Paytm, operated by One 97 Communications, has launched “Paytm Postpaid” on UPI, allowing select users to access a short-term credit line—enabling “Spend Now, Pay Next Month” functionality across all UPI-enabled merchant touchpoints. This service, rolled out in partnership with Suryoday Small Finance Bank and powered by NPCI, marks a significant leap as Paytm becomes one of the earliest major players to bring integrated BNPL (Buy Now, Pay Later) to India’s massive UPI ecosystem.
Users can scan any UPI QR, shop, pay bills, and make bookings, with up to 30 days for repayment—directly via the Paytm app. The service is being gradually expanded based on user spending patterns.
Recent Product Innovations By Paytm
In 2025, Fintech giant unveiled several new products aimed at both consumers and merchants:
- Paytm Widget: A simple integration for online and offline businesses to embed Paytm payments directly into websites and point-of-sale terminals.
- Pocket Soundbox & Music Soundbox: Industry-first 4G-enabled devices offering portable audio payment alerts for mobile sellers and music-enabled stores, enhancing acceptance and engagement.
- AI-Powered Features: They are doubling down on AI, piloting tools like an “AI Passbook” that converts spending data into personalized rap summaries, and integrating conversational AI via partnerships with Perplexity for smarter financial management.
- Micro-investments and Savings: New features like a SIP with SBI Mutual Fund and expanded insurance/wealth management solutions are being targeted at grassroots entrepreneurs and daily-wage workers.
Financial Performance and Investor Trends
FY25 Financial Snapshot:
- FY25 operating revenue fell 31% YoY to ₹6,900 crore (from ₹9,978 crore).
- Net loss narrowed by over 50% to ₹663 crore, down from ₹1,422 crore last year—helped by lower employee expenses and cost rationalization.
- Payments revenue declined 37% (to ₹3,879 crore), and financial services revenue dropped 15% (to ₹1,703 crore), reflecting impacts from regulatory headwinds and an industry pivot to more sustainable growth verticals.
Q4 FY25 Review:
- Net loss for Q4 was ₹540 crore, slightly narrower YoY but up sequentially due to one-time ESOP charges and investment impairments. Excluding one-offs, normal losses for the quarter stood much lower, and they expects future ESOP expenses to decline sharply.
- Board also approved a ₹455 crore rights issue (₹300 crore for Paytm Money and ₹155 crore for Services Arm), consolidating its group structure and focusing on profitable verticals.
Investor Sentiment:
- Following a tough FY24, One 97 shares have rebounded with strong management engagement: CEO and board have conducted extensive investor roadshows, and market optimism is riding on Paytm’s repositioning as an AI-first, core-fintech company.
- Notably, They also won key regulatory approvals in 2025 to resume new merchant onboarding, helping to restore growth momentum post regulatory setbacks.
Strategic Vision and Market Position
Founder and CEO Vijay Shekhar Sharma’s vision is for Paytm to be an “AI-first” payment and financial services platform, embedding innovation and compliance at its core. While Paytm faces intense competition from PhonePe, Google Pay, and others, it continues to bet on omni-channel payments, tech-led lending, and next-gen financial solutions to revive growth and scale profitability.
Last Month, The Reserve Bank of India (RBI) has issued in-principle approval to Paytm’s subsidiary, Paytm Payments Services Limited (PPSL), allowing it to function as a licensed payment aggregator under the Payment and Settlement Systems Act, 2007.
Read this: Just Ahead of IPO, PhonePe Secures RBI’s Final Nod to Operate as Online Payment Aggregator
With its new credit line on UPI, soundbox innovations, and AI-driven product strategy, Paytm is positioning itself for a sustainable turnaround—balancing digital convenience for customers and merchants with a sharp focus on more stable, profitable growth
