New Delhi : Paytm, the prominent Indian digital payment platform, has severed its inter-company agreements with its subsidiary, Paytm Payments Bank (PPBL). This move comes amidst ongoing regulatory action by the Reserve Bank of India (RBI) against PPBL.

The decision to terminate the agreements was approved by the board of directors of One97 Communications, the parent company of Paytm. According to a regulatory filing, this step aims to promote operational independence for PPBL.

One97 Communications emphasized that Paytm's services will continue uninterrupted despite the termination of the agreements with PPBL. The company also stated that it and PPBL are taking additional steps to ensure the independent functionality of the payments bank.

This news comes as PPBL faces restrictions from the RBI, including a ban on accepting new deposits and top-ups starting March 15th, 2024. It is important to note that this development does not directly impact Paytm's core digital payment services.

New Delhi, February 20: Union Finance Minister Nirmala Sitharaman is scheduled to meet heads of fintech companies next week to discuss strict adherence to regulatory standards. This meeting comes amidst the ongoing challenges faced by leading fintech player Paytm, raising concerns within the industry.

Compliance in the Spotlight:

Sources informed that the meeting, aimed at emphasizing the importance of regulatory compliance, will include senior officials from the Reserve Bank of India, the Finance Ministry, and the Department for Promotion of Industry and Internal Trade.

Paytm's Regulatory Hurdles:

This development follows regulatory action against Paytm Payments Bank Limited, a subsidiary of Paytm's parent company One97 Communications Limited. The RBI has imposed restrictions on the bank's operations, barring it from offering deposit or top-up facilities after March 15, 2024, for violating Know Your Customer (KYC) guidelines and other norms.

Dialogue and Assurance:

While the specific agenda of the meeting remains undisclosed, it is widely anticipated that the Finance Minister will engage in a dialogue with the fintech leaders, emphasizing the need for robust compliance measures and assuring continued government support for the sector's responsible growth.

Industry Implications:

The meeting holds significant implications for the entire fintech ecosystem. It signifies the government's focus on fostering a healthy and responsible financial technology landscape, prioritizing consumer protection and financial stability. The outcome of the meeting is likely to impact the future trajectory of regulations and operational guidelines for fintech companies, shaping the sector's evolution in the coming months.

Uncertainties and Expectations:

With Paytm's ongoing challenges creating uncertainty within the industry, the meeting is expected to shed light on the government's stance and potential support measures for compliant players. Whether it will result in stricter regulations or a collaborative approach towards achieving responsible growth remains to be seen.

The upcoming meeting serves as a crucial platform for addressing regulatory concerns, ensuring consumer protection, and paving the way for a sustainable and vibrant fintech industry in India.

New Delhi, Feb 17 (IANS) In a bid to maintain seamless merchant settlements as before, financial services company Paytm has announced to shift its nodal account to Axis Bank, which was previously used with the Paytm Payments Bank Ltd (PPBL).

In a regulatory filing with the stock exchanges, the company said the new arrangement has been executed by opening an escrow account with Axis bank to ensure merchant settlements continue without any hassle.

The move came as the Reserve Bank of India (RBI) instructed the termination of the nodal accounts of One 97 Communications Limited (OCL) and Paytm Payment Services Ltd (PPSL), which were maintained by PPBL.

The RBI terminated this because of “persistent non-compliances” and “continued material supervisory concerns” within the bank.

PPSL, OCL’s wholly-owned subsidiary, has been using the Axis Bank services since its inception.

“The shift of the nodal account to Axis Bank (by opening an Escrow Account) will ensure seamless merchant settlements as before. We strive to continue to empower Indians, contributing significantly to the country's financial inclusion journey," a Paytm spokesperson said in a statement.

As per the RBI mandate, the intermediaries receiving online payments need to collect the money in a nodal account and payments to the seller happen from this account without delay.

Nodal account is a special purpose account created for receiving funds from participating banks and remitting to specific merchants, created as per the nodal account guidelines issued by the RBI.

When it comes to an escrow account in India, it is a bank account with conditions on ownership of funds. In simple terms, an escrow account’s meaning is a safe house for assets while the transaction process is still ongoing.

“In case there is a need to shift the escrow account from one bank to another, the same may be effected in a time-bound manner without unduly impacting the payment cycle to the merchants. The migration should be completed in the minimum possible time and with the prior approval of RBI,” said the RBI.

The balance in the escrow account should, at no time, be lower than the value of outstanding prepaid payment instruments (PPIs) and payments due to merchants.

“The amount so maintained in the escrow account shall be used only for making payments to the participating merchant establishments and other permitted payments,” according to the RBI.

For Paytm, a change in the nodal account is expected to allow merchants to continue accepting digital payments through the Paytm QR code or card machine.

Paytm has over 30 crore users, with around 11 crore monthly transacting users. It also has a network of around 1 crore merchants actively accepting payments.

The company has reassured its users that its mobile app, including the QR code, Soundbox and Card Machine will remain operational even after March 15.

New Delhi, Feb 5 (IANS) Leading financial services company Paytm on Monday denied reports that it is in talks with a few interested investors to sell its wallet business, amid the Reserve Bank of India’s (RBI) ban on the Paytm Payments Bank.

Earlier in the day, reports surfaced, claiming that HDFC Bank and Jio Financial Services were said to be among the forerunners to acquire Paytm’s wallet business.

In a statement to IANS, a Paytm Payments Bank spokesperson said that “we do not comment on any market speculation.”

“We completely abide by the direction of the regulator, and the team's effort is to ensure a smooth customer experience with the products offered by the Paytm Payments Bank Ltd (PPBL),” the spokesperson added.

Earlier, Paytm Founder and CEO Vijay Shekhar Sharma assured the staff that there would be no layoffs and the company has been in talks with the RBI, besides, weighing partnership options with other banks.

“We will figure out everything soon. We will reach out to the RBI to see what can be done,” Sharma said while addressing employees during a virtual town hall.

On Monday, Paytm shares were locked in lower circuit of 10 per cent on the BSE, trading at Rs 438.35.

After the RBI’s directive to Paytm's associate bank, there has been an impression that the company and its associates are one.

However, giving clarity on the same, Madhur Deora, President and Group CFO at Paytm, has said that both by design and structure, the fintech company and its associate is not and cannot be one.

"There may be this impression that Paytm and Paytm Payment Bank is one, but by design and by structure, it is not and it cannot be. First it is an associate company and second is not an associate company in the sense that it is some Bank," Deora said.

“And first and foremost for a bank is that, it has to follow the governance that a bank is supposed to follow, which is to say that has to have its independent management team, which reports to the board and the matters that have to go to committees of the board where can only be independent directors," he added.

The President of Paytm further added that a bank has to have independent compliance and risk teams too.

New Delhi, Dec 20 (IANS) Fintech giant Paytm is leveraging artificial intelligence (AI) to revolutionise payments and financial services like wealth management, Paytm Founder and CEO Vijay Shekhar Sharma said in an interview with Bloomberg.

Paytm’s AI-driven strategy has helped it reduce workforce while continuing to innovate for India.

“As we lead the AI revolution in India, we are embracing AI-powered automation to eliminate repetitive tasks leading to substantial cost savings. With an aim to drive efficiency across growth and costs, we are reducing our workforce by 10 per cent and continue to drive innovation in India across payments and financial services,” said a Paytm spokesperson.

Paytm believes that its strong mobile-first foundation and early AI adoption will give it a competitive edge.

The company also feels that there is a need for upskilling and reskilling to equip employees for AI-enabled roles.

“We will be able to save the targeted 10-15 per cent that we had planned on employee costs, all because AI has actually delivered more than what we expected it to,” Sharma said in his interview with Bloomberg.

Sharma also said that the company aims to hit EBITDA-level profitability sooner. It has generated free cash for the past two quarters and Sharma expects that trajectory to continue.

Gandhinagar : Gujarat Chief Minister Bhupendra Patel met with leading industrialists and investors in New Delhi on Friday morning, ahead of the tenth edition of the Vibrant Gujarat Global Summit, to be held in January next year.

Patel held one-to-one meetings with various leading entrepreneurs from India and abroad to discuss investment opportunities in Gujarat. He also discussed other issues, such as renewable energy and railway infrastructure.

Here is a summary of some of the key meetings:

• Paytm Founder and CEO VL Sharma: Sharma expressed his desire to start the project of Paytm connectivity in other states of the country through GIFT City of Gujarat. He also expressed keenness to tie up with the municipalities of the state for digital payment system for hawkers and small shopkeepers in urban areas of Gujarat.
• DCM Shriram Chairman and Senior Managing Director Ajay Shriram: Shriram discussed his chlor-alkali manufacturing unit in Gujarat and his company's partnership with Renew Power for renewable energy. He said that the recently announced Gujarat Renewable Policy 2023 will be very useful for this.
• JK Paper Limited Vice Chairman Harsh Pati Singhania: Singhania expressed his gratitude for the prompt clearance given by the State Government to the industries in Gujarat in terms of power, water and environment. He also expressed eagerness to invest more in the state.
• Railway Board Chairperson Jaya Sinha: Sinha discussed the progress in terms of DPR and tender in Dholera-Bhimnath, Ahmedabad-Dholera, Hazira-Surat, Abu-Ambaji-Taranga etc. of Gujarat and expressed gratitude for the prompt cooperation received from the state government. He also discussed with the state government regarding the development of various railway stations and high speed rail corridors.
• Borosil Limited Managing Director Shrivar Kheruka: Kheruka discussed his company's glass manufacturing plant in Bharuch, Gujarat and its plan to set up a tubing furnishing plant with an investment of Rs 100 crore. He also thanked the Chief Minister for the recently announced Gujarat Renewable Policy 2023.

Patel invited all of the industrialists and investors to participate in the Vibrant Gujarat Global Summit 2024.

These meetings are a sign of the Gujarat government's commitment to attracting investment and developing the state's infrastructure. The Vibrant Gujarat Global Summit is a major event that brings together businesses, investors, and government officials from around the world to discuss investment opportunities in Gujarat.

New Delhi, July 21 (IANS) India’s leading payments and financial services company Paytm has shown yet another impressive quarterly growth, registering a bumper revenue uptick of 39 per cent YoY, taking its revenue to Rs 2,342 crore in Q1FY24. This was achieved by increase in GMV, merchant subscription revenues, and growth of loans registered on the platform. 

Paytm’s EBITDA before ESOP saw a significant improvement of Rs 359 crore YoY to Rs 84 crore, compared to Rs 52 crore in Q4FY23 (excluding the UPI incentive). In Q1FY24, Paytm further grew its contributing profit, up by 80 per cent YoY to Rs 1,304 crore. Driven by the rise in contribution margin and consistent improvement in profitability, EBITDA before ESOP margin also improved to 4 per cent.

Over the last one year, the company’s merchant subscriber base more than doubled to 79 lakh as of June 2023 with its merchant base expanding to 3.6 crore, a robust growth for its pioneering devices like Paytm Sound Box and Paytm Card machines. Contribution margin of the company expanded to 56 per cent this quarter, an increase of 12 per cent point YoY, with increase in net payment margin and growth in loan distribution business.

Its payments services revenue grew 31 per cent YoY to Rs 1,414 crore for Q1FY24. 

As a merchant payments leader, Paytm continues to see sustained traction and earns more than Rs 100 to Rs 500 per month per device. Meanwhile, the number of merchant loans distributed grew 141 per cent YoY in Q1 FY 2024, while the value of merchant loans grew 232 per cent YoY to Rs 2,744 crore.

The revenue from financial services offered by the fintech major saw a bumper growth, soaring 93 per cent YoY to Rs 522 crore. With loan distribution forming a core of the company’s aggressive business growth strategy, the value of loans disbursed stood at Rs 14,845 crore, up 167 per cent  YoY.

The number of postpaid loans distributed by Paytm grew 49 per cent YoY, while the value of postpaid loans grew 138 per cent YoY.

Another groundbreaking growth was registered under the personal loans category with Paytm achieving growth of 128 per cent YoY, with the value of personal loans growing 202 per cent YoY to Rs 4,062 crore.

The total number of unique borrowers who have taken loan through Paytm platform has increased from 49 lakh to 1.06 crore. 

With increased customer engagement, its Average Monthly Transacting Users (MTU) for Q1 FY 2024 grew by 23 per cent YoY to 9.2 crore as adoption of mobile payments for consumers in India continues.

Paytm’s active user base continues to present significant upsell opportunities, providing businesses with ample opportunities to monetise. In Q1 FY 2024, Commerce & Cloud revenue grew by 22 per cent YoY to Rs 405 crore.

Furthermore, due to positive EBITDA before ESOP, improvement in working capital, and interest income, its cash balance has increased to Rs 8,367 crore as of quarter ending June 2023, as compared to Rs 8,275 crore as of quarter ending March 2023.

New Delhi, March 27 (IANS) Homegrown Paytm Payments Bank (PPBL), the largest issuer of KYC wallets (prepaid instruments) with over 100 million users, on Monday announced that its full KYC wallet customers will be able to make payments on every UPI QR codes and online merchant where UPI payments are accepted.

The National Payments Corporation of India (NPCI) announced Wallet interoperability guidelines on March 24.

"As the pioneer of mobile payments and QR based payments, this move presents incredible growth opportunities for India's payment ecosystem. In line with RBI's mission of making 'Har Payment Digital', we are the largest acquirer for UPI merchant payments," a Paytm Payments Bank Spokesperson said in a statement.

From now on, the company said that the Bank will earn 1.1 per cent interchange revenue when Paytm Wallet customers (i.e., the KYC wallets issued by Paytm Payments Bank) make payments on merchants acquired by other payment aggregators or banks.

The Bank will pay 15 bps of charges for adding more than Rs 2,000 using UPI, and in turn, will also earn 15 bps when any other wallets use the bank to add more than Rs 2,000 using UPI.

Paytm Payments Bank is the leader in acquiring UPI payment merchants.

Moreover, the company mentioned, it has been the top UPI beneficiary bank for 21 months in a row and registered 1,657.41 million transactions in February 2023.

As a part of its efforts to drive innovation, the Bank is the first payments bank to launch UPI LITE.

New Delhi, March 24 (IANS) One97 Communications Limited (OCL), that owns leading payments and financial services company Paytm, on Friday announced the launch of its new technology platform that is built with 100 per cent indigenous developed technology.

With this, the company said it has taken another step towards 'Atmanirbhar Bharat' to promote digital payments in the country.

"By making sure that every component of our technology is made in-house, we have proved that India can build world-class technology software of scale," said Vijay Shekhar Sharma, Founder and CEO, Paytm.

"We have built a new operational risk system and fraud management from the ground up, catering to India's payments growth. This platform will be able to scale to the next up to 10X payments in India," he added.

The platform has been revamped, ensuring that the previous technology platform is upgraded with new-age tech solutions that are locally built and supported in-house.

With a world-class platform that can handle up to 10X of the current scale, Paytm has set a gold standard for fintechs, aimed at handling fast growing digital payments opportunities in the country.

The company has been investing heavily in India's mission of building a trillion dollar digital economy. This massive upgrade of Paytm's payments platform through an indigenous full-stack development will further boost digital payments in the country.

"We are here to serve India by a technology made in India. We are proud that we are making this in India for the world," said Sharma.

The revamped platform will further power superfast, secure and seamless payments.

Paytm's new payments infrastructure will promote sustainable growth of digital payments and financial services in India.

After revolutionising mobile, QR and Soundbox payments, the company said its new platform will transform digital transactions, enabling affordable access to financial services.