Paytm joins forces with Aravind Srinivas-led Perplexity to revolutionise its payments service

In a strategic move that showcases the growing influence of artificial intelligence (AI), payments major Paytm has said that it is entering into a strategic partnership with the American AI major, Perplexity. The collaboration aims to integrate real-time, AI-driven search capabilities into the Paytm app, enabling users to access instant, reliable financial assistance and other relevant information seamlessly.

“As India's digital economy grows, the need for instant and reliable information to support informed decision-making is increasing—whether in managing finances, exploring market trends, or making daily choices. Paytm is addressing this by integrating AI-powered search in the Paytm app,” Paytm said in a statement.

According to Paytm's founder and CEO, Vijay Shekhar Sharma, the need for deep financial insights and the ability to explain it to users has become critical, especially in enabling the customer to take the right financial decision.

“AI is transforming the way people access information and make decisions. With Perplexity, we are bringing the power of AI to millions of Indian consumers, making knowledge and financial services more seamless and accessible,” said Sharma.

Aravind Srinivas, CEO & Co-founder of Perplexity, echoed similar sentiments, highlighting the partnership’s potential to reshape how Indians interact with information. “We are thrilled to partner with Paytm, a pioneer and innovator in India’s mobile payment revolution. Our AI-powered search technology will help bring real-time, trusted answers to millions, enabling them to make informed decisions effortlessly,” he said.

According to the joint statement, the Paytm-Perplexity partnership 'aligns with Paytm’s broader vision of leveraging advanced technology' to drive financial inclusion and innovation.

“The Paytm-Perplexity partnership showcases how AI can empower millions by making information and financial services easily accessible. This collaboration aligns with Paytm’s broader vision of leveraging technology to drive inclusion and innovation, making AI an integral part of everyday life in India,” the statement noted.

Concerns about user data

So a big question: With Perplexity integration, how will user data be used, given that for AI to work, data would prove to be key?

Talking during the press briefing, Vijay Shekhar Sharma said: “None of the data goes, this is a perfectly independent shell,” he replied.

However, it remains unclear how user data will be dealt with given that Paytm is also looking at AI integration to bring out features such as financial services advisory, which is data heavy and will need to dip into users historical financial habits to draw intelligence.

“You could look at [our] launch features and services, [which are] individually tailored to, like portfolio, help with your saving , help with expenditure control, etc. Those features you can expect soon,” Sharma noted.