Paytm Payments Bank has partnered with the Mumbai Dabbawala Association to push its QR code-based digital payment system. As part of the association, around 5,000 dabbawalas in the city will now be able to collect instant payments for their dabba service through Paytm QR code platform.
Paytm says the association will also help them avail an easy access to banking and other financial services by opening their bank accounts with Paytm Payments Bank. Paytm Payments Bank is one of the leading digital banks in the country providing zero balance accounts and zero charges on digital transactions. The partnership also allows dabbawalas to avail personalized banking from ‘Paytm Ka ATM’ banking outlets for cash deposits and withdrawals.
Paytm Payments Bank also gives 4 percent interest for savings account holders and up to 6.85 percent in wealth management accounts. Mumbai’s Dabbawala Association has a strong network of dabbawalas who deliver home-cooked food to around 2 lakh Mumbaikars every day. Paytm says the association with Dabbawalas will help with the bank’s mission to bring half a billion Indians on the mainstream economy.
“Mumbai dabbawalas have earned global recognition for their impeccable world-class supply chain management. We are glad to simplify payments for their strong network with our Paytm QR and also provide banking services. This partnership enables the dabbawalas to collect instant payments from over 2 lakh Mumbaikars without the complexity of handling cash,” Renu Satti, MD & CEO – Paytm Payments Bank.
“An average Dabbawala covers about 60-70 kms every day and services thousands of households across Mumbai. This makes accepting cash payments a challenge for our colleagues. Paytm QR-based mobile payments will help us continue our legacy of impeccable delivery and service. As India is fast moving towards a digital-first economy, we are excited to bank with India’s largest digital bank,” said President of Dabbawala Association.
Paytm is not the first company to do tie-up with Dabbawalas, Flipkart had previously partnered them for the last mile delivery service. Paytm Payments Bank had recently announced a partnership with IndusInd Bank to introduce a facility to create a Fixed Deposit account when the customer’s balance exceeds Rs 1 lakh.
Once the savings exceed Rs 1 lakh at the end of the day, Paytm Payments Bank creates a Fixed Deposit and customers can redeem their deposits instantly without paying any pre-closure or miscellaneous charges and earn up to 6.85 percent annual interest. Paytm Payments Bank is a first of its kind digital bank system and it claims to have over 180 million savings and wallet accounts.