Paytm, a leading fintech company, is set to intensify its presence in India’s Unified Payments Interface (UPI) ecosystem once the National Payments Corporation of India (NPCI) enforces market share limits on third-party app providers. Managing Director and CEO Vijay Shekhar Sharma highlighted that both consumer and merchant payments remain promising growth areas, supported by merchant discount rates on select instruments and subscription-based revenues.
Key Highlights
- Paytm will scale up UPI expansion once NPCI’s 30% market‑share cap is enforced in 2026.
- CEO Sharma says Paytm is AI-first, targeting merchant payments growth and deliberate international expansion.
In a letter to shareholders, Sharma noted: “We’ve restored high UPI success rates through deep integration with partner banks and strong support from NPCI. Once the market cap is in effect, we are ready to expand rapidly.”
NPCI recently extended the deadline to implement a 30% cap on third-party UPI apps to December 2026, aiming to reduce concentration risks, as PhonePe and Google Pay currently dominate over 80% of UPI transaction volumes.
Sharma reiterated Paytm’s commitment to an “AI-first” approach in both products and processes. As of June 2025, Paytm’s UPI market share stood at 6.9%, according to NPCI data. The company is also exploring international markets with a “deliberate” 1,000-day strategy focused on underserved small businesses.
Also Read: New UPI Rules: How They Affect Your Daily Transactions?
“We’re building value-accretive services for merchants that unlock monetisation beyond transactions,” Sharma added.
On the remuneration front, Paytm’s board approved a fixed annual salary of ₹4 crore for Sharma for April 2025 to December 2027. His FY25 compensation stood at ₹4.47 crore.
Notably, Paytm reported a consolidated profit of ₹122.5 crore in Q1 FY26, marking a turnaround from a net loss of ₹838.9 crore in Q1 FY25 and ₹539.8 crore in Q4 FY25.
