Following the Reserve Bank of India's (RBI) recent restrictions on Paytm, the company's CEO, Vijay Shekhar Sharma, met with Finance Minister Nirmala Sitharaman to discuss the matter.<o:p></o:p>

However, the Finance Ministry confirmed that the government would have no role to play in the RBI's actions.<o:p></o:p>

The meeting with the Finance Minister emphasised that Paytm needs to resolve the issues directly with the RBI and adhere to the regulatory guidelines set by the central bank.<o:p></o:p>

Paytm has been grappling with regulatory challenges after the RBI directed the company to halt its popular digital wallet, deposits, and credit products. <o:p></o:p>

Paytm's shares experienced a significant dip of over 40 per cent following the RBI's directives. <o:p></o:p>

The market sentiment, however, showed signs of recovery this Tuesday. <o:p></o:p>

While the government made it clear that it would not intervene in the RBI's clampdown, Vijay Shekhar Sharma also held discussions with RBI officials to address the regulatory concerns raised by the central bank. <o:p></o:p>

The RBI's restrictions included barring Paytm Payments Bank Ltd from accepting deposits or facilitating credit transactions after February 29, affecting various customer accounts and prepaid instruments linked to those accounts, such as wallets and FASTags.<o:p></o:p>

The RBI's actions extended to terminating the nodal accounts of Paytm's parent company, One97 Communications Ltd, and Paytm Payments Bank Ltd. <o:p></o:p>

Despite these challenges, Paytm Payments Bank sought to reassure its customers, assuring them that their funds are secure and that they can continue to utilise balances from their accounts without any limits, as specified in the RBI order. <o:p></o:p>

However, after February 29, depositing money into accounts or wallets will no longer be possible.<o:p></o:p>

Following the Reserve Bank of India's (RBI) recent restrictions on Paytm, the company's CEO, Vijay Shekhar Sharma, met with Finance Minister Nirmala Sitharaman to discuss the matter.

Following the Reserve Bank of India's (RBI) recent restrictions on Paytm, the company's CEO, Vijay Shekhar Sharma, met with Finance Minister Nirmala Sitharaman to discuss the matter. However, the Finance Ministry confirmed that the government would have no role to play in the RBI's actions. The meeting with the Finance Minister emphasised that Paytm needs to resolve the issues directly with the RBI and adhere to the regulatory guidelines set by the central bank. Paytm has been grappling with regulatory challenges after the RBI directed the company to halt its popular digital wallet, deposits, and credit products. Paytm's shares experienced a significant dip of over 40 per cent following the RBI's directives. The market sentiment, however, showed signs of recovery this Tuesday. While the government made it clear that it would not intervene in the RBI's clampdown, Vijay Shekhar Sharma also held discussions with RBI officials to address the regulatory concerns raised by the central bank. The RBI's restrictions included barring Paytm Payments Bank Ltd from accepting deposits or facilitating credit transactions after February 29, affecting various customer accounts and prepaid instruments linked to those accounts, such as wallets and FASTags. The RBI's actions extended to terminating the nodal accounts of Paytm's parent company, One97 Communications Ltd, and Paytm Payments Bank Ltd. Despite these challenges, Paytm Payments Bank sought to reassure its customers, assuring them that their funds are secure and that they can continue to utilise balances from their accounts without any limits, as specified in the RBI order. However, after February 29, depositing money into accounts or wallets will no longer be possible.

Paytm CEO Advised by Government: No intervention in RBI clampdown

In the wake of a regulatory crackdown, India's leading digital payments platform, Paytm, finds itself in turbulent waters as retailers express apprehension, opening doors for retail giants Walmart and Google to make significant inroads into the market.<o:p></o:p>

Once hailed as the trailblazer in India's digital payments realm, Paytm's future seems uncertain as its banking unit, the backbone of its popular app, faces mandated closure by India's central bank due to "persistent non-compliance." <o:p></o:p>

According to a Reuters report, this move has sparked anxiety among merchants, with many choosing to distance themselves from the platform. <o:p></o:p>

Mohammed Salahuddin, a member of a local retailers association in southern Telangana state, revealed that around 2,000 shops have already taken measures such as displaying "No Paytm, Pay Cash" signs, signalling a palpable shift away from the platform.<o:p></o:p>

In response to the growing concerns among merchants, Paytm is mobilising its sales force to mitigate fears and encourage continued usage of its platform. <o:p></o:p>

Sales representatives are actively engaging with a diverse range of merchants, from roadside vendors to large retail outlets, advocating for the utilisation of Paytm's partner banks to ensure uninterrupted payment processing. <o:p></o:p>

However, the company faces a daunting task, with approximately 15 per cent of its 40 million merchants requiring migration to alternative banking solutions, underscoring the magnitude of the challenge ahead.<o:p></o:p>

Despite Paytm's efforts to mitigate the fallout, its rivals are swiftly capitalising on the situation, eager to seize a larger share of the digital payments market. <o:p></o:p>

Following the regulatory upheaval, Paytm's stock plummeted by 39 per cent, resulting in a loss of $2.3 billion in market value. <o:p></o:p>

This downturn has created a ripe opportunity for industry behemoths like Walmart and Google to make significant strides.<o:p></o:p>

Data from market intelligence firm Sensor Tower indicates a notable decline in Paytm app downloads, juxtaposed with robust growth in rival platforms such as Walmart's PhonePe and Google Pay. <o:p></o:p>

In particular, PhonePe witnessed a 76 per cent surge in downloads, underlining the shifting dynamics within the digital payments landscape. <o:p></o:p>

Recognising the opportune moment, Google Pay swiftly rolled out initiatives to attract disillusioned Paytm merchants, further intensifying competition in the sector.<o:p></o:p>

PhonePe, a prominent rival to Paytm, wasted no time in leveraging the regulatory turmoil to its advantage. <o:p></o:p>

Through front-page newspaper advertisements, PhonePe strategically positioned itself as the preferred choice for merchants, emphasising its commitment to seamless business operations. <o:p></o:p>

Additionally, PhonePe highlighted its innovative offerings, including SmartSpeakers, designed to cater to the needs of digitally challenged retailers, thereby enhancing payment efficiency.<o:p></o:p>

Neil Shah, Director at Counterpoint Research, underscored the significance of this moment, noting that Paytm's rivals are poised to capitalise on its vulnerabilities. <o:p></o:p>

With innovations such as PhonePe's SmartSpeaker and Google's Soundpod gaining traction, the competitive landscape is poised for a dramatic shift. <o:p></o:p>

The success of these initiatives could potentially erode Paytm's market dominance.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In the wake of a regulatory crackdown, India's leading digital payments platform, Paytm, finds itself in turbulent waters as retailers express apprehension, opening doors for retail giants Walmart and Google to make significant inroads into the market.

In the wake of a regulatory crackdown, India's leading digital payments platform, Paytm, finds itself in turbulent waters as retailers express apprehension, opening doors for retail giants Walmart and Google to make significant inroads into the market. Once hailed as the trailblazer in India's digital payments realm, Paytm's future seems uncertain as its banking unit, the backbone of its popular app, faces mandated closure by India's central bank due to "persistent non-compliance." According to a Reuters report, this move has sparked anxiety among merchants, with many choosing to distance themselves from the platform. Mohammed Salahuddin, a member of a local retailers association in southern Telangana state, revealed that around 2,000 shops have already taken measures such as displaying "No Paytm, Pay Cash" signs, signalling a palpable shift away from the platform. In response to the growing concerns among merchants, Paytm is mobilising its sales force to mitigate fears and encourage continued usage of its platform. Sales representatives are actively engaging with a diverse range of merchants, from roadside vendors to large retail outlets, advocating for the utilisation of Paytm's partner banks to ensure uninterrupted payment processing. However, the company faces a daunting task, with approximately 15 per cent of its 40 million merchants requiring migration to alternative banking solutions, underscoring the magnitude of the challenge ahead. Despite Paytm's efforts to mitigate the fallout, its rivals are swiftly capitalising on the situation, eager to seize a larger share of the digital payments market. Following the regulatory upheaval, Paytm's stock plummeted by 39 per cent, resulting in a loss of $2.3 billion in market value. This downturn has created a ripe opportunity for industry behemoths like Walmart and Google to make significant strides. Data from market intelligence firm Sensor Tower indicates a notable decline in Paytm app downloads, juxtaposed with robust growth in rival platforms such as Walmart's PhonePe and Google Pay. In particular, PhonePe witnessed a 76 per cent surge in downloads, underlining the shifting dynamics within the digital payments landscape. Recognising the opportune moment, Google Pay swiftly rolled out initiatives to attract disillusioned Paytm merchants, further intensifying competition in the sector. PhonePe, a prominent rival to Paytm, wasted no time in leveraging the regulatory turmoil to its advantage. Through front-page newspaper advertisements, PhonePe strategically positioned itself as the preferred choice for merchants, emphasising its commitment to seamless business operations. Additionally, PhonePe highlighted its innovative offerings, including SmartSpeakers, designed to cater to the needs of digitally challenged retailers, thereby enhancing payment efficiency. Neil Shah, Director at Counterpoint Research, underscored the significance of this moment, noting that Paytm's rivals are poised to capitalise on its vulnerabilities. With innovations such as PhonePe's SmartSpeaker and Google's Soundpod gaining traction, the competitive landscape is poised for a dramatic shift. The success of these initiatives could potentially erode Paytm's market dominance. (With inputs from Reuters)

Paytm faces regulatory hurdles in India while Walmart, Google seize market opportunity

WION's Business Desk brings you this daily round up of global stories from the world of business and economy.&nbsp;<o:p></o:p>

Paytm faces regulatory hurdles in India while Walmart, Google seize market opportunity<o:p></o:p>

In the wake of a regulatory crackdown, India's leading digital payments platform, Paytm, finds itself in turbulent waters as retailers express apprehension, opening doors for retail giants Walmart and Google to make significant inroads into the market.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/paytm-faces-regulatory-hurdles-in-india-while-walmart-google-seize-market-opportunity-687706">Read more here</a><o:p></o:p>

Toyota boosts profit outlook as earnings surge, fuelled by weak yen: Report<o:p></o:p>

Japan's leading automaker, Toyota has revised its full fiscal year profit forecast upwards following robust earnings in the October to December quarter, where profits nearly doubled compared to the previous year.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/toyota-boosts-profit-outlook-as-earnings-surge-fuelled-by-weak-yen-report-687713">Read more here</a><o:p></o:p>

Nintendo boosts Switch sales forecast, hints at new hardware launch<o:p></o:p>

Nintendo has elevated its full-year Switch sales forecast to 15.5 million units, up from the previous estimate of 15 million units, driven by robust sales during the year-end shopping season.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/nintendo-boosts-switch-sales-forecast-hints-at-new-hardware-launch-687736">Read more here</a><o:p></o:p>

Paytm CEO Advised by Government: No intervention in RBI clampdown<o:p></o:p>

Following the Reserve Bank of India's (RBI) recent restrictions on Paytm, the company's CEO, Vijay Shekhar Sharma, met with Finance Minister Nirmala Sitharaman to discuss the matter.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/paytm-ceo-advised-by-government-no-intervention-in-rbi-clampdown-687746">Read more here</a><o:p></o:p>

Solar Industry Crossroads: Europe grapples with Chinese imports amid green energy boom<o:p></o:p>

Europe's ambitious journey towards green energy is facing a significant challenge, caught in a dilemma between soaring installations driven by cheap Chinese solar panel imports and the devastating impact on local solar manufacturers.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/solar-industry-crossroads-europe-grapples-with-chinese-imports-amid-green-energy-boom-687755">Read more here</a><o:p></o:p>

DBS CEO's pay slashed following digital banking disruptions amid record profits<o:p></o:p>

Singapore's leading lender, DBS Group, reported record-breaking full-year results, yet Chief Executive Officer Piyush Gupta faced a significant reduction in compensation due to digital banking disruptions witnessed last year.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/dbs-ceos-pay-slashed-following-digital-banking-disruptions-amid-record-profits-687763">Read more here</a><o:p></o:p>

Honda recalls 750,000 US vehicles due to airbag defect, urges prompt action<o:p></o:p>

Honda announced on Tuesday that it is recalling 750,000 vehicles in the United States, citing a potential defect involving airbags that could unintentionally deploy during a crash.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/honda-recalls-750000-us-vehicles-due-to-airbag-defect-urges-prompt-action-687775">Read more here</a><o:p></o:p>

China escalates crackdown on short-selling with stringent measures<o:p></o:p>

In a move to curb short-selling, China's securities regulator announced on Tuesday a series of stringent measures, including the suspension of brokerages from borrowing shares for lending and imposing a cap on the size of securities re-lending businesses.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/china-escalates-crackdown-on-short-selling-with-stringent-measures-687781">Read more here</a><o:p></o:p>

Disney, Fox, Warner Bros Discovery unite to launch sports streaming platform<o:p></o:p>

In a new collaboration, Fox Corp, Disney, and Warner Bros Discovery announced on Tuesday their plans to introduce a joint sports streaming service in the upcoming autumn, aiming to capture the attention of younger audiences increasingly turning away from traditional television.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/disney-fox-warner-bros-discovery-unite-to-launch-sports-streaming-platform-687788">Read more here</a><o:p></o:p>

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Paytm faces regulatory hurdles in India while Walmart, Google seize market opportunity In the wake of a regulatory crackdown, India's leading digital payments platform, Paytm, finds itself in turbulent waters as retailers express apprehension, opening doors for retail giants Walmart and Google to make significant inroads into the market.

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Paytm faces regulatory hurdles in India while Walmart, Google seize market opportunity In the wake of a regulatory crackdown, India's leading digital payments platform, Paytm, finds itself in turbulent waters as retailers express apprehension, opening doors for retail giants Walmart and Google to make significant inroads into the market. Read more here Toyota boosts profit outlook as earnings surge, fuelled by weak yen: Report Japan's leading automaker, Toyota has revised its full fiscal year profit forecast upwards following robust earnings in the October to December quarter, where profits nearly doubled compared to the previous year. Read more here Nintendo boosts Switch sales forecast, hints at new hardware launch Nintendo has elevated its full-year Switch sales forecast to 15.5 million units, up from the previous estimate of 15 million units, driven by robust sales during the year-end shopping season. Read more here Paytm CEO Advised by Government: No intervention in RBI clampdown Following the Reserve Bank of India's (RBI) recent restrictions on Paytm, the company's CEO, Vijay Shekhar Sharma, met with Finance Minister Nirmala Sitharaman to discuss the matter. Read more here Solar Industry Crossroads: Europe grapples with Chinese imports amid green energy boom Europe's ambitious journey towards green energy is facing a significant challenge, caught in a dilemma between soaring installations driven by cheap Chinese solar panel imports and the devastating impact on local solar manufacturers. Read more here DBS CEO's pay slashed following digital banking disruptions amid record profits Singapore's leading lender, DBS Group, reported record-breaking full-year results, yet Chief Executive Officer Piyush Gupta faced a significant reduction in compensation due to digital banking disruptions witnessed last year. Read more here Honda recalls 750,000 US vehicles due to airbag defect, urges prompt action Honda announced on Tuesday that it is recalling 750,000 vehicles in the United States, citing a potential defect involving airbags that could unintentionally deploy during a crash. Read more here China escalates crackdown on short-selling with stringent measures In a move to curb short-selling, China's securities regulator announced on Tuesday a series of stringent measures, including the suspension of brokerages from borrowing shares for lending and imposing a cap on the size of securities re-lending businesses. Read more here Disney, Fox, Warner Bros Discovery unite to launch sports streaming platform In a new collaboration, Fox Corp, Disney, and Warner Bros Discovery announced on Tuesday their plans to introduce a joint sports streaming service in the upcoming autumn, aiming to capture the attention of younger audiences increasingly turning away from traditional television. Read more here

WION Business Wrap | Paytm’s rising competition, Toyota’s recent profits and more

The Indian fintech pioneer Paytm has been hit hard by the Reserve Bank of India for its “persistent non-compliance” with the central bank’s guidelines. Paytm had already been under the scanner of RBI, but the January 30 decision by the central bank has hit the fintech startup hard.&nbsp;

The RBI imposed a set of restrictions on Paytm Payments Bank that will come into effect on February 29. The new rules will affect new deposits and credit transactions on the platforms. It will also restrict new users from creating an account on the platform.&nbsp;

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/aurangzeb-razed-mathura-krishna-janmabhoomi-temple-says-asi-in-rti-reply-687437">Aurangzeb razed Mathura Krishna Janmabhoomi temple, says ASI in RTI reply</a>

From what RBI's press release on the matter suggests, the Paytm wallets of all users will be affected, and so will be Paytm Fastags and mobility cards.&nbsp;

Nowadays if you open Paytm, the latest message on the top says,&nbsp;“Your Paytm app is working and will keep working as usual beyond Feb 29”. Paytm Founder and CEO Vijay Shekhar Sharma also said in a tweet that the app will keep working after Feb 29.&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
To every Paytmer, 
Your favourite app is working, will keep working beyond 29 February as usual. 
I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full…
— Vijay Shekhar Sharma (@vijayshekhar) <a href="https://twitter.com/vijayshekhar/status/1753261279324643602?ref_src=twsrc%5Etfw">February 2, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Here’s what will be affected and what will keep working:

<h2>Paytm app: What will be affected?</h2>

After February 29, no more deposits, credit transactions, top-ups, or withdrawals will be permitted in any customer accounts, prepaid cards, wallets, FASTags, National Common Mobility Cards (NCMC) cards, etc.&nbsp;

The users can continue to use their existing balance on the Paytm FASTag but will be able to further recharge it.

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/india-energy-week-pm-modi-draws-focus-on-alternate-fuels-687448">India Energy Week: PM Modi draws focus on alternate fuels</a>

Similarly, with the Paytm Payments Bank wallet, users can continue to use the wallet but they will not be able to add the money to the wallet after February 29. However, there is no restriction on the usage of the existing balance from the wallet after the due date.&nbsp;

<h3>Offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine</h3>

As per Paytm, the merchant services will not be impacted by RBI’s latest change in rules. Paytm’s offline merchant payment network offerings like Paytm QR, Paytm Soundbox, and Paytm Card Machine, will continue as usual, where it can onboard new offline merchants as well.

<h3>UPI Payments</h3>

All UPI services will continue as usual without any interruption, said Paytm in its official blog.&nbsp;

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/video-madhya-pradesh-firecracker-factory-blast-kills-at-least-seven-injures-dozens-687451">Video: 11 killed, 60 injured in blast at firecracker factory in Harda, Madhya Pradesh</a>

Clarifying further, CEO Sharma assured: “On UPI acquiring, it needs guidance from both the NPCI and RBI and the discussions have started. So what and how will they appropriately guide us, we will adhere to that.”

<h3>Paytm Mutual Funds and Paytm Money stock accounts</h3>

As per Paytm, all the investments by users with Paytm Money are safe and the recent RBI directives on the Paytm Payments Bank won’t affect Paytm Money Ltd (PML) operations or their investments in Equity, Mutual Funds, or NPS. Paytm Money Limited is SEBI-regulated and fully compliant.

Also Read |&nbsp;<a href="https://www.wionews.com/technology/bharat-mobility-global-expo-2024-sustainability-and-growth-at-its-core-687463">Bharat Mobility Global Expo 2024: Sustainability and growth at its core</a>

<h3>Other services- Movie/Travel ticket booking and more</h3>

All other services on the Paytm app will remain unaffected and users can continue to use, Paytm as usual, now and beyond Feb 29.&nbsp;

(With inputs from agencies) 
&nbsp;

The Indian fintech pioneer Paytm has been hit hard by the Reserve Bank of India for its “persistent non-compliance” with the central bank’s guidelines. Paytm had already been under the scanner of RBI, but the January 30 decision by the central bank has hit the fintech startup hard.

The Indian fintech pioneer Paytm has been hit hard by the Reserve Bank of India for its “persistent non-compliance” with the central bank’s guidelines. Paytm had already been under the scanner of RBI, but the January 30 decision by the central bank has hit the fintech startup hard. The RBI imposed a set of restrictions on Paytm Payments Bank that will come into effect on February 29. The new rules will affect new deposits and credit transactions on the platforms. It will also restrict new users from creating an account on the platform. Also Read | Aurangzeb razed Mathura Krishna Janmabhoomi temple, says ASI in RTI reply From what RBI's press release on the matter suggests, the Paytm wallets of all users will be affected, and so will be Paytm Fastags and mobility cards. Nowadays if you open Paytm, the latest message on the top says, “Your Paytm app is working and will keep working as usual beyond Feb 29”. Paytm Founder and CEO Vijay Shekhar Sharma also said in a tweet that the app will keep working after Feb 29. To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual. I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full… — Vijay Shekhar Sharma (@vijayshekhar) February 2, 2024 × Here’s what will be affected and what will keep working: Paytm app: What will be affected? After February 29, no more deposits, credit transactions, top-ups, or withdrawals will be permitted in any customer accounts, prepaid cards, wallets, FASTags, National Common Mobility Cards (NCMC) cards, etc. The users can continue to use their existing balance on the Paytm FASTag but will be able to further recharge it. Also Read | India Energy Week: PM Modi draws focus on alternate fuels Similarly, with the Paytm Payments Bank wallet, users can continue to use the wallet but they will not be able to add the money to the wallet after February 29. However, there is no restriction on the usage of the existing balance from the wallet after the due date. Offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine As per Paytm, the merchant services will not be impacted by RBI’s latest change in rules. Paytm’s offline merchant payment network offerings like Paytm QR, Paytm Soundbox, and Paytm Card Machine, will continue as usual, where it can onboard new offline merchants as well. UPI Payments All UPI services will continue as usual without any interruption, said Paytm in its official blog. Also Read | Video: 11 killed, 60 injured in blast at firecracker factory in Harda, Madhya Pradesh Clarifying further, CEO Sharma assured: “On UPI acquiring, it needs guidance from both the NPCI and RBI and the discussions have started. So what and how will they appropriately guide us, we will adhere to that.” Paytm Mutual Funds and Paytm Money stock accounts As per Paytm, all the investments by users with Paytm Money are safe and the recent RBI directives on the Paytm Payments Bank won’t affect Paytm Money Ltd (PML) operations or their investments in Equity, Mutual Funds, or NPS. Paytm Money Limited is SEBI-regulated and fully compliant. Also Read | Bharat Mobility Global Expo 2024: Sustainability and growth at its core Other services- Movie/Travel ticket booking and more All other services on the Paytm app will remain unaffected and users can continue to use, Paytm as usual, now and beyond Feb 29. (With inputs from agencies)

Will Paytm app work after Feb 29? What will happen to Paytm QR, soundbox, UPI payments? All you need to know

Paytm bank's crisis continues, with an industry body asking merchants to look beyond the digital banking giant for online transactions. This comes after the reserve bank of India ordered a halt to most operations of Paytm's banking arm. Watch to know more!

Paytm Bank's Crisis: Supervisory concerns lead to RBI crackdown on Paytm Payment's bank

Paytm Bank's Crisis: Traders urged to ditch Paytm in wake of RBI's decision

Vijay Shekhar Sharma, the visionary CEO of Paytm, is facing one of the most challenging periods in his entrepreneurial journey. This comes after the central bank of India ordered Paytm's banking arm to halt most of its operations due to "persistent non-compliances" and "supervisory concerns." <o:p></o:p>

This regulatory action has triggered a significant drop in Paytm's valuation, causing widespread concern among investors. Despite being no stranger to controversy, Sharma now confronts the daunting task of restoring investor confidence and keeping Paytm's operations afloat.<o:p></o:p>

A rocky road for Paytm's valuation<o:p></o:p>

The regulatory blow has hit Paytm hard, with its valuation plummeting to $3.7 billion, marking a stark decline from the approximately $20 billion valuation after its 2021 IPO. Paytm's stock has experienced a 75 per cent decline since its market debut, prompting analysts at JP Morgan to emphasise the urgent need for the company to "restore credibility" in the eyes of investors. Vijay Sharma, however, remains optimistic, referring to the regulatory setback as a mere "speed bump" during a recent conference call with analysts. <o:p></o:p>

Past controversies and public scrutiny<o:p></o:p>

Vijay Sharma's journey has been riddled with controversies, including the backlash following Paytm's 2021 IPO. Critics labelled him "too bombastic," highlighting the challenges faced by the firm as it grappled with investors' dissatisfaction and a subsequent tightening of IPO scrutiny by India's market regulator. Sharma's earlier success was attributed to his strategic alignment with India's demonetisation move in 2016, turning Paytm into the nation's premier digital payments platform. The recent regulatory action, however, has cast doubts on Paytm's ability to navigate these challenges.<o:p></o:p>

Investor confidence dwindles, markets skeptical<o:p></o:p>

As Paytm's valuation takes a hit, investors grow increasingly sceptical about a swift resolution to the regulatory hurdles. With nervous investors withdrawing $2 billion from Paytm, the markets reflect a lack of confidence in the company's ability to overcome the current crisis. Despite Sharma's reassurances that the Paytm app will continue to function, concerns linger about potential business disruptions, given the central role of Paytm's banking arm in supporting the payments app. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Vijay Shekhar Sharma, the visionary CEO of Paytm, is facing one of the most challenging periods in his entrepreneurial journey. This comes after the central bank of India ordered Paytm's banking arm to halt most of its operations due to "persistent non-compliances" and "supervisory concerns.

Vijay Shekhar Sharma, the visionary CEO of Paytm, is facing one of the most challenging periods in his entrepreneurial journey. This comes after the central bank of India ordered Paytm's banking arm to halt most of its operations due to "persistent non-compliances" and "supervisory concerns." This regulatory action has triggered a significant drop in Paytm's valuation, causing widespread concern among investors. Despite being no stranger to controversy, Sharma now confronts the daunting task of restoring investor confidence and keeping Paytm's operations afloat. A rocky road for Paytm's valuation The regulatory blow has hit Paytm hard, with its valuation plummeting to $3.7 billion, marking a stark decline from the approximately $20 billion valuation after its 2021 IPO. Paytm's stock has experienced a 75 per cent decline since its market debut, prompting analysts at JP Morgan to emphasise the urgent need for the company to "restore credibility" in the eyes of investors. Vijay Sharma, however, remains optimistic, referring to the regulatory setback as a mere "speed bump" during a recent conference call with analysts. Past controversies and public scrutiny Vijay Sharma's journey has been riddled with controversies, including the backlash following Paytm's 2021 IPO. Critics labelled him "too bombastic," highlighting the challenges faced by the firm as it grappled with investors' dissatisfaction and a subsequent tightening of IPO scrutiny by India's market regulator. Sharma's earlier success was attributed to his strategic alignment with India's demonetisation move in 2016, turning Paytm into the nation's premier digital payments platform. The recent regulatory action, however, has cast doubts on Paytm's ability to navigate these challenges. Investor confidence dwindles, markets skeptical As Paytm's valuation takes a hit, investors grow increasingly sceptical about a swift resolution to the regulatory hurdles. With nervous investors withdrawing $2 billion from Paytm, the markets reflect a lack of confidence in the company's ability to overcome the current crisis. Despite Sharma's reassurances that the Paytm app will continue to function, concerns linger about potential business disruptions, given the central role of Paytm's banking arm in supporting the payments app. (With inputs from Reuters)

Paytm's Peril: CEO Vijay Sharma battles regulatory storm as valuation plummets

Paytm Payments Bank's digital wallet business may not be able to operate after Feb. 29 unless India's central bank approves a transfer of its licence to parent group One 97 Communications (PAYT.NS), opens new tab, two sources directly familiar with the matter said.

Regulatory storm hits Paytm, RBI restrictions prompt industry shift

<o:p></o:p>WION's Business Desk brings you this daily round up of global stories from the world of business and economy.&nbsp;<o:p></o:p>

Iran's Covert Cash Trail: Lloyds and Santander implicated in global sanctions-evasion scandal<o:p></o:p>

Documents obtained by the Financial Times (FT) have exposed how Iran illicitly utilised Lloyds and Santander UK to move money worldwide, forming a vast sanctions-evasion scheme supported by Tehran's intelligence services.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/irans-covert-cash-trail-lloyds-santander-implicated-in-global-sanctions-evasion-scandal-687029">Read more here</a> <o:p></o:p>

Paytm's Peril: CEO Vijay Sharma battles regulatory storm as valuation plummets<o:p></o:p>

Vijay Shekhar Sharma, the visionary CEO of Paytm, is facing one of the most challenging periods in his entrepreneurial journey. This comes after the central bank of India ordered Paytm's banking arm to halt most of its operations due to "persistent non-compliances" and "supervisory concerns."<o:p></o:p>

<a href="https://www.wionews.com/business-economy/paytms-peril-ceo-vijay-sharma-battles-regulatory-storm-as-valuation-plummets-687066">Read more here</a> <o:p></o:p>

Turkey's new central bank chief vows to maintain tight monetary policy amid inflation concerns<o:p></o:p>

In a change of leadership, Fatih Karahan took the helm as the new governor of Turkey's central bank, replacing Hafize Gaye Erkan. Karahan, a 42-year-old economist with a University of Pennsylvania economics PhD, emphasised his commitment to a stringent monetary policy aimed at curbing inflation.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/turkeys-new-central-bank-chief-vows-to-maintain-tight-monetary-policy-amid-inflation-concerns-687074">Read more here</a> <o:p></o:p>

China's exporters on the brink as prolonged deflation threatens survival<o:p></o:p>

China's exporters, particularly smaller enterprises, find themselves at a crossroads as prolonged factory deflation takes a toll on profit margins. <o:p></o:p>

<a href="https://www.wionews.com/business-economy/chinas-exporters-on-the-brink-as-prolonged-deflation-threatens-survival-687086">Read more here</a> <o:p></o:p>

Samsung's Lee Jae-yong acquitted in stock and accounting fraud case: Report<o:p></o:p>

Samsung's top executive, Lee Jae-yong, popularly known as Jay Y. Lee, was acquitted by a South Korean court on Monday, with charges of stock price manipulation and accounting fraud.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/samsungs-lee-jae-yong-acquitted-in-stock-and-accounting-fraud-case-report-687108">Read more here</a> <o:p></o:p>

Meta Platforms shatters records with a $196 bn surge in stock market value<o:p></o:p>

In a historic turn of events on Friday, Meta Platforms, the parent company of Facebook, experienced an unprecedented surge, adding a staggering $196 billion in stock market value.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/meta-platforms-shatters-records-with-a-196-bn-surge-in-stock-market-value-687112">Read more here</a>

Canada extends ban on foreign ownership of housing amid housing affordability crisis<o:p></o:p>

In response to growing concerns about housing affordability, Canada has taken a significant step by extending the ban on foreign ownership of Canadian housing for an additional two years.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/canada-extends-ban-on-foreign-ownership-of-housing-amid-housing-affordability-crisis-687094">Read more here</a> <o:p></o:p>

Jeff Bezos plans to offload 50 mn Amazon shares valued at $8.6 bn by January 2025<o:p></o:p>

Amazon's founder, Jeff Bezos, has revealed plans to sell up to 50 million shares of the e-commerce and cloud services giant by January 31, 2025, as per a company filing on Friday.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/jeff-bezos-plans-to-offload-50-mn-amazon-shares-valued-at-86-bn-by-january-2025-687120">Read more here</a> <o:p></o:p>

Federal Reserve Chair Powell signals prudence in considering rate cuts amid strong economy<o:p></o:p>

Federal Reserve Chair Jerome Powell conveyed a message of caution in deciding when to cut the benchmark interest rate, emphasising the importance of prudence in a Sunday night interview with CBS's "60 Minutes."<o:p></o:p>

<a href="https://www.wionews.com/business-economy/federal-reserve-chair-powell-signals-prudence-in-considering-rate-cuts-amid-strong-economy-687124">Read more here</a><o:p></o:p>

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Iran's Covert Cash Trail: Lloyds and Santander implicated in global sanctions-evasion scandal Documents obtained by the Financial Times (FT) have exposed how Iran illicitly utilised Lloyds and Santander UK to move money worldwide, forming a vast sanctions-evasion scheme supported by Tehran's intelligence services.

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Iran's Covert Cash Trail: Lloyds and Santander implicated in global sanctions-evasion scandal Documents obtained by the Financial Times (FT) have exposed how Iran illicitly utilised Lloyds and Santander UK to move money worldwide, forming a vast sanctions-evasion scheme supported by Tehran's intelligence services. Read more here Paytm's Peril: CEO Vijay Sharma battles regulatory storm as valuation plummets Vijay Shekhar Sharma, the visionary CEO of Paytm, is facing one of the most challenging periods in his entrepreneurial journey. This comes after the central bank of India ordered Paytm's banking arm to halt most of its operations due to "persistent non-compliances" and "supervisory concerns." Read more here Turkey's new central bank chief vows to maintain tight monetary policy amid inflation concerns In a change of leadership, Fatih Karahan took the helm as the new governor of Turkey's central bank, replacing Hafize Gaye Erkan. Karahan, a 42-year-old economist with a University of Pennsylvania economics PhD, emphasised his commitment to a stringent monetary policy aimed at curbing inflation. Read more here China's exporters on the brink as prolonged deflation threatens survival China's exporters, particularly smaller enterprises, find themselves at a crossroads as prolonged factory deflation takes a toll on profit margins. Read more here Samsung's Lee Jae-yong acquitted in stock and accounting fraud case: Report Samsung's top executive, Lee Jae-yong, popularly known as Jay Y. Lee, was acquitted by a South Korean court on Monday, with charges of stock price manipulation and accounting fraud. Read more here Meta Platforms shatters records with a $196 bn surge in stock market value In a historic turn of events on Friday, Meta Platforms, the parent company of Facebook, experienced an unprecedented surge, adding a staggering $196 billion in stock market value. Read more here Canada extends ban on foreign ownership of housing amid housing affordability crisis In response to growing concerns about housing affordability, Canada has taken a significant step by extending the ban on foreign ownership of Canadian housing for an additional two years. Read more here Jeff Bezos plans to offload 50 mn Amazon shares valued at $8.6 bn by January 2025 Amazon's founder, Jeff Bezos, has revealed plans to sell up to 50 million shares of the e-commerce and cloud services giant by January 31, 2025, as per a company filing on Friday. Read more here Federal Reserve Chair Powell signals prudence in considering rate cuts amid strong economy Federal Reserve Chair Jerome Powell conveyed a message of caution in deciding when to cut the benchmark interest rate, emphasising the importance of prudence in a Sunday night interview with CBS's "60 Minutes." Read more here

WION Business Wrap | Iran’s convert cash trail, Paytm’s regulatory storm and more

The Reserve Bank of India's action against Paytm payments bank has shaken India's Fintech industry. The central bank's action has raised concerns about regulatory compliance in the industry.

Fintech sector worried in aftermath

Paytm’s stock freefall has got the investors interested. This comes after the Reserve Bank of India took decisive action against Paytm payments bank, imposing stringent restrictions that will significantly impact its services.

Paytm faces setback with RBI restrictions on lending business

Paytm, once hailed as one of India's leading payment platforms, finds itself in a major crisis following the Reserve Bank of India's (RBI’s) directive to halt fresh deposits in its banking unit from March. <o:p></o:p>

The announcement has triggered a significant decline in Paytm's shares, prompting concerns about the firm's future relationships with lending partners. Analysts warn that this could impede Paytm's journey towards net profitability.<o:p></o:p>

Founded in 2010 by Vijay Shekhar Sharma, Paytm initially focused on prepaid mobile and television bill payments. However, it rapidly evolved into a pivotal player in online instant payments through the Unified Payments Interface (UPI), with payments becoming its primary revenue source. The ban on high-denomination notes in 2016 propelled Paytm to fame, as online transactions soared, marking a turning point for the company.<o:p></o:p>

Despite early success, Paytm faced a challenging IPO launch in November 2021, raising questions about its profitability and lofty valuation. The stock currently trades about two-thirds below its listing price. The disappointment led to key investors, including Alibaba and Softbank, divesting their stakes in Paytm amid broader concerns about Chinese ownership in Indian fintech firms. Vijay Shekhar Sharma, once dropped from Forbes' billionaire list, emerged as the largest shareholder in August 2023 by acquiring a chunk of Ant Financial's stake.<o:p></o:p>

Paytm's revenue streams predominantly hinge on its merchant payment business and loan operations. Approximately 60 per cent of its income is derived from merchant payments, with loans contributing around 20 per cent. The company charges merchants a platform fee for utilising Paytm's payment gateway and offers additional subscription-based services. Furthermore, Paytm engages in partnerships with banks and non-bank financial companies to provide loans, taking a cut of the interest. Paytm Payments Bank, a key entity in this endeavour, now faces uncertainties due to the recent regulatory directive.

What has happened so far?

Paytm Payments Bank sought to reassure its customers on January 2, following the RBI's&nbsp;directive to halt new deposits and credit transactions starting from February 29, 2024. In response to the central bank's orders, Paytm communicated with its customers through emails and text messages. The communication, framed as an "important update," explicitly stated that customers' money is secure with the bank.

While acknowledging the RBI's directive that prevents customers from adding money to their wallets after February 29, Paytm assured uninterrupted withdrawal services. The communication emphasised, "There is no restriction on withdrawal of money from your existing balance even after Feb 29, 2024." Additionally, Paytm encouraged customers to seek assistance through the 24x7 help section on the app.

The RBI's decision to bar Paytm Payments Bank from accepting customer deposits from March 1 comes after an audit revealed persistent non-compliances and continued material supervisory concerns. This move follows a previous restriction imposed almost two years ago, preventing the payments bank from onboarding new customers, a restriction that remains in force.

However, Paytm clarified that customers will not be impacted by this directive, as Paytm Payments Bank falls under the parent company, One 97 Communications. Moreover, the communication highlighted that UPI transactions would continue to function seamlessly on the app.

Despite the restriction on loading additional funds from March 1, 2024, the RBI allows customers to extinguish their balances with no restrictions on withdrawals or fund transfers from Paytm Payments Bank accounts.

(With inputs from agencies)<o:p></o:p>

Paytm, once hailed as one of India's leading payment platforms, finds itself in a major crisis following the Reserve Bank of India's (RBI’s) directive to halt fresh deposits in its banking unit from March.

Paytm, once hailed as one of India's leading payment platforms, finds itself in a major crisis following the Reserve Bank of India's (RBI’s) directive to halt fresh deposits in its banking unit from March. The announcement has triggered a significant decline in Paytm's shares, prompting concerns about the firm's future relationships with lending partners. Analysts warn that this could impede Paytm's journey towards net profitability. Founded in 2010 by Vijay Shekhar Sharma, Paytm initially focused on prepaid mobile and television bill payments. However, it rapidly evolved into a pivotal player in online instant payments through the Unified Payments Interface (UPI), with payments becoming its primary revenue source. The ban on high-denomination notes in 2016 propelled Paytm to fame, as online transactions soared, marking a turning point for the company. Despite early success, Paytm faced a challenging IPO launch in November 2021, raising questions about its profitability and lofty valuation. The stock currently trades about two-thirds below its listing price. The disappointment led to key investors, including Alibaba and Softbank, divesting their stakes in Paytm amid broader concerns about Chinese ownership in Indian fintech firms. Vijay Shekhar Sharma, once dropped from Forbes' billionaire list, emerged as the largest shareholder in August 2023 by acquiring a chunk of Ant Financial's stake. Paytm's revenue streams predominantly hinge on its merchant payment business and loan operations. Approximately 60 per cent of its income is derived from merchant payments, with loans contributing around 20 per cent. The company charges merchants a platform fee for utilising Paytm's payment gateway and offers additional subscription-based services. Furthermore, Paytm engages in partnerships with banks and non-bank financial companies to provide loans, taking a cut of the interest. Paytm Payments Bank, a key entity in this endeavour, now faces uncertainties due to the recent regulatory directive. What has happened so far? Paytm Payments Bank sought to reassure its customers on January 2, following the RBI's directive to halt new deposits and credit transactions starting from February 29, 2024. In response to the central bank's orders, Paytm communicated with its customers through emails and text messages. The communication, framed as an "important update," explicitly stated that customers' money is secure with the bank. While acknowledging the RBI's directive that prevents customers from adding money to their wallets after February 29, Paytm assured uninterrupted withdrawal services. The communication emphasised, "There is no restriction on withdrawal of money from your existing balance even after Feb 29, 2024." Additionally, Paytm encouraged customers to seek assistance through the 24x7 help section on the app. The RBI's decision to bar Paytm Payments Bank from accepting customer deposits from March 1 comes after an audit revealed persistent non-compliances and continued material supervisory concerns. This move follows a previous restriction imposed almost two years ago, preventing the payments bank from onboarding new customers, a restriction that remains in force. However, Paytm clarified that customers will not be impacted by this directive, as Paytm Payments Bank falls under the parent company, One 97 Communications. Moreover, the communication highlighted that UPI transactions would continue to function seamlessly on the app. Despite the restriction on loading additional funds from March 1, 2024, the RBI allows customers to extinguish their balances with no restrictions on withdrawals or fund transfers from Paytm Payments Bank accounts. (With inputs from agencies)

Navigating Turbulent Waters: Indian fintech giant Paytm faces unprecedented crisis

The Central Bank of India has imposed new restrictions on Paytm. The curbs will be effective from February 29th. What do they entail? Should you as a user be worried?

Gravitas | New Paytm restrictions explained | How will the curbs affect you?

India's Central Bank has dropped the hammer on Paytm Payments Bank. In a move prompted by supervisory concerns, the central bank has imposed stringent restrictions on the digital banking giant. This means Paytm can no longer accept new deposits, credit transactions, or top-ups in any accounts after February 29th.

Paytm Payments Bank in limbo: India's RBI hits Paytm Payments Bank

India's central bank - the Reserve Bank of India (RBI) - on Wednesday (Jan 31) ordered Paytm Payments Bank (the banking arm of Paytm) to stop accepting fresh deposits in its accounts or popular wallets from March.

India's central bank - the Reserve Bank of India (RBI) - on Wednesday (Jan 31) ordered Paytm Payments Bank (the banking arm of Paytm) to stop accepting fresh deposits in its accounts or popular wallets from March. In a statement, the RBI said that Paytm Payments Bank will not be allowed to take further deposits in any customer accounts after Feb 29, and no credit transactions will be allowed either, including via wallets. Paytm Payments Bank is an associate of One 97 Communications. On Thursday, Paytm said in a statement that it will take steps immediately to comply with the central bank's directions. One 97 will cease working with Paytm Payments Bank and start working only with other banks, it said. The RBI's decision is a major blow to Paytm - which is one of India's largest payment firms. What is Paytm Payments Bank? Founded in 2017, Paytm Payments Bank is 49 per cent owned by Paytm and 51 per cent owned by Paytm's Chief Executive Officer (CEO) and founder Vijay Shekhar Sharma. The payments bank acts as a key banking partner for Paytm. For example, funds deposited in Paytm's popular digital wallets are held with Paytm Payments Bank. The payments bank may accept small deposits of up to $2,400 (around Rs 2,00,000) but is not allowed to lend. Deposits must be parked in government securities or deposits at other banks. Also read | Paytm lays off more than 1,000 employees across various departments: Report Citing Macquarie Capital, the news agency Reuters reported that the bank houses all of the parent's 330 million wallet accounts, meaning money held in them is deposited with the payments bank. The actions taken by the RBI are under a provision of banking regulations that allow the regulator to give directions to a bank in the interest of depositors. What led to the RBI's action? In its statement, the RBI said on Wednesday, "The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action." Issuing directions to the bank, the RBI said, "No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after Feb 29, 2024, other than any interest, cashback, or refunds which may be credited anytime." "Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance," it added. In March last year too, Paytm Payments Bank was restricted from adding customers but continued doing business with existing customers. However, it has now been told to wind down most of its businesses this month. Paytm shares plunge post RBI's action Agreeing to comply with the RBI's directions, Paytm said on Thursday it expected a worse-case impact of Rs 3 billion to Rs 5 billion to its annual earnings before interest, tax, depreciation, and amortisation (EBITDA). Following the central bank's move, Paytm shares plunged the daily limit of 20 per cent on Thursday which could be a precursor to its license being cancelled, a source told Reuters. The source said that RBI's action (against Paytm) followed years of non-compliance with central bank rules, including on customer due diligence, use of funds, and technology infrastructure. Also watch | Paytm Payments Bank in limbo: India's RBI hits Paytm Payments Bank × Paytm's stock is trading at less than one-third of its listing price of Rs 1,950, despite having climbed 20 per cent last year. With Thursday's plunge, the shares are down more than 4 per cent this year, Reuters reported. Shekhar Sharma lost about $233 million on Thursday as the shares cratered. Paytm was founded by Sharma in 2010 and rose to fame after Uber made it a quick payment option in India. Paytm saw an unprecedented demand in 2016 after the Modi government introduced demonetisation, which led to a major shift from cash to digital payments. The impact So what would be the impact of RBI's decision? According to Jefferies, Paytm's business impact will largely come from reputation concerns arising from governance or compliance, and the path to resolution will be from better compliance with regulations. Jefferies further downgraded Paytm's stock to "underperform" from "buy", slashing its target price to Rs 500 from Rs 1,050 and saying regulatory and reputational issues could affect profitability. Meanwhile, JPMorgan cut Paytm's rating to "underweight" from "neutral", lowering its target price by one-third to Rs 600. "While we don't believe that the order is an end of the road for Paytm, it materially impacts near-term growth, profitability forces another pivot and necessitates it to restore the credibility of the durability of the business," JPMorgan analysts said. (With inputs from agencies)

Explained | RBI orders Paytm’s banking arm to stop fresh business. What happens next?

As of January 31, the Reserve Bank of India (RBI) has imposed significant business restrictions on Paytm Payments Bank. This includes barring the acceptance of fresh deposits and conducting credit transactions after February 29. Moreover, on March 11, the RBI extended the restrictions by prohibiting Paytm Payments Bank from onboarding new customers.

<h2>Supervisory concerns and non-compliances</h2>

The RBI's action was prompted by a Comprehensive System Audit report, followed by a compliance validation report from external auditors.

These reports highlighted persistent non-compliances and ongoing supervisory concerns within the bank. The severity of these issues necessitated additional supervisory measures.

Effective from February 29, 2024, Paytm Payments Bank is restricted from accepting further deposits, conducting credit transactions, or enabling top-ups in customer accounts, prepaid instruments, wallets, FASTags, and NCMC cards.

<a href="https://www.wionews.com/business-economy/budget-2024-all-eyes-on-capex-685506">Also read |&nbsp;Budget 2024: All eyes on the government's capex as India pushes for big-ticket infrastructure</a>

However, allowances are made for interest, cashbacks, or refunds that may be credited at any time. The withdrawal or utilisation of balances by customers, across various accounts and instruments, remains permissible without restrictions, up to their available balance.

Post-February 29, 2024, the bank is barred from offering any banking services, excluding withdrawals and balance utilisation. This includes fund transfers encompassing services such as AEPS, IMPS, BBPOU, and UPI facilities.

Also watch |&nbsp;India: Delhi witnessed its coldest January in 13 years: Weather department

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/india-delhi-witnessed-its-coldest-january-in-13-years-weather-department-685519/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The RBI has mandated the prompt termination of Nodal Accounts associated with One97 Communications Ltd and Paytm Payments Services Ltd. This directive is to be executed expeditiously, with the deadline set for no later than February 29, 2024.

(With inputs from agencies)

As of January 31, the Reserve Bank of India (RBI) has imposed significant business restrictions on Paytm Payments Bank. This includes barring the acceptance of fresh deposits and conducting credit transactions after February 29.

As of January 31, the Reserve Bank of India (RBI) has imposed significant business restrictions on Paytm Payments Bank. This includes barring the acceptance of fresh deposits and conducting credit transactions after February 29. Moreover, on March 11, the RBI extended the restrictions by prohibiting Paytm Payments Bank from onboarding new customers. Supervisory concerns and non-compliances The RBI's action was prompted by a Comprehensive System Audit report, followed by a compliance validation report from external auditors. These reports highlighted persistent non-compliances and ongoing supervisory concerns within the bank. The severity of these issues necessitated additional supervisory measures. Effective from February 29, 2024, Paytm Payments Bank is restricted from accepting further deposits, conducting credit transactions, or enabling top-ups in customer accounts, prepaid instruments, wallets, FASTags, and NCMC cards. Also read | Budget 2024: All eyes on the government's capex as India pushes for big-ticket infrastructure However, allowances are made for interest, cashbacks, or refunds that may be credited at any time. The withdrawal or utilisation of balances by customers, across various accounts and instruments, remains permissible without restrictions, up to their available balance. Post-February 29, 2024, the bank is barred from offering any banking services, excluding withdrawals and balance utilisation. This includes fund transfers encompassing services such as AEPS, IMPS, BBPOU, and UPI facilities. Also watch | India: Delhi witnessed its coldest January in 13 years: Weather department The RBI has mandated the prompt termination of Nodal Accounts associated with One97 Communications Ltd and Paytm Payments Services Ltd. This directive is to be executed expeditiously, with the deadline set for no later than February 29, 2024. (With inputs from agencies)

India: RBI enforces major business restrictions on Paytm Payments Bank

A seismic shift is underway in the tech industry as two giants, Google and Paytm, grapple with the transformative power of Artificial Intelligence. Both companies are in the midst of significant layoffs, with over a thousand employees impacted, shedding light on the evolving landscape where technology meets the workforce.

Google & Paytm navigate layoffs in the AI era | World Business Watch

The parent company of Paytm, One 97 Communications, has decided to fire more than 1,000 employees across various departments, said a report by Economic Times citing sources, on Monday (Dec 25). The layoffs reportedly took place over the last few months.&nbsp;

<h2>10 per cent employees affected</h2>

The layoffs, according to ET, took place as the company is in the process of realigning various businesses and looking to cut costs, and will affect 10 per cent of the entire workforce at Paytm.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/paytm-share-price-faces-scrutiny-amid-strategic-shifts-analyst-concerns-667459">Paytm share price faces scrutiny amid strategic shifts &amp; analyst concerns</a>

The reported layoffs, if confirmed, would be among the steepest job cuts by an Indian new-age tech firm in 2023. According to the ET report, Paytm’s lending business which saw a major expansion in the last year or so, may witness most of the job losses due to the layoffs.&nbsp;

The report also comes on the heels of the UPI platform’s withdrawal of small-ticket consumer lending and its ‘buy now pay later’ lending segment after a <a href="https://www.wionews.com/business-economy/rbi-slaps-paytm-payments-bank-with-a-massive-penalty-heres-why-646206">crackdown</a> on unsecured loans by RBI.&nbsp;

The layoffs have affected employees across payments, lending and executives in operations in sales, said ET citing sources. Reportedly, performance issues have resulted in most people getting fired as the company has sought to increase portability.&nbsp;

ALSO WATCH |&nbsp;<a href="https://www.wionews.com/videos/googles-shift-to-ai-automation-sparks-ad-sales-reorganisation-world-business-watch-673284">Google's shift to AI automation sparks ad sales reorganisation</a>

<h2>AI takes over jobs&nbsp;</h2>

In response to the report, a spokesperson for the financial services firm disputed the number of people fired but acknowledged layoffs. The Paytm spokesperson also said that it intends to save 10-15 per cent of staff costs over the current fiscal year. Additionally, most of the impacted roles have been replaced.&nbsp;

“We are transforming our operations with AI-powered automation, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce within operations and marketing,” said the Paytm spokesperson.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/uk-supreme-court-rules-against-ai-as-patent-inventor-in-landmark-case-672020">UK Supreme Court rules against AI as patent 'Inventor' in landmark case&nbsp;</a>

The company’s spokesperson also told ET that their core business of payment might see a manpower increase of 15,000 people in the upcoming year.&nbsp;

(With inputs from agencies) 
&nbsp;

The parent company of Paytm, One 97 Communications, has decided to fire more than 1,000 employees across various departments, said a report by Economic Times citing sources, on Monday (Dec 25).

The parent company of Paytm, One 97 Communications, has decided to fire more than 1,000 employees across various departments, said a report by Economic Times citing sources, on Monday (Dec 25). The layoffs reportedly took place over the last few months. 10 per cent employees affected The layoffs, according to ET, took place as the company is in the process of realigning various businesses and looking to cut costs, and will affect 10 per cent of the entire workforce at Paytm. ALSO READ | Paytm share price faces scrutiny amid strategic shifts & analyst concerns The reported layoffs, if confirmed, would be among the steepest job cuts by an Indian new-age tech firm in 2023. According to the ET report, Paytm’s lending business which saw a major expansion in the last year or so, may witness most of the job losses due to the layoffs. The report also comes on the heels of the UPI platform’s withdrawal of small-ticket consumer lending and its ‘buy now pay later’ lending segment after a crackdown on unsecured loans by RBI. The layoffs have affected employees across payments, lending and executives in operations in sales, said ET citing sources. Reportedly, performance issues have resulted in most people getting fired as the company has sought to increase portability. ALSO WATCH | Google's shift to AI automation sparks ad sales reorganisation AI takes over jobs In response to the report, a spokesperson for the financial services firm disputed the number of people fired but acknowledged layoffs. The Paytm spokesperson also said that it intends to save 10-15 per cent of staff costs over the current fiscal year. Additionally, most of the impacted roles have been replaced. “We are transforming our operations with AI-powered automation, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce within operations and marketing,” said the Paytm spokesperson. ALSO READ | UK Supreme Court rules against AI as patent 'Inventor' in landmark case The company’s spokesperson also told ET that their core business of payment might see a manpower increase of 15,000 people in the upcoming year. (With inputs from agencies)

Paytm lays off more than 1,000 employees across various departments: Report

Paytm’s share price showed signs of recovery on Thursday, though it remained the worst performer in the BSE500 pack.

Amid this recovery, some brokerages adjusted target prices after Paytm's revelation during an analyst meet that it would be scaling down monthly disbursements in its small-ticket 'postpaid' segment. &nbsp;

A Business Today report cited Shivaji Thapliyal, Head of Research at Yes Securities, who expressed scepticism about Paytm's transformation narrative, stating, "The key question to ask is what proportion of its overall customer base Paytm would ultimately be able to convert into loan customers in the long run."

Strategic shift and profitability concerns

Thapliyal raised concerns about the impact on profitability as Paytm shifts focus from a payments-centric model to a loan distribution-focused approach. He questioned the viability of this shift, emphasising the need to understand the long-term customer conversion strategy. Thapliyal disclosed that Yes Securities had a "Sell" rating on Paytm at the time of its IPO and maintains a less-than-bullish 'ADD' rating on the stock currently.

Denying speculations and growth projections

Contrary to recent speculations, Motilal Oswal clarified that Paytm is not losing lending partners. The company affirmed its association with seven NBFC partners for loan distribution, with plans to integrate one large bank and two large NBFCs by Q4FY24 and Q1FY25. Motilal Oswal suggested a target of Rs 1,025 ($12.30) on the stock and trimmed disbursement estimates for FY24/FY25, anticipating a calibrated approach in the post-paid segment. The brokerage valued Paytm at 20 times FY28E EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation), factoring in a discount rate of 14 per cent to FY25E.

Analyst downgrades and target adjustments

Morgan Stanley maintained an "equal weight" on Paytm with a target of Rs 830 ($9.96), while JPMorgan and Goldman Sachs downgraded the stock to 'neutral'. Jefferies retained a 'Buy' rating but lowered the target to Rs 1,050 ($12.60), and Bernstein reduced its target to Rs 950 ($11.40) from Rs 1,100 ($13.20). &nbsp;

Impact on stock rally and future expectations

JM Financial noted that the rally in Paytm shares was driven by strong loan distribution business revenues and operational efficiencies. However, with an abrupt pullback on this growth lever, the brokerage anticipates a negative reaction in Paytm's stock price until growth trends stabilise. JM Financial revised Paytm's FY24E EBITDA loss and adjusted EBITDA, lowering the target price to Rs 1,120 ($13.44).

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Paytm’s share price showed signs of recovery on Thursday, though it remained the worst performer in the BSE500 pack. Amid this recovery, some brokerages adjusted target prices after Paytm's revelation during an analyst meet that it would be scaling down monthly disbursements in its small-ticket 'postpaid' segment.

Paytm’s share price showed signs of recovery on Thursday, though it remained the worst performer in the BSE500 pack. Amid this recovery, some brokerages adjusted target prices after Paytm's revelation during an analyst meet that it would be scaling down monthly disbursements in its small-ticket 'postpaid' segment. A Business Today report cited Shivaji Thapliyal, Head of Research at Yes Securities, who expressed scepticism about Paytm's transformation narrative, stating, "The key question to ask is what proportion of its overall customer base Paytm would ultimately be able to convert into loan customers in the long run." Strategic shift and profitability concerns Thapliyal raised concerns about the impact on profitability as Paytm shifts focus from a payments-centric model to a loan distribution-focused approach. He questioned the viability of this shift, emphasising the need to understand the long-term customer conversion strategy. Thapliyal disclosed that Yes Securities had a "Sell" rating on Paytm at the time of its IPO and maintains a less-than-bullish 'ADD' rating on the stock currently. Denying speculations and growth projections Contrary to recent speculations, Motilal Oswal clarified that Paytm is not losing lending partners. The company affirmed its association with seven NBFC partners for loan distribution, with plans to integrate one large bank and two large NBFCs by Q4FY24 and Q1FY25. Motilal Oswal suggested a target of Rs 1,025 ($12.30) on the stock and trimmed disbursement estimates for FY24/FY25, anticipating a calibrated approach in the post-paid segment. The brokerage valued Paytm at 20 times FY28E EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation), factoring in a discount rate of 14 per cent to FY25E. Analyst downgrades and target adjustments Morgan Stanley maintained an "equal weight" on Paytm with a target of Rs 830 ($9.96), while JPMorgan and Goldman Sachs downgraded the stock to 'neutral'. Jefferies retained a 'Buy' rating but lowered the target to Rs 1,050 ($12.60), and Bernstein reduced its target to Rs 950 ($11.40) from Rs 1,100 ($13.20). Impact on stock rally and future expectations JM Financial noted that the rally in Paytm shares was driven by strong loan distribution business revenues and operational efficiencies. However, with an abrupt pullback on this growth lever, the brokerage anticipates a negative reaction in Paytm's stock price until growth trends stabilise. JM Financial revised Paytm's FY24E EBITDA loss and adjusted EBITDA, lowering the target price to Rs 1,120 ($13.44). WATCH WION LIVE HERE

Paytm share price faces scrutiny amid strategic shifts & analyst concerns

India's Paytm will issue fewer personal loans of 600 dollars or less. This annoucement comes weeks after India's Central Bank tightened rules on consumer lending after a surge in demand.

Paytm to issue fewer personal loans of 600 dollars or less | World Business Watch

Indian digital payment giant Paytm witnessed a staggering 18 per cent decline in its share price on Thursday. This market turmoil followed the company's announcement of strategic plans to slow down its small-ticket post-paid loans. &nbsp;

According to media reports, Paytm aims to divert its focus towards high-ticket personal loans and merchant loans, a move that has raised concerns among investors and prompted several brokerages to revise their revenue estimates for the company.

At 12:42 pm on the National Stock Exchange (NSE), Paytm's share price plummeted to 666.50 rupees ($8), marking an 18 percent drop. The stock had earlier hit a 20 per cent lower circuit in early trade, triggering an increase in trading volume. Approximately 3 crore shares changed hands, a stark contrast to the one-month daily traded average of 50 lakh shares. &nbsp;

During an analyst meet, Paytm revealed its intention to slash post-paid loans by half. The company assured stakeholders that this move would have minimal impact on margins or revenue, as post-paid loans had the lowest take rate. However, market experts expressed reservations about the decision, emphasising that it might lead to a reduction in Paytm's disbursement run rate over the near term.

Jefferies, a leading brokerage firm, attributed Paytm's decision to recalibrate its 'Buy now pay later' (BNPL) business to the recent regulatory changes by the Reserve Bank of India (RBI) affecting unsecured lending. The firm predicted a 50 per cent reduction in BNPL disbursals over the next 3-4 months. &nbsp;

Despite Paytm's plans to offset this decline through high-ticket personal loans and merchant loans, Jefferies expressed concerns about the unexpected tightening in the BNPL business. Consequently, Jefferies revised its revenue estimates for Paytm for FY24-26 by 3-10 per cent and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) estimates by 12-15 per cent, along with a downward revision of the stock's price target by over 19 per cent to Rs 1,050 ($12.6).

Goldman Sachs took a cautious stance, downgrading Paytm's stock to a 'neutral' rating and setting a price target of Rs 840 ($10.08). The brokerage firm also lowered its revenue and adjusted EBITDA estimates for FY24-25 by up to 10 per cent and 40 per cent, respectively. &nbsp;

Similarly, Morgan Stanley, maintaining an 'equal weight' call on the stock, predicted a decline in Paytm's disbursement run rate due to the decision to scale down low-ticket post-paid lending. The brokerage assigned a price target of Rs 830 ($9.96).

While Motilal Oswal Financial Services acknowledged Paytm's efforts to adapt, it expressed reservations about the long-term impact on low-ticket unsecured loans. The firm trimmed its FY24/FY25 disbursement estimates by 15 per cent-18 per cent, resulting in an 11-16 per cent cut in adjusted EBITDA forecasts for FY24-25. Despite keeping a watchful eye on the situation, the brokerage highlighted uncertainties regarding the longevity of these measures and the outlook for low-ticket unsecured loans.

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Indian digital payment giant Paytm witnessed a staggering 18 per cent decline in its share price on Thursday. This market turmoil followed the company's announcement of strategic plans to slow down its small-ticket post-paid loans.

Indian digital payment giant Paytm witnessed a staggering 18 per cent decline in its share price on Thursday. This market turmoil followed the company's announcement of strategic plans to slow down its small-ticket post-paid loans. According to media reports, Paytm aims to divert its focus towards high-ticket personal loans and merchant loans, a move that has raised concerns among investors and prompted several brokerages to revise their revenue estimates for the company. At 12:42 pm on the National Stock Exchange (NSE), Paytm's share price plummeted to 666.50 rupees ($8), marking an 18 percent drop. The stock had earlier hit a 20 per cent lower circuit in early trade, triggering an increase in trading volume. Approximately 3 crore shares changed hands, a stark contrast to the one-month daily traded average of 50 lakh shares. During an analyst meet, Paytm revealed its intention to slash post-paid loans by half. The company assured stakeholders that this move would have minimal impact on margins or revenue, as post-paid loans had the lowest take rate. However, market experts expressed reservations about the decision, emphasising that it might lead to a reduction in Paytm's disbursement run rate over the near term. Jefferies, a leading brokerage firm, attributed Paytm's decision to recalibrate its 'Buy now pay later' (BNPL) business to the recent regulatory changes by the Reserve Bank of India (RBI) affecting unsecured lending. The firm predicted a 50 per cent reduction in BNPL disbursals over the next 3-4 months. Despite Paytm's plans to offset this decline through high-ticket personal loans and merchant loans, Jefferies expressed concerns about the unexpected tightening in the BNPL business. Consequently, Jefferies revised its revenue estimates for Paytm for FY24-26 by 3-10 per cent and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) estimates by 12-15 per cent, along with a downward revision of the stock's price target by over 19 per cent to Rs 1,050 ($12.6). Goldman Sachs took a cautious stance, downgrading Paytm's stock to a 'neutral' rating and setting a price target of Rs 840 ($10.08). The brokerage firm also lowered its revenue and adjusted EBITDA estimates for FY24-25 by up to 10 per cent and 40 per cent, respectively. Similarly, Morgan Stanley, maintaining an 'equal weight' call on the stock, predicted a decline in Paytm's disbursement run rate due to the decision to scale down low-ticket post-paid lending. The brokerage assigned a price target of Rs 830 ($9.96). While Motilal Oswal Financial Services acknowledged Paytm's efforts to adapt, it expressed reservations about the long-term impact on low-ticket unsecured loans. The firm trimmed its FY24/FY25 disbursement estimates by 15 per cent-18 per cent, resulting in an 11-16 per cent cut in adjusted EBITDA forecasts for FY24-25. Despite keeping a watchful eye on the situation, the brokerage highlighted uncertainties regarding the longevity of these measures and the outlook for low-ticket unsecured loans. WATCH WION LIVE HERE

Paytm share price falls 18pc amid plans to scale back post-paid loans

The Open Network for Digital Commerce (ONDC), joined by Google Cloud India, Antler in India, Paytm, Protean and Startup India, on Monday officially launched the 'Build for Bharat' initiative. This nationwide program aims to tackle pressing challenges in digital commerce, fostering innovation and practical solutions across various sectors.

With over 200,000 people scheduled to participate in the program, representing a varied mix of startups, enterprises, and educational institutions, the 'Build for Bharat' project is expecting a huge turnout.

This project takes an ecosystem-driven, participatory approach and is implemented in more than 50 cities with the active participation of leaders, specialists, venture capitalists, and incubators.

The 'Build for Bharat' initiative encompasses three key categories. In Category 1, 'NextGen Ventures', the focus is on propelling venture creation on ONDC, offering a pathway for aspiring founders and early-stage teams to raise capital, launch, scale companies, and incubate new businesses. Category 2, 'Scalable Solutions', welcomes participation from organisations and individuals, with a specific focus on addressing friction points faced by Network Participants. In Category 3, 'Foundation Solutions', exclusively designed for college students over 18 years of age, the aim is to identify proof of concept for the friction points faced by NPs.

Winners across these categories are set to receive a range of prizes and collaborations. Category 1 winners in 'NextGen Ventures' stand to gain exclusive opportunities from Antler in India, mentorship from established personas in the industry, and equity-free grants of up to 5 crore rupees ($600,000). Category 2 and 3 winners will receive Cloud credits from Google Cloud India, fostering further innovation in their projects.

What top industry leaders said

Speaking at the launch, Bikram Singh Bedi, the Vice President and Managing Director of Google Cloud India, said that the digital ecosystem in India faces three major issues, namely about onboarding, cataloguing and language. &nbsp;

Bedi noted that small businesses and sellers need to be onboarded onto the ONDC platform, which in turn shall accelerate the business. Problems surrounding cataloguing, according to him need to be addressed by the generation of Artificial Intelligence (AI) tools to enhance the ecosystem through a “seller app” for sellers to list themselves and foster discoverability.

On the issue of language, Bedi said users prefer to use platforms in their regional language and emphasised that platforms should enable users to set their language preferences to facilitate smooth usage.

Suresh Sethi, CEO of Protean eGov Technologies, spoke of the necessity of bringing centralised resources and building a network.

He also highlighted that Tech teams have a lot to build on like “teaching people how to talk to machines”. “A lot of barriers are removed when that happens," he added.&nbsp;

Commenting on leadership in the digital landscape, Dr. Pramod Varma, the Former Chief Architect at Aadhaar &amp; India Stack said, “Governance has to be done with optimism, (bearing in mind) regulators and innovators have different mindsets.”

About ONDC

Founded on December 31, 2021, the Department for Promotion of Industry and Internal Trade (DPIIT) of the Ministry of Commerce and Industry oversees the ONDC as a Section 8 business. Its goal is to democratise and decentralise e-eommerce, giving customers more options and autonomy while guaranteeing accessibility and inclusion for sellers—especially small and local enterprises. "Build for Bharat" is a big step towards transforming digital commerce in India and fits in perfectly with ONDC's mission

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The Open Network for Digital Commerce (ONDC), joined by Google Cloud India, Antler in India, Paytm, Protean and Startup India, on Monday officially launched the 'Build for Bharat' initiative.

The Open Network for Digital Commerce (ONDC), joined by Google Cloud India, Antler in India, Paytm, Protean and Startup India, on Monday officially launched the 'Build for Bharat' initiative. This nationwide program aims to tackle pressing challenges in digital commerce, fostering innovation and practical solutions across various sectors. With over 200,000 people scheduled to participate in the program, representing a varied mix of startups, enterprises, and educational institutions, the 'Build for Bharat' project is expecting a huge turnout. This project takes an ecosystem-driven, participatory approach and is implemented in more than 50 cities with the active participation of leaders, specialists, venture capitalists, and incubators. The 'Build for Bharat' initiative encompasses three key categories. In Category 1, 'NextGen Ventures', the focus is on propelling venture creation on ONDC, offering a pathway for aspiring founders and early-stage teams to raise capital, launch, scale companies, and incubate new businesses. Category 2, 'Scalable Solutions', welcomes participation from organisations and individuals, with a specific focus on addressing friction points faced by Network Participants. In Category 3, 'Foundation Solutions', exclusively designed for college students over 18 years of age, the aim is to identify proof of concept for the friction points faced by NPs. Winners across these categories are set to receive a range of prizes and collaborations. Category 1 winners in 'NextGen Ventures' stand to gain exclusive opportunities from Antler in India, mentorship from established personas in the industry, and equity-free grants of up to 5 crore rupees ($600,000). Category 2 and 3 winners will receive Cloud credits from Google Cloud India, fostering further innovation in their projects. What top industry leaders said Speaking at the launch, Bikram Singh Bedi, the Vice President and Managing Director of Google Cloud India, said that the digital ecosystem in India faces three major issues, namely about onboarding, cataloguing and language. Bedi noted that small businesses and sellers need to be onboarded onto the ONDC platform, which in turn shall accelerate the business. Problems surrounding cataloguing, according to him need to be addressed by the generation of Artificial Intelligence (AI) tools to enhance the ecosystem through a “seller app” for sellers to list themselves and foster discoverability. On the issue of language, Bedi said users prefer to use platforms in their regional language and emphasised that platforms should enable users to set their language preferences to facilitate smooth usage. Suresh Sethi, CEO of Protean eGov Technologies, spoke of the necessity of bringing centralised resources and building a network. He also highlighted that Tech teams have a lot to build on like “teaching people how to talk to machines”. “A lot of barriers are removed when that happens," he added. Commenting on leadership in the digital landscape, Dr. Pramod Varma, the Former Chief Architect at Aadhaar & India Stack said, “Governance has to be done with optimism, (bearing in mind) regulators and innovators have different mindsets.” About ONDC Founded on December 31, 2021, the Department for Promotion of Industry and Internal Trade (DPIIT) of the Ministry of Commerce and Industry oversees the ONDC as a Section 8 business. Its goal is to democratise and decentralise e-eommerce, giving customers more options and autonomy while guaranteeing accessibility and inclusion for sellers—especially small and local enterprises. "Build for Bharat" is a big step towards transforming digital commerce in India and fits in perfectly with ONDC's mission WATCH WION LIVE HERE

ONDC unveils 'Build for Bharat', seeks transformative e-commerce solutions

Leading digital payments platform, Paytm, is set to onboard 10 million merchants on the government-backed Open Network for Digital Commerce (ONDC) platform by the end of 2025. Vijay Shekhar Sharma, CEO and founder of One97 Communications, the parent company of Paytm, revealed this ambitious plan during an ONDC event on Monday, emphasising the company's commitment to assisting small merchants and businesses in becoming integral parts of the mainstream economy.<o:p></o:p>

According to a PTI report, Sharma highlighted Paytm's focus on small merchants within its ecosystem and its mission to facilitate their inclusion in the mainstream economy through digital payments. He stated, "Paytm's ecosystem is built around small merchants, and the mission that we are on is to help small merchants and small businesses become part of the mainstream economy. We plan to bring 10 million merchants on ONDC before 2025 ends."<o:p></o:p>

The Open Network for Digital Commerce (ONDC), a government-backed platform open to all e-commerce stakeholders, including digital payment firms, has gained significant traction. Notable players such as Paytm, PhonePe's Pincode, and hyperlocal e-commerce firm magicpin are already part of this platform, making it a crucial space for digital commerce growth.<o:p></o:p>

Vijay Shekhar Sharma emphasised the potential of ONDC by revealing that Paytm has witnessed nearly 11.8 million customers redirected to its product from the platform. Discussing the significance of onboarding additional merchants to ONDC, he stated that the presence of a substantial number of merchants would attract customers actively seeking their services. <o:p></o:p>

To ensure this, he said that resolving issues surrounding trust and discovery, further noting that there is a considerable customer base eager to engage in online shopping once these challenges are addressed.<o:p></o:p>

T Koshy, the Managing Director and CEO of ONDC, provided a glimpse into the recent performance of the platform, signalling a positive initiation. According to him, there were approximately 1,200 transactions in January, while the current month has witnessed a remarkable surge with nearly 5 million transactions. <o:p></o:p>

Notably, transactions are occurring in 600 cities, indicating a widespread adoption. Koshy expressed optimism, describing this as the inception of a significant surge over the next 1-2 years. He articulated the platform's ambitious goal to increase the current transaction volume saying, “We aim to add one more zero to the current level of transactions in a year."<o:p></o:p>

(With inputs from PTI)<o:p></o:p>

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Leading digital payments platform, Paytm, is set to onboard 10 million merchants on the government-backed Open Network for Digital Commerce (ONDC) platform by the end of 2025.

Leading digital payments platform, Paytm, is set to onboard 10 million merchants on the government-backed Open Network for Digital Commerce (ONDC) platform by the end of 2025. Vijay Shekhar Sharma, CEO and founder of One97 Communications, the parent company of Paytm, revealed this ambitious plan during an ONDC event on Monday, emphasising the company's commitment to assisting small merchants and businesses in becoming integral parts of the mainstream economy. According to a PTI report, Sharma highlighted Paytm's focus on small merchants within its ecosystem and its mission to facilitate their inclusion in the mainstream economy through digital payments. He stated, "Paytm's ecosystem is built around small merchants, and the mission that we are on is to help small merchants and small businesses become part of the mainstream economy. We plan to bring 10 million merchants on ONDC before 2025 ends." The Open Network for Digital Commerce (ONDC), a government-backed platform open to all e-commerce stakeholders, including digital payment firms, has gained significant traction. Notable players such as Paytm, PhonePe's Pincode, and hyperlocal e-commerce firm magicpin are already part of this platform, making it a crucial space for digital commerce growth. Vijay Shekhar Sharma emphasised the potential of ONDC by revealing that Paytm has witnessed nearly 11.8 million customers redirected to its product from the platform. Discussing the significance of onboarding additional merchants to ONDC, he stated that the presence of a substantial number of merchants would attract customers actively seeking their services. To ensure this, he said that resolving issues surrounding trust and discovery, further noting that there is a considerable customer base eager to engage in online shopping once these challenges are addressed. T Koshy, the Managing Director and CEO of ONDC, provided a glimpse into the recent performance of the platform, signalling a positive initiation. According to him, there were approximately 1,200 transactions in January, while the current month has witnessed a remarkable surge with nearly 5 million transactions. Notably, transactions are occurring in 600 cities, indicating a widespread adoption. Koshy expressed optimism, describing this as the inception of a significant surge over the next 1-2 years. He articulated the platform's ambitious goal to increase the current transaction volume saying, “We aim to add one more zero to the current level of transactions in a year." (With inputs from PTI) WATCH WION LIVE HERE

Paytm pledges to enlist 10 million merchants on government-backed ONDC platform by 2025

WION's Business Desk brings you this daily round-up of global stories from the world of business and economy.<o:p></o:p>

Bitcoin surges past $41,000: Spot ETF approval and market dynamics drive the rally<o:p></o:p>

There has been a significant surge in the price of Bitcoin, surpassing $41,000 and reaching its highest level since April 2022.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/bitcoin-surges-past-41000-spot-etf-approval-and-market-dynamics-drive-the-rally-666249">Read more here</a><o:p></o:p>

Tokyo's Inflation Slows: BOJ faces decisive policy crossroads amid economic shifts<o:p></o:p>

A significant shift in cost-push dynamics inside Japan's economy was evident in November when core consumer inflation in the capital city of Tokyo decreased.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/tokyos-inflation-slows-boj-faces-decisive-policy-crossroads-amid-economic-shifts-666275">Read more here</a><o:p></o:p>

Paytm pledges to enlist 10 million merchants on government-backed ONDC platform by 2025<o:p></o:p>

&nbsp;

Paytm, aims to bring aboard 10 million merchants onto the government-supported Open Network for Digital Commerce (ONDC) platform by the conclusion of 2025.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/paytm-pledges-to-enlist-10-million-merchants-on-government-backed-ondc-platform-by-2025-666292">Read more here</a><o:p></o:p>

El Salvador's Bitcoin investments surge: Bukele confirms profit amid cryptocurrency rally<o:p></o:p>

El Salvador's presidential candidate running for reelection, Nayib Bukele, disclosed that the country has made profitable investments in Bitcoin, capitalising on the current surge in cryptocurrency values.

<a href="https://www.wionews.com/business-economy/el-salvadors-bitcoin-investments-surge-bukele-confirms-profit-amid-cryptocurrency-rally-666310">Read more here</a><o:p></o:p>

Barclay family reclaims Telegraph newspaper after Abu Dhabi aids with debt repayment<o:p></o:p>

The Barclay family has successfully regained control of the influential Telegraph newspaper in the UK, following a collaboration with Abu Dhabi-backed RedBird IMI.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/barclay-family-reclaims-telegraph-newspaper-after-abu-dhabi-aids-with-debt-repayment-666339">Read more here</a><o:p></o:p>

Ancestry website 23andMe confirms recent data breach affected 6.9 million users&nbsp;<o:p></o:p>

Data belonging to almost 6.9 million individuals has been leaked, according to confirmation from the ancestry website 23andMe, following a recent incident.<o:p></o:p>

<a href="https://www.wionews.com/world/ancestry-website-23andme-confirms-recent-data-breach-affected-69-million-users-666347">Read more here </a><o:p></o:p>

Extreme weather halts iPhone production in India: Foxconn and Pegatron grapple with disruptions<o:p></o:p>

Foxconn and Pegatron, major manufacturing companies based in Taiwan, have temporarily suspended the production of Apple iPhones at their facilities near Chennai in southern India. This decision stems from the disruptive effects of heavy rainfall in the region.

<a href="https://www.wionews.com/business-economy/extreme-weather-halts-iphone-production-in-india-foxconn-and-pegatron-grapple-with-disruptions-666357">Read more here</a><o:p></o:p>

Israeli authorities probe suspected insider trading linked to Hamas attack<o:p></o:p>

Israeli officials are investigating claims made by American researchers that suggest some investors may have known that Hamas was planning to strike Israel on October 7.

<a href="https://www.wionews.com/business-economy/israeli-authorities-probe-suspected-insider-trading-linked-to-hamas-attack-666374">Read more here </a><o:p></o:p>

Landmark Stability AI vs Getty Images copyright lawsuit to move ahead to trial<o:p></o:p>

In a significant development, a UK court has decided that the copyright dispute between Getty Images and the prominent artificial intelligence (AI) firm Stability AI can proceed to trial.<o:p></o:p>

<a href="https://www.wionews.com/technology/landmark-stability-ai-vs-getty-images-copyright-lawsuit-to-move-ahead-to-trial-666377">Read more here</a><o:p></o:p>

UK discloses immigration reforms: Stricter visas aim to curb soaring migration<o:p></o:p>

Following increasing pressure to tackle the unprecedented net migration figures, UK Prime Minister Rishi Sunak unveiled a slew of strict policies aimed at reducing the number of migrants entering the country legally.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/uk-discloses-immigration-reforms-stricter-visas-aim-to-curb-soaring-migration-666389">Read more here </a><o:p></o:p>

Intel succeeds in overturning $2.18bn patent verdict, one of the largest in US<o:p></o:p>

A prior decision that had awarded VLSI Technology USD 2.18 billion in a patent infringement dispute against Intel Corp. was reversed by an appeals court in the US on Monday, December 4.

<a href="https://www.wionews.com/technology/intel-succeeds-in-overturning-218bn-patent-verdict-one-of-the-largest-in-us-666197">Read more here </a><o:p></o:p>

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WION's Business Desk brings you this daily round-up of global stories from the world of business and economy. Bitcoin surges past $41,000: Spot ETF approval and market dynamics drive the rally There has been a significant surge in the price of Bitcoin, surpassing $41,000 and reaching its highest level since April 2022.

WION's Business Desk brings you this daily round-up of global stories from the world of business and economy. Bitcoin surges past $41,000: Spot ETF approval and market dynamics drive the rally There has been a significant surge in the price of Bitcoin, surpassing $41,000 and reaching its highest level since April 2022. Read more here Tokyo's Inflation Slows: BOJ faces decisive policy crossroads amid economic shifts A significant shift in cost-push dynamics inside Japan's economy was evident in November when core consumer inflation in the capital city of Tokyo decreased. Read more here Paytm pledges to enlist 10 million merchants on government-backed ONDC platform by 2025 Paytm, aims to bring aboard 10 million merchants onto the government-supported Open Network for Digital Commerce (ONDC) platform by the conclusion of 2025. Read more here El Salvador's Bitcoin investments surge: Bukele confirms profit amid cryptocurrency rally El Salvador's presidential candidate running for reelection, Nayib Bukele, disclosed that the country has made profitable investments in Bitcoin, capitalising on the current surge in cryptocurrency values. Read more here Barclay family reclaims Telegraph newspaper after Abu Dhabi aids with debt repayment The Barclay family has successfully regained control of the influential Telegraph newspaper in the UK, following a collaboration with Abu Dhabi-backed RedBird IMI. Read more here Ancestry website 23andMe confirms recent data breach affected 6.9 million users Data belonging to almost 6.9 million individuals has been leaked, according to confirmation from the ancestry website 23andMe, following a recent incident. Read more here Extreme weather halts iPhone production in India: Foxconn and Pegatron grapple with disruptions Foxconn and Pegatron, major manufacturing companies based in Taiwan, have temporarily suspended the production of Apple iPhones at their facilities near Chennai in southern India. This decision stems from the disruptive effects of heavy rainfall in the region. Read more here Israeli authorities probe suspected insider trading linked to Hamas attack Israeli officials are investigating claims made by American researchers that suggest some investors may have known that Hamas was planning to strike Israel on October 7. Read more here Landmark Stability AI vs Getty Images copyright lawsuit to move ahead to trial In a significant development, a UK court has decided that the copyright dispute between Getty Images and the prominent artificial intelligence (AI) firm Stability AI can proceed to trial. Read more here UK discloses immigration reforms: Stricter visas aim to curb soaring migration Following increasing pressure to tackle the unprecedented net migration figures, UK Prime Minister Rishi Sunak unveiled a slew of strict policies aimed at reducing the number of migrants entering the country legally. Read more here Intel succeeds in overturning $2.18bn patent verdict, one of the largest in US A prior decision that had awarded VLSI Technology USD 2.18 billion in a patent infringement dispute against Intel Corp. was reversed by an appeals court in the US on Monday, December 4. Read more here WATCH WION LIVE HERE

WION Business Wrap | Bitcoin surges past $41,000, Paytm pledges to enlist 10 mn merchants & more

Berkshire Hathaway has sold its 2.46 per cent stake in PayTM's parent company -- One97 Communications -- at a hefty loss. Over 15 million shares of the FinTech firm have been sold on India's National Stock Exchange, at a loss of about 62 million dollars.

Berkshire Hathaway sells 2.46% stake at a hefty loss

Vijay Shekhar Sharma, the founder of Paytm, has taken a significant step into India's burgeoning artificial intelligence (AI) and electric vehicle (EV) sectors.&nbsp;

According to a Bloomberg report, Sharma's&nbsp;VSS Investments Fund&nbsp;is valued at 300 million rupees (approximately $3.6 million) and aims to&nbsp;foster innovation and entrepreneurship in these rapidly evolving domains.

VSS Investments Fund will not only cater to early-stage startups but will also facilitate follow-on investments in Sharma's existing portfolio.&nbsp;

In an official statement, Sharma emphasised the transformative potential of Indian startups in the realm of advanced technology and AI-driven innovations.

A Moneycontrol report quoted him as saying, "The Indian startup ecosystem has some of the brightest entrepreneurs in the world, and we have the potential to become a powerhouse of advanced technology and AI-driven innovations. India's aspiration to be a $10 Trillion Atmanirbhar economy will be defined by the spirit of innovation and entrepreneurship."

Sharma, celebrated for pioneering fintech in India over a decade ago with the inception of Paytm, has been an active investor in various Indian startups. These include Ola Electric, GOQii (a fitness band manufacturer), Treebo Hotels, and more.

(With inputs from Bloomberg)

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Vijay Shekhar Sharma, the founder of Paytm, has taken a significant step into India's burgeoning artificial intelligence (AI) and electric vehicle (EV) sectors. According to a Bloomberg report, Sharma's VSS Investments Fund is valued at 300 million rupees (approximately $3.

Vijay Shekhar Sharma, the founder of Paytm, has taken a significant step into India's burgeoning artificial intelligence (AI) and electric vehicle (EV) sectors. According to a Bloomberg report, Sharma's VSS Investments Fund is valued at 300 million rupees (approximately $3.6 million) and aims to foster innovation and entrepreneurship in these rapidly evolving domains. VSS Investments Fund will not only cater to early-stage startups but will also facilitate follow-on investments in Sharma's existing portfolio. In an official statement, Sharma emphasised the transformative potential of Indian startups in the realm of advanced technology and AI-driven innovations. A Moneycontrol report quoted him as saying, "The Indian startup ecosystem has some of the brightest entrepreneurs in the world, and we have the potential to become a powerhouse of advanced technology and AI-driven innovations. India's aspiration to be a $10 Trillion Atmanirbhar economy will be defined by the spirit of innovation and entrepreneurship." Sharma, celebrated for pioneering fintech in India over a decade ago with the inception of Paytm, has been an active investor in various Indian startups. These include Ola Electric, GOQii (a fitness band manufacturer), Treebo Hotels, and more. (With inputs from Bloomberg) WATCH WION LIVE HERE

Paytm founder launches $3.6 mn fund to boost AI and EV startups: Report

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.39 crore ($650,000) on Paytm Payments Bank for its failure to comply with Know Your Customer (KYC) norms and other specific regulatory provisions, as explicitly revealed in a press release issued by the central bank. &nbsp;

“This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949," the press release said.&nbsp;

The penalty, according to the RBI's statement, is a response to Paytm Payments Bank's non-compliance with several key regulatory directives, including the 'Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016,' 'RBI Guidelines for Licensing of Payments Banks,' 'Cyber security framework in banks,' and 'Securing mobile banking applications including UPI ecosystem'.&nbsp;

It is essential to note that this penalty focuses solely on deficiencies in regulatory compliance and does not intend to assess the validity of any transactions or agreements between the bank and its customers, as emphasised by the RBI.&nbsp;

According to a Moneycontrol report, the action against Paytm Payments Bank was initiated following a comprehensive review by the RBI, which revealed several instances of non-compliance.&nbsp;

The bank failed to correctly identify the beneficial owner for entities utilising its payout services, omitted the monitoring of payout transactions and risk profiling for these entities, and exceeded the regulatory ceiling for the end-of-the-day balance in certain customer advance accounts related to payout services. The central bank's statement highlighted these transgressions, stating, "It was also revealed that the bank did not monitor payout transactions and carry out risk profiling of entities availing payout services."&nbsp;

Furthermore, the bank reported a cyber security incident with a delay, neglected to implement control measures related to 'SMS delivery receipt check,' and its Virtual Customer Identification Process (V-CIP) infrastructure did not prevent connections from IP addresses outside India. The RBI was unequivocal in its notice to Paytm Payments Bank, stating, "A notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the directions." &nbsp;

Following the bank's response to the notice and oral submissions made during a personal hearing, the RBI concluded that the charges of non-compliance were valid, thereby justifying the imposition of the monetary penalty.&nbsp;

In response to these developments, the central bank emphasised that this penalty is exclusively tied to regulatory violations, asserting that it should not be misinterpreted as a judgment on the validity of the bank's transactions or agreements with its customers.&nbsp;

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.39 crore ($650,000) on Paytm Payments Bank for its failure to comply with Know Your Customer (KYC) norms and other specific regulatory provisions, as explicitly revealed in a press release issued by the central bank.

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.39 crore ($650,000) on Paytm Payments Bank for its failure to comply with Know Your Customer (KYC) norms and other specific regulatory provisions, as explicitly revealed in a press release issued by the central bank. “This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949," the press release said. The penalty, according to the RBI's statement, is a response to Paytm Payments Bank's non-compliance with several key regulatory directives, including the 'Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016,' 'RBI Guidelines for Licensing of Payments Banks,' 'Cyber security framework in banks,' and 'Securing mobile banking applications including UPI ecosystem'. It is essential to note that this penalty focuses solely on deficiencies in regulatory compliance and does not intend to assess the validity of any transactions or agreements between the bank and its customers, as emphasised by the RBI. According to a Moneycontrol report, the action against Paytm Payments Bank was initiated following a comprehensive review by the RBI, which revealed several instances of non-compliance. The bank failed to correctly identify the beneficial owner for entities utilising its payout services, omitted the monitoring of payout transactions and risk profiling for these entities, and exceeded the regulatory ceiling for the end-of-the-day balance in certain customer advance accounts related to payout services. The central bank's statement highlighted these transgressions, stating, "It was also revealed that the bank did not monitor payout transactions and carry out risk profiling of entities availing payout services." Furthermore, the bank reported a cyber security incident with a delay, neglected to implement control measures related to 'SMS delivery receipt check,' and its Virtual Customer Identification Process (V-CIP) infrastructure did not prevent connections from IP addresses outside India. The RBI was unequivocal in its notice to Paytm Payments Bank, stating, "A notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the directions." Following the bank's response to the notice and oral submissions made during a personal hearing, the RBI concluded that the charges of non-compliance were valid, thereby justifying the imposition of the monetary penalty. In response to these developments, the central bank emphasised that this penalty is exclusively tied to regulatory violations, asserting that it should not be misinterpreted as a judgment on the validity of the bank's transactions or agreements with its customers.

RBI slaps Paytm Payments Bank with a massive penalty. Here's why 

The launch of Card Soundbox, was announced on Monday by One97 Communications Limited (OCL), the company that controls the Paytm brand, Mint reported. According to a statement from the company, its recognisable Soundbox with “tap and pay” enables retailers to accept both mobile and card payments across all Visa, Mastercard, American Express, and RuPay networks, enabling them to grow their businesses.

With Paytm Card Soundbox, the business helps retailers with two issues: taking card payments and receiving immediate audio alerts for all payments. By fusing Soundbox with NFC (near field communication) or contactless debit and credit card payments with mobile payments, the launch of Paytm’s innovative device will revolutionise in-store transactions and increase merchant payment acceptance.

The new Soundbox, a first for the industry, gives both: the merchant and the consumer audible and visual payment confirmation via an LCD display. Merchants can take card payments up to Rs 5,000 ($60) using the built-in “tap and pay” feature of the Paytm Card Soundbox. The Made in India device uses a 4G network to provide the quickest payment alerts.

Paytm Card Soundbox improves payment alert clarity with a 4W speaker. Five days is the length of the battery life. The gadget gives warnings in 11 languages that may be modified by the retailer through the Paytm for Business app, which was created with the goal of catering to a broad merchant base. Additionally, Paytm Card Soundbox allows users of smartphones with NFC capabilities to use the tap feature to pay using their devices.

“Paytm has always been at the forefront of innovating for India’s small businesses, solving their payment and financial services problems,” Mint quoted Vijay Shekhar Sharma, founder and CEO of Paytm. According to him, the introduction of Card Soundbox will significantly help merchants meet their two needs for mobile payments and card payments.

According to Gautam Aggarwal, Division President of South Asia at Mastercard, “The Paytm Card Soundbox is yet another innovation that will enable small merchants to provide a seamless digital payment experience to their customers by easily accepting contactless card payments.”

Mint also quoted NPCI (National Payments Corporation of India) said, “Paytm Card Soundbox is India’s first Soundbox that will also accept contactless card payments and would further accelerate cashless transactions in the country.”

&nbsp;

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The launch of Card Soundbox, was announced on Monday by One97 Communications Limited (OCL), the company that controls the Paytm brand, Mint reported. According to a statement from the company, its recognisable Soundbox with “tap and pay” enables retailers to accept both mobile and card payments across all Visa, Mastercard, American Express, and RuPay networks, enabling them to grow their businesses.

The launch of Card Soundbox, was announced on Monday by One97 Communications Limited (OCL), the company that controls the Paytm brand, Mint reported. According to a statement from the company, its recognisable Soundbox with “tap and pay” enables retailers to accept both mobile and card payments across all Visa, Mastercard, American Express, and RuPay networks, enabling them to grow their businesses. With Paytm Card Soundbox, the business helps retailers with two issues: taking card payments and receiving immediate audio alerts for all payments. By fusing Soundbox with NFC (near field communication) or contactless debit and credit card payments with mobile payments, the launch of Paytm’s innovative device will revolutionise in-store transactions and increase merchant payment acceptance. The new Soundbox, a first for the industry, gives both: the merchant and the consumer audible and visual payment confirmation via an LCD display. Merchants can take card payments up to Rs 5,000 ($60) using the built-in “tap and pay” feature of the Paytm Card Soundbox. The Made in India device uses a 4G network to provide the quickest payment alerts. Paytm Card Soundbox improves payment alert clarity with a 4W speaker. Five days is the length of the battery life. The gadget gives warnings in 11 languages that may be modified by the retailer through the Paytm for Business app, which was created with the goal of catering to a broad merchant base. Additionally, Paytm Card Soundbox allows users of smartphones with NFC capabilities to use the tap feature to pay using their devices. “Paytm has always been at the forefront of innovating for India’s small businesses, solving their payment and financial services problems,” Mint quoted Vijay Shekhar Sharma, founder and CEO of Paytm. According to him, the introduction of Card Soundbox will significantly help merchants meet their two needs for mobile payments and card payments. According to Gautam Aggarwal, Division President of South Asia at Mastercard, “The Paytm Card Soundbox is yet another innovation that will enable small merchants to provide a seamless digital payment experience to their customers by easily accepting contactless card payments.” Mint also quoted NPCI (National Payments Corporation of India) said, “Paytm Card Soundbox is India’s first Soundbox that will also accept contactless card payments and would further accelerate cashless transactions in the country.” WATCH WION LIVE HERE

Paytm’s newly launched “Card Soundbox,” enables credit, debit card payments

In 2000, after receiving a loan worth 8,00,000 rupees ($9,000), Vijay Shekhar Sharma founded Paytm's parent organisation – One97 Communications, which offered digital goods and services. Later in 2010, with an initial investment of $2 million, Sharma launched Paytm, an acronym for 'pay through mobile,' which started as a prepaid mobile and DTH (direct-to-home) recharge platform headquartered in Noida, India. &nbsp;

In less than ten years, Paytm has developed into one of the most valuable financial start-ups in the nation. &nbsp; &nbsp;

In 2014, the Paytm Wallet became one of India's most popular digital wallets. The following few years saw Paytm grow its user base and enter the e-commerce space by enabling online shopping and ticketing. Digital payments surged in 2016 after India demonetised 500- and 1000-rupee notes. &nbsp;

"Paytm Karo" became the infamous tagline that every Indian was familiar with when thinking about online shopping after demonetisation. &nbsp;

Paytm was the first payment app in the nation that achieved 100 million downloads in 2017. As of March 1, 2021, Paytm had 1.2 billion monthly transactions and more than 150 million active users. &nbsp; &nbsp;

With a 15 per cent month-over-month gain, the digital payments giant now holds the largest market share in the offline merchant payments sector. The business has expanded into several services, including ticketing for movies and flights, gold sales, insurance, bank deposits and remittances. &nbsp; &nbsp;

IPO Listing &nbsp; &nbsp;

In 2021, Paytm made history by conducting India's largest Initial Public Offering (IPO). Its initial public offering exceeded Coal India's IPO of Rs 15,200 crore ($1.8 billion) in 2010. &nbsp;

After completing the IPO, Paytm's founder Vijay Shekhar Sharma broke into tears during his speech at the Bombay Stock Exchange (BSE), as per a report by NDTV. &nbsp;

The company surpassed the market capitalisation milestone of Rs. 1 lakh crore ($12 billion). The digital payments company's market cap on the BSE touched Rs. 1.19 lakh crore ($14 billion). &nbsp;

Purchase of stake from Antfin &nbsp; &nbsp;

In August 2023, Paytm's CEO announced that he intends to purchase a 10.3 per cent stake from Antfin, an Ant Financial subsidiary, for $628 million. This move aimed to streamline ownership within the Indian payments firm. Following the announcement, Paytm's shares surged by 11.4 per cent, having already risen over 50 per cent in the year. Antfin (Netherlands) Holding B.V.'s acquisition price is 796.6 rupees ($9.3) per share, mirroring Paytm's recent closing price. This purchase will reduce Antfin's ownership to 13.5 per cent, relinquishing its status as the largest stakeholder. Notably, China's Alibaba sold its entire stake in Paytm in February, while Softbank Group Corp has gradually lowered its stake, now at 9.18 per cent. After this acquisition, Sharma, Paytm's founder, will become the primary stakeholder with 19.42 per cent. &nbsp; &nbsp;

The success of Paytm &nbsp;

Research by International Journal for Research in Engineering Application &amp; Management attributes Paytm's success to its revenue model and innovative strategies to enhance its services in the Indian digital financial services sector. &nbsp;

Revenue model &nbsp;

A diversified revenue model of Paytm has played a huge role in its growth and market leadership. By adopting various revenue streams, Paytm has ensured financial stability and catered to different user base segments. &nbsp;

For instance, the advertising revenue model allows sellers to promote their products on Paytm's platform for a fee. The subscription model lets sellers pay an annual subscription fee to list their products. And Paytm's advance payment model capitalises on customer payments by accruing interest until funds are transferred to sellers. &nbsp;

Innovative strategies &nbsp; &nbsp;

What began as a platform for online bill payments has evolved into a comprehensive mobile money solution, including the establishment of Paytm Payments Bank. This initiative bridges the gap for individuals needing access to traditional financial services. The launch of the Paytm for Business app and banking features targeting corporate customers exemplify Paytm's versatility and adaptability to varying market demands.

Paytm was among the first financial companies to push for cashless transactions by making digital payments through a unified payments interface (UPI), which has presently proven to be a huge success.

&nbsp;

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In 2000, after receiving a loan worth 8,00,000 rupees ($9,000), Vijay Shekhar Sharma founded Paytm's parent organisation – One97 Communications, which offered digital goods and services.

In 2000, after receiving a loan worth 8,00,000 rupees ($9,000), Vijay Shekhar Sharma founded Paytm's parent organisation – One97 Communications, which offered digital goods and services. Later in 2010, with an initial investment of $2 million, Sharma launched Paytm, an acronym for 'pay through mobile,' which started as a prepaid mobile and DTH (direct-to-home) recharge platform headquartered in Noida, India. In less than ten years, Paytm has developed into one of the most valuable financial start-ups in the nation. In 2014, the Paytm Wallet became one of India's most popular digital wallets. The following few years saw Paytm grow its user base and enter the e-commerce space by enabling online shopping and ticketing. Digital payments surged in 2016 after India demonetised 500- and 1000-rupee notes. "Paytm Karo" became the infamous tagline that every Indian was familiar with when thinking about online shopping after demonetisation. Paytm was the first payment app in the nation that achieved 100 million downloads in 2017. As of March 1, 2021, Paytm had 1.2 billion monthly transactions and more than 150 million active users. With a 15 per cent month-over-month gain, the digital payments giant now holds the largest market share in the offline merchant payments sector. The business has expanded into several services, including ticketing for movies and flights, gold sales, insurance, bank deposits and remittances. IPO Listing In 2021, Paytm made history by conducting India's largest Initial Public Offering (IPO). Its initial public offering exceeded Coal India's IPO of Rs 15,200 crore ($1.8 billion) in 2010. After completing the IPO, Paytm's founder Vijay Shekhar Sharma broke into tears during his speech at the Bombay Stock Exchange (BSE), as per a report by NDTV. The company surpassed the market capitalisation milestone of Rs. 1 lakh crore ($12 billion). The digital payments company's market cap on the BSE touched Rs. 1.19 lakh crore ($14 billion). Purchase of stake from Antfin In August 2023, Paytm's CEO announced that he intends to purchase a 10.3 per cent stake from Antfin, an Ant Financial subsidiary, for $628 million. This move aimed to streamline ownership within the Indian payments firm. Following the announcement, Paytm's shares surged by 11.4 per cent, having already risen over 50 per cent in the year. Antfin (Netherlands) Holding B.V.'s acquisition price is 796.6 rupees ($9.3) per share, mirroring Paytm's recent closing price. This purchase will reduce Antfin's ownership to 13.5 per cent, relinquishing its status as the largest stakeholder. Notably, China's Alibaba sold its entire stake in Paytm in February, while Softbank Group Corp has gradually lowered its stake, now at 9.18 per cent. After this acquisition, Sharma, Paytm's founder, will become the primary stakeholder with 19.42 per cent. The success of Paytm Research by International Journal for Research in Engineering Application & Management attributes Paytm's success to its revenue model and innovative strategies to enhance its services in the Indian digital financial services sector. Revenue model A diversified revenue model of Paytm has played a huge role in its growth and market leadership. By adopting various revenue streams, Paytm has ensured financial stability and catered to different user base segments. For instance, the advertising revenue model allows sellers to promote their products on Paytm's platform for a fee. The subscription model lets sellers pay an annual subscription fee to list their products. And Paytm's advance payment model capitalises on customer payments by accruing interest until funds are transferred to sellers. Innovative strategies What began as a platform for online bill payments has evolved into a comprehensive mobile money solution, including the establishment of Paytm Payments Bank. This initiative bridges the gap for individuals needing access to traditional financial services. The launch of the Paytm for Business app and banking features targeting corporate customers exemplify Paytm's versatility and adaptability to varying market demands. Paytm was among the first financial companies to push for cashless transactions by making digital payments through a unified payments interface (UPI), which has presently proven to be a huge success. WATCH WION LIVE HERE

Flashback Friday: Pioneering the e-wallet ecosystem – The story of Paytm  

Paytm’s founder and CEO, Vijay Shekhar Sharma, plans to buy a 10.3 per cent stake from the fintech company Antfinin, a subsidiary of China’s Ant Financial for $628 million. The purchase is being made in order to streamline the ownership structure of the Indian payments company, Antfinin said on Monday.

Paytm’s shares rose to 11.4 per cent on Monday after the announcement, while their share value has already gone up by more than 50 per cent this year.

The price of Sharma’s stake acquisition from Antfin (Netherlands) Holding B.V. is 796.6 rupees ($9.3) per share, &nbsp;Paytm’s most recent closing price.

After the sale, Antfin’s ownership in the company will drop to 13.5 per cent, no longer making it the largest stakeholder.

Previously, China’s Alibaba sold all of its stake in February, exiting Paytm.

Through open market transactions, the Japanese investment company Softbank Group Corp has also been reducing its stake in Paytm; which presently stands at 9.18 per cent.

Following the sale, Paytm’s founder, Sharma will be the largest stakeholder with a holding of 19.42 per cent.

“No cash payment will be made for this acquisition, and neither will any pledge, guarantee, or other value assurance be provided by Mr. Sharma, directly or otherwise,” Reuters quoted Paytm as saying in a statement.

The company further stated that Sharma and the current board will continue in their respective positions and that there would be no change in the management or control of Paytm.

(With inputs from Reuters)

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Paytm’s founder and CEO, Vijay Shekhar Sharma, plans to buy a 10.3 per cent stake from the fintech company Antfinin, a subsidiary of China’s Ant Financial for $628 million.

Paytm’s founder and CEO, Vijay Shekhar Sharma, plans to buy a 10.3 per cent stake from the fintech company Antfinin, a subsidiary of China’s Ant Financial for $628 million. The purchase is being made in order to streamline the ownership structure of the Indian payments company, Antfinin said on Monday. Paytm’s shares rose to 11.4 per cent on Monday after the announcement, while their share value has already gone up by more than 50 per cent this year. The price of Sharma’s stake acquisition from Antfin (Netherlands) Holding B.V. is 796.6 rupees ($9.3) per share, Paytm’s most recent closing price. After the sale, Antfin’s ownership in the company will drop to 13.5 per cent, no longer making it the largest stakeholder. Previously, China’s Alibaba sold all of its stake in February, exiting Paytm. Through open market transactions, the Japanese investment company Softbank Group Corp has also been reducing its stake in Paytm; which presently stands at 9.18 per cent. Following the sale, Paytm’s founder, Sharma will be the largest stakeholder with a holding of 19.42 per cent. “No cash payment will be made for this acquisition, and neither will any pledge, guarantee, or other value assurance be provided by Mr. Sharma, directly or otherwise,” Reuters quoted Paytm as saying in a statement. The company further stated that Sharma and the current board will continue in their respective positions and that there would be no change in the management or control of Paytm. (With inputs from Reuters) WATCH WION LIVE HERE

Vijay Shekhar Sharma to buy 10.3 per cent stake in Paytm from Antfin for $628 million 

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