Paytm In Trouble ?

Most valuable Indian Startup - Paytm currently valued at around 16 Bn US$ is now under tremendous challenge from Googles G-Pay ,Walmarts Phone-Pe.Now on the verge of Whatsapp launching its payments services in India things are expected to get bitter.

• What's the story ?

Paytm’s parent One97 Communications posted Rs 3,959.6 crore in net losses for the fiscal year ending March 31, 2019 against Rs 1,490 crore for the same period in the previous year, according to details released by the company that were shared with shareholders.With increasing losses Paytm is now facing biggest roadblock to retain users as its rival G-Pay and PhonePe is already getting more popularity for their competitive advantages in UPI transactions.Paytm has also launched it UPI based transaction facility and has also released QR code based UPI transaction,which allow users to accept payments from Any App including Paytm Rivals.

In recent interview Vijay Shekhar Sharma, chairman of Paytm Payments Bank, denied any possibilities of buying stake in YES Bank."We believe that we are the single-largest payments bank with a profit. We believe we will convert into a small finance bank or universal bank by itself (over time)," Sharma told in an interview. It is now clear that the company will eventually transform into a small finance bank or universal bank after completing the Compliance laid by RBI to complete 5 years as Payment bank.

• What's Next ?

Paytm is now working closely to cut down its costs and has recently levied charges to add money to its wallet using credit cards of more than 10,000 INR. With competitors knocking at the door it will be interesting to see how Vijay Shekhar Sharma led paytm retain its market share.