Paytm‘s loss grew big while revenue fell by 36%. The Indian startup star struggles. The Reserve Bank of India (RBI) made strict rules. This hurt Paytm’s payments bank business.
Paytm’s loss doubled to $100 million in June. They told everyone on Friday. Revenue dropped to $179.5 million. Last year it was $280 million in the same quarter. In March 2024, it was $271 million.
RBI told Paytm to stop most payments bank work. Paytm Payments Bank did most of their transactions. This quarter showed the full effect of RBI’s rules.
Last year in June, Paytm lost $42 million. In March this year, they lost $65.8 million.
Paytm’s shares first fell by 4.4%. Then they went back up. Investors expected this already. Paytm warned of lower revenue last quarter.
Paytm led mobile payments in India. Many people used their wallet app first for digital payments. But now they face tough rivals. PhonePe and Google Pay, backed by Walmart, are big competitors.
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TogglePaytm Shifts Focus to Merchant Credit as Losses Mount and Revenue Shrinks
PhonePe and Google Pay handle more than 86% of UPI transactions. UPI is a state-backed payment network. It is now the most popular way to pay online in India. It processes over 11 billion transactions each month. UPI’s rise made wallets and card networks less important.
Paytm now focuses on helping merchants. They give them credit and see growth here. Paytm owners say this shows a path to recovery.
A Paytm spokesperson said they feel the trust from merchants and customers. They thank their partners and users.
Earlier this year, RBI barred Paytm Payments Bank from many banking services. They couldn’t take new deposits or credit transactions. RBI cited “persistent non-compliance” with rules.
Paytm then partnered with other banks. This helped keep some services running.
Paytm’s journey shows the challenge of staying on top. They work hard to bounce back and serve their users and merchants. The road is tough but they see hope in parts of their business. They rely on the trust and support of their partners.
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