PhonePe foresees an expansion in market share amidst the regulatory hurdles faced by Paytm
Paytm remains in uncertain waters as Jefferies recently shifted its parent company, One97 Communications Ltd., from 'underperform' to 'not rated' status, until the 'news flow settles down.' Last week, global financial services firm Macquarie downgraded the fintech firm's rating, citing the risk of customer exodus and potential threats to its business model.
While the digital transaction app remains embroiled in regulatory scrutiny, particularly owing to its subsidiary firm Paytm Payments Bank Ltd., other UPI competitors are basking in the spotlight with a surge in their user base.
Sameer Nigam, CEO, and co-founder of PhonePe, stated that the payments platform, owned by Walmart, anticipates gaining a proportionate share of any potential decrease in the user base of troubled competitor Paytm.
During a panel discussion at the Mumbai Tech Week, Nigam responded to a query on its rival firm and said, "I think we will (gain users). If there is a loss, we'll get a proportionate share. If I said we won't get any of them, you’ll call me a hypocrite. If I said I'll try and get all of them, you will call me an opportunist. So I will just split it down in the middle, and say some will come."
The RBI recently extended the deadline for users to deposit funds or recharge different instruments operated by Paytm Payments Bank. The new deadline, previously set for February 29, has been pushed to March 15.
On Tuesday, the shares of Paytm witnessed a 5 per cent upper circuit for the second consecutive day.