Paytm rejects speculations of selling wallet business to Jio Financial Services

According to a Hindu BusinessLine report, the troubled fintech was in exploratory talks with a few companies, including HDFC Bank and Jio Financial Services. 

So far, there has been no official statement by Paytm on the matter. Mint couldn’t independently verify the claims. 

Meanwhile, a Paytm Payments Bank spokesperson refused to give an official statement. “We do not comment on any market speculation. We completely abide by the direction of the regulator, and the team’s effort is to ensure a smooth customer experience with the products offered by PPBL,” INC 42 quoted a company spokesperson as saying.

After the media reports claiming the sale of Paytm’s wallet services to Jio Financial Services, the company shares rose by nearly 14% on BSE on Monday. Jio Fin’s company shares closed 13.91% higher at ₹289.05 per share on BSE on Monday.

According to the Hindu BusinessLine report, seven senior fintech and banking sector executives associated with the matter accepted that Paytm has been in contact with Jio Financial Services since November last year.

“With KYC-related issues compounding for Paytm, they’ve not been as aggressive with the business as they were before 2022 in the wallets business and if valuations on the table were decent, the talks with Jio would have fructified much earlier,” Hindu BusinessLine quoted a source as saying.

Paytm landed in deep trouble after the Reserve Bank of India, on January 31, ordered Paytm Payments Bank from taking deposits or allowing top-ups after February 29. The RBI is considering scrapping the bank’s licence as early as March.

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Published: 05 Feb 2024, 09:53 PM IST