Paytm cut marketing spend more than the competition: Bernstein report

The report adds that NPCI's recent norm that limits digital payment apps' share in the overall volume of transactions on the UPI at 30% would impact PhonePe and Google Pay more than Paytm

Paytm, whose initial public offering is expected later this year, has cut down its marketing spend as it focuses on building revenue, and competes with PhonePe and Google Pay in the super application (app) space, according to a Bernstein report.

"Within the UPI (unified payments interface) super-apps, PhonePe leads the pack on overall UPI market share and has grown market share relative to Google Pay and Paytm. Phone Pe and Google Pay continue investing in providing customer incentives and spend on marketing at 2.5-3.0x revenue (FY20 MCA filings). Paytm has streamlined marketing spend from 1.2x revenue in FY17, to 0.4x