The Paytm Scrutiny.
The rise of Paytm after Demonization is remarkable. So much for its popularity, the cashless economy saw a turn. The wide variety of sectors associated with Paytm like travel booking, entertainment, bills and games has boosted its growth to the sky turning it into a household grocery. The yearly analysis of Paytm’s numbers is here. As per the word, it was quite an intriguing year for Paytm. But what’s of interest in the 2019 scandal.
The numbers show transactions in billions in 2018-19. The results are compelling as expected. The GMV has recorded 50 billion dollars through 5.5 billion transactions. The next target is set for 12 billion transactions in 2020.
The Paytm Payments Bank is off to a gradual pace. It received its approval from the RBI in 2015 but has had multiple obstacles in its way. For instance, the RBI has asked to stop adding customers due to KYC normal. The CEO was also removed aiding to a PIL filed against Paytm postpaid wallet. But the gains are still in order with 19% of all mobile banking transactions through Paytm payments Bank. It also accounted for 32% of UPI transactions in India.
But, the SCANDAL is left to be scrutinized. Along with soaring high success, Paytm is stuck in two major scandals this year as well. The first is the 2018 Rs.200 million extortion case. Sonia Dhawan, the company’s chief communication officer was arrested. She is said to be a close associate of the founder Vijay Shekhar Sharma.
The second fraud was the Paytm Mall default that could have cost the company millions. In retrospect, about a hundred vendors were delisted and 10 employees fired. As a result, the company took initiative with Ernst & Young to process a fraud prevention system.