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<keyword id="19898109" type="General" weightage="100" keywordseo="Paytm" source="keywords" meta.keywordsubtype="org" meta.entityname="Paytm" meta.hostid="261" meta.entityid="Paytm">Paytm</keyword>'s parent company, <keyword id="20253123" type="General" weightage="20" keywordseo="One97-Communications" source="keywords" meta.keywordsubtype="org" meta.entityname="One97 Communications" meta.hostid="261" meta.entityid="One97 Communications">One97 Communications</keyword>, declared its Q2FY25 results today, announcing a one-time, exceptional profit of Rs 1,345 crore during the quarter, thanks to the sale of its entertainment ticketing business. The company's PAT (profit after tax) stood at Rs 930 crore. Notably, without this windfall gain, Paytm's finances would still be in red, with the company racking up losses worth Rs 415 crore. Paytm was in red in the year-ago period as well, incurring losses worth Rs 290.5 crore. This windfall profit also improved Paytm's EBITDA by Rs 388 crore on a QoQ basis. The company's revenue also saw a slight uptick of 10.5% quarterly to Rs 1,659 crore, as opposed to Rs 1,501 crore in the previous quarter. But on a year-on-year basis, Paytm's revenue dipped significantly by 34%. The company also announced that it has entered into a DLG (<keyword id="23641220" type="General" weightage="20" keywordseo="Default-Loss-Guarantee" source="keywords">default loss guarantee</keyword>) model for its merchant loans of about Rs 225 crore with SMFG India Credit. Under this arrangement, Paytm will be first in line to take a hit in case of a loss that emerges from borrowers defaulting or skipping their payments. "Following the regulatory framework and the emerging market practice, we see increased willingness from lenders to partner and allocate more capital in the default loss. The DLG model will help to increase disbursements with the existing partners and expand partnerships with new lenders for the loan distribution,” said the company in its earnings release today. The company's revenue from its payment business also inched up 9% on a quarterly basis, along with its revenue from <keyword id="19976433" type="General" weightage="20" keywordseo="financial-services" source="keywords">financial services</keyword>, which also grew by 34% QoQ. At present, Paytm's total merchant subscriptions stand at 1.12 crore, with the company garnering 3 lakh new merchants during the quarter. During the previous quarter, Paytm's <keyword id="20253122" type="General" weightage="20" keywordseo="gross-merchandise-value" source="keywords">gross merchandise value</keyword> (GMV) also inched up by 5% on a sequential basis, which experts anticipate will continue in the coming quarters, just as India braces for the festive season. Per its release, Paytm aims to achieve <keyword id="23641219" type="General" weightage="20" keywordseo="EBITDA-profitability" source="keywords">EBITDA profitability</keyword> (before ESOPs) by the fourth quarter of this financial year. However, investors remained unimpressed with Paytm's performance, with its share slipping by around 3.96% during the day to trade at Rs 697.20. The stock has a YTD (yield-to-date) of 7.91% during the year.

Paytm declares Q2 results, earns Rs 930 crore as windfall gains by way of sale of ticketing business to Zomato

<keyword id="19947542" type="General" weightage="20" keywordseo="One-97-Communications" source="keywords" meta.keywordsubtype="org" meta.entityname="One 97 Communications" meta.hostid="261" meta.entityid="One 97 Communications">One 97 Communications</keyword>, that operates popular fintech brand <keyword id="19898109" type="General" weightage="20" keywordseo="Paytm" source="keywords" meta.keywordsubtype="org" meta.entityname="Paytm" meta.hostid="261" meta.entityid="Paytm">Paytm</keyword>, reported a 25 per cent rise in revenue at Rs 9,978 crore in the just concluded financial year 2023-24. The company attributed the growth to GMV growth, device additions, and growth in the financial services distribution business. Since its IPO, when the company went public, it for the first full year EBITDA before ESOP profitability of Rs 559 crore, its earnings results released Wednesday showed. In the January-March quarter, however, Paytm reported a revenue of Rs 2,267 crore, a modest decline of 3 per cent year-on-year. "In Q4 FY 2024, we had lower marketing spends, as we paused most of the user growth spending in the month of February and March. We expect to reinvest in these areas in the coming financial year," Paytm informed stock exchanges. "While we experienced a financial impact in Q4 due to the above disruptions, the full financial impact will be seen in Q1 FY 2025." Paytm says it is confident of seeing meaningful improvement starting from Q2 2024-25, based on restarting certain paused products and achieving steady growth in operating metrics. In Q1 of the current fiscal, its focus will be on acquiring new merchants, reactivation of inactive merchants, and redeployment of devices from inactive merchants to new merchants. "While there will be a smaller net addition of device merchants in Q1 FY 2025, we expect net additions to improve from thereon and recover to past trendlines by Q3 FY 2025." Its revenue from payment services were up 26 per cent to Rs 6,235 crore; net payment margin was up 50 per cent to Rs 2,955 crore; gross merchandise value (GMV) up 39 per cent to Rs 18.3 lakh crore. Merchant paying subscriptions for devices have reached 1.07 crore as of March 2024, an increase of 39 lakh. Revenue from financial services and others up 30 per cent to Rs 2,004 crore; value of loans distributed was up 48 per cent to Rs 52,390 crore. Further, Paytm said that the active rate and per device subscription revenue has been impacted. Merchant subscription revenue in Q4 was Rs 90 per device per month and it expects it to bottom out at Rs 80 in Q1, post which it should increase towards Rs 100 by Q4 of the current fiscal. "We continue to address our merchants' needs through innovative product launches and are backed by a large distribution and service network. We recently launched two more "Made in India" soundboxes which are customized to the needs of our merchants, with louder speakers and longer battery life." SEE ALSO:<a href="https://www.businessinsider.in/stock-market/webstories/awfis-space-solutions-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/110305597.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/awfis-space-solutions-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/110305597.cms" target="_blank">Awfis Space Solutions IPO – Price band to risk factors, all you need to know</a><a href="https://www.businessinsider.in/sports/webstories/rajasthan-royals-vs-royal-challengers-bengaluru-head-to-head-record-key-players-and-more/slidelist/110298325.cms" target="_blank"></a> <a href="https://www.businessinsider.in/sports/webstories/rajasthan-royals-vs-royal-challengers-bengaluru-head-to-head-record-key-players-and-more/slidelist/110298325.cms" target="_blank">Rajasthan Royals vs Royal Challengers Bengaluru: head-to-head record, key players and more</a><a href="https://www.businessinsider.in/tech/news/indias-pc-market-grows-by-2-6-in-q1-2024-recording-third-consecutive-quarter-with-growth/articleshow/110292150.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/indias-pc-market-grows-by-2-6-in-q1-2024-recording-third-consecutive-quarter-with-growth/articleshow/110292150.cms" target="_blank">India's PC market grows by 2.6% in Q1 2024, recording third consecutive quarter with growth</a>

Paytm registers 25% growth in revenue at ₹9,978 crore in 2023-24

Digital payments and services app <keyword id="19898109" type="General" weightage="20" keywordseo="paytm" source="keywords">Paytm</keyword> is working and will continue to work as usual even after February 29, its CEO <keyword id="20004114" type="General" weightage="100" keywordseo="vijay-shekhar-sharma" source="keywords">Vijay Shekhar Sharma</keyword> said on Friday. The founder and CEO of One97 Communications Ltd (OCL), which owns Paytm brand, on social media platform X said the company is committed to serving the nation in full compliance. "To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual," Sharma said. RBI has barred Paytm Payments Bank Ltd (PPBL) from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others after February 29, 2024. OCL holds a 49% stake in PPBL but classifies it as an associate of the company and not as a subsidiary. "I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance. India will keep winning global accolades in payment innovation and inclusion in financial services - with PaytmKaro as the biggest champion of it," Sharma said. The Paytm top management during an earning call on Thursday said they are working on a migration plan for PPBL, wallet, FASTag etc users with other banks. The company sees the RBI order to have an impact of Rs 300-500 crore on its annual operational profit as its customers will not be able to add money to their wallets, FASTag etc. Separately, the company informed that its offline merchants network offering and device business like Paytm Soundbox, EDC, QR are not impacted by the Reserve Bank of India's (RBI) direction to its associate bank. The fintech company will also continue onboarding merchants to its platform. "The Paytm Payment Gateway business (online merchants) will continue to offer payment solutions to its existing merchants. Other financial services such as loan distribution, insurance distribution and equity broking, are also not in any way related to Paytm's associate bank and are expected to be unaffected by this direction," the company said. Paytm said that the RBI order also does not impact user deposits in their savings accounts, wallets, FASTags and NCMC (National Common Mobility Card) accounts, and they can continue to use the existing balances. RBI has ordered PPBL to settle all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29, 2024) by March 15, 2024 and no further transactions would be permitted thereafter. Sharma during the call had said that RBI order is a "big speed bump" and shared that he could not understand the trigger for the move and he was not aware of the exact nuance that triggered the order. "On behalf of Paytm I can say it is more of a big speed bump but it is something that we believe that with partnership of other banks and capabilities that we have already developed, we will be able to see through in the next few days or quarters as the case will be," he had said.

Paytm app will continue to work beyond Feb 29 as usual: CEO Vijay Shekhar Sharma

In the current landscape of increasing disposable income and a surge in point-of-sale transactions on e-commerce platforms, the usage of credit cards has experienced a notable upswing. A glance at the Reserve Bank of India’s data reveals a consistent rise in credit card spending that has been reaching new highs each month. Leveraging these insights into customer behaviour trends, <keyword id="6357120" type="General" weightage="100" keywordseo="paytm" source="Orion">Paytm</keyword> has identified opportunities and strategically introduced suitable credit products. Among these innovations, the Paytm co-branded credit cards stand out – offering customers lucrative discounts on various categories, including travel and movie tickets. Currently, Paytm has forged valuable partnerships with HDFC Bank and SBI Card, two of India’s leading credit card issuers. These collaborations not only generate substantial upfront distribution revenue but also establish a steady lifetime usage fee stream. Users can access these exclusive cards by applying on <a href="https://paytm.com/loans-credit-cards/credit-cards/">the Paytm app</a>. Paytm’s co-branded credit card business has grown significantly both in terms of new card issuances as well as spends. As of June 2023, Paytm boasts of an impressive count of 7.5 lakh activated credit cards, marking an increase of 1.6 lakh cards in the quarter. This trend is expected to grow, fuelled by the robust potential of cross-selling among Paytm’s extensive user base, many of whom have already taken loans through their platform. During the earnings call for Q1FY24, Paytm’s Founder and CEO Vijay Shekhar Sharma, underscored the instrumental role played by banks and NBFCs in ensuring easy credit availability for customers. He also believes there is a huge portion of customers still pending to come on board. “You can see the growth in the credit card spends, you can see the growth on BNPL equivalent, whether it is a large ticket or a small ticket on the counter is the growth direction. While the debit side has plateaued is not what I would say. There is a large customer base still pending to come on board. But definitely, credit is adding the flare of extra revenue and it will add to the net bps margin continuously,” said Sharma. Moreover, Sharma envisions a future where credit may become a choice of payment for many. “India is at the cusp of the next payments revolution where credit will become the mainstream payment choice. Our users are already savvy on QR code-based payments and with RuPay credit cards working on UPI QR codes, transactions through mobile phones will get a further boost, marking a new era in digital payments,” he had said during the launch of Paytm SBI Credit Card. Notably, the credit card industry in India remains largely under-penetrated, offering huge opportunities for market penetration and expansion. The landscape is open for astute players like Paytm who are poised to redefine and elevate the credit card experience for the Indian consumer. Disclaimer : This article has been reproduced from Paytm's blog. The opinions expressed are those of the organisation and do not necessarily reflect the views of Business Insider India. For further details, you can get in touch with our team on <a href="mailto:insiderstudios@businessinsider.in">insiderstudios@businessinsider.in</a>

Paytm’s growing leadership in credit ecosystem – co-branded credit cards at 7.5 lakh

India’s leading mobile payments and financial services firm <keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword>’s leadership in UPI merchant payments has helped it generate meaningful revenue. In its Q4FY23 results, the company revealed that it received UPI incentives from the government amounting to ₹49 crore during the quarter and ₹182 crore for the full financial year. The Union Cabinet in January approved the incentive scheme for promoting RuPay Debit Cards and low-value peer-to-merchant (P2M) UPI transactions. Paytm is the leader in UPI merchant payment transactions, and the UPI incentive received by the company has doubled from the previous fiscal’s ₹90 crore. Paytm UPI has been driving the country’s digital transaction volumes in recent years. The company’s rapid deployment of low-cost QR codes to cover every corner of India has brought underpenetrated merchant segments that once preferred cash-based payments into the digital payments fold. As of March 2023, the company had a registered merchant base of 3.35 crore. According to the Ministry of Electronics and IT, its incentive scheme will also promote UPI Lite as user-friendly digital payment solutions and enable further deepening of digital payments in the country, across all sectors and segments of the population. As the pioneer of mobile and QR payments in India, Paytm was the first app to launch UPI Lite in India. Since its launch in February 2023, Paytm has enabled UPI Lite for more than 55 lakh users. Merchants and users prefer Paytm for UPI because of the company’s industry-best transaction success rates. UPI has also emerged as one of the key customer and merchant acquisition channels for Paytm. Paytm has built a scalable UPI revenue model by focussing on merchant payments and offering subscription-based payment devices like Paytm Soundbox and upselling financial services. Today, it is the leader in offline payments with the most payment devices deployed. It has further strengthened its leadership with 71 lakh devices deployed as of April 2023, an increase of 3 lakh devices during the month. Led by the growth in merchant GMV, higher subscription revenues, and growth of loans distributed through our platform, Paytm reported a 51% (YoY) revenue growth in Q4FY22 to ₹2,334 crore. It posted an operating profit for the second consecutive quarter with EBITDA before ESOP cost expanding to ₹234 crore. Disclaimer: This article is generated and published by the Insider Studios team. You can get in touch with them on insiderstudios@businessinsider.in

Paytm’s merchant payment leadership helps double its UPI incentives to ₹182 cr in FY23

India’s payment revolution is showing no signs of slowing down, as both merchants and consumers continue to embrace digital payment technology with enthusiasm. <keyword id="9418617" type="General" weightage="20" keywordseo="paytm-soundbox" source="Orion">Paytm Soundbox</keyword>, the pioneering IoT device launched to address a specific need amongst the merchants, has witnessed tremendous adoption since its launch. This battery-operated device offers a range of features that have made it the most preferred choice for merchants in the country to accept payments, including <keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword>’s All-In-One QR, 4G support, cashback, and seven-day battery life. Paytm has further strengthened their leadership in offline payments with a cumulative deployment of 5.8 million devices including PoS and Soundbox, according to their Operating Performance Update for Q3FY23. This represents an increase of 1 million merchants paying subscriptions for payment devices in the quarter and marks the second consecutive quarter in which they have achieved device deployment of 1 million. In a year, Paytm has gone from 2 million devices to 5.8 million devices. Paytm's focus on subscription services continues to expand as they focus on creating additional payment monetization beyond MDR. With its subscription-as-a-service model, the strong adoption of devices drives higher payment volumes and subscription revenues, while increasing the funnel for their high-margin merchant loan distribution business. The robust adoption of subscription products by merchants is making payments increasingly monetizable and profitable for them. Paytm Soundbox offers merchants instant audio confirmation in any of the 11 supported languages for every payment made through a Paytm QR code. This has helped to build trust between merchants and customers, as merchants can quickly confirm successful payments. It supports multiple payment methods such as Paytm Wallet, Paytm Postpaid, Paytm UPI and other UPI apps, net banking, and cards, therefore providing more flexibility and convenience to the merchants. By leveraging their insights into merchants’ payment flow, they are able to offer them the ability to seamlessly obtain loans from their financial institution partners. This capability makes it more attractive for merchants to use their platform for all their payment and financial services needs. According to Paytm's Q2FY23 earnings presentation, merchants who also have Paytm devices accounted for over 85% of merchant loan disbursals. Their lending partners are able to rely on their distribution and merchant insights, otherwise unavailable to them. Merchants are increasingly willing to pay for technology that enhances the trustworthiness of digital payments. This presents them with a great opportunity to enable financial inclusion for a large number of merchants. This journey means that the relationship they have with their merchants expands over time from QR payments to devices to credit. The penetration level for merchant loans remains low at just 4.4% of total devices deployed (as per Q2FY23 earnings presentation), suggesting that there is significant headroom for growth in this area. As Paytm continues to add more devices, the total market for merchant loans will continue to expand, providing opportunities for further growth. Disclaimer : This article has been reproduced from Paytm's blog. The opinions expressed are those of the organization and do not necessarily reflect the views of Business Insider India. For further details, you can get in touch with our team on insiderstudios@businessinsider.in

Device deployment hits 1 million for two straight quarters: How Paytm Soundbox is fuelling growth

As the pioneer of mobile payments and QR technology, Paytm has established itself as a leader in India’s rapidly-expanding digital payments space and has become the go-to payment platform for millions of Indians. As India’s largest payments platform, Paytm is the leading digital ecosystem for consumers and merchants. It helps merchants grow their businesses by giving them solutions that allow them to accept payments, acquire and retain consumers, improve their business operations and access financial services. Paytm was the first company to launch QR payments for in-store merchants in India in 2015, allowing small shopkeepers to accept digital payments at zero upfront cost. They launched the All-in-One QR Code in January 2020, giving merchants the power to seamlessly accept payments from multiple instruments like Paytm Wallet, Paytm UPI, Net Banking, Paytm Postpaid, all major debit cards, credit cards and prepaid cards, and all other UPI apps directly into their bank account. For online merchants, Paytm offers a comprehensive platform to accept payments through Paytm Payment Gateway. By integrating the service, merchants can start accepting online payments and expanding the digital reach of their businesses. As the company looks to grow profitably by leveraging its technological capabilities and customer base, Paytm has been able to deliver strong growth in the recent quarter through two key margin drivers in its payment business – payment processing and subscription revenues. Two key margin drivers behind Paytm’s strong growth For payment services, Paytm primarily generates revenues from the transaction fee it charges merchants based on a percentage of transaction value and consumer convenience fees from consumers for certain types of transactions. The fee percentage varies by the type of payment instrument used by consumers and the category of merchant. Paytm also earns recurring subscription fees from merchants for certain products and services, such as Paytm Soundbox and PoS. It has demonstrated its leadership in offline payments with 5.8 million merchants paying subscriptions for our payment devices, such as Soundbox and PoS, as of December 2022. Paytm’s subscription-as-a-service model drives strong adoption of devices, which leads to higher payment volumes and subscription revenues. This in turn increases the funnel for its merchant loan distribution. Paytm’s revenue from Payment Services to Consumers, which includes income from use cases such as bill payments and top-ups on the Paytm app, grew by 55% from a year ago to ₹549 crore in Q2FY23. Consumers pay platform fees to Paytm for select use cases whereas merchants pay MDR or Merchant Discount Rate. Meanwhile, revenue from Payment Services to Merchants rose 56% year-on-year to ₹624 crore in the Q2FY23, driven by strong growth in the payments devices business. Payment Services to Merchants includes revenues from Paytm’s comprehensive offerings of online and in-store payment acceptance services such as Payment Gateway, All-in-one and Dynamic-QR, POS, and Soundbox. Merchants pay MDR for cards, wallet, net banking payments, and subscriptions for devices. For UPI person-to-merchant payments, the government pays incentives. In the latest analyst presentation, Paytm said that it charges around ₹100 per month per active device with some high-end devices commanding higher fees of up to ₹250 per month. In some cases, select installations also receive additional incentives from partner banks, the Reserve Bank of India (RBI), and the National Bank for Agriculture and Rural Development (NABARD). Paytm’s management believes that it is still the early days of payments in India as there are only 25 crore registered UPI users and 1 crore total devices in the market. Paytm believes that India could have the potential of 10 crore merchant entities and more than 50 crore payment customers in the near term. “We believe overall subscriptions for payment and other services will be a large market,” the company said in a presentation to analysts recently. Through payment processing, Paytm makes a net payment margin of 7-9 bps of GMV. Of this, 3-4 bps are earned from UPI transactions and 15-18 bps from transactions through other instruments such as wallet, debit card and credit card. Paytm believes that government incentives for UPI could be higher this year due to a rise in volumes. “Due to the tailwinds for UPI merchant payments, we are also able to make attractive subscription revenues for payment devices, and MDR for non-UPI payments,” Paytm said in its Q2 earnings release. Given UPI is growing at a faster pace than other instruments, Paytm expects its blended margin to stabilize at 5-7 bps. The company also noted that payment processing charges will trend lower as a percentage of GMV due to the increasing mix of UPI as well as routing and rate optimizations. Payment processing charges as a percentage of GMV came down to 0.23% in Q2 FY23 compared to 0.34% in the corresponding quarter last year. Paytm’s net payments margin stood at ₹443 crore, up 428% year-on-year, driven by improved monetization and continued improvements in payment processing charges. Paytm sees merchant subscriptions as an attractive profit pool driving higher payment volumes, subscription revenues as well as merchant loan distribution. Further, higher GMV from online merchants in the payment gateway business and continued growth in subscription and MDR revenues from our offline merchants helped Paytm clock a 56% growth in Q2FY23 Payments Services revenue. Paytm is also expanding its monetization base with the growth of users and merchants. UPI is helping Paytm with efficient user and merchant acquisition. Since the offering is free for merchants, it hence encourages high usage. In addition to government incentives, the opportunity to upsell loans as well as payments devices to merchants has made UPI economically viable for Paytm. Payments offerings such as Paytm QR are the company’s primary means to onboard offline merchants, whereas products such as Soundbox and PoS devices increase merchant engagement and retention in Paytm’s ecosystem with attractive monetization characteristics. In 2019, Paytm became the first in the market to introduce an IoT-enabled payment acceptance device, Paytm Soundbox, that helps merchants get instant audio confirmation on every payment received via QR code. With Soundbox, Paytm brought about a technological innovation in in-store payment acceptance in India. In 2021, the capabilities of the Paytm Soundbox were upgraded with the launch of Paytm Soundbox 2.0 equipped with Paytm All-in-One QR Code and a digital screen that gives instant visual confirmation of the paid amount along with voice notification.The innovative device has addressed a gap and specific need among merchants and has played a pivotal role in establishing digital transactions as a safe and secure process, enhancing the trust of merchants and consumers to move digitally. Given its wide suite of offerings to merchants, and the ability to drive higher consumer engagement and stickiness through Paytm Payment Instruments, Paytm has a unique monetization model compared to its peers. Disclaimer : This article has been reproduced from Paytm's blog. The opinions expressed are those of the organization and do not necessarily reflect the views of Business Insider India. For further details, you can get in touch with our team on insiderstudios@businessinsider.in

Payment processing and subscription revenues: Two key margin drivers behind Paytm’s strong growth

<keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword> has been witnessing a sustained growth in revenues, which reached ₹2,062 crores in the Dec-23 quarter, representing a 2.5x growth from ₹815 crores in Mar-21. The company’s strong growth momentum continued during the third quarter of FY23 due to an increase in merchant subscription revenues, growth in loan distribution, and momentum in the commerce business. In a letter to shareholders, Paytm’s Founder &amp; CEO, Vijay Shekhar Sharma said Paytm achieved the milestone of EBITDA before ESOP cost profitability in Q3 without losing sight of growth opportunities and keeping all compliances as well as risk factors under strict watch. “I believe the opportunity in our country for newer payment and credit disbursement solutions is huge, which gives us quality revenue and attractive profit pools to address,” Sharma wrote. Paytm outlined the various growth drivers for our businesses in the earnings presentation. India is witnessing a revolution in the field of digital payments but Paytm believes these are still in the early days with massive growth potential. Growth in Unified Payments Interface (<keyword id="6358921" type="General" weightage="100" keywordseo="upi" source="Orion">UPI</keyword>), cards, and EMI-led payments is yet to reach the masses. The National Payments Corporation of India (NPCI) has been innovating with UPI to increase the adoption of digital payments. Superior user experience, interoperability and security have made Paytm UPI the most preferred payment option for Indians. Paytm has launched UPI LITE which allows instant, multiple small-value UPI payments having a value of less than or equal to ₹200. UPI LITE will further enhance user experience and unclutter their bank statements. Paytm has introduced RuPay Credit Card on UPI, enhancing the payment experience for both consumers and merchants. Customers will benefit from the ease and the increased opportunity to use their credit cards and merchants will benefit from the increase in consumption by being part of the credit ecosystem with the acceptance of credit cards using assets like QR codes. In the near term, Paytm believes that India could have the potential of 10 crore merchant entities and more than 50 crore payment customers. Subscriptions for payment and other services will be a large market. On the lending side, Paytm feels there is a long way to go, and is working on integrating with large NBFCs and banks to leverage the full potential of small digital credit on the Paytm platform. In Q3 FY23, the value of loans disbursed by Paytm’s financial institution partners through Paytm’s platform grew to ₹9,958 crores, a growth of 357% YoY and 36% QoQ. Disclaimer : This article has been reproduced from Paytm's blog. The opinions expressed are those of the organization and do not necessarily reflect the views of Business Insider India. For further details, you can get in touch with our team on insiderstudios@businessinsider.in

From UPI innovations to digital credit potential – these are the growth drivers in Paytm’s business

<keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword> grew their revenues by 42% YOY in the third quarter of FY23 to ₹2,062 crore. The growth was driven by an increase in merchant subscription revenues, growth in loan distribution, and momentum in the commerce business. Given the timing of the accrual of the UPI incentive, there was no UPI incentive recorded in this quarter. Paytm’s focus on subscription services to create additional payment monetization continues to expand with the number of merchants paying subscriptions for payment devices like Paytm Soundbox and POS reaching 6.1 million at the end of January, an increase of 0.3 million in the month. The number of merchants paying subscriptions increased by one million in Q3 FY23. With their subscription-as-a-service model, the strong adoption of devices drives subscription revenues and higher payment volumes, while increasing the funnel for their merchant loan distribution. Paytm is seeing sustained traction in subscriptions and earning more than ₹100 per month per device. Further, Paytm has received additional incentives on select installations from partner banks, RBI and NABARD etc. Paytm’s founder and CEO Vijay Shekhar Sharma during the recent earnings call said that Paytm’s focus with merchants is not limited to just devices but includes various other subscription line items. The total merchant GMV processed through Paytm’s platform in Q3 FY 2023 aggregated to ₹3.5 lakh crore, marking a YoY growth of 38%. <keyword id="7656598" type="General" weightage="20" keywordseo="merchant-payments" source="Orion">Merchant payments</keyword> volume in the month of January was ₹1.2 lakh crore, growing 44% from a year ago. Paytm’s focus over the past few quarters continues to be on payment volumes that generate profitability for Paytm, either through net payments margin or from direct upsell potential. During the earnings call, founder and CEO Vijay Shekhar Sharma said that Paytm’s focus on merchant payments has created a scalable UPI revenue model in subscription. “I feel highly positive and inspired by the adoption of our device business, especially Soundbox which has led to significant scale in UPI acquiring,” he said. UPI has emerged as one of the key low CAC customers and merchant acquisition channels for us. Paytm’s registered merchant base expanded to 31.4 million at the end of December 2022. Their CEO Vijay Shekhar Sharma also mentioned that Paytm’s revenue from merchant business in the payments industry is particularly higher than every other peer company. “Somebody chose P2P, somebody chose P2M, we chose merchant business. Our acquiring side market share, which NPCI does not yet declare, once they start declaring, you will see how well Paytm is capitalized there over other UPI players, also standalone UPI players or other payment aggregators,” he added. As per the notification received from the Government of India on January 11, 2023, Paytm estimates that for Q1-Q3 FY 2023, it will receive ₹130 crore of UPI incentives in Q4 FY 2023. Paytm leverages their two-sided ecosystem of consumers and merchants and rich insights from their platform to cross-sell high-margin financial services and merchant services. Paytm enables their merchants with tech solutions that allow them to accept payments through a wide variety of instruments and by deploying subscription-based devices that help with reconciliations. Paytm also enables commerce and allows them to advertise, sell gift vouchers, deals and tickets. For consumers and merchants, Paytm offers various lending products such as Paytm Postpaid (BNPL), personal loans and merchant loans, with their financial institution partners. Paytm’s lending business continues to scale providing attractive upsell revenues. Their portfolio qualities have been demonstrated over multiple payment cycles. Paytm believes that upselling lending products is a scalable opportunity and sees a large profit pool in their loan distribution business. The penetration for merchant loans is 5.2% of device merchants. Paytm believes there is a long runway for growth as their payments consumer and merchant base offers a large addressable market for loan distribution. Disclaimer : This article has been reproduced from Paytm's blog. The opinions expressed are those of the organization and do not necessarily reflect the views of Business Insider India. For further details, you can get in touch with our team on insiderstudios@businessinsider.in

Here’s how Paytm built a scalable, revenue-generating UPI model with focus on merchant payments

Paytm, leading payments and financial services company, on Friday said it has achieved operating profitability with <keyword id="63060" type="General" weightage="20" keywordseo="ebitda" source="Orion">EBITDA</keyword> before ESOP cost at Rs 31 crore, much ahead of its September 2023 guidance. Paytm's revenue from operations increased to Rs 2,062 crore (no <keyword id="6358921" type="General" weightage="50" keywordseo="upi" source="Orion">UPI</keyword> incentive recorded this quarter), a growth of 42 per cent YoY and 8 per cent QoQ. The growth was driven by increased adoption by consumers and subscription services by merchant partners along with sustained growth seen in loan distribution and commerce business, said the company. Paytm's founder and CEO <keyword id="914589" type="General" weightage="80" keywordseo="vijay-shekhar" source="Orion">Vijay Shekhar</keyword> <keyword id="445" type="General" weightage="20" keywordseo="sharma" source="Orion">Sharma</keyword> wrote a letter to shareholders announcing the achievement. "This has been made possible due to the relentlessly focused execution by our team. The team was asked to focus on growth with quality revenues that contribute to the bottom line. We have achieved this milestone without losing sight on growth opportunities and keeping all compliances as well as risk factors under a strict watch," he said. Contribution profit was Rs 1,048 crore in the quarter, with margins consistently improving from 31 per cent in December 2021 to 51 per cent in December 2022 on account of improved profitability of payments business and increased mix of high margin businesses such as loan distribution. Net payment margin grew to Rs 459 crore (up 120 per cent YoY) on back of improved profitability in the payments business. Paytm's EBITDA before ESOP margin stood at 2 per cent of revenues as compared to (27 per cent) a year ago, due to sustained improvement in contribution profit and strong operating leverage. The company said it continued to witness strong revenue momentum across its businesses. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/adani-enterprises-sbi-life-hdfc-life-among-stocks-in-focus/articleshow/97567830.cms">Sensex, Nifty50 close in the green powered by financial services and auto stocks</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/adanis-stock-rout-can-impact-its-ability-to-raise-capital-or-refinance-debt-says-moodys/articleshow/97582403.cms">Adani’s stock rout can impact its ability to raise capital or refinance debt, says Moody’s</a>

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