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Citi report sets Rs 1,000 target for Paytm, says big changes in UPI could make It biggest winner

ANI March 20, 2025 146 views

Citi Research has released an optimistic report on Paytm, highlighting its resilience in the competitive digital payments ecosystem. Despite potential UPI policy changes, the financial analysts see significant growth potential for the company. The report suggests Paytm could benefit from potential Merchant Discount Rate implementations on large transactions. With a strong market position and diversified financial services, Paytm remains a promising investment in India's rapidly evolving fintech landscape.

"Paytm's extensive merchant network allows it to remain a key player in India's digital payments revolution" - Citi Research Report
New Delhi, March 20: A Citi Research report has highlighted Paytm's strong position in India's digital payments ecosystem, despite shifts in UPI subsidy policies.

Key Points

1

Citi sets Rs 1,000 target with 31.1% potential upside

2

Paytm maintains 5.3% UPI market share

3

Digital payments sector showing strong growth

4

Strategic cost management supports long-term profitability

While the government has reduced the UPI incentive allocation to Rs 15 billion for FY25, Citi suggests that this move could pave the way for the introduction of Merchant Discount Rate (MDR) on large-ticket transactions, a development that may work in favor of fintech players like Paytm.

The report points out that Paytm continues to maintain a stable market share of 5.3 percent in UPI transactions, reflecting its resilience in a highly competitive industry.

The overall growth of UPI merchant payments remains strong, recording a 23 percent year-over-year increase in February 2025. Citi's findings suggest that Paytm's extensive merchant network and its diversified suite of financial services allow it to remain a key player in India's digital payments revolution.

Citi analysts have set a target price of Rs 1,000 per share for Paytm, implying a potential upside of 31.1 percent.

The report highlights that the company's strategic cost management and expansion in financial services could contribute to long-term profitability.

With digital payments in India continuing to evolve, Paytm's ability to adapt to regulatory changes and explore new revenue streams positions it as one of the strongest contenders in the fintech space.

Despite policy adjustments, Citi Research views Paytm as a promising investment opportunity. Its well-established user base, robust technology infrastructure, and growing financial services segment create a strong foundation for future growth.

As the government considers potential MDR implementation on large transactions, Paytm could stand to benefit significantly in the years ahead.

The shares of One 97 Communications Ltd ended at Rs 733.15, down 29.95 points or 3.92 per cent, dropping about 6 per cent during the trading session today.

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