Fintech company One97 Communications, which owns the Paytm brand, is unfazed by the government's decision to reduce incentives for promoting small digital transactions. Paytm CEO Vijay Shekhar Sharma stated that the company remains on track to achieve profitability this fiscal year, even without these incentives.
At the launch of the "Card NFC Soundbox" machine, Sharma emphasized that the reduced incentive allocation for Rupay and UPI transactions, down by about 42% in the latest budget, will not affect their profitability goals. "We remain committed to achieving a profitable quarter this fiscal year, as we had planned even without the UPI incentive," Sharma said.
During a recent earnings call, Sharma had outlined Paytm's goal to reach profitability soon. "My team and I are dedicated to ensuring we return to profitable quarters very soon. We are working diligently to deliver at least one profitable quarter this financial year as we gain more clarity," he had mentioned.
Despite reporting a loss of Rs 840 crore for the quarter ending June 30, 2024—up from Rs 358.4 crore in the same period last year—Sharma remains optimistic. Paytm’s consolidated revenue fell by 33.48% to Rs 1,639.1 crore, compared to Rs 2,464.2 crore a year ago.
Discussing the new Card NFC Soundbox, Sharma explained that it combines card-based payments with QR code-based payments, targeting a niche market segment. The new device will be offered at the same rental price of Rs 150 as the older models, and merchants can upgrade their existing devices at no additional cost.
Paytm has over 10 million merchants using its soundbox machines. The new Card NFC Soundbox will support transactions up to Rs 5,000. Additionally, Sharma revealed that Paytm is developing dynamic QR code technology, which will generate unique QR codes for different transactions.
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