UPDATE: September 18, 2020 (11:30 AM ET): Google has now restored the main Paytm payments app on the Play Store. However, the Paytm First Games app is yet to be restored. The original story continues below.
Earlier this year, the Indian government announced a new payment method dubbed Unified Payment Interface (UPI) to provide rapid and safe money transfers. UPI is primarily available for use via smartphone apps and it has received an overwhelming response from the users due to its easy availability and stress-free banking. Among the top three operators are Walmart’s PhonePe, Paytm and Google Pay. 
In a recent development, Google has decimated Paytm’s ability to provide payment services for new customer by removing the popular Indian financial services app from the Play Store. The removal is as a result of the violation of Google’s gambling policies.
Google reiterated that the Play Store prohibits online casinos and other unregulated gambling apps that facilitate sports betting in India. But Paytm is deemed to have violated that policy by promoting fantasy sports service within its marquee app. Paytm’s fantasy sports service, called Paytm First Games, was also available as a standalone app and it has been pulled, too, from the Play Store.
Google maintains similar guidelines around gambling in most other markets and have directed that 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 will also be deemed in violation of its Play Store policies. This is where Paytm may have violated the Play Store’s policy.
In a recent blog post on this subject matter, Suzanne Frey, Vice President, Product, Android Security and Privacy stated; “We have these policies to protect users from potential harm. When an app violates these policies, we notify the developer of the violation and remove the app from Google Play until the developer brings the app into compliance.”
“And in the case where there are repeated policy violations, we may take more serious action which may include terminating Google Play Developer accounts. Our policies are applied and enforced on all developers consistently,” she added.
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