Vikrant Shekhawat : Feb 29, 2024, 02:50 PM
Paytm Payments Bank: It is going to be about a month since the RBI action against Paytm Payments Bank. Day by day the company's troubles are increasing instead of decreasing. Giving relief to the company, RBI has extended the deadline till March 15. But the foreign firm has a different opinion on Paytm, which can increase troubles for Paytm. Recently, a report by Switzerland's investment bank and financial services group UBS has claimed that with the help of RBI and National Payments Corporation of India, Paytm will be successful in saving most of its customer base. But, Paytm's merchant and customer base may decrease by about 20 percent.Due to which the company may have to struggle in the financial year 2025. UBS said in the report that due to the end of the wallet business, the company's revenue will be adversely affected and it will have to focus entirely on stabilizing the payments and loan business.Winning customer trust is the biggest challengeAccording to the UBS report, Paytm's biggest problem will be to win the trust of customers. For this he will have to increase his expenditure on marketing. Due to this the EBITDA loss of the company will increase. The shares of the company are also expected to remain between Rs 510 and Rs 650. It is going to take a long time for the company to improve its performance. The company may also have to work hard to win the trust of investors.The company will work as a third party app providerApart from this, RBI has also cleared doubts regarding @paytm UPI handle. Paytm merchants will be transferred to other banks. Also, after getting approval from NPCI, Paytm will also be able to work as a third party app provider. PhonePe and Google Pay also work like TPAP.Shares will be affected up to 25 percent
It is feared in the UBS report that the adverse effects of RBI's decision may be clearly visible on the results of the fourth quarter of the current financial year. The company may also suffer some permanent business losses. Apart from this, Paytm's market share may also decrease by 25 percent. Apart from the wallet, this also includes the loss caused by merchants and customers. The loan business of the company may also go down by about 14 percent. However, cloud and commerce business will not be affected that badly.
It is feared in the UBS report that the adverse effects of RBI's decision may be clearly visible on the results of the fourth quarter of the current financial year. The company may also suffer some permanent business losses. Apart from this, Paytm's market share may also decrease by 25 percent. Apart from the wallet, this also includes the loss caused by merchants and customers. The loan business of the company may also go down by about 14 percent. However, cloud and commerce business will not be affected that badly.