Paytm to Offer AI as a Service, Seeks Wallet License Amid Strategic Shift

Indian fintech company Paytm is looking to diversify its revenue streams by offering its internally developed artificial intelligence models as a software-as-a-service (SaaS) product to external businesses. Founder and CEO Vijay Shekhar Sharma stated during the company's first quarter fiscal year 2027 earnings call that this offering represents Paytm's first potential revenue stream outside of its core payment and financial services.

The company has optimized a low-cost AI model with billions of parameters, aiming to reduce operational costs and Token usage compared to popular models. Sharma indicated that this AI technology is already generating initial revenue, reported under the 'Commerce Cloud' segment, with ambitions to scale it into a significant business within a year. Paytm also highlighted that AI is improving internal efficiencies, including merchant onboarding and customer service operations, contributing to cost reduction and enhanced profitability.

In addition to its AI ventures, Paytm has applied for a Prepaid Payment Instrument (PPI) license through its wholly-owned subsidiary, Paytm Payments Services Ltd. This move aims to re-establish its digital wallet services following the cancellation of its payments bank license by the Reserve Bank of India. The company believes offering a wallet alongside its Postpaid service will strengthen its consumer payment offerings.

Paytm is also doubling down on its wealth management business, Paytm Money, announcing an investment of up to INR 100 crore. While payment services remain the largest revenue contributor, financial services, including lending and wealth products, saw a substantial year-on-year increase. The company views wealth management as a key growth driver for the future, focusing on equity brokerage and mutual fund distribution to enhance revenue per active customer.