Author ORCID Identifier
Dinesh Prabhu: https://orcid.org/0000-0001-9982-041X
Abstract
This case study examines the strategic inflection point faced by Paytm in the wake of regulatory intervention by the Reserve Bank of India in early 2024, which mandated a halt in key operations of Paytm Payments Bank due to persistent compliance failures. The regulatory backlash disrupted Paytm's integrated fintech ecosystem, particularly its credit distribution and financial services, thereby challenging its platform-based business model. The case traces Paytm's evolution from a mobile wallet into a multi-sided digital infrastructure platform that monetizes payments, merchant subscriptions, financial services, and marketing. The study illustrates how the RBI action disrupted network effects and monetization loops and explores the managerial dilemma of re-architecting platform strategy under regulatory scrutiny while sustaining monetization and stakeholder trust. The case provides a rich context for analyzing platform governance, regulatory compliance, and monetization trade-offs in digital ecosystems, particularly within emerging markets.
DOI
10.17705/1CAIS.05759
Recommended Citation
Prabhu, D. (2025). Paytm's Platform Paradox: Rebuilding Network Effects Amid Regulatory Rupture. Communications of the Association for Information Systems, 57, 1427-1442. https://doi.org/10.17705/1CAIS.05759
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