Page 8 - Pine Labs News Today

While the allocation of funds typically happens between December and January, this year the allocation announcement is still pending, industry insiders said. With the general elections round the corner, the industry is worried that the allocation and the subsequent disbursal of funds could be further delayed.

After Paytms front-page ad on a national daily, Pine Labs came up with their digital ad campaign saying, The front page can be bought. Trust cannot.

Paytm had released the ad amid growing concerns over the operational status of the digital payments app after the Reserve Bank of India said Paytm Payments Bank Ltd, or PBBL, the app's banking wing, cannot take deposits, offer credit services, or facilitate fund transfers from March 1.

Paytms QR code and soundbox facility will continue to work even after the RBI deadline as the company faces crisis after the central banks restrictions.

Paytm unveiled a print ad in TOI to reassure users and merchants that its QR, soundbox, and card machine will continue to work.

Jefferies temporarily suspends coverage on Paytm due to uncertain valuation, pending RBI regulatory actions, potential merchant/user attrition, and the closure of Paytm Payments Banks wallet business. The outcome of Enforcement Directorate investigations, government approval for payment aggregator license, and onboarding of Axis Bank are awaited.

The investment bank has moved the stock to “not rated”, weeks after lowering it to underperform after the Reserve Bank of India last month ordered Paytm Payments Bank to halt its key operations, citing non-compliance.

Jefferies said it has moved to not rated from underperform and now see a 28% year-on-year decline in FY25E revenues that pushes Paytm into cash burns

Upon securing preliminary approval in 2022, Mswipe set its sights on piloting its internally developed payment gateway stack with its established merchant base. It was looking to become a full-stack payments player, diversifying from offering offline merchant acceptance devices.

The brokerage said it would stop the coverage of the stock until the news flow around Paytm and its associate, Paytm Payments Bank, “settles down”.