Paytm Denies Being in Talks with Jio Financial Services to Sell Wallet Business

Jio Financial Services has clarified that the company has not been in discussions to acquire Paytm wallet.

Jio Financial Services gave the clarification following reports which the company said were speculative.

Paytm also said in a clarification, "We have not been in any negotiations in this regard. We have been informed by Paytm Payments Bank Limited (PPBL), our associate company, that they also have not been in any negotiations in this regard."

Paytm shares are up 5.5 per cent at Rs 462.70 on the Bombay Stock Exchange on Monday. Paytm shares had fallen in the last few sessions after RBI restrictions.

In an earlier statement, One 97 Communications (OCL) said it has been informed by its associate, PPBL, that the RBI vide its press statement dated January 31, 2024, has given it further directions under Section 35A of the Banking Regulation Act, 1949.

PPBL is taking immediate steps to comply with RBI directions, including working with the regulator to address their concerns as quickly as possible. The company has been informed that this does not impact user deposits in their savings accounts, wallets, FASTags, and NCMC accounts, where they can continue to use the existing balances.

OCL, as a payments company, works with various banks (not just Paytm Payments Bank), on various payments products. OCL started to work with other banks since starting of the embargo, the statement said.

"We now will accelerate the plans and completely move to other bank partners. Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited. The next phase of OCL's journey is to continue to expand its payments and financial services business, only in partnerships with other banks," the company said.

"We offer acquiring services to merchants in partnership with several leading banks in the country and will continue to expand third-party bank partnerships. The Paytm Payment Gateway business (online merchants) will continue to offer payment solutions to its existing merchants. OCL's offline merchant payment network offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine, will continue as usual, where it can onboard new offline merchants as well," it added.