Strategic Failure of Paytm: A Study on Paytm’s Journey in India’s Fintech Era

Abstract

Paytm major fintech company in India’s fintech economy began to streamline online money transfers for people and businesses. However, the firm has aggressively expanded its offerings. It will later help with loans, DTH, online banking, eCommerce, and e-recharge. This user-friendly and convenient platform has won over Indians. Later, Paytm added stockbroking, the National Pension System (NPS), Paytm First Games, Insurance, Credit and Debit Cards, and a mini app store. This expansion aimed to help Indian app developers and enterprises a lot and also shows Paytm’s dedication to provide a wide range of easy-to-use financial services. But due to its inability to maintain openness and challenge its ethical practices, the corporation has suffered. Brand value and customer trust have plummeted. Informal decision-making based on founders’ intuition or short-term aims lead to inconsistency and strategic loss. The fintech giant’s emphasis on quick expansion at the business and services of adhering to regulations resulted in significant legal and reputational issues, leading to substantial losses in both reputation and business, as well as legal obstacles.