The Indian payments company is selling in-house AI tools to enterprise merchants as it seeks to build a new revenue stream beyond transactions and financial services.
Paytm has started selling its artificial intelligence platform to enterprise merchants, marking a fresh push by the Indian payments company to widen its business beyond transactions and financial services. The move was disclosed in its latest quarterly earnings release, which said the firm is already offering selected in-house AI products to merchants to help them attract customers and expand sales across channels, including the main Paytm app.
The company has not disclosed the formal name of the service. Bloomberg previously reported that it would be called Paytm Intelligence, or Pi, and said the offering could begin with AI agents for banks, lenders, insurers and other financial institutions in India and the UAE. Paytm has said only that it intends to increase the scale of the product over the coming months if demand supports that plan. According to the company’s investor relations update, the AI tools are being applied across consumer and merchant journeys, as well as in risk management, collections, fraud prevention and personalisation.
The shift follows comments from founder and chief executive Vijay Shekhar Sharma, who said on a recent analysts’ call that Paytm had built a low-cost model optimised with 4 billion parameters, designed to run with low latency and use fewer tokens than popular rivals. Sharma said the company had removed call-centre costs and planned to sell the model to other businesses as software. He also said Paytm was already beginning to monetise AI, with some products generating a small amount of revenue, and that the business aimed to turn that into a meaningful line within about a year.
The timing of the AI push coincides with a strong quarter for Paytm’s core business. The company reported profit after tax of ₹225 crore for Q2 FY27, compared with ₹21 crore a year earlier, while operating revenue rose 28% to ₹2,648 crore. EBITDA climbed 90% to a record ₹270 crore, and one report said margins reached double digits for the first time. Business Standard reported that Paytm also extended its consumer UPI market-share gains for a sixth straight quarter, with transaction value rising 42% year on year, while monthly transacting users increased to 8.5 crore. Rival fintech firms are also experimenting with agentic AI, suggesting the sector sees automation as a new source of growth rather than just a cost-cutting tool.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
