HDFC Bank's Aditya Puri says Paytm has no future, questions business model

HDFC Bank’s Managing Director Aditya Puri questioned Paytm’s business model, saying he sees no future in digital wallets.

Puri said he was not confident about this new wave of digital payments. Speaking to ET Now, he said Paytm could not be another Alibaba because its model could not be replicated.

He said the current loss of Paytm was at Rs 1,600 crore and its economic model was doubtful.

Paytm gained strategic market share especially after demonetisation as the digital wallet gave an alternative to people who are used to paying in cash.

Mobile wallets have gained popularity after demonetisation but as new digital payment options emerge, they may fade away as they have several limitations.