Indian FinTech PayTM can turn profitable soon, as the ongoing COVID-19 crisis has fuelled a spike in the use of its payment platforms, the company’s CEO and founder told attendees at the Reuters Next conference.
Speaking at a panel on how technology can help tackle financial exclusion, Vijay Shekhar Sharma said the crisis had pushed more retailers to utilize PayTM’s platforms as businesses were forced to accept electronic payments.
“We could very well break even this year, we will start making money,” he explained.
PayTM, which started as a service for people to top up their cell phones, supplies an electronic payment platform for retailers, cash transfers and bill payments across India. Its lending businesses include credit cards, personal loans and merchant cash loans in partnership with other creditors.
Pressed on whether the company, which is backed by China’s Ant Financial and Japan’s Softbank, would soon look to list, Sharma said it’d look at that when profitable but had no plans from the “short term”.
PayTM was valued at roughly $16 billion during a personal fundraising around in 2019.
Cristina Junqueira, co-founder of Brazilian FinTech Nubank, that was also on the board, stated the coronavirus catastrophe had led millions of people in Latin America’s largest economy to turn into electronic banking for the first time.
“A lot of the people that were most deeply impacted financially by the pandemic were also required to find ways to receive the government stimulus… they had to choose digital means,” she said.
Nubank is now seeking to utilize a surge in deposits on its stage to begin scaling up its lending business.
“As recovery approaches, there’s a lot of need to rebuild, and a lot of companies that went bust, and a lot of individuals in need of credit.”
Excluding credit cards, Nubank’s loan book stood at 332.7 million reais (approximately $62.51 million) in the year to June 2020.
“We have so much more deposits than we can use in terms of funding, so we’re hoping to deploy a lot of that capital in 2021 and help stimulate economic development,” Junqueira said.
She added that if Nubank turns rewarding would depend on how it paces growth, but might be within 18 months. The business is in”no hurry” to record, she said.
The team at Platform Executive hope you have enjoyed this news article. Translation from English to other languages via Google Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Rachel Armstrong, Sankalp Phartiyal, and Carolina Mandl. Editing by Catherine Evans.
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