Paytm's share in India's unified payments interface or UPI market has declined for the fourth month in a row, struggling to recover from a significant regulatory setback.
According to data from the National Payments Corporation of India, Paytm's share of total UPI transactions fell to 8.1% in May, down from 13% in January.
The decline follows a January order from the Reserve Bank of India for Paytm Payments Bank, a banking affiliate, to cease operations.
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Since the order, Paytm's shares have dropped by approximately 55%. Although PPBL is not controlled by Paytm, it is part of the fintech empire led by founder and CEO Vijay Shekhar Sharma.
RBI's crackdown on Paytm
Since shutting its banking unit after falling foul to regulations, Paytm has lost about half of its market value and there have been consistent speculation about it being a potential takeover target.
The RBI barred Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions or top-ups in any customer accounts, wallets, and FASTags, keeping in view the interest of customers, including merchants from March 15 onwards.
The company during the reported quarter wrote off Rs 227 crore investment for a 39 per cent stake in PPBL, following future uncertainties associated with the bank's business operations including the uncertainty of any other regulatory development etc