Paytm shares up 3% on Hyderabad Municipal partnership for tax collection

Shares of One 97 Communications -- the parent of Paytm -- rose nearly 3 per cent on Wednesday after it partnered with Greater Hyderabad Municipal Corporation (GHMC) to deploy 400 card machines for property tax collection.

 

Paytm’s stock rose as much as 2.7 per cent during the day to ₹822.7 per share. The stock later pared gains to trade 2.36 per cent higher at ₹820 apiece, compared to a 0.41 per cent advance in Nifty 50 as of 1:03 PM. The shares have risen over 25 per cent from its lows of ₹651 in early March.

 

Shares of the company extended gains to their second day on Wednesday. The stock has fallen 19.5 per cent this year, compared to a 1.61 per cent fall in the benchmark Nifty 50. One 97 Communications has a total market capitalisation of ₹52,340.3crore.

 

The Paytm Card Machines deployed at multiple collection centers and for door-to-door collection will allow people to pay their property tax through credit cards, debit cards, and QR codes, it said in an exchange filing on Wednesday. The card machines are integrated with the GHMC app, enabling officials to check pending dues, collect payments instantly, and generate an on-the-spot confirmation slip.  

 

With Paytm’s seamless payment solution, GHMC has streamlined collections, ensuring faster and more reliable transactions, the statement said. “Our partnership with GHMC is focused on making property tax payments simpler and more efficient for both citizens and municipal authorities," a spokesperson for Paytm said in the statement. "By offering innovative card machines and our pioneered QR-based payment solutions, we are ensuring greater convenience, faster processing, and improved transparency in tax collection."

 

One97 Communications is an Indian financial technology company and the parent company of the digital payment services provider platform, Paytm. The company offers a digital payments platform for use cases such as money transfers, online and in-store merchant payments, and bill payments. The fintech company's services also include commerce and cloud services, such as ticketing and advertising technology-led financial services, including loans, insurance, and wealth management offered through financial partners.

 

Further, with the Security Exchange Board of India (Sebi)’s recent approval for Paytm Money to enter investment insights and research services, the company has an opportunity to diversify into wealth management, potentially unlocking a new source of fee-based income.