Pine Labs, a merchant platform, took aim at rival Paytm's front-page ad in a national newspaper, sparking a big social media controversy. "The front page can be purchased, but trust cannot," Pine Labs wrote, without mentioning Paytm.
On February 19, Paytm ran a newspaper ad claiming omnipresence across the country, complete with sound box and QR codes. Pine Labs used the phrase "competitive campaign" to criticize the advertisement.
Paytm issued the advertisement amid mounting concerns over the digital payments app's operating state, following the Reserve Bank of India's announcement that Paytm Payments Bank Ltd, or PBBL, the app's banking section, would be unable to accept deposits, perform credit services, or conduct fund transfers beginning March 1. In March 2022, the central bank advised PBBL not to accept new customers, citing "persistent non-compliance" issues raised by an external audit.
Pine Labs has been distributing the message on social media, thereby converting it into an advertisement. The advertisement also stated that "One million businesses across India rely on Pine Labs to power their business in-store, one transaction at a time." Explore our selection of in-store solutions."
Karthik Srinivasan, a former communications specialist at Ogilvy and Flipkart, stated on X (previously Twitter) that Pine Labs' criticism against Paytm is unfounded.
"I well understand that we live in a cutthroat, dog-eat-dog environment. But, even in such a world, there are perfectly respectful methods to exploit a rival's misery (caused by itself) without directly referring to the rival," Srinavasan stated.
"I have no bias for Paytm and believe the RBI's action, following several warnings, is appropriate for treating compliance so casually. But this under-the-belt jab from Pine Labs appears unnecessary," he said.
Arindam Paul, CBO of Atomberg Tech, stated that Pine Labs' advertisement was "classless and had a scarcity mindset". 'Classless and smacks of the scarcity mindset (you have to lose for me to win), which is deeply entrenched in most of us. "There are better ways to promote your brand without demeaning your competitor," wrote Arindam Paul, CBO of Atomberg Tech, on X.
