Paytm's Path to Revitalizing Consumer Payments Amid Challenges

Paytm is focusing on reinvesting in its consumer payments business to recover its lost user base after RBI's regulatory actions. The move comes after selling its ticketing business to Zomato, emphasizing core operations in payments. Despite a decline in user base, merchant growth remains strong.

Fintech behemoth Paytm is prioritizing investment in its consumer payments division to reclaim its lost user base, fallout from recent regulatory restrictions imposed by the Reserve Bank of India (RBI), according to a company executive.

The RBI had limited Paytm Payments Bank's ability to accept deposits and conduct credit transactions, impacting prepaid accounts and wallets. In a strategic pivot, Paytm offloaded its ticketing arm to Zomato for Rs 2,048 crore in August to better concentrate on its core offerings: payments and financial services.

CEO Vijay Shekhar Sharma reaffirmed the company's commitment to bolstering its consumer payments sector while strong performance persists on the merchant side, evidenced by climbing merchant figures despite a dip in monthly transactional users. Paytm is also exploring the Third-Party Application Provider (TPAP) model to offer a seamless digital payments experience.

(With inputs from agencies.)