Business
Paytm’s ‘Comeback’ Strategy: Focus on Bank Partnerships and Streamlining Operations
Paytm’s ‘Comeback’ Strategy: Focus on Bank Partnerships and Streamlining Operations
To move its Bharat Bill Payment System (BBPS) from Paytm Payments Bank, One97 Communications, the parent company of Paytm’s , is concentrating on forming alliances with banks. Through these partnerships, the corporation is also seeking to focus on gaining new retailers, according to Business Standard. These collaborations are highlighted since Paytm is operating quickly following the Reserve Bank of India’s (RBI) decision to extend the deadline for blocking credit and deposit operations from February 29 to March 15. According to the RBI, retailers and customers could require “a little more time to make alternative arrangements.”
“There is a revised deadline in place, and the company is looking to accelerate the finalization of banking partnerships since the deadline is less than a month away,” the paper quotes an informed source as saying. For these collaborations, it is in discussions with Axis Bank, HDFC Bank, and other banks. This involves making plans for BBPS and putting more of an emphasis on finding merchants.”
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This coincides with Bernstein reporting a 10% decline in Paytm application traffic. “The daily active user (DAU) count has only decreased by minus 11% after the Paytm PB ban,” the study stated. “The app’s daily downloads have suffered a dramatic decline (minus 50%). The merchant app’s daily downloads have dropped dramatically (by forty percent), much like the consumer app. However, the DAU count has only decreased by three percent since the Paytm PB ban, suggesting that merchant relationships are more enduring.” The statement said, “Our belief that the disruption to gross merchandise value/merchant loan growth might indeed be a short-term phenomenon is supported by the limited impact on app traffic for both consumers and merchants.”
