PhonePe sues Paytm employees for burning QR codes

Digital payments company PhonePe filed a police complaint against three employees of a rival fintech company, for mass burning its quick response (QR) codes.

In a complaint filed July 29 with the Surajpur Lakhnawali Police station in the Greater Noida RegionPhonePe alleged that “these actions may be part of a larger conspiracy to damage the reputation” of the company and cause “further financial loss”.

The incident came to light when a PhonePe employee received a message on instant messaging platform WhatsApp on July 28 with a video of the company’s QR codes being burned.

PhonePe, in its complaint, said the activity took place with “the clear intent to cause undue loss to company property”.

ET reviewed a copy of the complaint.

A spokesperson for the Walmart-owned company confirmed the incident, adding that he was able to identify the Paytm employees in the video.

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“PhonePe approached the police based on a video of a pile of its QR codes being set alight. We were able to identify some of the people in the video, including a Paytm Area Sales Manager (ASM). We have full confidence in the police and they are currently taking the necessary measures,” the spokesperson said.

The employees against whom the complaint was filed are Devanshu Gupta, Aman Kumar Gupta and Rahul Pal.

According to the complaint, Devanshu Gupta worked for PhonePe between 2018 and 2022.

In its complaint, PhonePe also said that Gupta, being a former employee, knew beforehand where his QR codes were and hatched a conspiracy with the others to steal these codes.

Paytm told ET in response that the matter was between its rival and the defendants since they were former employees of PhonePe.

“We condemn the act committed by these rogue employees, who have already been suspended from the company pending a full investigation. We do not tolerate any act of misconduct and always uphold the highest standards of professional ethics. high,” the spokesperson added.

In 2020, rival payment companies including PhonePe and Paytm sent legal notices to New Delhi-based BharatPe for allegedly circulating flyers labeling its competitors as American or Chinese.

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