Paytm, a fintech company that provides online payment services, reported stellar results for the September quarter yesterday. Since then, good news has come from the company. In fact, the National Payments Corporation of India (NPCI) has approved Paytm to add new UPI users. The company is breathing a sigh of relief after experiencing a shock from the Reserve Bank of India (RBI) earlier this year.
The National Payments Corporation of India (NPCI) confirmed in a letter dated October 22 (the last working day) that Paytm has approved the addition of new UPI users. According to fintech company Paytm, it received this approval after following all guidelines and circulars. Paytm had reportedly requested NPCI’s permission to add new UPI users in August. The plan was halted after the Reserve Bank of India took action against Paytm Payments Bank.
If we look at the NPCI’s approval letter, the regulator highlighted that Paytm will have to adhere to other necessary compliances including risk management, multi-bank guidelines and data security rules. Later, Paytm said in a regulatory filing: “We are pleased to inform that NPCI has allowed the addition of new users on our UPI platform while adhering to all relevant guidelines.
Earlier, online payment service company Paytm announced its second quarter results for the fiscal year 2024-25, showing strong profits. The company achieved profitability for the first time since listing (Paytm Q2 results). If we see, the company posted a strong profit of Rs 928.3 crore as against a record loss of Rs 838.9 crore in the previous quarter.
Paytm said in a stock exchange filing that during the September quarter, it completed the sale of its entertainment ticketing business to online food delivery platform Zomato and earned excess profit of Rs 1,345.4 crore on the sale.
However, despite the stellar September quarter results, Paytm shares fell sharply on Tuesday, closing at Rs 684, down 5.78%. But the impact of the two pieces of good news combined can be seen on the company’s stock (Paytm Share) today. Let us tell you that Paytm has a market capitalization of Rs 43,770 crore.