(11 January 2017 – India) India's largest mobile operator Bharti Airtel has launched the nation's first payments bank, leveraging its extensive retail network as banking points.
The telecommunications operator will invest an initial 30 billion rupees (A$588 million) to develop an India-wide banking network and payments ecosystem for its mobile customers. Customers' mobile number will serve as their banking numbers.
Airtel's retail network, which will be used by Airtel Payments Bank, consists of around 250,000 stores in all 29 Indian states.
Additionally, the firm it plans to develop a nationwide digital payments ecosystem consisting of over 5 million merchants. The operator said 1 million are already on board.
Bharti Enterprises chairman Sunil Bharti Mittal said: “Just like mobile telephony leapfrogged traditional telecom networks to take affordable telecom services deep into the country, Airtel Payments Bank aims to take digital banking services to the unbanked over their mobile phones in a quick and efficient manner. Millions of Indians in rural areas will get their first formal banking experience with Airtel Payments Bank.”
“We are fully committed to… Prime Minister Shri Narendra Modi’s call to build a Digital India and lay a strong foundation for India’s transition to a cashless economy. Airtel Payments Bank will invest towards building a vast digital payments ecosystem with millions of merchants, and allow customers to make convenient cashless payments for good and services with their mobile phones.”