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Paytm Denies Selling Wallet Business to Jio Financial Services and HDFC Bank

Paytm has refuted rumors of selling its wallet business to Jio Financial Services and HDFC Bank, denying any ongoing discussions for the sale. The fintech giant remains focused on regulatory compliance and customer experience.

Amidst recent speculations, Paytm has officially denied any plans to sell its wallet business to Jio Financial Services or HDFC Bank. A source at Paytm dismissed the reports, categorizing them as mere speculation and confirming that the company is not currently engaged in discussions to sell its wallet business.

Paytm Payments Bank, a subsidiary of Paytm, echoed the sentiment, stating, "We do not comment on any market speculation. We completely abide by the direction of the regulator, and the team’s effort is to ensure a smooth customer experience with the products offered by PPBL."

Previously, a report from Hindu BusinessLine had claimed that Jio Financial Services and HDFC Bank were leading contenders to acquire Paytm's wallet business following regulatory actions taken by the Reserve Bank of India (RBI).

The report suggested that Paytm had been in talks with Jio Financial Services since November of the previous year for a potential deal. The discussions had allegedly been impacted by Know Your Customer (KYC) issues faced by Paytm, which led to a less aggressive approach in the wallets business.

In light of recent regulatory actions by the RBI, Paytm is considering a potential sale of the business to ensure continuity for its existing wallet users. This has led to discussions with Jio Financial Services and, reportedly, HDFC Bank.

The report also noted that there is a reasonable overlap between HDFC Bank customers and Paytm wallet users. Many customers of HDFC Bank continue to use Paytm wallet over Payzapp, making a potential deal with Paytm appealing to address this issue for the bank.

It is worth mentioning that the RBI recently imposed restrictions on Paytm Payments Bank, preventing it from accepting deposits or conducting credit transactions in customer accounts. The central bank also halted other banking services, including UPI facilities and fund transfers, after February 29, 2024.

The uncertainty surrounding Paytm's future has led some businesses and traders to consider alternative payment platforms for their transactions. The stock market has also reacted, with Paytm's circuit limits being lowered from 20% to 10% due to heavy selling.