In the midst of the changes, Paytm’s CEO, Vijay Shekhar Sharma, is stepping up significantly to collaborate directly with the new senior leadership…reports Asian Lite News
The shares of Paytm have crashed about 50 per cent this year, amid high-profile exits, the RBI ban on certain businesses of Paytm Payments Bank Ltd (PPBL), and fresh reports about some lending partners revoking loan guarantees due to repayment defaults from customers.
The Paytm stock closed at Rs 317.15 on Wednesday, a decline of another 5 per cent and breaking its all-time low of Rs 318 on February 16 this year.
As the share price continues to hit the lower circuit amid fresh uncertainties, the market capitalisation of One 97 Communications, the parent company of Paytm, has declined to about $2.5 billion.
The digital payment services major was once valued at nearly $20 billion, at the time of its initial public offering (IPO) in 2021. The stock has been tumbling since then, especially since January this year, when the Central Bank acted against certain businesses of the Paytm Payments Bank.
Meanwhile, top-level exits continue at Paytm.
Ajay Vikram Singh, chief business officer (CBO) of the UPI and user growth vertical, Bipin Kaul, CBO of offline payments, and Sandeepan Kashyap, CBO of the consumer payments vertical, have stepped down amid “ongoing restructuring”.
These senior executives moved on after the sudden resignation of Bhavesh Gupta, President and COO at Paytm, who has taken a career break due to “personal reasons”, and will be transitioning to an advisory role.
Other senior exits at the company in recent months include Paytm Payments Bank MD and CEO, Surinder Chawla, One 97 Communications’ chief marketing officer, Sumit Mathur, and Praveen Sharma, senior vice president of business, according to reports.
Amid the upheaval, Paytm CEO Vijay Shekhar Sharma is now taking charge in a big way, to work directly with the new senior leadership.
“We are committed to ensuring sustained growth across key business verticals as we are going through a restructuring initiative that signals a reinvigorated approach under Paytm’s CEO. These changes are part of our approach to strengthen Paytm’s next line of leaders,” the company said in a statement.
The company plans to expand its leadership team to build a large and profitable payment and financial services distribution business. “These robust leaders will work directly with the CEO and other senior management leaders fostering innovation and strengthening the group structure for sustainability and regulatory compliance,” according to the company.
UPI migration On Track
In an official statement, fintech company Paytm on Wednesday informed that it is actively collaborating with its banking partners to ensure a smooth transition to its new Unified Payments Interface (UPI) platform for merchants and consumers alike.
Amid dynamic market challenges, the company said it remains resilient, steadfast in its commitment to fortify the UPI ecosystem and expand financial inclusion across India.
A Paytm spokesperson said, “We are collaborating with our banking partners to facilitate the migration of both merchants and consumers, which is progressing steadily. Our core business model focuses on acquiring consumers and merchants and offering them a range of financial services.”
“With new payment partnerships with leading banks and financial institutions, we have expanded opportunities to enhance our services. We are committed to growing the UPI ecosystem in partnership with NPCI, extending it to every nook and corner of India,” the spokesperson added.
This transition period is essential to ensure compliance with regulatory guidelines and to seamlessly transition existing users to new UPI handles.
Recognizing the vital role of UPI in India’s digital economy, Paytm said it remains committed to maintaining its market share and fostering a competitive ecosystem.
Despite temporary constraints on new customer onboarding, Paytm affirms its status as a preferred mobile payments platform among users and is actively taking significant steps to broaden its market presence.
To empower its wallet users, Paytm said it has enabled small-value payments through the UPI Lite feature on its app. UPI Lite not only speeds up processing times but also keeps bank statements clutter-free, making it easier and quicker for users to handle transactions up to a maximum limit of Rs 500 per transaction.
Additionally, the company is focusing on integrating RuPay Credit Cards on UPI. This initiative will allow customers to more frequently use their credit cards while benefiting merchants by increasing consumption and expanding their participation in the credit ecosystem through the acceptance of credit card payments.
According to the Company’s statement, as Paytm looks ahead it remains focused on its mission to empower millions of Indians with convenient and secure digital payment solutions.
The Company said, by fostering collaboration with banking partners and prioritizing customer satisfaction, Paytm is poised to emerge stronger from this transitional phase, reaffirming its position as a trailblazer in India’s digital payments revolution. (ANI)
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