Paytm’s Stock Falls 3.12% After Disruptions in Paytm Postpaid Feature
One97 Communications Limited, the parent company of digital payment platform Paytm, saw its shares drop by 3.12% to close at Rs 813.30 on Wednesday as users reported issues accessing Paytm’s Postpaid loan feature. This disruption was attributed to an ongoing upgrade and heightened security measures by the company.
Social media posts have indicated issues with Paytm’s Postpaid facility since November 30, coinciding with a decision by the Reserve Bank of India to increase risk weightage for unsecured loans by 25%. This has led to one of Paytm’s key NBFC partners ending their partnership, causing disruptions for the Postpaid service.
Paytm addressed the situation in a stock exchange filing, clarifying that the Postpaid service is temporarily unavailable for several customers but not being permanently discontinued. Instead, the company is adjusting its loan distribution strategy in response to regulatory guidance from the RBI.
The company is now focusing on less risky portfolios, de-emphasizing small Postpaid loans and expanding its offerings of higher-ticket personal and merchant loans. These efforts are being made in collaboration with leading banks and NBFCs, targeting customers with lower risk profiles. Paytm is placing particular emphasis on merchant loans, which are less impacted by recent regulatory changes.
Moving forward, Paytm aims to continue providing its Postpaid service while adapting to the evolving regulatory landscape, ensuring that its customers have access to safe and reliable financial products.
