Paytm to shut Canada app two months after sinking on debut in India

Online mobile payments firm Paytm is shutting down its Canada business almost two months after sinking on public market debut in India.

"During these unprecedented times we have had to make some tough business decisions. Unfortunately, as of March 14 the Paytm Canada App will be shutting down permanently. Effective January 14, we will be disabling scheduled payments and top-ups for Paytm Cash which includes EMT transfers, Canada Post and bank transfers," the company said in a blog post.

"Any bill payments that are submitted or that have been pre-scheduled over the next 30 days will be accepted," it added.

The company has suggested that customers use available balance in their wallet to pay bills or do gift card purchase latest by March 14.

This comes after Paytm had expanded to Toronto, Canada in 2014 starting Paytm Labs Inc as a research and development division.

In 2017, it launched the Paytm Canada app, a consumer-facing mobile app allowing Canadians to pay their bills using multiple payment options. It also opened an office in Montreal in the summer of 2019.

It wasn't immediately clear if the research and development unit in Canada will continue.

Also, today shares of Paytm owner One97 Communications on Friday recovered losses after slipping below Rs 1,000 for the first time since listing.

The stock, declining for the ninth consecutive session, hit a record low of Rs 995 a share in the opening but recovered losses soon to go over 2% higher. At 10am, the scrip was trading at Rs 1,063.80 on the BSE, up 3.14% from its previous close.

Since listing, shares of Paytm have lost over 50%, eroding over Rs 70,000 crore as traders remained cautious amid continued downgrades by brokerage firms. Expensive valuations, expected norms on digital payment regulations and top management resignations have fuelled concerns among investors.

At the India Digital Summit recently, Paytm founder Vijay Shekhar Sharma said the company should be benchmarked against non-banking financial services firm Bajaj Finance, raising eyebrows for making the comparison.