Is Paytm Chinese? Here Is The Real Reason Why It Was Taken Down From Google Play Store

In a surprise development, Google took down India¡¯s most used digital wallet service PayTM from its play store in the country. Amid a wave of Chinese apps being banned in India due to data security reasons, the move comes as a puzzler to many, raising doubts about the origins of PayTM and its Chinese connections.

The arising confusion has led to an increase in search on questions like ¡°Who owns Paytm?¡± or ¡°Is Paytm Chinese?¡± Here we address some of these questions, along with the real reason why PayTM was taken down from the Play Store.

Paytm App Origin Country

(Representative Image: Reuters)

As will be known to many, PayTM is a digital wallet and payment app that lets users make online payments for their purchases to vendors. The app is much like many other services like PhonePe, Google Pay and others. While most use a UPI based payment system, PayTM¡¯s digital wallet gives it an edge over others, having the most number of users in India in the category.

PayTM is owned by an Indian company by the name of One97 Communications Ltd. based in Noida, Uttar Pradesh. It was founded in August 2010 by Vijay Shekhar Sharma who is now the Chief Executive Officer of the firm.

The company started with an initial investment of $2 million, eventually raising much more capital from international investors. This is wherein its Chinese connections come to light.

Paytm Chinese link

(Representative Image: Reuters)

Though the company is completely Indian, PayTM lists Ant Financial, a Chinese bigwig, as its major investor. For those unaware, Ant Financial is an affiliate company of the Chinese Alibaba Group and enjoys a position as the world¡¯s highest-valued FinTech company, with a valuation of $150 billion.

Though there have been occasional uproars on the company¡¯s Chinese investment, the fact remains that the digital payment gateway has been founded and developed completely in India by Indian developers. This also means that it cannot be treated as a ¡°Chinese app¡± for an allout ban on its operations.

Why Paytm is removed from the play store?

(Representative Image: Reuters)

The real reason for Google taking down PayTM from its Play Store is based on a recent games service that the app offered to its users. As per Google, PayTM had started facilitating sports betting on its platform through its PayTM First Games app.

The PayTM First Games allow people to bet on fantasy teams and earn real money through its platform. PayTM First Games is also known to include card-based gambling games like Rummy as well as an online portal for playing Ludo.

Google hence took the necessary action since sports betting isn¡¯t legal in India. Google¡¯s Suzanne Frey, Vice President, Product, Android Security and Privacy said in a blog post, ¡°We don¡¯t allow online casinos or support any unregulated gambling apps that facilitate sports betting. This includes if an app leads consumers to an external website that allows them to participate in paid tournaments to win real money or cash prizes, it is a violation of our policies.¡±

PayTM is yet to comment upon the suspension from the Play Store. Stay tuned to this space for further developments on the same.