Paytm’s share in India’s unified payments interface (UPI) market has decreased for the fourth month in a row, now standing at 8.1% in May, down from 13% in January. This decline follows a major setback in January when the Reserve Bank of India ordered Paytm Payments Bank Ltd., linked to Paytm, to stop operations. Since then, Paytm’s stock has dropped by about 55%.
Though Paytm Payments Bank Ltd. isn’t directly controlled by Paytm, it’s part of the financial network of founder and CEO Vijay Shekhar Sharma. UPI, managed by the state-run National Payments Corporation of India (NPCI), allows instant money transfers via apps like Paytm, PhonePe, and Google Pay. In May, UPI hit a record with 14.04 billion transactions, a 5.5% increase from the previous month.
PhonePe, owned by Walmart, led the market with a 49% share, while Google Pay held a 37% share. In response to the RBI’s order, Sharma has formed new partnerships with major banks such as Axis Bank, HDFC Bank, and State Bank of India to handle instant money transfers previously managed by Paytm Payments Bank.
These new alliances aim to stabilize Paytm’s services. Paytm did not comment on the situation, but in a recent earnings report, Sharma noted that the company expects short-term financial challenges due to disruptions in the last quarter.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
