Paytm Denies Reports of Avoiding Businesses Requiring Regulatory Licenses
Paytm Denies Reports of Abandoning Licensed Business, Reaffirms Commitment to Regulatory Compliance
One97 Communications Ltd (OCL), the parent company of Paytm, has refuted recent media reports suggesting that the digital payments firm is planning to steer away from businesses that require regulatory licenses. In a statement, Paytm reaffirmed its dedication to its core regulated business lines of payments and financial services, emphasizing that there have been no changes to its operating strategy.
The reports had indicated that Paytm’s leadership was considering shifting towards a distribution model and abandoning licensed businesses. However, Paytm clarified that no such decision or communication has been made regarding a change in its operating strategy. The company confirmed that its operations in payments and financial services distribution, including segments such as insurance, credit, and wealth products, continue to adhere to necessary regulatory frameworks.
Highlighting the natural progression of financial services distribution in the payments industry, Paytm emphasized its commitment to building infrastructure stacks such as Unified Payments Interface (UPI) and Open Network for Digital Commerce (ONDC) as part of its product roadmap. The company reiterated that there have been no alterations to its stance on these initiatives.
A spokesperson for Paytm stated, “There is no change in our business strategy. We continue to focus on our regulated payments and financial services business, and the information suggesting otherwise is false and misleading.” The company emphasized its engagement with leading financial institutions for the distribution of various financial products under regulatory supervision.
During its Q4 earnings call, Paytm had expressed its intention to increase regulatory engagement and compliance focus, while also aiming to monetize through cross-selling financial services in accordance with regulatory guidelines. The company plans to expand its offerings through insurance and equity broking and distribution, staying true to its commitment to regulatory compliance.
With this clarification, Paytm aims to dispel any misconceptions about its business strategy and reinforce its dedication to operating within regulatory frameworks in the payments and financial services sector.