What Nigam said about Paytm’s ‘troubles’
In an order issued last month, RBI barred Paytm Payments Bank from most operations. This includes taking deposits and fund transfers. Nigam said that its rival’s lack of compliance may make the regulator’s actions justifiable.
“I think there was ample time for the company to have acted or responded. I can only go by what it seems that actions are proportionate to the lack of compliance seems about right, and I’m very curious. You guys are reading as much as I’m reading. I don’t have any inside information,” Nigam noted.
How PhonePe can benefit from Paytm’s losses
While responding to an audience question on how PhonePe plans to attract customers from its rivals such as Paytm, Nigam explained: “On attracting rival customers, when there is a loss, we get a proportionate share (of customers). One will call me a hypocrite if I say we won’t get any of them (Paytm Payments Bank customers). If I said, I’ll try to get them all, you will call me an opportunist. I’ll just say, some of them will come.”
In November 2023, PhonePe claimed that it had crossed 500 million lifetime registered users on its platform. With this milestone, 1 in 3 Indians are now PhonePe users.
Meanwhile, Paytm has shifted its nodal accounts to Axis Bank which will allow the company Paytm QR, Soundbox, and card machines even after the March 15 deadline set by RBI.