India’s digital payments ecosystem and mobile economy have significant room to grow, driven by technological innovation, rising consumer adoption and the accelerating use of artificial intelligence (AI), Paytm founder and CEO Vijay Shekhar Sharma said on Saturday (May 30). Speaking on the sidelines of an event organised by Consumer X Ventures and D2C Insider, Vijay Sharma rejected concerns that inflation or softer consumption are slowing transaction volumes and predicted continued resilience and expansion in payments activity.

AI as a force multiplier for businesses

Vijay Sharma made a case for artificial intelligence as a transformational enabler across businesses, saying it can increase scale, improve operational efficiency and deepen customer engagement. “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,” he told media. He described AI as a ‘force multiplier’ that helps address new customers, create new ways to reach them and optimise costs.

Strengthening trust and merchant-consumer relationships

According to Paytm CEO Sharma, AI’s benefits are not limited to efficiency gains. He highlighted its potential to strengthen customer trust and enhance the relationship between merchants and consumers- factors he sees as central to a fresh surge in digital transactions. “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,” he said.

No slowdown in transaction growth, says Paytm founder

Responding to suggestions that inflationary pressures or weaker consumption may be affecting transaction volumes, Vijay Sharma dismissed the idea. “No, India is a very resilient economy. It’s growing,” he said, arguing that ongoing digital adoption and innovation are sustaining transaction growth despite macroeconomic concerns.

Domestic consumption insulates India from global shocks

On the broader macroeconomic outlook, Vijay Sharma said India’s strong domestic consumption base makes it relatively insulated from external shocks. “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,” he said, while noting that stronger exports would still be desirable.

Opportunities for new and emerging brands

Vijay Sharma also pointed to a changing consumer market that increasingly rewards strong products and innovation, offering opening for emerging brands to challenge 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, describing a marketplace where product quality and innovation matter as much as legacy branding.

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Entrepreneurs’ role in building new-age workplaces

Speaking about workplace culture, Vijay Sharma urged entrepreneurs to recognise and accommodate employees’ needs and said this is an opportunity to create a “new-age system.” “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, emphasising people-first workplace practices.

Vijay Sharma attended the launch ceremony for ConsumerX Ventures as the chief guest. ConsumerX Ventures is an operator-led, early-stage fund focused on new-age and digitally native consumer brands and aims for a target corpus of Rs 150 crore. The fund’s launch underscores Sharma’s broader interest in supporting emerging consumer brands and the digitally native economy.

Summing up his views, Vijay Sharma said rising digital adoption, continuous innovation and the increasing use of AI will sustain growth in India’s digital payments ecosystem and the mobile economy in coming years.