Paytm Explores Enterprise AI and Wallet Revival

Indian fintech Paytm is charting a new strategic course, expanding beyond its traditional payments and lending businesses. The company announced plans to commercialize internally developed AI solutions for enterprises while simultaneously working to revive its digital wallet service.

During the Q1 FY27 earnings call, founder and CEO Vijay Shekhar Sharma stated that Paytm will offer AI-powered tools, originally built for its own operations, to the market. These solutions are designed for areas including merchant acquisition, customer engagement, collections, and automation. Sharma indicated that Paytm itself serves as the primary customer for these products before their external launch.

The company reported strong financial performance in the first quarter, with net profit increasing by 78.8% year-on-year to ₹2.2 billion (approximately $26 million USD) and revenue rising by 27.6% to ₹24.5 billion (approximately $293 million USD). Growth was driven by factors including merchant payments, loan distribution, and AI deployment.

The revival of the wallet service is also part of Paytm's consumer strategy, although no specific timeline or update on the application for a payment license from the Reserve Bank of India was provided. Analysts view the wallet service as a crucial engagement layer that could increase payment frequency and enhance cross-selling opportunities for other financial services, such as credit and wealth management.

Paytm is also heavily investing in wealth management, which the company identifies as its next major growth area. The company has announced an investment of up to ₹100 crore (approximately $1.2 million USD) in its subsidiary Paytm Money to bolster its technology and expand its operations.