Paytm planning its own mobile messaging app

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Reuters reported that the Paytm chat app will offer its digital payment option inside the app which can be used "to buy everything from food to plane tickets".

Indian digital payment service giant Paytm has chose to take on Facebook-owned WhatsApp messenger by launching its own messaging service on its app. The new feature is likely to include all the text, image, video and audio messaging available on WhatsApp but will also eventually take a similar route to WeChat in China by covering areas such as ride-hailing. Paytm has a user base of over 225 million.

"Paytm wants to become a digital universe for Indian commerce where consumers can communicate, shop and use financial services", said Pavel Naiya, an analyst at tech research Counterpoint.

Interestingly, Paytm's move is against the current trend of Messaging platforms like Hike introducing in-app electronic payments service.

At 230 million users, Paytm's customer base is already bigger than WhatsApp's 200 million in India. WhatsApp itself has been looking at moving into digital payment services in India.

Paytm and other digital transaction apps are had a rapid increase in their market share because of the countries high-value old currency notes ban at late 2016.

According to a 2016 report by Boston Consulting Group, digital payments in India are set to jump almost 10 times by 2020 to $500 billion.

The Wall Street Journal was first to report Paytm's plan to launch a messaging service.

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