Indian digital payments company Paytm has outlined an ambitious growth strategy for FY27, centred on artificial intelligence, merchant services and expanding financial products, as it seeks to accelerate revenue growth and improve profitability.
Speaking after its fourth-quarter FY26 results, management said the company expects stronger growth across payments, financial services and marketing services businesses. Payments currently contribute around 55% of revenue, while financial services account for roughly 30%.
Executives highlighted improving customer engagement and higher credit card usage as key factors supporting growth in gross merchandise value (GMV) and payment margins. The company said it remains focused on operating as a technology and distribution platform rather than taking direct lending risk on its balance sheet.
Paytm expects merchant lending, personal loans, wealth products and online merchant acquiring to become major growth drivers in the coming year. The company also reported strong recovery in its online merchant business following the restoration of customer onboarding permissions.
Management said AI would remain the company’s primary strategic focus over the next 12 months. AI-powered tools are being integrated into merchant marketing and customer engagement systems to improve acquisition, retention and workflow automation. Monetisation models under consideration include subscription-based and usage-linked pricing.
The company added that it does not plan large-scale spending on AI infrastructure or data centres, opting instead to use rented computing capacity. Any future acquisitions are expected to focus exclusively on AI-related opportunities.
For FY27, Paytm projected revenue growth exceeding 22% and significant expansion in EBITDA margins, supported by operating leverage and tighter control over indirect costs. Management reiterated medium-term EBITDA margin ambitions of 15% to 20%.
The company also highlighted continued momentum in merchant lending, EMI-enabled payment devices and wealth management, which it believes will strengthen customer engagement and long-term profitability.
