Paytm pivots to AI for revenue growth, eyes global expansion

One 97 Communications Limited (Paytm) reported its Q2 FY26 earnings on November 8, 2025, emphasizing a strategic pivot towards artificial intelligence (AI) as a significant revenue driver rather than solely a cost optimization tool. The company plans to integrate AI into its product and feature sides, developing AI products such as an AI soundbox for small merchants, which will generate subscription and inference fees. This move is expected to enhance monetization opportunities beyond existing offerings, with a focus on both online and offline merchant onboarding.

The company also highlighted strong growth in its financial services business, particularly in Postpaid and EMI disbursements, driven by strategic partnerships with banks and financial institutions. Paytm aims to democratize financial services through mobile UPI expansion. Additionally, there has been a notable improvement in net payment margins, attributed to increased EMI product offerings and price discipline in payment processing. The company is also investing in its sales force, adding 5,000 employees this quarter, to dominate the merchant ecosystem.

Paytm anticipates continued growth in its merchant acceptance network and aims to expand its financial services globally, specifically targeting emerging markets in the Middle East and Southeast Asia, with ambitions to eventually enter developed markets. This international expansion will leverage Paytm’s existing payment acceptance and hardware/software stack, operating under both partner-operated and Paytm-operated models.