News on Medial

Paytm hits lower circuit for third straight session, wipes out $2.5 bn in market cap

VCCircleVCCircle ยท 1y ago
Paytm hits lower circuit for third straight session, wipes out $2.5 bn in market cap
Medial

Indian digital payments firm Paytm has seen its shares drop for a third consecutive session, resulting in a $2.5 billion decrease in market value. This decline follows a regulatory crackdown by the Reserve Bank of India (RBI) last week, which led to uncertainty surrounding Paytm's business operations. The RBI instructed Paytm Payments Bank to cease accepting fresh deposits in its accounts and digital wallets from March. The RBI alleged non-compliance with regulations related to customer due diligence, use of funds, and technology infrastructure. Paytm's stock fell by 10% on the Bombay Stock Exchange, reaching a record low. The RBI has passed information to the Enforcement Directorate, hinting at concerns of potential money laundering activities.

Related News

PhonePe hits 8 Bn UPI transactions in Jan; WhatsApp back in top 10

EntrackrEntrackr ยท 5m ago
PhonePe hits 8 Bn UPI transactions in Jan; WhatsApp back in top 10
Medial

The Unified Payments Interface (UPI) achieved a significant milestone in January, processing nearly 17 billion transactions valued at Rs 23.48 lakh crore. This marks a 39% year-on-year increase in transaction volume and a 28% rise in transaction value. As anticipated, this growth was driven by the three leading appsโ€”PhonePe, Google Pay, and Paytmโ€”while several newly launched apps also made notable contributions. PhonePe leads the chart with 8.1 billion transaction volume and a value of Rs 11,91,303.98 crore. Google Pay follows closely with 6.18 billion transactions valued at Rs 8,26,845.07 crore. Paytm secures the third spot, processing 1.15 billion transactions worth Rs 1,26,313.45 crore. The remaining apps, including Navi, Cred, and Amazon Pay, contribute notable but comparatively smaller transaction volumes and values. In terms of market share, the top three appsโ€”PhonePe, Google Pay, and Paytmโ€”dominate the landscape. PhonePe commands a 47.67% market share by volume and a 50.74% share by value. Google Pay holds a 36.38% share by volume and a 35.21% share by value. Paytm, while trailing, maintains a 6.78% share by volume and a 5.38% share by value. WhatsApp, recently authorized by NPCI to extend UPI services to its entire user base across India, has re-entered the top 10 UPI apps. The Meta-owned company has secured a spot in the top 10 for the first time since October 2024. As competition intensifies, NPCI has extended the compliance timeline by two years for TPAPs exceeding the UPI volume cap. As a result, the dominance of the top three players is expected to continue until then. NPCI Chief Dilip Asbe recently revealed that around 450 million users are currently using UPI, with nearly 200 million active daily users. He stressed the importance of strong support from the Reserve Bank of India (RBI), the government, and the financial ecosystem to develop strategies for onboarding an additional 200-300 million users onto the UPI platform.

Download the medial app to read full posts, comements and news.