Paytm waits on mkt cap rule to ramp up UPI: MD & CEO Vijay Shekhar Sharma

Paytm CEO says the firm will deepen its UPI push once market share caps are imposed in 2026; aims to grow merchant services, go AI-first, and expand globally

Financial technology major Paytm will further deepen its efforts to expand its footprint on India’s real-time payments system — Unified Payments Interface (UPI) — once market share caps on third-party players come into effect, Managing Director and Chief Executive Officer Vijay Shekhar Sharma said on Tuesday.

 

He added that consumer and merchant payments continue to present a growing opportunity, with the model’s viability driven by merchant discount rates on select payment instruments and subscription-based revenues.

 

“…we’ve restored the high UPI success rates that Paytm has long been known for. This has been made possible by the deep integration with our partner banks, our focus on technology, and the continued support from the National Payments Corporation of India (NPCI)… Once the market share caps are imposed, we are ready to move faster and go deeper on market expansion,” Sharma said in a letter to shareholders.

 

 

The reference to a market share cap comes as NPCI, the apex retail payments body, has extended the deadline to implement a 30 per cent cap on third-party UPI apps by two years, until December 2026.

 

NPCI is seeking to introduce a market cap to address potential concerns such as concentration risks among top players. PhonePe and Google Pay continue to dominate the UPI ecosystem, with both entities controlling more than 80 per cent of UPI transactions in volume terms.

 

Sharma said that the Noida-based digital payments and financial services company was committed to being artificial intelligence-first in terms of its offerings and processes.

 

As of June 2025, Paytm’s market share was recorded at 6.9 per cent, according to data from the NPCI website. Sharma indicated that the company would continue to expand internationally.

 

“Our international expansion will be deliberate, with a long-term view and a 1,000-day commitment to meaningful results,” he said. This comes on the back of building “value-accretive services” for the company’s merchants to grow and retain customers.

 

“These are products that extend our stack and unlock monetisation beyond transactions. These solutions are already showing promise in India, and we’re beginning to explore international opportunities where small businesses remain underserved,” he explained.

 

At its meeting in March, the company’s board of directors, based on the recommendations of the Nomination and Remuneration Committee, approved a fixed annual remuneration of ₹4 crore for Sharma, along with other company benefits, for the period from April 2025 to December 2027.

His remuneration for 2024-25 (FY25) stood at ₹4.47 crore.

 

One97 Communications, the company that operates the Paytm brand, reported a turnaround with a consolidated profit of ₹122.5 crore in the first quarter (Q1) of 2025–26, against a net loss of ₹838.9 crore in Q1FY25. Paytm had posted a net loss of ₹539.8 crore in the fourth quarter of FY25.