Paytm’s Revenue Drops One Year After Regulatory Crackdown

Last year’s regulatory troubles continue to plague Indian FinTech Paytm.

The company’s third-quarter earnings showed a 36% drop in revenue to 18.3 billion rupees (about $212 million), below the 19 billion rupees analysts had projected, Bloomberg reported Monday (Jan. 20). The company reported a net loss of 2.08 billion rupees, while analysts expected 3.32 billion rupees in losses.

As early as 2024, India’s banking regulator is essential closed Paytm Payments Bank — the company’s banking arm — after years of warnings about unregulated data flows between the business and its parent.

At the close of the banking business, the company forced to find something new Fellowship along with other lenders in India. It also sells itself movie tickets and events business of Zomato to help reduce costs and is awaiting approval from India’s central bank to become a payment aggregator, according to the report.

Paytm’s average monthly transaction users fell to 70 million in the quarter from 71 million in the previous quarter, according to the report. Paytm said it issued 38.3 billion rupees in merchant loans in the third quarter, up 16% from the previous quarter.

Paytm is part of a busy payments space in India, compete with likes of Google Pay and THE Walmart– linked PhonePe.

Meanwhile, the Indian edition of PYMNTS Intelligence by “The Embedded Lending Opportunity” report examines the rise of embedded lending among consumers and microbusinesses and small businesses (MSBs) in that country, the most people in the world.

Research has found that 15% of consumers and 37% of MSBs in India use this type of lending. More than two-thirds of each segment is reported that they are more likely to switch providers that offer embedded lending.

“However, users are experiencing friction that detracts from their experience,” wrote PYMNTS. “(Users reported) at least one pain point. Among the most important problem areas is the application process, with 31% of consumers and 65% of MSBs. that … used included lending reporting issues. it an area that providers need to address.”