Troubled Indian Fintech Paytm Wins Reprieve With Axis Deal (1)

Struggling fintech firm Paytm agreed on a new banking partnership with Axis Bank Ltd., giving India’s answer to PayPal a better shot at staying in business after a raft of regulatory concerns.

Lender Axis will step in to replace affiliate Paytm Payments Bank as the backbone for Paytm’s merchant payments settlement business, the company said Friday. Paytm Payments Bank, until recently Paytm’s key partner, is facing regulatory action that threatens much of its operations.

The pact is a victory for Paytm’s billionaire founder Vijay Shekhar Sharma, who is trying to stabilize his business after the surprise curbs by regulators ...