One97 Communications (OCL), the parent company of Paytm, announced a new collaboration with Axis Bank to provide point-of-sale (POS) solutions and electronic data capture (EDC) devices, also known as card machines. This partnership aims to extend Paytm's technology to a wider merchant base through Axis Bank's established network.
Paytm's POS systems go beyond simple payment acceptance. Their software offers a comprehensive suite of store management features, including:
Inventory Management
Invoice Generation
Promotions and Discounts
Sales Tracking and Reporting
Customer Relationship Management (CRM)
This suite of tools empowers merchants to streamline their operations, improve customer engagement, and ultimately grow their businesses.
A Paytm spokesperson highlighted the significance of the partnership: "This collaboration extends our reach and strengthens customer engagement and satisfaction, ultimately supporting merchants in growing their businesses." Paytm remains committed to providing innovative solutions that cater to the evolving needs of the market and contribute to the digital payment revolution.
It's important to note that Paytm experienced a decline in merchant subscriptions following actions taken by the Reserve Bank of India (RBI) against its associate entity, Paytm Payments Bank, in the fourth quarter of FY24. They lost roughly one million subscriptions during this period. However, with this new partnership, Paytm currently boasts over 10.9 million merchant subscriptions at the end of Q1 FY25.
Axis Bank also expressed enthusiasm about the collaboration. Sanjeev Moghe, President & Head of Cards & Payments at Axis Bank, stated, "We are happy to support Paytm in the EDC business. This partnership enables us to extend our relevant business offerings to a larger base of merchants and this is an exciting milestone to build upon."
The Paytm and Axis Bank partnership signifies a strategic move for both companies in the ever-evolving digital payments landscape. Paytm gains access to a wider merchant base through Axis Bank's network, while Axis Bank can offer its existing merchants a more comprehensive suite of payment and store management tools. This collaboration can potentially benefit both companies by:
Increasing Payment Processing Volume: By offering advanced POS solutions and attracting new merchants, both Paytm and Axis Bank can potentially see an increase in the volume of transactions processed through their systems.
Enhancing Merchant Services: Merchants gain access to a wider range of tools that streamline operations, improve customer engagement, and potentially boost sales.
Promoting Financial Inclusion: By simplifying the payment process and offering additional features for merchants, this partnership can contribute to the overall growth of digital payments in India, potentially bringing more people into the formal financial system.
The success of this partnership will depend on its execution and its ability to meet the evolving needs of both merchants and consumers. However, the initial steps taken by Paytm and Axis Bank suggest a promising direction for expanding payment technology solutions and empowering merchants in the Indian market.