Paytm, the online payment giant, is in talks to sell its wallet business, latest media report says. According to a report by the Hindu Business Line, Mukesh Ambani’s Jio Financial and HDFC are among the top contenders that may acquire the wallet business of Paytm. However, there has been no official confirmation of denial from either Paytm or other two corporate entities. Amid the buzz of Paytm acquisition, Jio Financial rose 16.5 per cent to the intra-day high of Rs 295.70.
The news comes at a time when Paytm is struggling its worst-ever crisis following the RBI ban. On January 31, the central bank had banned Paytm Payments Bank to not accept fresh deposits in its accounts from March. Since then, there have been speculations surrounding the fate of the payment major after February 29.
However, Paytm has repeatedly sent out a message in form of FAQs, WhatsApp messages to staff saying that all is well. When one opens the Paytm app, there is a clickable link on FAQs. The message is – Paytm will continue to work as usual beyond February 29.
Jio Financial: A Game Changer
In August last year, Mukesh Ambani expressed the view that for numerous small businesses, merchants, and self-employed entrepreneurs, the concept of ease of doing business should encompass simplified processes for borrowing, investments, and payment solutions. Mukesh Ambani stated that Jio Financial Services aims to democratize financial services for 1.42 billion Indians, providing them with access to straightforward, cost-effective, innovative, and user-friendly products and services.
According to the report, within a comprehensive bailout strategy, Jio may propose the acquisition of Paytm’s wallet business that is housed under Paytm Payments Bank. Paytm has been grappling with an existential crisis, especially after the Reserve Bank of India (RBI) prohibited the payment bank from receiving any deposits or crediting customer accounts.