Paytm, one of India’s leading fintech companies, is shifting its focus back to its core business—consumer payments. According to Vijay Shekhar Sharma, the CEO of Paytm, the company plans to invest heavily in this sector to recover the customers it lost due to regulatory actions by the Reserve Bank of India (RBI).
Sharma made these remarks during an event hosted by the Calcutta Chapter of Young Indians, which is the youth wing of the Confederation of Indian Industry (CII).
Regulatory Challenges and Impact
Earlier this year, the RBI imposed restrictions on Paytm Payments Bank, preventing it from accepting deposits and facilitating credit transactions for its customers. This included restrictions on digital wallets, a key service Paytm offered. As a result, the company lost a significant portion of its consumer base.
Sharma acknowledged the setback during his speech: “While our merchant business remains strong, we lost many consumers due to these regulatory hurdles. Moving forward, we plan to reinvest in the consumer payments space to bring back our lost users.”
Refocusing on Core Operations
To streamline its business, Paytm sold its ticketing service to Zomato in August for Rs 2,048 crore. This decision allowed Paytm to sharpen its focus on its core strengths—payments and financial services distribution. According to Sharma, this step is part of a larger strategy to simplify Paytm’s operations and focus on its most important revenue streams.
He added that while the merchant side of the business is performing well, the company’s top priority is to rebuild the consumer payments segment. “Payments have always been our primary business,” Sharma stated, reinforcing the company’s commitment to making transactions easier for individuals and businesses alike.
Looking Ahead
As Paytm moves forward, it aims to regain consumer trust and enhance its position in the fintech space. By focusing on innovative solutions for consumer payments, Paytm hopes to lead the market in providing secure and convenient payment methods.
Sharma expressed confidence in Paytm’s future, stating that the company would continue to focus on digital payments while exploring new opportunities in the financial services sector. The goal is to bring customers back to the platform and enhance Paytm’s overall user experience.
