ETtechBengaluru: Digital payments major Paytm, owned by One97 Communications Ltd, has decided to shut down its Canada app on March 14, the company’s Canada business informed customers. had launched its Canada division, called Paytm Labs Inc, back in 2014. Paytm Canada launched its bill payments rewards program for Canadian users in 2018.
In an official blog, Paytm Canada said it "had to" charge convenience fees for bill payments to customers back in 2019, and has now decided to shut the consumer app completely.
‘We have always prided ourselves on being transparent with our customers. You may recall that we had to introduce convenience fees in November 2019 due to the ‘unfavourable economics’ of bill payments, and we communicated this through our emails and blogs. During these unprecedented times, we have had to make some tough business decisions. Unfortunately, as of March 14, 2022 the Paytm Canada App will be shutting down permanently. Effective January 14, 2022, we will be disabling scheduled payments and top-ups for Paytm Cash which includes, EMT transfers, Canada Post and bank transfers,” the blog read.
One97 Communications told ET the decision was taken to focus the efforts of Paytm Labs on opportunities in India.
In response to ET's queries, a Paytm spokesperson confirmed that there were no layoffs expected with the shutting down of the consumer app in Canada.
“Over the last few years, we have built Paytm Labs, our team in Canada, to drive innovation for our products and services across the world, whose primary business is research and development analytics of customer data and provision of technical support... As a part of our Canada operations, we launched a small experiment in the country with a B2C app. In order to focus all our resources on the massive India opportunity, and given the immateriality of the Canada B2C app, we have decided to sunset the Canada B2C app only from March 14, 2022,” the company said in an official reply.
“This has no relation or impact on the Canada-based Paytm Labs or Paytm’s India business or revenue. We continue to stay committed to our mission of driving financial inclusion in India,” it added.
In an official blog, Paytm Canada said it "had to" charge convenience fees for bill payments to customers back in 2019, and has now decided to shut the consumer app completely.
‘We have always prided ourselves on being transparent with our customers. You may recall that we had to introduce convenience fees in November 2019 due to the ‘unfavourable economics’ of bill payments, and we communicated this through our emails and blogs. During these unprecedented times, we have had to make some tough business decisions. Unfortunately, as of March 14, 2022 the Paytm Canada App will be shutting down permanently. Effective January 14, 2022, we will be disabling scheduled payments and top-ups for Paytm Cash which includes, EMT transfers, Canada Post and bank transfers,” the blog read.
One97 Communications told ET the decision was taken to focus the efforts of Paytm Labs on opportunities in India.
In response to ET's queries, a Paytm spokesperson confirmed that there were no layoffs expected with the shutting down of the consumer app in Canada.
“Over the last few years, we have built Paytm Labs, our team in Canada, to drive innovation for our products and services across the world, whose primary business is research and development analytics of customer data and provision of technical support... As a part of our Canada operations, we launched a small experiment in the country with a B2C app. In order to focus all our resources on the massive India opportunity, and given the immateriality of the Canada B2C app, we have decided to sunset the Canada B2C app only from March 14, 2022,” the company said in an official reply.
Discover the stories of your interest
“This has no relation or impact on the Canada-based Paytm Labs or Paytm’s India business or revenue. We continue to stay committed to our mission of driving financial inclusion in India,” it added.
Read More News on
Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.
...more