Paytm's Digital Payments Platform Gets an Upgrade: What's in Store for You?
Revamped Payment System Set to Revolutionize Digital Transactions
25 March 2023
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Jayashri Ghorpade
By significantly enhancing processing speed, success rate, and security, the revamped system is expected to improve the digital payment experience.
From scratch, the company has built the operational risk and fraud management system for its platform.
On March 24, Paytm's shares closed at INR 619.30 on the BSE, reflecting a 0.51% decrease.
Paytm, a leading fintech company, announced on Friday (March 24) the launch of its upgraded payments platform, built on a locally developed tech stack. The revamped system can handle up to 10 times the current scale, significantly improving the digital payments experience with quicker processing speed, higher success rate, and enhanced security. According to the company, the new platform has been built from scratch in India, incorporating in-house tech solutions and covering every aspect of the business, including operational risk and fraud management system.
According to the company, the new platform boasts a robust architecture that will promote sustainable growth of digital payments in the country.
“Today by making sure that every component of our technology is made in-house, we have proved that India can build world-class technology software of scale. We have built a new operational risk system and fraud management from the ground up, catering to India’s payments growth,” said founder and CEO Vijay Shekhar Sharma.
He added, “This platform will be able to scale to the next up to 10X payments in India. We are here to serve India with the technology made in India. We are proud that we are making this in India for the world.”
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Despite facing various challenges such as regulatory issues and a plummeting stock price, there has been a recent spell of good news for the fintech player. Although Paytm's share prices fell more than 60% in 2022, 2023 has brought some cheer as its stock is up 8% in the past five trading sessions. Furthermore, the company's loan disbursals reached a record high of 40 Lakh loans worth INR 4,158 Cr in February.
Similarly, Paytm has observed significant growth in crucial operational metrics such as gross merchandise volumes, monthly transacting users, and device deployments.
The issues have mainly arisen from the executive end, with recent reports stating that the Securities and Exchange Board of India (SEBI) is considering amending its rules to prevent startup founders, who have rights similar to promoters, from owning shares under ESOP schemes. Although Paytm was not explicitly named, this potential action could significantly impact the fintech giant.
In addition to the departure of Paytm's company secretary and compliance officer Amit Khera, reports were circulating that investors Ant Group and SoftBank were considering selling their stakes in the company. Despite these developments, Paytm managed to reduce its yearly loss to INR 392 Cr in Q3 FY23, while also supposedly achieving EBITDA profitability in the same quarter, without ESOP cost. However, on Friday (March 24), shares of Paytm closed 0.51% lower at INR 619.30 on the BSE.
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