One 97 Communications (OCL), the parent company of fintech firm Paytm, has partnered with Axis Bank to provide point-of-sale (PoS) solutions and Electronic Data Capture (EDC) machines to the bank and its merchant network.
This collaboration follows Paytm’s recent shift of its nodal account to Axis Bank to facilitate merchant payments amidst regulatory scrutiny by the Reserve Bank of India. The partnership aims to expand Paytm’s reach to a broader merchant base through Axis Bank, enhancing the bank’s merchant acquiring portfolio and improving transaction efficiency.
Sanjeev Moghe, President and Head of Cards and Payments at Axis Bank, expressed his enthusiasm for the partnership, stating that it allows Axis Bank to extend its business offerings to a larger base of merchants. Paytm’s EDC devices feature inventory management, invoice generation, promotions and discounts, sales tracking and reporting, and customer relationship management, which will help merchants streamline their business operations.
In addition, ET reported that Paytm is transferring its PoS terminals for card payments at merchant outlets to RBL Bank. Under this arrangement, OCL will manage these terminals at the backend, while RBL Bank will handle transaction processing. The transactions will be settled with merchants through Axis Bank’s nodal accounts.
A Paytm spokesperson highlighted the significance of the collaboration with Axis Bank, emphasizing that it represents a milestone in empowering merchants with innovative technology. The partnership aims to extend Paytm’s reach, strengthen customer engagement, and support merchants in growing their businesses. For Q1 FY25, Paytm reported a revenue of Rs 1,502 crore, down 36% from Rs 2,342 crore in Q1 FY24, with consolidated losses increasing to Rs 838.9 crore from Rs 357 crore in Q1 FY24.
