Paytm Launches Automatic Spend Categorization and Monthly Summaries for Smarter Expense Management

Paytm, India’s leading digital payments platform run by One97 Communications Limited, has taken another step toward helping its users manage money more effectively. The company has rolled out two new features Automatic Spend Categorization and a Monthly Spend Summary that bring greater clarity to everyday transactions. With these upgrades, Paytm is no longer just a payments app; it is gradually transforming into a financial management tool that allows users to track and analyze their daily spending habits with minimal effort.

How Automatic Spend Categorization Works

Every time a payment is made using Paytm, the app now automatically places it under a relevant spending category. Common categories include food, shopping, travel, bill payments, money transfers, and others. These tags are visible under the Balance & History section of the app, providing an instant snapshot of where money is going.

For example, a cab fare will automatically appear under “Travel,” while a meal paid at a restaurant will be tagged as “Food.” This eliminates the need for manual entry or guesswork when reviewing past payments.

Summary Table

Monthly Spend Summary: An Overview of Expenses

In addition to tagging transactions, Paytm now offers a Monthly Spend Summary. This feature shows users how much they have spent across categories over the course of a month. By tapping on ‘Total Spent’ in the Payment History, users can see a graphical breakdown that makes it easy to identify trends such as high food bills or growing shopping expenses.

This visualization not only simplifies tracking but also encourages smarter budgeting by highlighting areas where expenses can be controlled.

Customizable Tags for Greater Control

While the automatic system works well, Paytm has also built in flexibility. Users can:

• Edit tags: If a transaction is not correctly categorized, it can be edited with just a few taps.

• Create custom tags: Beyond the suggested categories, users may add their own, such as subscriptions, education expenses, or savings.

This customization ensures that every individual can adapt the tagging system to suit personal financial goals. For instance, someone who spends regularly on tuition classes may create an “Education” tag, while another user might track recurring streaming services under “Subscriptions.”

Adaptive Learning for Smarter Categorization

One of the most powerful aspects of the system is its adaptive nature. Once a merchant is reclassified, all future payments to that merchant will automatically adopt the updated tag. For example, if payments to a local store are changed from “Grocery” to “Food,” every future transaction with that store will carry the “Food” label.

This self-learning capability ensures accuracy improves over time, reducing the need for repeated manual adjustments.

Benefits to Users

1. Transparency: Users instantly know where their money is going.

2. Simplified Reviews: Tags make it easy to track related transactions together.

3. Budget Awareness: The Monthly Spend Summary highlights overspending or recurring patterns.

4. Personalization: Custom tags provide flexibility to tailor financial tracking.

5. Adaptive Tagging: The system learns from user corrections, becoming more accurate with continued use.

Step-by-Step: Using Spend Tags and Summaries

To use the new features, follow these steps:

1. Open the Paytm App on your device.

2. Navigate to the Balance & History section. Each payment will display a tag beneath it.

3. Tap on any tag to view all transactions under that category.

4. To modify a tag, open the payment and select the ‘Edit’ option.

5. Choose or create a new tag. All future payments to the same merchant will reflect this new category.

6. To view the Monthly Spend Summary, tap ‘Total Spent’ in Balance & History. A graphical breakdown of monthly costs by category will appear.

Part of a Larger Suite of Innovations

These features are part of a broader effort by Paytm to deliver value beyond payments. Recent upgrades include:

• The ability to hide transactions for privacy.

• Quick-access widgets such as “Receive Money.”

• Custom UPI IDs for easier identification.

• Downloadable UPI statements in PDF or Excel formats.

• A unified UPI-linked balance view to check all linked accounts together.

• International UPI support in countries such as UAE, Singapore, France, Nepal, and Sri Lanka.

Together, these updates show Paytm’s focus on integrating convenience with financial insights.

Frequently Asked Questions (FAQs)

Q1. What does Automatic Spend Categorization mean in Paytm?

A. It means each transaction is automatically sorted into categories like food, shopping, bills, or travel.

Q2. How can I view my Monthly Spend Summary?

A. Go to Balance & History, then tap ‘Total Spent’ to view monthly category-wise expenses.

Q3. Can I change or create custom tags?

A. Yes. Tags are fully editable, and you can create new ones to match your needs.

Q4. Will my edits apply to future payments?

A. Yes. Once you reclassify a merchant, all future payments to that merchant adopt the updated tag.

Q5. Do I need to activate these features separately?

A. No. They are available to all Paytm app users as part of the latest update.

Q6. What other tools does Paytm provide for financial tracking?

A. Apart from tagging and summaries, Paytm offers downloadable UPI statements, privacy options, widgets, personalized UPI IDs, and international UPI compatibility.

Conclusion

Paytm’s new automatic spend categorization and monthly summaries make financial tracking effortless. By combining smart tagging, customizable categories, and adaptive learning, the platform ensures users have a clear, real-time understanding of their spending patterns. Whether it is managing day-to-day expenses or keeping long-term budgets on track, Paytm’s latest update brings valuable tools directly into the hands of users.

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