It has been said that every technology company expands until it eventually becomes a payment platform, as we have observed with Apple and Google, and now a new rumour suggests Microsoft may be getting into the game too.
Paytm is an Indian e-commerce payment system and financial technology company, which offers online mobile recharges, utility bill payments, travel, movies, and events bookings as well as in-store payments at grocery stores, fruits and vegetable shops, restaurants, and more with the Paytm QR code.
Over 7 million merchants across India use their QR code to accept payments directly into their bank account.
Paytm is currently valued at around $16 billion.
“The talks with Microsoft began last year when Paytm was in the middle of raising funds. While Microsoft could not participate in the funding then, it is likely to pump in cash now,” a person familiar with the talks said.
Paytm has already received investments from major venture capital companies such as Softbank and Alibaba, though not all of this money may have come through to the company’s coffers yet.
Besides the cash, Paytm could benefit from Microsoft’s connectivity, computing, and storage solutions. The company is currently struggling against Google Play in India, and may use the funds to expand overseas.
When asked by ET, a Microsoft spokesperson said: “At this moment, we do not have any comments on your proposed story.”