Paytm, the India-based digital payments company, plans to apply for a new general insurance license, according to a report published Sunday (May 15) by the Economic Times.
Paytm has said it wants to enter the general insurance business, saying it is “optimistic” about the potential.
The decision to pursue a new license comes after Paytm decided not to buy 100% of Raheja, which provides insurance solutions, the report notes. The record of this incident indicated that the agreement was automatically terminated after the sale was not completed within the time agreed by the parties.
This time, the company is offering a majority stake with an initial 74% stake.
The Economic Times report says Paytm’s approach to the insurance industry comes at a time when it is ubiquitous and popular in India, and as technology-based insurance grows in India.
See also: Paytm CEO: Investors don’t have access to user data
PYMNTS wrote that Paytm CEO Vijay Shekhar Sharma said investors in the company do not have access to customer data, contrary to reports of user information leaking to Chinese companies.
The company was banned from accepting new customers by the Reserve Bank of India.
And the country’s central bank and regulator ordered Paytm Payments Bank to audit the company’s IT systems because of the concerns.
This comes after reports in March that Paytm was being audited by the RBI over concerns over data sharing, and that it lacked adequate KYC documentation.
Paytm denied this and Sharma reportedly said no investors had access to the company’s customer database.
Furthermore, he said the country’s central bank had not raised any concerns about data storage or access.