Paytm is back in the news, again! Paytm Payments Bank (PPBL) recently made a big move by migrating its bill payment business to Euronet Services India. Let’s dive into details and see what this means for you.
So, here’s the scoop: Paytm Payments Bank recently shifted its retail point of sales business to RBL Bank and settled its merchant payments business with Axis Bank. Now, it’s partnering with Euronet, an American payment technology company, to handle its bill payment business (Source: Economic Times).
What does this partnership mean for you?
Well, it means that bill payments settled by PPBL will now be processed through Euronet. Euronet is known for its backend settlement systems for various digital payment modes in India, making it a reliable partner for PPBL.
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According to data shared by Bharat Billpay, in March alone, Euronet settled around 19 million consumer-facing bill payments, a significant increase from 4.6 million in January. This surge in transactions is largely attributed to the partnership with Paytm.
However, it’s not all smooth sailing for PPBL. The bank has seen a decline in bill payments on its platform, dropping from 16 million in January to just 2.7 million in March, a decline of 83% (Source: Economic Times). This decline is likely due to the transition process and adjustments following the migration.
From a business perspective
This move may impact PPBL’s revenue streams. As a settlement platform, banks typically earn a commission for every bill payment processed through Bharat Billpay. With the migration, PPBL’s commission revenue may be reduced, affecting its bottom line.
Moreover, challenges in PPBL have also affected its parent company, Paytm, with several senior executives resigning in recent months. This includes the resignation of Bhavesh Gupta, the chief operating officer, who will now serve as an advisor to the CEO’s office.
Also Read: Paytm shares fall after COO Bhavesh Gupta quits. What’s next for him?
Despite these challenges, Paytm remains a significant player in the fintech industry. However, its shares have been on a downward trend in the stock market, closing at Rs 317.45 apiece on Wednesday, May 9, down 5%. Do you think Paytm will make a comeback? Guess, we will have to wait and watch.
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Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before investing in market-linked instruments.
