowledging profitability challenges, he cited India Post as a prime example of successful business generation despite hurdles. He underscored the resilience of India Post, stating that it has emerged stronger by surmounting various challenges.

When queried about Indian Post Payment Bank's plans to venture into mutual funds and insurance-related sectors through third-party collaborations, he affirmed that the payment bank is actively developing insurance distribution channels utilizing third-party products. Specifically, he mentioned the bank's focus on offering life insurance, general insurance, and health insurance products.