Paytm receives a boost as NPCI approves onboarding of new UPI users.
India’s leading digital payments company, Paytm, announced on Tuesday that it has received approval from the National Payments Corporation of India (NPCI) to onboard new unified payment interface (UPI) users.
This development provides a much-needed relief for Paytm, which has faced significant challenges in recent months, including a central bank-ordered halt on its banking operations.
After Paytm submitted a request in August, NPCI granted its approval, allowing the financial services firm to continue expanding its UPI user base.
This is a significant step for the company, which has been striving to maintain its position in India’s fast-growing digital payments sector.
Setback from Central Bank Clampdown
Earlier this year, in January, Paytm’s banking unit was ordered to shut down by the country’s financial regulator due to persistent compliance issues.
This decision raised concerns about Paytm’s overall business operations, especially its core digital payments services.
Following the regulatory clampdown, Paytm’s stock value saw a sharp decline, with shares dropping by approximately 10% since the restrictions were imposed.
Declining Revenue and User Base
Despite receiving the NPCI approval, Paytm continues to face financial difficulties.
On the same day, its stock fell by more than five percent after the company reported a 34% decline in revenue and a 25% drop in monthly transacting users for the September quarter.
The drop in performance metrics further aggravated the company’s stock performance, leaving investors cautious about its future prospects.
This approval from NPCI, however, offers a glimmer of hope for Paytm to regain lost ground in India’s competitive digital payment market.
