Launch · Financial Services

Paytm plans to sell AI products to merchants

By Startup Enthusiast · 20 July 2026

What they do

Paytm offers UPI payments, mobile recharges, bill payments, and financial services

It plans to sell in-house AI tools to merchants and enterprises as a new business vertical

The AI business already generates a few lakhs in revenue and may become a separate revenue line within a year

Paytm plans to sell AI products built in-house to merchants and enterprises, creating a new business vertical outside fintech.
The AI push targets enterprise AI software and tools, not consumer AI products.
Some AI products are already generating 'a few lakhs' in revenue and are no longer at the experimentation stage.
The AI business could become large enough to be reported as a separate revenue line within a year.
Paytm built its own AI stack by optimising a large language model into a smaller model for Indian languages, deployed on its own infrastructure.
AI models are embedded in workflows including collections, customer retention, merchant servicing and merchant acquisition.
Paytm's board voted against a proposal to issue bonus shares, deciding not to proceed 'at this time'.
The board approved an investment of up to ₹100 crore in wholly-owned subsidiary Paytm Money via a rights issue.

Paytm's core business recovered after RBI action on Paytm Payments Bank in early 2024.
Consumer payment volumes are growing at nearly twice the pace of the overall UPI market.
Daily active users and transaction volumes have surpassed pre-January 2024 levels.
Paytm reapplied for a Prepaid Payment Instrument (PPI) wallet licence, which could enable wallet-to-UPI payments with an interchange fee.

Paytm offers UPI payments, mobile recharges, bill payments, FASTag, DTH, insurance premium, metro and toll gate recharge.
It offers flight booking with special fares for armed forces, students, and senior citizens.
It offers credit cards from HDFC, SBI Card and Axis Bank with cashback.
It offers an insurance marketplace for exploring and purchasing insurance.
Paytm Money offers stock broking, mutual fund distribution, Margin Trading Facility at 7.99% p.a., up to 4X buying power on 1200+ stocks.
Paytm for Business merchants can accept payments via UPI, cards, EMI, Paytm QR, Soundbox and Paytm Card Machine.
Paytm built AI capabilities through Paytm ARMS, a merchant lifecycle insights platform, and Paytm Pi, an in-house fraud detection platform.
AI tools automated merchant onboarding, fraud detection, customer segmentation and pricing optimisation, improving merchant retention and lifetime value.

Paytm plans to sell AI products to merchants and enterprises as a new business vertical.
The AI business could become a separate revenue line within a year.
Paytm Money investment will be used for technology upgrades, regulatory capital requirements, and expanding wealth management business.
The board approved re-deployment of remaining ₹1,686 crore of IPO proceeds to strengthen core ecosystem and pursue new business initiatives.