Vijay Shekhar Sharma, Paytm’s chief executive, said during an earnings call on Saturday that expanding the use cases of the Unified Payments Interface (UPI) beyond bank accounts could lead to revenue generation for Paytm.
What Happened? Sharma explained that as UPI begins to monetise and different payment instruments join the platform, Paytm’s wallet could generate revenue if used on someone else’s QR code.
He stated that QR payments from bank accounts would likely remain free in the long term, but other payment sources like wallets could also generate revenue.
On May 5, Paytm announced its plans to capitalise on UPI growth by offering innovative products. Since launching its UPI Lite platform in February, the company has onboarded 5.5 million customers.
Sharma highlighted that different UPI payment modes would have various payment charges, and service providers to merchants could potentially absorb the merchant’s burden. He did not specify whether merchants would be charged but mentioned that issuers would fetch charges.
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In the 2022-23 fiscal year, Paytm’s parent company, One 97 Communications Ltd, received ₹182 crore in UPI incentives from the government.
Paytm’s renewed focus on UPI is significant, as it previously resisted promoting the payment infrastructure due to a lack of monetisation channels. This allowed its competitor, PhonePe, to take the lead in the UPI market with a 47% share in March, while Paytm held a 15% share.
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