Here’s why Paytm is shutting down its Canada operations

Digital mobile payment firm Paytm, founded by One97 Communication has decided to shutdown its Canada app starting March 14 , the company announced in a blog post on Thursday. The multinational technology company said it will only focus and utilise its resources on the India market.

“In order to focus all our resources on the massive India opportunity, and given the immateriality of the Canada app, we have decided to sunset the Canada B2C app only,” the company said in a statement.

Paytm had launched its Canada division, called Paytm Labs Inc, as a research and development division, back in 2014.  Since then, the company applied big data, artificial intelligence, and machine learning to Paytm’s data assets, providing optimal financial products to over 300 million consumers and over 20 million merchants in India.

And in 2017, the company launched the Paytm Canada app, a consumer-facing mobile app allowing Canadians to pay their bills using multiple payment options. It also opened an office in Montreal in the summer of 2019.

Earlier, in 2019 Paytm Canada faced backlash after it “had to” charge convenience fees for bill payments to customers citing “unfavourable economics of bill payments, and we communicated this through our emails and blogs.”

It is worth noting that the company’s research and development unit Paytm Labs will continue to function and only the Canada consumer app will be shutdown. “This has no relation or impact on the Canada-based Paytm Labs or Paytm’s India business or revenue. We continue to stay committed to our mission of driving financial inclusion in India,” it added.

Effective January 14, the company will be disabling scheduled payments and top-ups for Paytm Cash which includes EMT transfers, Canada Post and bank transfers. “Any bill payments that are submitted or that have been pre-scheduled over the next 30 days will be accepted,” the company wrote in a blog post.

Meanwhile, the company has also suggested that customers use available balance in their wallet to pay bills or do gift card purchase latest by March 14.

Source link

Leave a Comment