Banks, fintechs eye Paytm’s staff benefits business

economictimes.indiatimes.com:

Paytm’s imminent exit from the employee benefits market, following the regulatory action against its payments bank and mobile wallet, is set to offer an opportunity to rivals like Pluxee (formerly Sodexo), Zaggle and banks to expand their business in this space.

“With Paytm Payments Bank and its wallet service being asked to stop (services) after March 15, large corporations are looking for alternative options since meal benefits are a crucial aspect of their tax compliance,” said a senior fintech industry executive in the know.

Elevate Your Tech Prowess with High-Value Skill Courses

Listed startup Zaggle is looking to onboard 100-150 new corporate clients by the end of the next financial year. Over this month, the company started working with IT company Wipro, staffing solutions provider Quess Corp, private sector lender Axis Bank and others.

Also read | Vijay Shekhar Sharma resigns from board of Paytm Payments Bank

“In the meal benefit space, we have seen a massive uptick in demand and given the situation with competition, we have made steady inroads by adding new clients,” said Raj Narayanam, executive chairman, Zaggle Prepaid Ocean Services.

He did not disclose which companies shifted from Paytm to Zaggle after January 31 when the Reserve Bank of India announced the restrictions on Paytm Payments