Paytm, one of India’s leading digital payment and financial services platforms, is demonstrating strong growth across key metrics, affirming its position in the country’s rapidly expanding digital finance landscape.
In a testament to its growing user base, Paytm has reported a significant 20% year-on-year increase in average monthly transacting users. The company now boasts 94 million monthly transacting users, up from 79 million during the same period the previous year. This impressive growth reflects the increasing adoption of digital payment solutions in India.
Paytm’s lending platform has also been on the rise, disbursing loans worth ₹5,517 crore (approximately $667 million) in August 2023. This underscores the platform’s role in providing accessible and convenient credit solutions to a wide range of users.
The platform’s merchant payment volumes (GMV) have experienced substantial growth, increasing by a remarkable 43% year-on-year. Paytm processed ₹3 trillion ($36.3 billion) in merchant payments during July-August 2023, up from ₹2.1 trillion in the same period in 2022. This robust performance extends beyond traditional UPI transactions, with significant growth seen in non-UPI instruments such as EMI and card payments.
Paytm’s loan distribution business, in collaboration with lending partners, has witnessed exceptional growth, with loan disbursements totaling ₹10,710 crore (approximately $1.3 billion) in July-August 2023. The platform’s commitment to expanding financial inclusion is evident in the 47% year-on-year increase in the number of loans, reaching 8.8 million during the same period.
To support its diverse range of services, Paytm has deployed 8.7 million devices as of August 2023, representing a year-on-year increase of 4.2 million devices. These devices play a crucial role in driving subscription revenues, increasing payment volumes, and expanding the funnel for merchant loan distribution. Paytm’s subscription-as-a-service model has proven successful in enhancing its overall ecosystem.
While pursuing aggressive growth, Paytm remains committed to ensuring the credit quality of loans distributed on its platform. The company has achieved improved credit quality for Paytm Postpaid, with expected credit loss (ECL) reduced to a range of 0.65% – 0.85%, down from 0.75% – 1.00% in the fourth quarter of FY23. This focus on credit quality is essential for maintaining a strong lending portfolio.
Paytm’s recent performance highlights its ability to adapt and thrive in India’s dynamic digital finance landscape. As the company continues to innovate and expand its offerings, it remains well-positioned to meet the evolving financial needs of Indian consumers and businesses.