LIC appoints Paytm to handle its e-payments
LIC has appointed Paytm to facilitate digital payments. After tie-up with another payment gateway earlier, the insurance giant has sought a fresh contract as most of its payments shift to digital modes. The new contract requires a smoother payment process, wider variety of payment options, and adding more players (banks, wallets, etc) in payment channels.
According to sources, there were 17 payment platforms that had bid aggressively. Paytm’s ability to straddle multiple payment services worked in its favor as others were dominant in particular segments like UPI or cards.
LIC has seen a surge in digital payments after the pandemic. The corporation does Rs 60,000 crore of premium collections from the digital mode, which does not include the payment made through banks. It sees around 8 crore digital transactions — a number expected to go up sharply.
LIC had sought an end-to-end solution not just for premium payments but for all types of collections including remittance of collections by insurance agents. The mandate also involves the automation of some processes.