The earnings call of Paytm for the quarter ended June 2026 (Q1 FY27) offered four strategic developments centred around AI, wallet and its wealthtech business. Let’s take a closer look at each of them:
1. Paytm plans to sell in-house AI products to businesses, its first non-payment, non-financial services revenue stream.
Paytm has built a low-cost AI model that it plans to sell as a software service to businesses and merchants, its founder and CEO Vijay Shekhar Sharma said during the Q1 FY27 earnings call.
“We have developed a low-cost AI model. It’s been optimised with 4 billion parameters, has low latency, and uses fewer tokens than popular models. We have removed the call centre cost. We will sell it to other businesses,” he said.
With this offering, the company would be able to generate software service revenue, marking its potentially first non-payment, non-financial services revenue stream.
“This is all made in-house. And I’ve started to find out use cases of this going to third-party customers also,” Sharma said, adding that Paytm sees companies like Flipkart, offline retailers and merchants as potential clients for its AI products.
“Smaller merchants will take a different service. Larger ones will take a different product,” Paytm’s CEO said.
2. AI has begun generating revenue for Paytm.
“I fundamentally believe that going ahead, we will start to see a revenue monetisation journey of AI”, Sharma said, highlighting some of its AI products have already started generating a “few lakhs” in revenue.
The company aims to scale its AI revenue into a meaningful business within less than a year, to be reported under the Commerce Cloud line item.
In its investor presentation, Paytm said investments in AI are also helping the company lower its operating costs, particularly its software, cloud and data centre expenses.
As per the management, AI is also helping with merchant onboarding.
“In our merchant distribution, small business merchant acquisition is now governed by an AI agent, where the system identified what our sales executives must do,” Sharma said.
He further said that deploying AI across Paytm’s financial services business would help the company maintain its revenue growth while improving profitability.
“Basically, AI is a distribution business. When you have a financial services business powered by AI, the differentiation will be how many customers you have and what do you do with them. Customer quality and monetisation are determined by AI,” said Sharma.
3. Paytm has applied for a wallet licence after Payments Bank licence cancellation.
Paytm has applied for a Prepaid Payment Instrument (PPI) licence through Paytm Payments Services Ltd, a wholly owned subsidiary. The licence would allow the company to revive its wallet business.
The company announced the news in its investor presentation released alongside its Q1 FY27 earnings.
Source link
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We blogs.grocliq.com want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
Website Upgradation is going on for any glitch kindly connect at [email protected]
