Paytm Shares Continue to Plummet Despite Prospects of UPI Certification and Bank Support
Shares of One97 Communications Ltd, the parent company of India’s leading digital payments platform Paytm, experienced a significant downturn, marking the third consecutive day of substantial losses. This downward trend persisted despite reports indicating progress towards National Payments Corporation of India’s (NPCI) certification for Paytm as a third-party payment app. The certification would enable seamless transactions via the Unified Payment Interface (UPI), especially crucial as Paytm Payments Bank braces for closure by March 15.
Table of Contents
Stock Performance
Paytm’s shares plunged by 5 per cent, marking the third instance of hitting the lower circuit in as many days. The stock has experienced a staggering decline of 17 per cent over the past four days, currently trading at ₹334.35 on the Bombay Stock Exchange (BSE). This represents a substantial drop of 66.50 per cent from its 52-week high recorded in October of the previous year.
UPI Certification Prospects
Despite the bleak stock performance, there were reports of progress in Paytm’s bid for NPCI certification as a third-party payment app. This certification is pivotal for the continued use of Paytm for UPI-based transactions, mitigating the impact of the impending closure of Paytm Payments Bank.
Bank Support
Economic Times revealed that major banks including Axis Bank, YES Bank, HDFC Bank, and State Bank of India (SBI) are poised to extend support for Paytm’s consumer-facing UPI payments. These banks are expected to issue fresh handles from the backend, facilitating a seamless transition for Paytm users and alleviating undue pressure on any single entity.
Company Statement
A spokesperson from Paytm affirmed the uninterrupted operation of One97 Communications’ services, including the Paytm app and associated merchant devices. They emphasized the company’s commitment to expanding its financial services distribution platform through strategic partnerships with leading institutions, reaffirming Paytm’s dedication to fostering an inclusive next-generation financial ecosystem nationwide.
Despite the anticipation surrounding NPCI certification and backing from major banks, Paytm’s shares continued their downward trajectory, highlighting ongoing investor concerns. As the company navigates through regulatory processes and transitions its financial services landscape, stakeholders remain watchful of its resilience and adaptability in a dynamic market environment.
- BJP President JP Nadda Issues Notice to Dilip Ghosh Over Controversial Remarks on Mamata Banerjee
- Ram Charan and Kiara Advani’s ‘Jaragandi’ Song from Game Changer Released
- Pre-Match Banter: Rohit Sharma’s Flying Kiss Recreation Adds Spice to MI vs SRH Clash
- Swami Smaranananda Maharaj, President of Ramakrishna Math and Ramakrishna Mission, Passes Away at 95
- Stand-up Comedian Munawar Faruqui Breaks Silence on Social Media After Mumbai Police Detention
