In an ad in the Economic Times, Paytm clarified that its wallet cannot be used for overseas payments for Uber rides. The digital wallet and mobile commerce company had earlier in May announced, through a strategic tie-up with Alipay, it would allow Indian travelers to pay for Uber rides abroad in local currency. (hit tip: Karthik Srinivasan)
A company spokesperson said Paytm would be issuing a statement regarding the same. We will update once we hear from them.
At the launch, Paytm had said that this would be closely tied with the company’s yet-to-commence payments bank operations. However, in the ad, the company said that “any cross border payments services by the payments bank will be offered subject to FEMA authorisations and RBI approvals.”
Paytm founder and CEO Vijay Shekhar Sharma had earlier said that international currency payments would be converted to Indian Rupee and deducted from the wallet, as indicated by this Business Standard report. Alipay’s back end software would calculate the spot currency exchange.
Earlier partnership with Alipay and Paytm
It is interesting to note that this isn’t the first time Alipay and Paytm were in a partnership for payments globally. In February, the companies signed an agreement which would allow Alipay’s global customers from China, Japan, US and the UK buy from Paytm’s merchants and Indian Paytm users to buy from merchants listed on Alipay.
In September 2015, mobile ad network InMobi partnered with Alipay, Paytm and Stripe (a US based payments company) to enable purchases over its advertising discovery platform Miip. Stripe would be handling payments in the United States, Alipay in China and Paytm in India.
Essentially, shoppers in India could buy goods from Chinese and American ecommerce sites which advertized on the ad network and payments could be done through Paytm.
Paytm to split marketplace from wallet
Earlier this month, One97 Communications the parent company of Paytm confirmed that it plans to separate its ecommerce marketplace business from its digital payments business, possibly in the next 3 months. Sundhanshu Gupta, Paytm’s VP, told MediaNama over email that this was being done “in order to fence the marketplace business from the regulated business of financial services.”
One97 financials: For the financial year 2014-15, One97 Communications reported revenues of Rs 336.9 crore, a growth of 60.47%, from the year before. Losses, however, increased to Rs 372.01 crore from a profit of 5.68 crore last year. Total expenditures increased exponentially to Rs 674.42 crore from Rs 179.85 crore in the previous year.