Paytm to Transition from Licensed Business to Distribution Model Amid Rebuilding: Report 

As fintech firm Paytm rebuilds its business, a general view in the leadership is that the firm should refrain from doing licensed business that falls directly under the probe of the regulatory bodies. This is as per a report by the Economic Times. At least initially, Paytm intends to steer clear of any venture that requires a license. Instead, the fintech firm wants to chart a course for a future in which the company is entirely driven by a distribution model, the report adds.Speaking to the Economic Times, a source said, “We have the reach and brand recall; the focus is to partner with others and use our tech to distribute products better aimed at our consumers and merchants.” Read: Paytm Employees File Complaint with Ministry Over Alleged Unlawful Termination: ReportFurther, Paytm won’t reportedly focus on re-applying for licenses in the non-banking finance, insurance, or asset management industries. Paytm recently withdrew its application for an insurance license with the Insurance Regulatory and Development Authority of India (IRDAI). Instead of focusing on cross-border payments, the fintech firm will focus on e-commerce via the Open Network for Digital Commerce (ONDC), according to the report. Recently, Paytm launched an auto-rickshaw booking feature via ONDC. The feature reportedly went live for people in Bengaluru, Chennai, and the National Capital Region (NCR).  This development comes after the Reserve Bank of India imposed restrictions on Paytm Payments Bank for persistent non-compliance with KYC practices. Since then, the bank has stopped offering basic banking services and is dependent on third-party operators. 

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