Paytm to shut down its Canada app
Fintech major, which last year made its debut on the Indian stock exchange, said on Friday it will be shutting down its consumer, B2C app in Canada from March 14 onwards.
The shuttering of its Canada business is not expected to have any bearing or impact on Paytm Labs, which is also based out of Canada, or its India business or revenue, the company said in a media statement.
In a blogpost, Paytm said it will be disabling scheduled payments and top-ups for Paytm Cash from January 14, and recommended users to use the balance in their wallets towards bill payments by March 14.
"You may recall that we had to introduce convenience fees in November 2019 due to the unfavourable economics of bill payments...During these unprecedented times, we have had to make some tough business decisions," the financial services company said in the blog.
"In order to focus all our resources on the massive India opportunity, and given the immateriality of the Canada B2C app, we have decided to sunset the Canada B2C app only, with effect from March 14, 2022," Paytm added.
The online mobile payments startup had expanded to Toronto, Canada in 2014, when it set up Paytm Labs Inc as a research and development unit. It launched its B2C mobile app — Paytm Canada — in 2017 to enable bill payments.
The Noida-based firm has depleted around 50 percent of its value since listing — over Rs 70,000 crore — as traders and investors questioned its ability to turn a profit and wondered how it would stem its massive expenses.
Paytm's shares gained 8.17 percent, climbing to Rs 1,116.05 on Friday. From its debut in November, the stock has lost as much as 43 percent.
The company's UPI beneficiary bank unit - Paytm Payments Bank - earlier this week said it enabled 926 million UPI transactions in a single month, the first bank in the country to do so.