Paytm Launches New Feature For Stock Trading With Auto Payment Deductions

Paytm has launched a new feature, designed to simplify stock trading by enabling automatic payment deductions directly from users’ bank accounts.

The feature, UPI Trading Blocks, also known as Single Block Multiple Debits, eliminates the need for users to transfer large sums to their trading accounts on brokerage apps before executing trades, Paytm said in a statement.

Built on NPCI’s infrastructure and leveraging UPI, the service deducts the amount only when a trade is made, allowing users to keep their funds in their bank accounts and continue earning interest until an actual trade occurs, it added.

“UPI Trading Blocks on Paytm UPI simplifies fund management by enabling seamless, automatic payment deductions directly from bank accounts, eliminating the need to transfer large sums to broker or brokerage apps,” a Paytm spokesperson said.

According to the company, the key benefits of UPI Trading Blocks include eliminating the need to transfer funds to brokers as they are directly blocked in the bank account. The feature provides full transparency with easy tracking of blocked funds in one place on the Paytm app. 

It also allows continued interest earnings as funds remain in the user’s bank account until needed. Additionally, it enables automated payment deductions during trades without requiring a UPI PIN.

This launch comes amid a flurry of developments for the fintech giant. Just last week, the Centre signed a partnership agreement with Paytm to boost innovation and accelerate the growth of manufacturing and fintech startups across India. As part of this collaboration, Paytm will provide mentorship, infrastructure support, market access, and funding opportunities to startups.

In February, the company also launched India’s first solar-powered soundbox for merchants, designed to operate with minimal sunlight exposure. The device, which features a solar panel on top, aims to reduce electricity costs for small shop owners and facilitate payments in rural and remote areas with electricity shortages.

Despite these innovations, Paytm continues to face regulatory challenges. Yesterday (March 3), the Enforcement Directorate (ED) said it issued a show cause notice to the company for alleged Foreign Exchange Management Act (FEMA) violations involving transactions worth about INR 611 Cr. According to the ED, Paytm’s parent One97 Communications failed to report its foreign investment to the Reserve Bank of India (RBI).

On the financial front, Paytm narrowed its consolidated net loss by 6% to INR 208.5 Cr in Q3 FY25 from INR 221.7 Cr in the year-ago period. However, revenue from operations declined 36% to INR 1,827.8 Cr during the quarter under review from INR 2,850.5 Cr in Q3 FY24.

Despite these challenges, Sharma has expressed confidence that the company is on track to deliver profit in Q1 FY26. During the Q3 earnings call, Paytm CFO Madhur Deora outlined that the company expects to turn profitable on an adjusted EBITDA basis in one or two quarters.

Shares of Paytm closed 4.25% lower at INR 695.35 apiece on the BSE today (March 4).