Digital payments major Paytm has launched stock trading feature on its, the wealth management subsidiary — Paytm Money. Currently, the offering is in a beta testing mode. Paytm Money is offering a low price on trades, for intraday trades to be at Rs 10 and a completely digital KYC process for customer onboarding.
This new addition will benefit experienced as well as first-time investors to seamlessly invest and trade in stocks in a completely digital & secure environment, the company said.
Varun Sridhar, CEO - Paytm Money said, "With the addition of equities, Paytm Money seeks to drive financial inclusion among investors by removing information gaps and facilitating stock penetration in the country."
"In India, a limited number of people directly invest in equity markets. With the launch of stock trading, Paytm Money aims to drive higher penetration in equities investing with an easy to use the product, low pricing (cash delivery trades are free with intraday trades as low as Rs 10) and digital KYC with paperless account opening," he added.
Moneycontrol, on August 4 reported Paytm Money's soft launch of stock broking feature for limited customers.
The company is also offering early access to a select set of users to receive feedback and the app will eventually be opened to everyone in a few weeks. This service is only accessible for its Android & Web users and will be followed by an iOS release in a few weeks.
With more than 6 million users on its platform for Mutual Funds & NPS investments, today Paytm Money has investors from 98 percent of pin codes of India. With its investor first approach, the team at Paytm Money sees a similar trajectory for stocks on its app given the limited penetration of the product in the country and the ease of accessibility the app offers, the company said.
The stock broking ecosystem is heating up with multiple new-age players propping up. While Zerodha is the most dominant player in this sector, 5Paisa, Upstox is also competing for a larger share of the investor and trading segment of the population. Another Bengaluru based player Groww has also forayed into stock broking recently and wants to lure first time traders with an easy to use user interface.
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