One 97 Communications Limited is the Indian company that operates the Paytm brand. Based in Noida, near New Delhi, it develops payment services and financial tools accessible on mobile devices. Its website, paytm.com, presents an ecosystem focused on everyday uses: paying a merchant, settling a bill or equipping a retail outlet to accept digital transactions.
From mobile services to a financial platform
Founded in 2000 by Vijay Shekhar Sharma, One 97 Communications started out providing value-added services for telecom operators. The Paytm brand emerged in 2010, focusing on mobile top-ups and bill payments. The company then expanded its offering to include a digital wallet, followed by merchant payments.
The demonetization implemented in India in 2016 accelerated the adoption of digital payment methods and raised Paytm’s profile. Its stock market listing in 2021 marked a new milestone, while also exposing its business model more directly to investor expectations. The group’s history thus mirrors the shift from a market driven by user acquisition to a pursuit of sustainable revenue.
Payments as a gateway
Paytm notably enables transactions based on UPI, India’s infrastructure for instant payments between bank accounts. For businesses, its offering includes QR codes, terminals and audio devices that confirm receipt of a payment. This equipment addresses practical checkout challenges, particularly in small shops, and can generate subscription revenue.
Beyond payments, One 97 distributes financial products offered by partners, including loans. It is important to distinguish this intermediary activity from that of an institution that would hold the loans on its own balance sheet. The group also provides online payment solutions for businesses. Its business rationale rests on the interplay between frequent use of its services, equipping merchants and selling complementary services, in an environment where payments alone do not guarantee high margins.
What next?
The regulatory turning point in 2024 underscored this dependence on a strict framework. India’s central bank imposed major restrictions on the activities of Paytm Payments Bank, a separate entity linked to the Paytm ecosystem, notably on accepting new deposits. One 97 arranged for the continuity of its UPI payments through partner banks. This distinction between the app, the company that operates it and the associated bank is essential to understanding the episode.
The sale of its entertainment ticketing business to Zomato in 2024 also reflects a refocusing of its activities. Looking ahead, the challenges are to strengthen trust, control costs and retain merchants. Above all, Paytm will need to demonstrate that its foothold in payments can sustain a profitable business without relaxing compliance requirements or relying excessively on a single partner.