Paytm clarified to Indian stock exchanges that any effects from the conclusion of the RBI’s Payment Infrastructure Development Fund (PIDF) scheme will be balanced out gradually through revenue growth and targeted sales efforts. The parent company, One 97 Communications Ltd, currently receives incentive income under the PIDF scheme based on expenses for payment acceptance devices like Soundboxes and EDC machines. If the scheme is not extended beyond its current term, Paytm anticipates mitigating the impact over time through increased revenues and focused sales strategies.
The PIDF scheme, set to expire on December 31, 2025, aimed to boost digital payments infrastructure in Tier-3 to Tier-6 cities and underserved areas, including the Northeast and the Union Territories of Jammu, Kashmir, and Ladakh. For the six months ending on September 30, 2025, Paytm recorded Rs 128 crore in incentive revenues under this scheme. Paytm’s recent financial performance improvements, driven by cost control, operational efficiency, and consecutive profitability, have been notable.
Brokerage firm Investec Equities praised Paytm’s leadership in merchant acquisition, emphasizing its strong presence in offline payments. Paytm holds a significant market share in Soundboxes and physical POS, along with a notable share in online payment gateways. The company’s technological capabilities and robust merchant relationships are seen as key factors supporting its long-term pricing strength and creating substantial switching costs. Paytm’s disclosure aims to reassure investors of its confidence in sustained growth.
