Pandemic has amplified usage of digital payments services, says Vijay Shekhar Sharma

By: |
March 4, 2021 3:45 AM

Speaking at the Indian Express Idea Exchange, Sharma said his company is now processing nearly 1.25 billion transactions in a month. This rapid growth in business, he says, would not have been possible “organically.”

Over the next decade, tech start-ups will increasingly focus on generating revenues and chasing profitability. In fact, most of them are already charting plans to build “legitimate businesses of scale.”Over the next decade, tech start-ups will increasingly focus on generating revenues and chasing profitability. In fact, most of them are already charting plans to build “legitimate businesses of scale.”

The pandemic has amplified the usage of digital payments services and established businesses are no longer banking on promotional features like cashbacks to get consumers to transact more, said Paytm founder & CEO Vijay Shekhar Sharma.

Speaking at the Indian Express Idea Exchange, Sharma said his company is now processing nearly 1.25 billion transactions in a month. This rapid growth in business, he says, would not have been possible “organically.”

The pandemic has altered behaviour and payment platforms like Paytm are being perceived as “mainstream” products. “Pandemic has created that acceptance. Paying using smartphones is a mainstream product. Now, we do not have to convince a shopkeeper or a consumer to use it,” Sharma said.

Sharma believes that this shift in consumption is not temporary, it rather is developing into a habit. Sharma pointed out that despite having “dropped the cash back to absolute zero” in the midst of the pandemic, the company retained its customers. “Post-pandemic is when the money is not required to acquire customers or merchants, it will be spent to build the next set of products,” Sharma said.

Over the next decade, tech start-ups will increasingly focus on generating revenues and chasing profitability. In fact, most of them are already charting plans to build “legitimate businesses of scale.”

Paytm’s net losses narrowed by 28.44% to Rs 2,833.18 crore on a standalone basis in the year to March 31, 2020, regulatory filings sourced from Tofler showed. “Optimising expenses” have helped pare losses, the company had said earlier. The Noida-based company claims it is on its path to being profitable by 2022.

Paytm’s valuation shot up to $16 billion after it secured a fresh $1 billion in funding led by T Rowe Price in November 2019.

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