Analysts: Paytm’s biz won’t be hit by upcoming regulations in e-payments

The central bank’s recent decision to create a discussion paper on digital payment charges has left a murmur in the markets, especially on its potential impact on banks and digital payment players like Paytm. However, analysts said on Monday that the recently-listed Paytm is unlikely to get impacted with these charges.

“The digital payments ecosystem has rapidly grown in the past five years and has propelled India to the top of the global rankings. The sector has witnessed high competition with the influx of new players and may lead to divergence from best practices in the quest for margins and market share. The upcoming regulations, therefore, will keep the consumers’ interest at the epicentre and ensure a structured and responsible growth of the sector, going forward”, said Rahul Sharma, Equity 99 Advisors.

Paytm’s businesses from banking, wealth management to insurance are already those that require to be compliant with regulators. The company’s focus on transparency defines its products, and also helps to build trust with regulators and other stakeholders.