Mumbai’s fintech giant Paytm has reassured investors that the winding down of the Reserve Bank of India’s Payment Infrastructure Development Fund (PIDF) scheme won’t derail its growth trajectory. In a filing to stock exchanges on Friday, One97 Communications, Paytm’s parent company, stated that any financial impact from the scheme’s expiration will be more than compensated by surging revenues and sharper sales strategies.
The PIDF initiative, set to conclude on December 31, 2025, has been a key booster for digital payments in underserved regions. It incentivizes investments in payment acceptance devices like Soundbox and EDC machines, particularly in Tier-3 to Tier-6 cities, Jammu & Kashmir, Ladakh, and the Northeast. Paytm continues to recognize incentive income under this scheme tied to such expenditures.
For the six months ended September 30, 2025, Paytm booked Rs 128 crore in PIDF incentives. However, the company is optimistic about bridging this gap. ‘We expect to offset the impact over time through a combination of higher revenues and more targeted sales efforts,’ the disclosure read.
This confidence stems from Paytm’s robust financial turnaround. Stringent cost controls, improved operating leverage, and quarter-on-quarter profitability gains have fortified its balance sheet. Brokerage firm Investec Equities echoed this positivity in a Friday report, praising Paytm’s dominance in offline payments.
Paytm commands over 50% market share in Soundbox devices, around 10% in physical POS terminals, and 15-20% in online payment gateways. ‘The company’s technological prowess and deep merchant relationships provide long-term pricing power and elevate customer switching costs,’ Investec noted.
As Paytm navigates regulatory shifts and market dynamics, this strategic outlook underscores its resilience. Investors can take heart in the firm’s sustained growth potential amid India’s digital payment boom.