We are AI-first: Paytm CEO outlines vision for future of digital payments

Paytm is intensifying its focus on innovation, with artificial intelligence at the core of its efforts to transform the future of digital payments, founder and CEO Vijay Shekhar Sharma said, reaffirming the company's commitment to becoming AI-first.

"True to our DNA of innovation and pioneership, we are proud that our AI-led full stack payment solution continues to redefine how millions of merchants accept payments, run their business, and serve their customers. We remain committed to being AI-first, in every product we offer and every process that powers us," he said in his annual letter to shareholders.

He further emphasised that Paytm's focus on core payment operations and the continued strengthening of its business fundamentals have set the company on a path toward sustainable growth and profitability.

As one of the earliest and most aggressive adopters of AI in India's fintech space, Paytm has embedded this disruptive technology into each product and service journey, including merchant onboarding, transaction monitoring, while ensuring customer delight.

Reaffirming its commitment to an AI-first approach, Sharma said, "We are proud that our AI-led full stack payment solution continues to redefine how millions of merchants accept payments, run their business, and serve their customers."  In the first quarter of the current fiscal, Paytm, India's leading payments and financial services distribution company, achieved a significant milestone of profitability, reporting profit after tax (PAT) of Rs 123 crore. Beating analyst estimates, this marked the first PAT-positive quarter for the company.

The turnaround is the result of sharp strategic focus and disciplined execution, with each business line serving customers in a 'differentiated manner' and 'contributing meaningfully to the bottom line', Sharma said.

"Now, having crossed the milestone of profitability, I'm proud of our team for their disciplined execution, deep conviction, and relentless innovation. We took some tough calls, pruned and sold businesses, and doubled down on our core of payments, ensuring the preservation and growth of our cash reserves. This focus towards fundamentals has put us on a clear path toward sustainable growth and profitability," Sharma said as part of his FY25 shareholder letter.

Sharma also noted that Paytm has restored high UPI success rates through deep integration with partner banks and technological excellence. He added that through continued user-focused feature enhancements, the company is now poised to expand aggressively and strengthen its market presence.

Paytm continues to be the best UPI payments app with features such as Hide Payments, UPI Statement Download, Balance Check, Send and Receive Money Widget, and many others that are built to deliver a safe and secure user experience.

Beyond payments, Paytm, pioneer of mobile payments, QR codes, and Soundbox, is seeing strong traction in its financial services offerings. The company's merchant loan portfolio has delivered strong outcomes for lending partners while fostering financial inclusion.

The Noida-based payments major has also launched new savings tools like the Rs 21 SIP with SBI Mutual Fund, formalising saving habits for Indians. The company now plans to expand into insurance and other wealth solutions built specifically for India's grassroots entrepreneurs, Sharma said.

In line with its strategy to unlock monetisation beyond payment transactions, Paytm is building services that help merchants grow and retain customers. These solutions, Sharma noted, are already showing promise in India and hold potential in underserved international markets.

Concluding with a note of gratitude to shareholders, Sharma highlighted the company's commitment to compliance, governance, and national impact, "Being a payments champion from India, having built a strong stack of technology and financial services, is a matter of great pride for all of us. We are committed to deepening our role in India's growth story and expanding this success to many more markets," he wrote.

Paytm's annual report encompasses the company's commitment towards building a profitable business with growth. Its focus on compliance and integration with AI is set to drive its future success and contribute significantly to India's digital and financial ecosystem.