State-run Life Insurance Corporation of India (LIC) has appointed homegrown payments player Paytm to facilitate its digital payments.
Following a tie-up with another payment gateway earlier, the country's largest life insurer has sought a new deal as the majority of its payments have moved to digital modes.
The new agreement requires an easy payment process, a broader range of payment options, and more players (wallets, banks, etc) in payment channels.
There are 17 payment platforms that had bid proactively for LIC's contract, sources told Times of India.
But Paytm's aptness to straddle multiple payment services worked in its favour since other players were leading in specific segments such as UPI or cards.
LIC has witnessed an upsurge in e-payments following the COVID-19 pandemic. The PSU insurer collects premiums worth Rs 60,000 crore via digital mode, which doesn't comprise payments made through banks.
LIC sees approx. 8 crore digital transactions, a figure likely to go up sharply. The state-owned insurer had sought an end-to-end solution, not only for premium payments but for all kinds of collections comprising remittance of collections by insurance agents.