Mumbai, January 23 (IANS). Paytm informed Indian stock exchanges on Friday that any impact from the end of the Reserve Bank of India’s (RBI) Payment Infrastructure Development Fund (PIDF) scheme will be offset by revenue growth over time and more targeted sales efforts.
In a filing to stock exchanges, Paytm parent company One97 Communications Ltd said it is currently recognizing incentive income under the PIDF scheme linked to expenditure incurred on payment acceptance devices such as soundboxes and EDC machines.
The company clarified that if the scheme is not extended beyond its current term, Paytm expects to significantly offset its impact over time through a combination of higher revenues and a more focused sales strategy.
The PIDF scheme is valid till 31 December 2025. It aims to boost digital payments infrastructure in tier-3 to tier-6 cities and underserved areas including the North East, Jammu and Kashmir and Ladakh.
Paytm recorded incentive income of Rs 128 crore under this scheme in the six months ending September 30, 2025.
This clarification comes at a time when Paytm is seeing steady improvement in its financial performance. The company has been strengthened by cost control, operating leverage and improvement in quarter-on-quarter profitability.
Brokerage firm Investec Equities also on Friday lauded Paytm’s strong presence in the offline payments space and its leading role in merchant acquisition. According to the report, Paytm has more than 50 percent stake in Soundbox, while the company is in a better position with about 10 percent stake in physical POS and 15 to 20 percent stake in online payment gateways.
The brokerage also said Paytm’s technological capabilities and deep relationships with merchants give it long-term pricing power and make switching costs for customers higher.
With this disclosure, Paytm assured investors that it is confident about its sustainable growth prospects.
–IANS
dsc
