Indian FinTech company, Paytm, is making significant changes in its wealth management operations as part of its efforts to accelerate profitability. In an interview with Bloomberg News, Paytm’s founder and CEO, Vijay Shekhar Sharma, revealed that the company plans to attract younger users by making changes to its financial management product. This decision stems from the recognition that younger people feel more comfortable using online investments. Additionally, Paytm intends to expand its network of merchants by hiring over 15,000 intellectual workers. The company’s ultimate goal is to onboard over 50 million merchants on the Paytm platform by the end of the year.
Paytm’s transformation strategy also includes the use of artificial intelligence (AI) and automation to lower costs. By streamlining operations, the company believes it can achieve profitability within the next year, surpassing previous forecasts. Vijay Shekhar Sharma emphasized the company’s commitment to serving small businesses and firms in India, expressing confidence in Paytm’s ability to succeed in the evolving market.
These changes come at a critical moment for Paytm as the company faces increased competition from rivals such as Walmart-backed PhonePE, as well as regulatory pressure from the Reserve Bank of India (RBI). RBI recently introduced changes to capital requirements for lenders like Paytm, following observations of rising delayed payments. In response, Paytm announced a change in its lending strategy, targeting larger loans above 50,000 rupees to compensate for the reduction in smaller loans. These changes led to downgraded ratings for the company from brokerages such as JPMorgan, Goldman Sachs, and Citi.
To attract younger generations, Paytm is focusing on a digital approach to shopping in India. According to the Global Digital Shopping Index, digital wallets have become the preferred payment method for 55% of retail purchases in India. Paytm recognizes the importance of adapting to millennials, the bridge generation, and Generation Z, who are active users of digital shopping and payments.
Paytm’s strategic initiatives demonstrate the company’s determination to adapt and thrive despite competitive and regulatory challenges. Through its new wealth management strategy, Paytm aims to achieve profitability while maintaining its position as a key player in the Indian digital payment and FinTech sector.
The source of the article is from the blog j6simracing.com.br