Digital payments platform Paytm is expected to launch its payment banking unit later this year. So the company has decided to spend Rs 600 crore on marketing initiatives, as part of its efforts to create greater awareness of its latest business unit.
The company has already got in-principle license by the Reserve Bank of India last August, to launch payment banking operations in the country, will utilise the amount across media platforms, including, television, digital print, radio and out-of-home advertising.
Paytm to spend Rs 600 crore on its Payment Bank Unit marketing in 2016-17
“We are looking at increased saliency around our money transfer, which includes, person-to-person payments at kirana stores and petrol pumps bill payments and movie ticketing businesses. We expect a minimum 40 per cent jump across all these categories,” said Shankar Nath, senior vice-president, Paytm .
Of the Rs 600 crore earmarked towards marketing for the financial year ending March 2017, Rs 50 crore has been set aside for television commercials, which have already started airing.
The marketing spend will also include propping up the Noida-based company’s existing mobile commerce business, which competes with the likes of Flipkart, India’s largest ecommerce company, Snapdeal, the country’s largest online marketplace, Amazon India. The company, which is backed by Chinese ecommerce behemoth Alibaba Group, and its affiliate Ant Financial, has been on a advertising spree over the last 12 months.
In July last year, it struck a title sponsorship deal with with Board of Control for Cricket in India (BCCI), the apex body which controls Indian cricket, to sponsor domestic and international matches in the country for a period of four years, for over Rs 200 crore .
According to Nath,the company had spent upwards of Rs 500 crore last fiscal as well.
“We launched our iconic PaytmKaro campaign with the IPL last year, and followed it up with a plethora of tactical business support campaigns which were very well received — electricity bill payments, metro, bus ticketing & offline payments vertical, to name a few,” he said.