India, July 27 -- Diversification seems to be the common thread running through India's fintech ecosystem right now. Last week, we took a closer look at Groww's expansion moves beyond its core business. This week, it's Paytm's turn, but the payments giant has a slightly different ambition. The company isn't just diversifying within fintech; it's betting that AI software could become its next growth engine.

Paytm, which already has one of the country's largest merchant and business networks, now wants to sell AI products built in-house to those very customers, effectively making a push into enterprise AI software and tools.

"We definitely have decided that we will go to the merchants and the businesses with the solutions and services tha...