Since the pandemic has contributed to rising digital payments, LIC has appointed Paytm to handle its e-payments. As most of its payments shift to digital modes, the insurance giant has sought a new contract after previously partnering with another payment gateway. The new contract calls for a more efficient payment mechanism, a broader range of payment options, and the inclusion of more players (banks, wallets, and so on) in payment channels.
As reported by the Economic Times, 17 payment platforms had placed aggressive bids. Since others were dominant in specific segments like UPI or cards behemoths, Paytm’s ability to stand out in multiple payment services worked in its favor.
LIC collects Rs 60,000 crore in premiums through digital channels. This does not include payments made through banks. It currently processes around 8 crore digital transactions, with that number expected to skyrocket in the coming years.
LIC was looking for a complete solution that can handle all types of collections, including remittance of collections by insurance agents. As part of the mandate, some procedures will be automated.
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