Pine Labs clarifies media report on gift card breakage income

Pine Labs has clarified that recent media reports by entrackr.com suggesting its revenue could be impacted by gift card breakage income are 'speculative, incorrect and misleading.' The company stated that across its regulated products, it operates predominantly via co-branded programs where any breakage income belongs to partner brands, not Pine Labs. Therefore, breakage has never been a material part of Pine Labs' revenue or profit. The company added that even if the RBI issues additional guidance on breakage income treatment, it foresees no meaningful impact on its business, revenue, or profitability, as this operating model has been in place for over a decade.