The RBI had restricted Paytm Payments Bank accept deposits or facilitate credit transactions on customer accounts, including prepaid instruments and wallets.
In August, Paytm sold its ticketing business to a food technology company. Zomato for Rs 2,048 crore to focus its attention on core operations – payments and distribution of financial services.
“Payments remain our core business and the commercial side remains strong. However, we lost an important consumer base due to regulatory restrictions. Going forward, we aim to reinvest in the consumer payments business area,” said the CEO of Paytm. Vijay Shekhar Sharma he said during an interactive session organized by the Kolkata Chapter of Young Indians, the youth wing of the Confederation of Indian Industry (CII).
Consumer payments cover UPI paymentswhile the commercial side involves transactions with QR codes.
As per the data available from the company, there was a sudden decline in the monthly transactional user (MTU), going from 10.4 crore in January to 7.7 crore in May. The figure stood at 7.8 crore in June.
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On the contrary, on the merchant side, Paytm saw incremental growth, with the number of merchants increasing from 79 lakh in the June 2023 quarter to 109 lakh in the June 2024 quarter, it showed. Sharma said the company is leveraging the third-party application provider (TPAP) business model.
It involves offering digital payment services to users through various platforms or applications. TPAPs collaborate with banks and financial institutions to facilitate transactions, providing an easy-to-use interface for services such as UPI payments, bill payments and other financial transactions.
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