Hiiting out at digital wallets, Aditya Puri, MD, HDFC Bank on Friday said that he sees no future in digital wallets! He further said that Paytm cannot be Alibaba as the government doesn’t allow replication of model. In a conversation with ET Now Puri told the business news channel, "Current loss of Paytm is at Rs 1600 crore. It’s current economic model is doubtful.”
With Paytm adding five lakh customers and doing 60 lakh transactions per day, it was the biggest beneficiary of PM Narendra Modi’s demonetisation drive. Founder and CEO, Paytm,
Vijay Shekhar Sharma told ET Now that only 20% transactions were offline before demonetisation. "Offline payments are becoming bigger than online payments for us,” he said. We want to become the digital transactions leader, he added.
Paytm also expects to lose 20-30% of its offline category customers after March 13, when the Reserve Bank of India takes the limits off from cash withdrawals, founder Vijay Shekhar Sharma said on Wednesday in an interview to CNBC TV18. "If we retain 70% of what we have built, we still have a larger (offline) than online category, and that’s where the business is for us,” Vijay Shekhar Sharma said.