Friday, 2 August 2024, Bengaluru, India
The share of Fintech startup Paytm increased by 9 percent following the approval from the government to invest Rs 50 crore in Paytm payment services. The shares of the digital payment platform increased and reached Rs 542 per share during intraday trading on the BSE today. This is the new share high for the firm in the past six months. The stocks increased 7 percent compared to the last close at Rs 534.05 per share.
The company provides different financial services to make seamless, secure, and easy transactions. The parent company of Paytm, One97 Communications, launched a soundbox device to make payments easier by tapping credit or debit card or by just scanning the QR Code. Earlier this month, the company reported that it secured Rs 50 crore approval from the government for its payment company. This will enable Paytm to get an online payment aggregator license from the Reserve Bank of India. Following this approval, the startup has been expanding its key offerings in India. The fintech startup recently expanded its Employee Stock option plan by allocating more than 2.18 lakh equity shares.
Paytm provides an online platform with different payment options and services including merchant payment, bill payment, recharges, and other digital payment options. The Reserve Bank of India fined Paytm Payment Bank Ltd for not following the KYC norms and non-compliance with rules. The central Bank issued some restrictions on the Paytm Payment Bank such as stopping it from taking debit or credit card transactions, wallets, FASTags, and others. The reports mentioned that the RBI took action against the payment company due to flaws in its KYC processes.
The startup got a warning and received a fine of Rs 5.49 crore from the Financial Intelligence Unit-India for allowing some entities to share illegal activities money through its accounts. This led to the consolidated net loss of Paytm to increase by 134 percent to Rs 840.1 crore for the first quarter of FY25. The operational revenue also saw a 36 percent decline to Rs 1,502 crore in the same duration compared to last year. The digital payment platform faces competition from other fintech companies such as PayPal, Amazon, and PhonePe.
Conclusion:
Paytm’s shares increased by 9% following the recent approval from the government of Rs 50 crore for its payment arm, Paytm Payment Services. The stocks of the fintech company increased to Rs 5340.05 each during intraday trading on the BSE. This marked a 7% increase from the last closing price reaching the upper band at Rs 534. Paytm offers a digital payment platform to make secure, fast, and easy transactions. The company got approval from the government and it plans to apply for an online payment aggregator license from the Reserve Bank of India. The fintech platform showed a 134 percent increase in its net loss for Q1 of FY25 at Rs 840 crore.
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