One97 Communications Ltd, parent of online mobile payments firm Paytm, which has seen its market capitalisation erode since its public debut in November, will be shutting down its business-to-consumer (B2C) mobile application in Canada.
The mobile payments firm will also be disabling scheduled payments and top-ups for Paytm Cash, which includes EMT (e-mail money transfers), Canada Post and bank transfers, the company said.
The development comes two months after a dismal debut on the exchanges.
Paytm Points or Gift Card
The company recommended users to use the balance in their Paytm wallets for bill payments, and gift card purchases by 14 March.
Paytm, after 14 March, will not be compensating for any Paytm points or gift cards, which users fail to redeem
No impact on India
Paytm said the development has no impact on the Canada-based Paytm Labs or Paytm’s India business or revenue.
It said, we continue to stay committed to our mission of driving financial inclusion in India.
Company’s Financial
The company had recorded over 4-fold jump in loan disbursals during the October-December 2021 period with 44 lakh loans worth ₹2,180 crore disbursed from its platform as against 8.81 lakh loans worth ₹470 crore in the year-ago period.
The company also said that its gross merchandise value (GMV) grew 123% y-o-y to Rs 250,100 crore during the December quarter.
In the second quarter of the current financial year, Paytm had reported an over 60% rise in its revenue.
Impact on stock
Paytm’s shares gained 8.17 percent, climbing to Rs 1,116.05 on Friday. From its debut in November, the stock has lost as much as 43 percent.
The company’s UPI beneficiary bank unit – Paytm Payments Bank – earlier this week said it enabled 926 million UPI transactions in a single month, the first bank in the country to do so.
Regulatory filing read as
“In order to focus all our resources on the massive India opportunity, and given the immateriality of the Canada B2C app, we have decided to sunset the Canada B2C app only with effect from March 14, 2022.”
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