RBI HITS PAYTM HARD
- THE CENTRAL BANK'S ACTION IMPACTED THE PAYTM BRAND
- MAJOR BANKS AND NBFCS MAY SHY AWAY FROM LENDING AND CREDIT CARD PARTNERSHIPS
- ADDITIONAL CAPEX REQUIRED FOR DEVICE STRATEGY, MARKETING AND BRANDING TO DRIVE GROWTH AND REGAIN TRUST
- CHALLENGES REMAIN IN OBTAINING REGULATORY LICENCES FROM OTHER BFSI REGULATORS
- PAYTM'S HOPES FOR A FULL-SCALE BANKING LICENCE DASHED
- EQUITY INVESTORS IN HOLDING COMPANY TO REASSESS THEIR RETURNS EXPECTATIONS AND FUTURE INVESTMENTS
VIJAY SHEKHAR SHARMA's digital payments journey has weathered many a storm over the years. Now, the 46-year-old's situation is akin to rowing a boat constantly springing leaks. Sharma fixes one hole, only for another to spring up.
Let's go back a bit. Sharma's One 97 Communications Ltd (OCL), founded in 2000, pioneered the use of QR codes at merchant outlets much before the demonetisation in 2016, giving its brand, Paytm, a head start. Soon after QR codes became popular, the government came up with the Unified Payments Interface (UPI), sparking a revolution in the digital payments space. UPI levelled the playing field, and service providers such as Google Pay and PhonePe cornered a lion's share of this. While demonetisation did give a boost to payments firms, it became clear that Paytm's UPI business was financially unviable because of the near absence of the merchant discount rate (MDR)-a fee that a merchant is charged for accepting payments.
Sharma then diversified Paytm, which has SoftBank and Alibaba as investors, into a loan distribution and investment products firm, using the payments insights of customers and merchants. Just as things began to normalise after Covid-19, regulatory scrutiny over Chinese ownership created uncertainty. Sharma quickly reduced Alibaba affiliate Ant Financials' stake and increased his own to 19.4%.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
The EV Craze
The country’s growing luxury car market is seeing a shift with environmentally-conscious consumers betting on electric vehicles as a sustainable travel option. Though just 6%, the share of EVs in the luxury segment is rising rapidly
The Storage Boom
Data centres are being built at a frenetic pace in india as companies scramble to meet the ballooning demand from mobile phone users and firms adopting al. Can the country’s energy infrastructure keep up?
India Beckons
Owing to rising incomes in India and overall wealth expansion, luxury brands are wooing the country like never before
The Pearls of The Sea
Caviar, that rare food, is considered the epitome of fine dining. Here is everything that you need to know about it
66.Brand persona should define the core"
I’d say this was a strategic pivot. We had an iconic brand, but had, over time, evolved into diversified lines of businesses that could no longer be represented within the confines of our ‘name’.
Unwind in Style
Here is acomprehensive list of top tech picks that help you unwind by blending perfection in performance with luxury
A Lifelong Affair with Inspiration
In my art journey, the diversity of my acquisitions mirrored the expanding horizons of my understanding of art
Make it Bubbly
Champagne is much more than just a symbol of celebration and success. Know about its nuances beyond the bubbles
Palatial Splendour
Buoyed by renewed demand, sales of the glitzy mansions of the ultra-rich are surging like never before. Real estate majors are looking to capitalise on this by launching luxury offerings in record numbers
Of Beaches and Cream
GianChand Single Malt Whisky
