Paytm will shut down its consumer app in Canada amid record stock prices
Paytm is abandoning its consumer app in Canada, which is used for digital money transactions. Paytm Canada’s operations were launched in 2014 as research and development company Paytm Labs Inc. The company then launched its consumer-focused mobile app in 2017, allowing Canadians to pay bills and set up automatic payments, among others.
Since then, the company has integrated big data, artificial intelligence and machine learning into Paytm’s data assets, which has helped deliver optimal financial products to over 300 million users and over 20 million traders in India. However, the company now wants to focus its resources on the Indian market, which is why it has made the business decision to discontinue the consumer Paytm app in Canada. Any bill payments made and/or pre-scheduled within the next 30 days will be made.
Paytm released a statement on the blog, saying: “During these unprecedented times, we had to make some tough business decisions. Unfortunately, effective March 14, 2022, the Paytm Canada app will be permanently closed. Effective January 14, 2022, we will be disabling scheduled payments and top-ups for Paytm Cash, which includes EMT transfers, Canada Post and wire transfers. The statement was released on January 13.
The research and development (R&D) center focuses on Paytm’s data assets and has designed products integrated with the fintech ecosystem. He was also developing a mechanism to calculate the price of a customer “credibility score” at one point. Paytm would likely maintain its R&D and other operations in North America while shutting down its consumer app.
“This has no connection or impact on the business or revenue of Paytm Labs based in Canada or Paytm in India. We remain committed to our mission to drive financial inclusion in India,” added the fintech giant. Meanwhile, Paytm Canada has recommended that customers use any available amount in their wallet to pay bills or buy gift cards by March 14.
The announcement comes just days after the company’s shares hit an all-time low of Rs 1,152 on the 10th of this month before bottoming out at Rs 1,021.80 on Thursday. This latest drop in the already underperforming stock came as Australian brokerage firm Macquarie retained its ‘underperforming’ rating on Paytm shares while lowering its share price by 25% from Rs 1,200 to Rs 900.
Paytm’s share price has been on a downward spiral since its IPO on Nov. 18 last year, fluctuating from an all-time high of 1,961.05 rupees to an all-time low of 1,021.80 rupees. Even at its all-time high, unfortunately, it failed to reach its original issue price of Rs 2,150.