Paytm’s merchant services will live on, but its main consumer product looks be toast
India’s government has effectively killed an e-wallet service used by over 300 million people.
The service is called Paytm and, as The Register reported in early February, it is in trouble because its parent company of the same name started a bank that was found to have consistently failed in its obligations to prevent money laundering. India’s government effectively shut down the bank and prevented Paytm’s bank from funnelling new funds to users’ wallets.
Users of the Paytm wallet were given a deadline of February 29, after which they would not be able to add funds, but would be able to spend the balance stored in their wallets.
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To understand the impact of this change, imagine PayPal no longer allowing members to increase account balances. That’s how big this will be in India.
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lennyesq 