The share of Fintech startup Paytm increased by 9 percent following the approval from the government  to invest Rs 50 crore in Paytm payment services. The shares of the digital payment platform increased  and reached Rs 542 per share during intraday trading on the BSE today. This is the new share high for  the firm in the past six months. The stocks increased 7 percent compared to the last close at Rs 534.05  per share. 

The company provides different financial services to make seamless, secure, and easy transactions. The parent company of Paytm, One97 Communications launched a soundbox device to make  payments easier by tapping credit or debit card or by just scanning the QR Code. Earlier this month,  the company reported that it secured Rs 50 crore approval from the government for its payment  company. This will enable Paytm to get an online payment aggregator license from the Reserve Bank 

of India. Following this approval, the startup has been expanding its key offerings in India. The fintech  startup recently expanded its Employee Stock option plan by allocating more than 2.18 lakh equity  shares.  

Paytm provides an online platform with different payment options and services including merchant  payment, bill payment, recharges, and other digital payment options. The Reserve Bank of India fined Paytm Payment Bank Ltd for not following the KYC norms and non-compliance with rules. The central Bank issued some restrictions on the Paytm Payment Bank such as stopping it from taking debit or credit card transactions, wallets, FASTags, and others. The reports mentioned that the RBI took action against the payment company due to flaws in its KYC processes.  

The startup got a warning and received a fine of Rs 5.49 crore from the Financial Intelligence Unit-India  for allowing some entities to share illegal activities money through its accounts. This led to the  consolidated net loss of Paytm to increase by 134 percent to Rs 840.1 crore for the first quarter of  FY25. The operational revenue also saw a 36 percent decline to Rs 1,502 crore in the same duration  compared to last year. The digital payment platform faces competition from other fintech companies such as PayPal, Amazon, and PhonePe. 

Conclusion: 

Paytm’s shares increased by 9% following the recent approval from the government of Rs 50 crore for  its payment arm, Paytm Payment Services. The stocks of the fintech company increased to Rs 5340.05  each during intraday trading on the BSE. This marked a 7% increase from the last closing price reaching  the upper band at Rs 534. Paytm offers a digital payment platform to make secure, fast, and easy  transactions. The company got approval from the government and it plans to apply for an online  payment aggregator license from the Reserve Bank of India. The fintech platform showed a 134  percent increase in its net loss for Q1 of FY25 at Rs 840 crore.