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Paytm shares fall over 7% after NPCI data shows no UPI market share gains in December
Despite receiving approval to add customers in October, Paytm's share of the UPI market has nearly halved, falling from 10 percent at the start of 2024 to just 5.5 percent by the end of the year, said analysts at UBSShares of One97 Communications, the parent company of payments aggregator Paytm, dropped by up to 7.5 percent to Rs 907 per share on January 8, following UBS's report that Paytm did not gain any UPI market share in December, according to NPCI data.
Despite receiving approval to add customers in October, Paytm's share of the UPI market has nearly halved, falling from 10 percent at the start of 2024 to just 5.5 percent by the end of the year. Even during the October-November period, Paytm's market share remained stagnant at 5.5 percent.
Paytm's monthly transacting users (MTUs) also declined by nearly 100 million, dropping from 168 million at the start of 2024 to 68 million by the end of September 2024. UBS analysts emphasized that growth in MTUs is critical for B2C offerings, maintaining a "neutral" rating on Paytm with a target price of Rs 1,000 per share.
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