Paytm had launched its Canada division, called Paytm Labs Inc, in 2014, and started offering a bill payments rewards programme for users in 2018. The fintech firm told ET that the decision was made to focus the efforts of Paytm Labs on opportunities in India and that it did not expect any job loss from this.
A Paytm executive, speaking on the condition of anonymity, told ET that the app was not contributing significantly to its overall revenue. “It did not make sense for Paytm to continue operations of the consumer app in Canada… The mandate for (Paytm’s) Canada (business) for now is innovation and R&D,” the executive said.
In a blogpost, Paytm Canada said it “had to” charge customers a convenience fee for bill payments starting 2019 and has now decided to shut the consumer app completely.
“During these unprecedented times we have had to make some tough business decisions. Unfortunately, as of March 14, 2022, Paytm Canada App will be shutting down permanently,” it said. “Effective January 14, 2022, we will be disabling scheduled payments and top-ups for Paytm Cash which includes EMT transfers (email money transfers), Canada Post and bank transfers.”
The primary work of the Paytm Labs team in Canada is R&D analytics of customer data and provision of technical support for the company’s products and services across the world, a spokesperson said.
Discover the stories of your interest
“As a part of our Canada operations, we launched a small experiment in the country with a B2C app. In order to focus all our resources on the massive India opportunity, and given the immateriality of the Canada B2C app, we have decided to sunset the Canada B2C app only from March 14, 2022,” the spokesperson said in an emailed response to ETtech’s questions. “This has no relation or impact on the Canada-based Paytm Labs or Paytm’s India business or revenue. We continue to stay committed to our mission of driving financial inclusion in India.”
On Wednesday, Paytm co-founder Vijay Shekhar Sharma said that the company
was looking to clock $100 million in revenues from payments in the ongoing quarter. He added that the business was doing well and that the success of Paytm will depend on what the company does with monetisation led by financial services.
Shares of Paytm, which have lost nearly half their value since the company’s November listing compared with the IPO price of Rs 2,150, closed 8.4% up at 1,118.35 on the BSE Friday, when the benchmark ended flat.
