Paytm’s market share among India’s online payment apps, fell for a fourth straight month.
As the fintech pioneer struggles to recover from the Reserve Bank of India (RBI) ordering its affiliate, Paytm Payments Bank to shut down, according to a Bloomberg report.
Paytm accounted for 8.1% of total UPI transactions in May. In January, it was 13%, according to data released by the National Payments Corporation of India. The UPI network processed a record 14.04 billion transactions in May, up 5.5% month-on-month.
PhonePe remained the most popular, with a 49% market share in May, while Google Pay boasted a 37% share.
The company’s shares have also fallen about 55% since then.
Paytm Payments Bank isn’t actually controlled by Paytm, but is part of founder and CEO Vijay Shekhar Sharma’s fintech empire, the report read.
Since the RBI order, Sharma partnered up with some of India’s top lenders including Axis Bank Ltd., HDFC Bank Ltd. and State Bank of India Ltd to help Paytm with instant money transfers that used to be handled by Paytm Payments Bank, the report read.
“We expect near-term financial impact to our revenue and profitability, due to disruptions faced in our business in Q4,” Sharma said in Paytm’s latest earnings filing, according to the report.