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<ul><li>The effects of the RBI crackdown on easy <keyword id="35520" type="General" weightage="20" keywordseo="personal-loans" source="Orion">personal loans</keyword> is yet to be seen. </li><li>Despite a more than 25% decrease in acceptance rates, credit card balances have consistently increased. </li><li><keyword id="185013" type="General" weightage="20" keywordseo="gold-loans" source="Orion">Gold loans</keyword> stand out within the <keyword id="817163" type="General" weightage="20" keywordseo="retail-lending" source="Orion">retail lending</keyword> segment by providing the most favourable acceptance rates. </li></ul>Personal loans are on the rise. The month of December has seen the category in lending-verse amass outstanding balances of approximately ₹11 lakh crore, as per the Consumer Finance Overview by InCred Finance. Within the segment, the most rapid growth has been seen in small ticket personal loans (STPL), defined as loans under ₹25,000, witnessing a fourfold increase in volume over the past two years. Meanwhile, conventional personal loans, characterised by larger amounts and stricter underwriting criteria, have doubled in volume over the same period. It is to be noteworthy that in November, earlier this year, RBI increased the <a href="https://www.businessinsider.in/finance/news/rbi-tightens-norms-on-personal-loans-for-banks-nbfcs/articleshow/105269235.cms">risk weightage</a> for unsecured personal loans, and the effect is expected to be seen gradually. Retail lending trumps corporate lending Interestingly, retail lending, directed at individuals rather than businesses, now holds the foremost position and exhibits the most rapid growth within the credit landscape. Retail lending stands at approximately ₹89 lakh crores (around $1.1 trillion), constituting 46% of the overall credit in the economy. The report says that comparatively, corporate lending amounts to ₹74 lakh crores (about $0.9 trillion), securing the second largest segment. Retail balances are growing at a rate of 22% annually from a substantial base, outpacing the 17% growth of overall credit balances and the 14% growth of corporate balances. <keyword id="6387037" type="General" weightage="20" keywordseo="credit-cards" source="Orion">Credit cards</keyword> remain fastest growing retail lending category, despite decreased acceptance rates The fastest growing sector in retail lending remains credit cards. Despite a more than 25% decrease in acceptance rates and an industry-wide tightening of credit policies for new-to-credit customers, credit card balances have consistently increased. This appears to be a preemptive risk management step by lenders, as overall credit performance in the industry remains stable or even shows signs of improvement. A report by Worldline, a payment and transaction services company, highlighted a <a href="https://www.businessinsider.in/finance/news/indias-debit-card-transactions-fall-but-credit-card-spends-rise-further/articleshow/103960976.cms">surge in credit card transactions</a> in H1 2023, reaching 1.550 billion, signifying a significant increase of 19.6% compared to H1 2022. Loans for personal consumption drive retail lending The outstanding balances for consumer finance have crossed ₹22 lakh crores (approx. USD 270 billion). Despite this high base, balances continue to grow at over 25% per annum across most product categories. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td colspan="2" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Annual outstanding balance growth rate (%) </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Gold loans </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">25 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Car loans </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">26 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Personal loans </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">29 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Two-wheeler loans </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">31 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Consumer loans </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">33 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Credit cards </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">34 </td></tr></tbody></table> Source: InCred <keyword id="1897540" type="General" weightage="20" keywordseo="consumer-durable-loans" source="Orion">Consumer durable loans</keyword> see rapid growth Consumer durable loans, akin to STPL loans in terms of loan amounts, are experiencing rapid growth. However, the distinction lies in their controlled use case, where disbursements are directly made to the merchant. The risk performance of these loans earmarked for consumer durables has shown stability. Gold loans continue to shine Gold loans also stand out within the retail lending segment by providing the most favourable acceptance rates, which is natural since it is a secured loan. Banks have observed a rapid increase in their unsecured loan portfolios, raising concerns by the Reserve Bank of India (RBI). Responding to the RBI's worries about the growth of unsecured loans, specific banks are swiftly shifting their attention toward encouraging secured lending. Among these, gold loans have emerged as an attractive financial product within the retail sector. This shift aims to mitigate risk by promoting lending backed by collateral rather than unsecured lending, aligning with the RBI's cautionary stance.

Retail trumps corporate lending as small-ticket loans see fourfold jump in past two years

<ul><li>Unsecured <keyword id="35520" type="General" weightage="50" keywordseo="personal-loans" source="Orion">personal loans</keyword> account for 37% of Bajaj Finance’s loan book, while it is at 21% for Aditya Birla Capital and it is 27% for IIFL (standalone).</li><li>Tighter norms may impact <keyword id="6357120" type="General" weightage="80" keywordseo="paytm" source="Orion">Paytm</keyword>’s break-even timelines if there is a slowdown in loan disbursals.</li><li><keyword id="706950" type="General" weightage="50" keywordseo="aditya-birla-finance" source="Orion">Aditya Birla Finance</keyword> and IIFL may need to infuse capital after the November 16 tightening of capital norms by RBI. </li></ul>Reserve Bank of India’s <a href="https://www.businessinsider.in/finance/news/rbi-tightens-norms-on-personal-loans-for-banks-and-nbfcs-stock-reaction/articleshow/105277492.cms" data-type="tilCustomLink" target="_blank">crackdown on personal loan disbursals</a> by banks and non-banking finance companies will have a cascading effect on the sector. But the worst hit will be non-bank players as they will be hit on both asset and the liability sides. While they will have to pay higher rates while borrowing from banks and bond markets, they will also have to pass on higher costs to borrowers. This will slow down the rapid growth in their balance sheet, which has been driven by rapid growth in the disbursement of unsecured personal/consumer loans. According to analysts, non banking finance companies like Paytm and Bajaj Finance would be most affected by RBI’s move to tighten capital norms on unsecured loans and also loans disbursed to non banks. This will not only make lending more expensive for non banks but in many cases will also force them to raise more capital ahead of schedule. <keyword id="116253" type="General" weightage="80" keywordseo="sbi-cards" source="Orion">SBI Cards</keyword>, Bajaj Finance, IIFL and Aditya Birla have relatively higher proportion of unsecured loans on their portfolio and, therefore, tighter capital norms will impact them the most. Unsecured personal loans account for 37% of Bajaj Finance’s loan book, while it is 21% for Aditya Birla Capital and it is 27% for IIFL (standalone), according to Jefferies. According to Jefferies, SBI Cards can see an estimated.400 basis points cut in its Tier 1 capital adequacy ratio while Bajaj Finance can see 220 basis point hair cut to Tier 1 CAR. However, both NBFCs are well capitalised and have higher return on equity (low capital consumption). “IIFL (standalone entity) and Aditya Birla Capital can see a 50-80 bps haircut to Tier 1 capital, which can lower their Tier 1 to 13%/15%. IIFL may need to infuse capital in the standalone entity; at ABFL, next phase of capital raise may get advanced,” the global investment bank said in a report. in funding costs. SBI Cards faces highest drag on Tier I CAR and highest dependence on bank-funding. The tighter norms will not impact NBFCs but even fintechs like Paytm. Loan disbursals by fintechs will also slow down from the current levels as they may find it hard to raise funds and even pass on higher cost loans to consumers. Japanese investment bank Nomura says in a report, that in the past 18 months, nearly 25%-30% of incremental growth for NBFCs has come from unsecured retail. Any moderation in unsecured credit for NBFCs will hence have an impact on both growth and profitability for NBFCs in our view. Moreover, the regulatory action comes at a time when credit costs in these segments have started to inch up. For Paytm's lending partners, higher funding costs and increased capital requirements will affect product profitability in the buy-now-pay-later and personal loans segments. Non bank lenders like private banks may also start to improve their underwriting standards after this which will impact overall growth. Jefferies says: “We also watch out for the pricing environment and ability of Paytm to pass-through hike in funding costs. In our base case earnings, we forecast consumer loan disbursal growth to normalise from 90% in FY24 to 40% in FY25 and 35% in FY26. Any additional 10 percentage point slower disbursal growth (vs. base case) in FY25/26E can lead to 5-10% impact on lending revenues and ~2-3% impact on overall contributions, which may impact break-even timelines as well. Paytm may be able to compensate for this through faster ramp-up of its merchant financing business.” ALSO READ: <a href="https://www.businessinsider.in/personal-finance/news/the-dark-truth-behind-rbis-crackdown-on-easy-personal-loans/articleshow/105287366.cms" data-type="tilCustomLink" target="_blank">The dark truth behind RBI’s crackdown on easy personal loans</a>

RBI crackdown on personal loans – Bajaj Finance, IIFL, Aditya Birla and SBI Cards to take a bigger hit, say analysts

<ul><li>Google is looking to tap into its <keyword id="2750705" type="General" weightage="100" keywordseo="google-pay" source="Orion">Google Pay</keyword> user base to enter the lending segment.</li><li>Google has partnered with banks and NBFCs to offer credit to merchants and consumers.</li><li>Google Pay handles over 30% of the total UPI transactions in the country.</li></ul> Search giant Google has made several major announcements for India at their annual Google for India event including its entry into the lending business, AI-powered initiatives and more. While the company has made several announcements for its different applications and services such as Search, <keyword id="691847" type="General" weightage="20" keywordseo="google-cloud" source="Orion">Google Cloud</keyword> and more, its announcements related to Google Pay were a key highlight of the event. Google is now entering the lucrative lending business in India, along with local partners. This is aimed at both small merchants and regular users. It is noteworthy that Google Pay enjoys a huge market share in India, handling over 30% of the total UPI transactions in the country. “Just like UPI revolutionised digital payments, digitising credit – with consent and privacy safeguards – can provide ways of expanding the reach of formal credit. And the lower transaction cost of digital credit delivery can enable smaller minimum ticket loan sizes, making it more suitable and approachable for more borrowers,” Google said in a post. <cmsannotation type="cmsannotation" annotationid="Credit for merchants" comment="subhead" text="Credit for merchants">Credit for merchants</cmsannotation> Google has announced several credit facilities for merchants, aimed at offering improved access to credit. For this, the company has partnered with banks and NBFCs. <cmsannotation type="cmsannotation" annotationid="Merchant credit line" comment="subhead2" text="Merchant credit line">Merchant credit line</cmsannotation> To help merchants get quicker access to a credit line for their working capital requirements, Google has announced a merchant credit line in partnership with ePayLater. This will be available to merchants, both online and offline, for the purchase of stock and supplies. <cmsannotation type="cmsannotation" annotationid="Sachet loans" comment="subhead2" text="Sachet loans">Sachet loans</cmsannotation> Merchants looking for a smaller credit can instead opt for sachet loans, which is being offered in partnership with DMI finance. The sachet loans start as low as ₹15,000, with repayment options starting at ₹111. <cmsannotation type="cmsannotation" annotationid="Merchant loans" comment="subhead2" text="Merchant loans">Merchant loans</cmsannotation> Google has also partnered with ICICI Bank and Indifi to offer seamless merchant loans and repeat loans. <cmsannotation type="cmsannotation" annotationid="Credit for consumers" comment="subhead" text="Credit for consumers">Credit for consumers</cmsannotation> It’s not just merchants, Google is also entering the consumer lending segment. <cmsannotation type="cmsannotation" annotationid="Personal loans on Google Pay" comment="subhead2" text="Personal loans on Google Pay">Personal loans on Google Pay</cmsannotation> Google has partnered with Axis Bank to offer personal loans to customers on the Google Pay app. Google Pay is already offering personal loans through the app in partnership with DMI Finance and is expected to soon onboard more partners. <cmsannotation type="cmsannotation" annotationid="Credit on UPI" comment="subhead2" text="Credit on UPI">Credit on UPI</cmsannotation> Google has partnered with ICICI Bank to offer Credit on UPI. What this essentially means is that customers will soon be able to avail credit lines from banks on UPI and use this credit line to make payments via the Google Pay app. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/oneplus-open-foldable-launched-in-india-as-an-affordable-alternative-to-samsung-galaxy-z-fold-5/articleshow/104560947.cms">OnePlus Open foldable launched in India as an 'affordable' alternative to Samsung Galaxy Z Fold 5</a> <a href="https://www.businessinsider.in/tech/mobile/news/best-mobile-phone-under-30000-in-india-in-festival-season-2023/slidelist/104551645.cms">Best smartphones under ₹30,000 in India – the perfect mid-range options for you</a> <a href="https://www.businessinsider.in/tech/mobile/news/global-smartphone-shipments-decline-for-the-ninth-consecutive-quarter-expected-to-bounce-back-in-festive-season/articleshow/104487576.cms">Smartphone makers should be a worried lot as global shipments decline to a decade low</a>

Google for India – Sachet loans to credit on UPI, tech giant bets on lending

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

When it comes to in-store payments, only one name stands out — <keyword id="6357120" type="General" weightage="100" keywordseo="paytm" source="Orion">Paytm</keyword>. With a mechant base of 3.6 crore and a subscriber base of over 79 lakh for devices like Paytm Soundbox and Card Machine, Paytm’s technology-led solutions have set the benchmark for the industry. Trusted by millions of merchants, Paytm’s comprehensive payment instruments, innovative products and commitment to financial inclusion have made it the preferred choice for digitising businesses across the country. <cmsannotation type="cmsannotation" annotationid="Leading the charge" comment="subhead" text="Leading the charge">Leading the charge</cmsannotation> Paytm’s pioneering mobile payments platform has established it as the go-to option for merchants looking to digitise their business. The rapid adoption of its payment devices is testament to its widespread popularity. Through constant innovation and affordable solutions, Paytm has played an integral role in shaping the in-store payment landscape in India. <cmsannotation type="cmsannotation" annotationid="Comprehensive payment instruments" comment="subhead" text="Comprehensive payment instruments">Comprehensive payment instruments</cmsannotation> As India’s leading payments and financial services company, Paytm offers full-stack solutions to merchants. Its in-store devices support a range of payment options, including Paytm UPI, Paytm Wallet, Paytm Postpaid, UPI Lite, credit and debit cards and more. Through simplified and accessible payment solutions, merchants can easily accept payments, acquire and retain consumers, improve their business operations and easily access financial services. <cmsannotation type="cmsannotation" annotationid="Trust and reliability" comment="subhead" text="Trust and reliability">Trust and reliability</cmsannotation> Paytm’s devices are widely trusted and used by millions of merchants in India. The company also offers a robust payment gateway product that allows merchants to reliably accept payments across all channels. With the launch of Paytm UPI SDK, the company’s existing merchant partners can further leverage fastest single-click UPI payments on their apps to boost their business. <cmsannotation type="cmsannotation" annotationid="Empowering merchants beyond payments" comment="subhead" text="Empowering merchants beyond payments">Empowering merchants beyond payments</cmsannotation> Offering merchants a 360°-degree view of the consumer traffic, Paytm enables its merchant partners to grow their business through services like selling tickets, advertising, and other loyalty programmes of deals and gift vouchers. The tech innovator also offers completely digital business loans to merchants who want to scale their business. <cmsannotation type="cmsannotation" annotationid="Driving the digital payments growth" comment="subhead" text="Driving the digital payments growth">Driving the digital payments growth</cmsannotation> Paytm has built a blueprint for the industry by changing India’s payments and commerce landscape. Witnessing a remarkable user engagement on the platform with a YoY growth of 23% and average Monthly Transacting Users (MTU) at 9.2 crore, Paytm has significantly contributed to the adoption of digital payments among both consumers and merchants. From the remote corners to bustling metros and from street vendors dotting the cities and highways, to the biggest enterprises, Paytm’s iconic products are widely accepted and trusted by millions of merchants from diverse parts of the country, making digital transactions accessible across the length and breadth of India. Empowering merchants to join the cashless revolution by driving financial inclusion, the company is committed to offer a diverse ecosystem of innovative solutions that simplifies their day-to-day lives. Paytm’s success story in in-store payments shows how innovative technology and a customer-centric approach can foster financial inclusion and transform an industry. Disclaimer: This article is generated and published by the Insider Studios team. You can get in touch with them on insiderstudios@businessinsider.in

With over 3.6 crore merchants, here’s how Paytm took the crown as in-store payments leader

India’s leading mobile payments and financial services company <keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword> has been instrumental in empowering millions of small and medium businesses with its innovative payment solutions like All-in-One QR and Soundbox. From the local grocery stores to the street vendors dotting the cities, highways, and remote corners of India, Paytm is helping merchants join the nation's thriving digital economy. Paytm’s All-in-One QR is a simple and secure way for merchants to receive payments from any UPI app, Paytm Wallet and even Paytm Postpaid. The fintech pioneer has made access to technology easy and affordable for merchants by identifying merchant problems that can be solved using technology. Paytm pioneered Soundbox in India, a cutting-edge technological innovation that has added unparalleled convenience for merchants. <keyword id="9418617" type="General" weightage="20" keywordseo="paytm-soundbox" source="Orion">Paytm Soundbox</keyword> is an innovative device that helps merchants with instant voice notifications for every payment received via Paytm QR. The device supports 11 languages and allows merchants to keep track of payments, and prevents false confirmations and customer fraud. Paytm merchants derive value by becoming a part of the company’s ecosystem. It has a registered merchant base of 31.4 million (as of December 2022), increasing by 26% year-on-year. This is one of India’s largest merchant networks. Paytm is focused on expanding its merchant network to cover a diverse range of businesses from various sectors. Its QR and Soundbox have been widely adopted by merchants across India in various sectors such as retail, grocery, food, transportation, and more. In partnership with lenders, the company also offers loans to eligible merchants to enable their business growth. The number of merchant loans disbursed by Paytm grew 253% YoY in Q3 FY 2023, while the value of merchant loans grew 285% YoY to ₹1,825 crore. More than 85% of the value disbursed during the quarter was to merchants with a deployed Paytm payment device. Paytm’s management had said in the company’s Q3 FY 2023 earnings calls that its merchants are spread across more than 450 cities and towns and it plans to expand this to approximately 1,000 towns in the next two to three years. Paytm continues to strengthen its position as the leader in offline payments. As of 31st March 2023, more than 6.8 million merchants are paying subscriptions for its payment devices like Soundbox and PoS. From temples and gardens to street vendors and grocery stores, Paytm has also leveraged its large and growing merchant network to create a strong foothold in the digital lending market in India. As the driving force behind the digital transformation of countless businesses, Paytm has acquired a large number of merchants from big and small cities across the country. Paytm users often share heartwarming images and stories of merchants of all ages and sizes who have seamlessly transitioned to digital payments, thanks to the fintech pioneer. <div type="twitter" handle="VRaj_In" handlename="𝕍ℝaj 🇮🇳" image="http://pbs.twimg.com/profile_images/1388147324656910338/FBjGWBvl_normal.jpg" favoritecount="9" retweetcount="0" status="@vijayshekhar 82 year old mausi accepting paytm . India has revolutionized the way people transact and #Paytm has b… https://t.co/B4i5u4JYD4" createdat="1681220925000" id="1645785962797203461"></div> “82 year old mausi accepting paytm . India has revolutionized the way people transact and #Paytm has been on forefront,” tweeted a user recently. He shared a picture of an elderly woman who is selling snacks accepting Paytm. <div type="twitter" handle="ankit_k87" handlename="Kumar Ankit" image="http://pbs.twimg.com/profile_images/1623014628019310593/dy2aljI9_normal.jpg" favoritecount="78" retweetcount="4" status="My car broke down in middle of nowhere in Gaya, Bihar. Nearest mechanic and Petrol pump is 10 kms away. But, you ha… https://t.co/KTfg6ZPJJP" createdat="1680335625000" id="1642072746392944641"></div> Another Twitter user, Kumar Ankit, shares a picture of a grocery shop in remote Bihar accepting payments with Paytm QR. “My car broke down in middle of nowhere in Gaya, Bihar. Nearest mechanic and Petrol pump is 10 kms away. But, you have a small shop with Paytm. Interestingly the QR code was covered in plastic - he said “bhaiya aise saaf rehta ha”. He gets 10-15k per month on Paytm even here,” he captioned the image. The widespread adoption of Paytm’s payment solutions including All-in-One QR, Soundbox and POS has made Paytm synonymous with mobile payments in India, enabling small and medium merchants to keep up with the rapidly evolving and growing digital payments landscape. Disclaimer: This article is generated and published by the Insider Studios team. You can get in touch with them on insiderstudios@businessinsider.in

How Paytm became the leader in merchant payments with pioneering solutions like Paytm QR and Soundbox

<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

<ul><li>Vijay Shekhar Sharma-led <keyword id="6357120" type="General" weightage="100" keywordseo="paytm" source="Orion">Paytm</keyword> today revealed that its average loan ticket size has surged by over 21% in the September quarter. </li><li>The company, whose shares are down by over two-thirds from its issue price of ₹2,150 since debuting in November last year, disbursed over 1 lakh loans every day during the quarter. </li><li>Reacting to the news, Paytm’s shares gained even as the broader markets were in the red on weak global cues. </li></ul>Paytm today reported a 21% quarterly growth in its average loan ticket size from ₹6,551 to ₹7,956 in the September quarter. It also disbursed over 1 lakh loans per day during the period, the company said in an exchange filing. The Vijay Shekhar Sharma-led company has reported that its pace of loan disbursals has increased from the previous quarter. At this rate, it would end up issuing loans worth ₹34,000 crore by the end of FY23, up from the ₹24,000 crore as estimated in the previous quarter. The surge in loan disbursals that Paytm is seeing should not come as a surprise. <a href="https://www.businessinsider.in/finance/banks/news/banks-to-reap-rewards-of-interest-rate-hikes-in-q2-earnings/articleshow/94706875.cms">Analysts have observed a strong growth in retail loans in the banking and financial services sector</a>. HDFC Bank, the largest private sector lender witnessed a 24% year-on-year growth in loans in its Q2 update, driven by corporate-rural, retail and wholesale segments. <div type="image" title="Paytm average loan ticket size Q2 FY22." msid="94753575" hostid="261" sizebytes="15012" caption="&amp;lt;p&amp;gt;Paytm average loan ticket size&amp;lt;/p&amp;gt;"></div> Paytm’s improved performance should come as a relief to the company’s investors, who have seen over two-thirds of their investment erode from the issue price since its listing in November last year. The company’s shares were up 0.9% as of 10:30 am today even as the <a href="https://www.businessinsider.in/stock-market/news/sensex-falls-642-points-as-us-jobs-data-drags-down-global-markets/articleshow/94752259.cms">benchmark Nifty50 index was down 1.2%</a>. Apart from this, Paytm also reported healthy growth in its offline payments business. The total devices deployed increased from 3.8 million in Q1 to 4.8 million in Q2. It is worth noting that this number includes the point-of-sales and soundbox devices only, not the dynamic QR codes that merchants can additionally deploy. Despite a healthy growth in devices deployed, the gross merchandise value, or GMV – which is essentially the value of total transactions carried out through these devices – registered a relatively slower growth. Sequentially, on a per user basis, the GMV was barely up, too, with an increase of a meager 0.7%, down from the 8.2% surge reported in the previous quarter. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/telecom-sector-to-ring-in-stability-in-q2-jio-and-airtel-expected-to-grow-stronger-vi-weaker/articleshow/94709309.cms">Telecom sector to ring in stability in Q2 – Jio and Airtel expected to grow stronger, Vi weaker</a> <a href="https://www.businessinsider.in/finance/banks/news/banks-to-reap-rewards-of-interest-rate-hikes-in-q2-earnings/articleshow/94706875.cms">Banks to reap rewards of interest rate hikes in Q2 earnings</a> <a href="https://www.businessinsider.in/stock-market/news/nifty50-valuations-remain-expensive-but-experts-are-divided-on-indias-growth-prospects/articleshow/94704195.cms">Nifty50 valuations remain expensive, but experts are divided on India's growth prospects</a>

Paytm reports an increase of over 21% in average loan ticket size

India has become a global leader in <keyword id="6358577" type="General" weightage="20" keywordseo="digital-payments" source="Orion">digital payments</keyword>, with millions of citizens now opting for online transactions instead of cash. In the initial days of India’s digital payments revolution, most fintechs focused on empowering consumers, while merchants remained reluctant to accept payments online. This is where <keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword>, India’s leading digital payments and financial services company, played a crucial role and created a two-sided ecosystem that paved the way for merchants to seamlessly adopt digital payments system. Paytm has empowered nearly 3 crore merchants in the country, enabling them to grow their businesses with innovative payment solutions and devices. With nearly 50 lakh device deployments, Paytm is further strengthening its hold in the offline payments landscape and continues to be the leader in peer-to-merchant (P2M) transactions. Here are <keyword id="15369397" type="General" weightage="20" keywordseo="5-innovative-offerings" source="Orion">5 innovative offerings</keyword> that have made Paytm the top choice for merchants in the country: The revolutionary QR code Paytm pioneered the QR code revolution in India, having introduced the iconic payments solution in 2015. The QR code revolutionized the way merchants accepted payments from customers and has been instrumental to India’s digital payments leadership; it was also the first solution that enabled online transactions at scale. It has empowered millions of small and medium businesses to seamlessly accept payments from consumers within seconds. As far as Paytm’s role in popularising the use of QR code in India is concerned, the iconic blue and white Paytm QR code scanner stationed at shops in every alley, street and major market across the country speaks volumes. The iconic Soundbox Paytm founder and CEO Vijay Shekhar Sharma recently shared the story behind what led to the inception of the Paytm Soundbox, a device that provides instant sound alerts to merchants on receiving payments successfully from customers. The company’s Soundbox has proved to be a revolutionary innovation for merchants in the country and is playing a vital role in empowering small and micro-businesses in India. The Soundbox helps merchants to easily keep track of all payments received, with support for multiple payment methods such as Paytm Wallet, Postpaid, Paytm UPI and other BHIM UPI apps, net banking and cards. It also supports multiple languages such as English, Hindi, Tamil, Telugu, Kannada, Marathi, Malayalam, Bengali, Gujarati, Punjabi and Odia. Merchant loans Paytm also offers easy credit access to millions of merchants on its network as part of its loan distribution business in partnership with top financial institutions. With this, Paytm has empowered millions of merchants by allowing them to meet working capital needs quickly to grow their businesses. The volume and value of merchant loans availed by small businesses through Paytm are witnessing a sharp uptick, aided by the strong growth in its devices business. Paytm Payment Gateway Paytm Payment Gateway is one of the leading payment aggregators in India, powering some of the country's largest brands. It has empowered merchants with a wide variety of payment solutions under one platform. Paytm Payment Gateway allows online and omni-channel merchants to reliably accept payments across all channels. Paytm offers merchants over 100+ payment sources, a powerful dashboard for data-driven insights, and industry-best success rates. It also enables unique features like instant activation for quick onboarding (new merchants), access to all major payment instruments (Paytm Wallet, Paytm Postpaid, credit/debit cards, UPI etc.), next-day settlements, secure card tokenization, and more. Enabling commerce for merchants Paytm also allows merchants to advertise or host their businesses on its platform, enabling them better visibility through its vast consumer base. Leveraging Paytm’s wide reach, many brands have been able to maximize their growth. Merchants use the Paytm app to enable commerce, such as selling tickets and deals and enabling advertisements. Paytm’s commerce and cloud services continue to witness a steady rise in demand among various brands, indicating that it is growing in popularity among merchants who want to expand their reach. Disclaimer: This article is generated and published by the Insider Studios team. You can get in touch with them on insiderstudios@businessinsider.in

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