One97 Communications (OCL), which owns the Paytm brand, a payments and financial services distribution company and the pioneer of QR and mobile payments, has reaffirmed its commitment towards building on its core regulated business lines of payments and financial services, stating that there is no change in its ‘operating strategy’.
Dismissing misleading media reports claiming that Paytm's leadership has decided to abandon licensed business in favor of a distribution model, the company refuted stating that no such decision or communication has been made regarding a change in its operating strategy.
It further said that its operations spanning across payments, financial services distribution in segments such as insurance, credit and wealth products, continue to be under the ambit of necessary regulatory frameworks.
Being a pioneer in payments, distribution of financial services is a natural progression. Further, building on infrastructure stacks such as Unified Payments Interface (UPI) and Open Network for Digital Commerce (ONDC) have always remained a part of its product roadmap, with no change in its stance, the company added.
“There is no change in our business strategy. We continue to focus on our regulated payments and financial services business, the information from your source suggesting otherwise is false and misleading. During our investor call, we have reaffirmed our commitment towards our core business lines, including payments and financial services, which remain regulated. As part of our business model, we not only engage with leading financial institutions across distribution of credit, insurance and wealth products but also continue to co-innovate on newer product lines with them, under regulatory supervision. We do not see any impact as there is no change in our plan of action,” said a Paytm spokesperson.
Further, even during its Q4 earnings, the company had clearly stated that it will look to have greater regulatory engagement and higher focus on compliance, both in letter and spirit. Further, it will also focus on monetisation by cross-selling financial services, in line with regulatory guidelines and expanding offerings through insurance and equity broking and distribution.
