One 97 Communications (OCL), the parent company of fintech firm Paytm, has partnered with Axis Bank to offer point-of-sale (PoS) solutions and Electronic Data Capture (EDS) machines to the bank and its merchant network.
This development comes months after the troubled fintech firm shifted its nodal account to Axis Bank to facilitate merchant payments, amid regulatory scrutiny by the Reserve Bank of India.
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The partnership will enable Paytm to expand its presence by reaching a broader merchant base through Axis Bank. At the same time, it will enhance the latter’s merchant acquiring portfolio by improving transaction efficiency, according to a statement released on Tuesday.
“We are happy to support Paytm in the EDC business. This partnership enables us to extend our relevant business offerings to a larger base of merchants and this is an exciting milestone to build upon,” said Sanjeev Moghe, president and head, Cards and Payments at Axis Bank.
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Paytm’s EDC devices offer features like inventory management, invoice generation, promotions and discounts, sales tracking and reporting, customer relationship management, among others. The PoS solutions will help merchants manage their businesses with seamless payment processing capabilities, it added.
ET reported on March 16 that Paytm is transferring its PoS terminals used for processing card payments at merchant outlets to RBL Bank, where OCL will operate and manage these terminals at the backend, while the processing of transactions will be done by RBL Bank. These transactions will be passed on to the nodal accounts of Axis Bank for eventual settlement with the merchant.
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“Our collaboration with Axis Bank represents a significant milestone in our mission to empower merchants with innovative technology…This partnership extends our reach and strengthens customer engagement and satisfaction, ultimately supporting merchants in growing their businesses. We are thrilled to offer innovative solutions that meet the evolving needs of the market and continue to revolutionise the digital payment landscape,” a Paytm spokesperson said.
For the first quarter of FY25, Paytm reported a revenue of Rs 1,502 crore, down 36% from Rs 2,342 crore in the same quarter of FY24. The company’s consolidated loss for the quarter increased to Rs 838.9 crore, up from Rs 357 crore in Q1 FY24.
