Paytm cuts payment-processing costs 35% after bank-partner migration
After RBI restrictions on Paytm Payments Bank, Paytm shifted payment operations to partner banks including Axis, HDFC, Yes Bank and SBI. Processing costs fell from about 0.18% to 0.12% of GMV after Q4 FY24, supporting narrower losses and improved profitability.
Paytm cut payment-processing costs by about 35% after shifting backend banking operations from Paytm Payments Bank to partner lenders following RBI restrictions. Lower transaction, employee and ESOP costs helped One97 Communications narrow FY25 losses and reach full-year profitability in FY26.
Why this matters
The cost reduction follows Paytm's recent product and distribution moves: promoting Split Bill, planning 50,000 Indian retail outlets, and adding ₹11 ITR filing through ClearTax.
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