Digital payments, mobile economy have significant room for expansion; no slowdown in transaction growth: Paytm CEO
New Delhi, May 30
India's digital payments ecosystem and mobile economy have significant room for expansion, supported by technological innovation and growing consumer adoption, while transaction growth continues to remain strong despite concerns around inflation and consumption, said Paytm founder Vijay Shekhar Sharma.
"There is an opportunity to build the mobile and digital economy to a next level where the power of AI is scaling and taking it to the next level because, as you know, there are opportunities in terms of customer trust, in terms of relationship that a merchant and consumer have," Sharma told ANI on the sidelines of an event organised by Consumer X Ventures and D2C Insider.
Rejecting suggestions that inflationary pressures or weaker consumption may be affecting transaction volumes, Sharma said, "No, India is a very resilient economy. It's growing."
Sharma said artificial intelligence is emerging as a key enabler of growth across businesses and could help accelerate the next phase of expansion in the country's digital economy.
"This is the time to be the AI bull, where what all you can take care of can become 10 times more valuable, 10 times more scalable because you will be able to leverage the power of AI. Whether it is about addressing new customers, addressing new ways to address customers, sometimes optimising the cost, AI is a force multiplier for the business," he said while replying to a question asked by the ANI.
According to Sharma, AI can help businesses improve customer engagement, discover new ways of reaching consumers and enhance operational efficiency, making companies more scalable and competitive.
He said AI also has the potential to strengthen customer trust and improve relationships between merchants and consumers, creating fresh opportunities for growth in digital transactions and the broader mobile economy.
"This is the time that we believe that there will be a catapult increase in the transaction volume, all because there will be more trust and more newer ways to do the payments," Sharma said.
On the broader consumer landscape, Sharma said India's market is increasingly rewarding strong products and innovation, creating opportunities for emerging brands to compete with established players.
"I would say the consumer market is where they are respecting the product, not just the brand name, but the new brand name is getting opportunities," he said.
Sharma also highlighted the role entrepreneurs can play in building a new-age workplace culture by recognising and acknowledging the needs of employees.
"All of us entrepreneurs have an opportunity to create a new-age system. You saw a great example -- acknowledging their needs is a great example," he said.
Addressing concerns about the global economy, Sharma said India remains relatively insulated from external shocks because of its strong domestic consumption base.
"The best part is that global economy impacts on India are much less, all because of what you are seeing -- a local domestic-consumption-led economy. Obviously, we would want more exports, but at the same time the core of India is a very resilient economy," he said.
Sharma expressed confidence that rising digital adoption, continued innovation and the increasing use of AI would support sustained growth in India's digital payments ecosystem and mobile economy in the years ahead.
He today launched ConsumerX Ventures, an operator-led, early-stage fund focused on new-age and digitally native consumer brands with a target corpus of Rs 150 crore. He attended the launch ceremony of this event as the chief guest.
— ANI
Reader Comments
Sharma's confidence is nice to hear but I'm skeptical. My father runs a small kirana shop and he still prefers cash because Paytm's merchant fees eat into his margin. Also, with inflation, people are cutting down on spending. How can transaction volumes grow if people have less money to spend? 🤔 These CEO interviews are always too rosy.
As someone working in fintech in the US, I'm impressed by India's digital payments growth. In America, we still use cards and checks! India leapfrogged completely. The AI angle is interesting but execution matters. Paytm needs to rebuild trust after the RBI issues last year. Hope they focus on security over hype.
I agree with Sharma about India's resilience. We have a strong domestic consumption base - that's why global slowdowns don't hit us as hard. But I wish he addressed the job market concerns. Digital economy is great but what about the millions who still lack smartphones and internet access? AI won't help them.
Paytm CEO is right about one thing - the Indian market rewards good products now, not just brands. I see so many D2C startups eating into established players' share. The Rs 150 crore fund for new-age brands is smart. But let's see if Paytm can regain its mojo after the Paytm Payments Bank fiasco.
Love the optimism but... transaction volumes might be high because of government push and UPI, not necessarily because of 'innovation' from Paytm. The RBI curbs on Paytm Payments Bank
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