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Paytm Says Revenue Growth Will Offset RBI Incentive Impact After 2025

Paytm has clarified to stock exchanges that the potential conclusion of the RBI's Payment Infrastructure Development Fund (PIDF) scheme after 2025 will be significantly offset by its revenue growth and more targeted sales efforts. The company recognized Rs 128 crore in incentives from the scheme in the first half of the current financial year. Brokerage firm Investec Equities commended Paytm's leadership in merchant acquisition, noting its dominant share in Soundboxes and strong position in payment gateways. The company's filing aims to reassure investors of its confidence in sustained growth driven by technology and deep merchant relationships.

Key Points: Paytm: Revenue Growth to Offset RBI PIDF Scheme Impact

  • RBI's PIDF scheme ends Dec 2025
  • Paytm recognized Rs 128 crore incentive in H1 FY25
  • Growth from merchant acquisition & payment margins
  • Investec highlights Paytm's Soundbox dominance
  • Company reassures investors on sustained growth
2 min read

Higher revenues will significantly offset RBI's PIDF incentive impact: Paytm

Paytm clarifies RBI incentive scheme conclusion impact will be offset by higher revenues and targeted sales efforts. Read details.

"significantly offset the impact over time through a combination of higher revenues and more targeted sales efforts - Paytm filing"

Mumbai, Jan 23

Paytm on Friday clarified to the Indian bourses that any impact from the conclusion of the RBI's Payment Infrastructure Development Fund scheme is expected to be offset over time through revenue growth and more targeted sales efforts.

In a filing to stock exchanges, One 97 Communications Ltd, the parent company of Paytm, said it currently recognises incentive income under the PIDF scheme, linked to expenditure on payment acceptance devices such as Soundboxes and EDC machines.

The company added that if the scheme is not extended beyond its current term, it expects to 'significantly offset the impact over time through a combination of higher revenues and more targeted sales efforts'.

The PIDF scheme, valid until December 31, 2025, was aimed at accelerating digital payments infrastructure in Tier-3 to Tier-6 centres and underserved regions, including the Northeast and the Union Territories of Jammu, Kashmir and Ladakh.

For the six months ended September 30, 2025, Paytm recognised Rs 128 crore in incentive revenues under the scheme.

The clarification comes as Paytm continues to report steady improvement in financial performance, supported by cost discipline, operating leverage, and quarter-on-quarter profitability.

Brokerage Investec Equities on Friday also commended Paytm's leadership in merchant acquisition, highlighting strong presence in offline payments. With over 50 per cent share in Soundboxes and about 10 per cent share in physical POS, and its 15-20 per cent share in online payment gateways position, the Noida-based payments major is well positioned to benefit and expand net payment margins.

The brokerage also noted that Paytm's technology capabilities and deep merchant relationships support long-term pricing power and create high switching costs.

With the disclosure, Paytm sought to reassure investors that it remains confident about its sustained growth.

- IANS

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Reader Comments

R
Rohit P
Rs 128 crore in six months is a significant incentive. While the offset plan sounds good, I hope this doesn't lead to increased charges for us merchants down the line. Keeping an eye on my monthly statements.
A
Aman W
The focus on Tier-3 to Tier-6 and the Northeast was much needed. Digital payment penetration in my hometown in Assam has improved so much because of these Soundboxes. Hope the momentum continues even without the scheme.
S
Sarah B
As a small investor, this clarification is reassuring. It shows management is thinking ahead. The merchant acquisition leadership and tech capabilities they mention are the real moat.
K
Karthik V
Respectfully, I have to point out that 'significantly offset over time' is a bit vague for a listed company. Investors would appreciate a more concrete roadmap or timeline for this revenue replacement. The fundamentals seem solid, but clarity is key.
M
Meera T
Every *kirana* shop in my lane uses Paytm Soundbox now. It's become essential. If they've built that kind of relationship and dependency, as the brokerage says, then they should be able to navigate this change. Bharat going digital! 💳

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