RBI vision for PPI growth by 150% will be big for Paytm

RESERVE BANK OF INDIA

The increase in prepaid payment instruments transactions could lead to higher than expected growth in wallet transactions and revenue for Paytm, says a Goldman Sachs report

New Delhi, June 27, 2022:  The increase in prepaid payment instruments transactions could lead to higher than expected growth in wallet transactions and revenue for Paytm, says a Goldman Sachs report

The Reserve Bank of India (RBI) on June 24 released its ‘Payments Vision 2025’ report, which talks about the way forward for the Indian digital payments industry. With this comes a big boost for digital payments, which will be a positive for listed players like Paytm.

The RBI expects more than 3x increase in digital payment transactions, increase in PPI (prepaid payment instruments) transactions by 150 per cent, increase of payment transaction turnover vis-a-vis GDP to 8, increase in debit card transactions at PoS by 20 per cent, card acceptance infrastructure to increase to 250 lakh, increase of registered customer base for mobile based transactions by 50 per cent CAGR and more.

This overall growth will be beneficial for Paytm as it has established itself beyond UPI, and created a full stack payment ecosystem. Paytm, which introduced India to digital wallets and the QR code, has a host of flexible payment instruments — Paytm Wallet, Paytm UPI, Paytm Postpaid (Buy Now, Pay Later), Debit Cards, Credit Cards, NetBanking, and EMI and is also a leader in the offline payments market with its devices like Smart PoS and Soundbox.

A Goldman Sachs report dated June 19 notes that this will translate to $98 billion in value of transactions in FY25 (wallet+ cards) vs $39 billion in FY22. Additionally, it is expected that full KYC wallets only will be on UPI rails, where Paytm is a market leader.

“We note that digital wallets formed 77 per cent of total PPI transaction value in FY22, a segment where Paytm has 67 per cent market share (April 2022). We estimate wallets made up roughly one-third of Paytm’s payments revenues in FY22, and a higher than expected growth in wallet transactions could positively impact the market leader Paytm,” said the report.

The RBI’s vision also states that there will be increased regulations for the fintech sector.

However, companies like Paytm being listed are already aware of regulatory measures and adhering to digital banking guidelines.

So, while it might be disruptive for industry but it might be immaterial for Paytm.

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

At www.maeeshat.in we intend to introduce and promote the businesses in the Minorities especially Muslim world who distinguish themselves with respect to Halaal and Haraam. From its very beginning this journal/website has convinced Muslim industrialists and businessmen to strengthen the Indian economy and make their relationships more flourishing with other corporate.


CONTACT US

CALL US ANYTIME


Disclaimer

Maeeshat Media Pvt Ltd and https://maeeshat.in is not responsible for views and claims expressed by contributors and for reports sourced by other media networks and news agencies. They do not necessarily represent or reflect the editorial policy of the publication.


Newsletter


    Categories