“The Board has formed the Repurchase Committee to oversee and implement the Repurchase and has delegated authority to it to do such acts, deeds, matters and things as it in its sole discretion deems necessary, expedient, customary or appropriate in connection with the proposed Repurchase,” the filing reads.
Earlier this month, Paytm founder and CEO Vijay Shekhar Sharma, in an analyst meeting, predicted that the net payment blended margin, the difference between payment earnings and processing fees, will stabilize at 5 to 7 basis points (bps) due to the increase in UPI share in payments . He said the company is currently earning a net payment margin of 7 to 9 basis points of gross merchandise value (GMV) on processing.
Sharma added that the company will trend down as a percentage of GMV due to the higher UPI in the mix, as well as routing and rate optimizations. “Starting this quarter, postpaid fees will be included in payment costs (formerly in promotional cashback and incentives), which will not impact contribution margin,” he said.
Paytm made this analyst presentation days after the Reserve Bank of India (RBI) refused to grant a payments aggregator license to its subsidiary Paytm Payments Services Limited (PPSL). RBI has asked PPSL to resubmit their Payment Aggregator (PA) application within 120 calendar days. The central bank has also blocked PPSL from accepting new online traders.
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