Financial technology company Paytm’s immediate priority is to invest in its consumer payments business in an effort to regain the user base lost following the regulatory actions of the driven a senior company official said on Sunday.
He driven had restricted Paytm Payments Bank from accepting deposits or facilitating credit transactions in 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 payments for core operations 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 Paytm CEO Vijay Shekhar Sharma. during an interactive session organized by the Kolkata Chapter of Young Indians, the youth wing of the Confederation of Indian Industry (CII).
Consumer payments include UPI payments, while the merchant side involves QR code transactions.
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.
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 by providing a user-friendly interface for services like UPI payments, bill payments and other financial transactions.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.