Paytm, a major player in digital payments, has denied media reports claiming that the firm has decided to avoid pursuing businesses that require regulatory licences. <\/p>\n
Reports claimed that Paytm\u2019s leadership has opted to build its business primarily through a distribution model rather than seeking licences directly under regulatory purview. Furthermore, the firm chose not to reapply for licences such as non-banking financial company (NBFC), insurance, or asset management businesses. Additionally, experiments in cross-border payments, regulated under the Payment Aggregator Cross-Border (PA-CB) licence, would be stopped. <\/p>\n
Instead, the company was said to have been making plans to leverage its extensive reach and brand recall to partner with licenced entities and enhance product distribution for consumers and merchants. <\/p>\n
In response to these claims, a Paytm spokesperson clarified that there was \u201cno change in our business strategy\u201d. <\/p>\n
\u201cWe continue to focus on our regulated payments and financial services business, the information from your source suggesting otherwise is false and misleading. During our investor call, we have reaffirmed our commitment towards our core business lines, including payments and financial services, which remain regulated,\u201d the Paytm spokesperson said, clarifying that as part of the platform\u2019s business model, Paytm engages with various leading financial institutions across distribution of credit, insurance and wealth products. <\/p>\n
Paytm streamlines operation amid regulatory actions <\/p>\n
Regulatory actions earlier this year, including restrictions on its banking services through Paytm Payments Bank Ltd, prompted Paytm to re-evaluate and streamline its operations. <\/p>\n
As earlier reported by Business Standard, the payment platform is making substantial changes in its business offerings. The company is reportedly in talks with Zomato to sell its movie and event ticketing business and focus more on building its travel, deals and cash backs. The latter is crucial to broadening the platform\u2019s merchant base as well as growing the firm\u2019s sales. <\/p>\n
\u201cAt present, there remains a large base of customers and merchants, which remains untapped as we look to offer them financial products. We do not see any impact as there is no change in our plan of action,\u201d the spokesperson said. <\/p>\n
Paytm reported annual sales of Rs 17.4 billion for the financial year ending March 2024 in its marketing services business. <\/p>\n
Billionaire founder-CEO Vijay Shekhar Sharma last month reported the company\u2019s first-ever decline in sales on record and promised to reduce its non-core assets. Sharma also warned of job cuts following the fallout from regulatory action taken by the RBI. <\/p>\n
The company aims to navigate its recovery phase by focusing on core strengths and strategic partnerships, particularly within digital commerce through initiatives like Open Network for Digital Commerce (ONDC). <\/p>\n
Paytm\u2019s shift away from regulated businesses underscores its strategy to mitigate regulatory risks and refocus on areas of strength and partnership-driven growth in the evolving digital economy landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"
Paytm, a major player in digital payments, has denied media reports claiming that the firm has decided to avoid pursuing businesses that require regulatory licences. Reports claimed that Paytm\u2019s leadership has opted to build its business primarily through a distribution model rather than seeking licences directly under regulatory purview. Furthermore, the firm chose not to reapply for licences such as non-banking financial company (NBFC), insurance, or asset management businesses. Additionally, experiments in cross-border payments, regulated under the Payment Aggregator Cross-Border (PA-CB) licence, would be stopped. Instead, the company was said to have been making plans to leverage its extensive reach […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-827880","post","type-post","status-publish","format-standard","hentry","category-it-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/827880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=827880"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/827880\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=827880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=827880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=827880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}