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<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

Whenever a company is acquired by another, a common question that arises is what will happen to the employees of the company that is being acquired? Recently, <keyword id="19901323" type="General" weightage="100" keywordseo="Zomato" source="keywords" meta.keywordsubtype="org" meta.entityname="Zomato" meta.hostid="261" meta.entityid="Zomato">Zomato</keyword> made headlines with its acquisition of <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>'s entertainment and ticketing business for Rs 2,048 crore. The all-cash deal, announced late Wednesday, marks a significant step in Zomato's efforts to broaden its horizons beyond food delivery and into the 'going-out' business. <keyword id="19901325" type="General" weightage="20" keywordseo="Deepinder-Goyal" source="keywords">Deepinder Goyal</keyword>, the CEO of Zomato, sent a letter to the company's shareholders, expressing optimism about the acquisition while acknowledging the challenges that lie ahead. He also revealed that Zomato will be absorbing around 280 Paytm employees. According to a report in ET, in his letter to shareholders, <keyword id="19895372" type="General" weightage="20" keywordseo="goyal" source="keywords">Goyal</keyword> said that the company is betting heavily on the team that will be onboarded as part of this acquisition. Unlike previous acquisitions, such as <keyword id="22892653" type="General" weightage="20" keywordseo="uber-eats-india" source="keywords">Uber Eats India</keyword> and Blinkit, where Zomato had established relationships with the teams involved, this deal introduces a new set of dynamics. "This acquisition is our first major acquisition where we are acquiring a team that we do not know very well," the Zomato CEO said. He also stressed on the importance of cultural integration, noting that the main driver of success would be the seamless assimilation of the new team into Zomato's "flattish culture." In the same letter, Goyal also talked about the potential for growth in this segment, pointing out that the success of the business would largely depend on Zomato's ability to introduce new use-cases such as shopping and staycations. He said, "We believe, over the next decade and beyond, going-out experiences will continue to grow strongly in lockstep with overall growth in lifestyle and consumption." One of the key elements of this acquisition is the impending launch of Zomato's new app, District, which is expected to go live in the coming weeks. This app will centralize various lifestyle services, including dining, movies, live events, and more, under a single platform. Initially, services will continue to be offered on the existing apps, such as Zomato, Paytm, Insider, and TicketNew. However, over time, these services will be migrated to District, creating a more streamlined and cohesive user experience. Goyal expressed confidence in the company's ability to manage the transition, highlighting that Zomato has roped in experienced team members, Rahul Ganjoo and Pradyot Ghate, to lead the execution. These two Zomans were instrumental in the successful transition of Uber Eats India to Zomato, and Goyal believes they will be key to ensuring a smooth migration of customers to the new platform. However, Goyal also acknowledged that some incentives might be required to encourage customers to move from the older apps to District. He described this as a marginal financial risk, which the company would try to minimize as much as possible.

Zomato will absorb around 280 Paytm employees, CEO Deepinder Goyal says

New Delhi: Online food delivery platform <keyword id="19901323" type="General" weightage="100" keywordseo="Zomato" source="keywords" meta.keywordsubtype="org" meta.entityname="Zomato" meta.hostid="83" meta.entityid="Zomato">Zomato</keyword> will acquire <keyword id="19898109" type="General" weightage="20" keywordseo="Paytm" source="keywords" meta.keywordsubtype="org" meta.entityname="Paytm" meta.hostid="83" meta.entityid="Paytm">Paytm</keyword>'s entertainment <keyword id="20028334" type="General" weightage="20" keywordseo="ticketing" source="keywords">ticketing</keyword> business for Rs 2,048 crore to strengthen its "going-out" segment in a deal that will help the troubled fintech firm to sharpen its focus on core payments and financial services distribution. Paytm's entertainment ticketing business covers movies, sports, and events (live performances). The boards of Zomato and One 97 Communications Ltd (OCL) have approved the all-cash deal. As part of this agreement, OCL's entertainment ticketing business will transfer business to its 100 per cent subsidiaries Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), followed by the sale of 100 per cent stake in these subsidiaries (which operate the TicketNew and Insider platforms) to Zomato. Subsequently, Zomato will spin off the new business into a new app called 'District'. Under the deal, Zomato will fully acquire Orbgen Technologies Pvt Ltd (OTPL), which is into movie ticketing, for Rs 1,264.6 crore and buy Wasteland Entertainment Pvt Ltd, which is into events ticketing for Rs 783.8 crore. The combined entertainment ticketing business has a scale of Rs 297 crore in revenue and Rs 29 crore in adjusted EBITDA in FY24. "The transfer will also include around 280 existing employees from the entertainment ticketing business," OCL said in a statement, adding that the transaction generates significant profits for Paytm and cash proceeds will further strengthen the balance sheet. Announcing the deal, Paytm said it allows the fintech to strengthen its focus on core payments and financial services distribution. Paytm said with its strong focus on long-term value creation, the company remains confident in substituting revenue from its entertainment ticketing business by expanding core business areas of payments and financial service distribution. "This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders," a Paytm spokesperson said. On the other hand, Zomato Managing Director and CEO <keyword id="19901325" type="General" weightage="20" keywordseo="deepinder-goyal" source="keywords">Deepinder Goyal</keyword> in a letter to shareholders said, "The proposed acquisition helps us add more scale and offer newer use-cases (like movie and sports ticketing) to our customers in this segment". Zomato believes the deal makes it more relevant to its customers and gives an opportunity to spin off the business into a new app. "We are going to call it District, which could be a game changer for each of these use cases given the need for a single brand as a destination in this segment," Goyal added. Zomato is keen to position 'District' as the brand that consumers turn to when they are thinking of going out, he added. OTPL was incorporated on November 23, 2007, in India. It is in the business of listing and sale of movie tickets and other services. It had a turnover of Rs 13.14 crore in the fiscal ended March 31, 2024. WEPL was incorporated on December 21, 2015. It is in the business of listing and sale of event tickets and other services. Its turnover in the FY24 was Rs 236.03 crore. Paytm said the move to sell its entertainment ticketing business underscores its core focus on payments and financial services distribution. "In recent quarters, the company has also expanded its offerings in insurance, equity broking, and wealth distribution, with a significant opportunity to cross-sell these services and grow its market presence as a leading financial services distribution player," Paytm said. During a transition period (up to 12 months), the movie and event tickets will continue to be available on the Paytm app, as well as on the TicketNew and Insider platforms, ensuring a smooth and uninterrupted experience for users and merchant partners. Paytm said the deal underscores its success in building businesses and creating value for shareholders. Zomato's Goyal said the District app is expected to be launched anytime in the next few weeks. Post this acquisition, he said Zomato's going-out business would be spread across multiple different platforms. Its existing going-out business (dining-out + event ticketing) would continue to run on the Zomato app, and the acquired business -- movie, sports and event ticketing -- would continue to run on Paytm's main app for a transition period of up to 12 months, along with Insider and TicketNew apps. Both of these would get transferred to Zomato as part of the transaction. District app will duplicate the offerings above and over time, we will gradually nudge our customers to move from the Zomato, Paytm, Insider, and TicketNew apps to the District app. "Once most customers start transacting on the District app, we will remove the duplication and shut down this business on all the other apps. Eventually, there will just be a button to launch the District app on the Zomato app (like it is for Blinkit today) so that we continue to tap into the large customer base of Zomato," he added.

Zomato to acquire Paytm's entertainment ticketing business for Rs 2,048 crore

When it comes to mobile payments, one name stands out as a true pioneer– <keyword id="6357120" type="General" weightage="100" keywordseo="paytm" source="Orion">Paytm</keyword>. The fintech giant is India’s most trusted brand with ‘Paytm Karo’ becoming a verb for transactions. As a tech innovator, Paytm has consistently been the first to launch many technology-led solutions, driving convenience for users across the country. In recognition of its outstanding work, the company has already won seven awards in just the first five months this year, spanning various categories such as innovation in UPI, operational excellence, business technology solutions and even ESG solutions. Since its inception, Paytm has been relentless in building disruptive solutions, to leverage its growth potential. The journey started with mobile recharges and ticketing, but it was the launch of Paytm Wallet in 2014 and the QR Code that forever changed the payments landscape in India. From tea stalls to the neighbourhood kirana store, QR codes have become ubiquitous, emerging as the favoured payment method for consumers. In 2020, the All-in-One QR Code was introduced, empowering users to pay through any third-party source. With the launch of the iconic Paytm Soundbox in 2020, the company revolutionised merchant payments. This IoT device provides instant audio alerts for payments, eliminating the need for merchants to constantly check their phones for payment confirmations. This industry-first solution has solidified Paytm’s leadership in merchant payments. Another transformative product by the company is the Paytm PoS machine. Providing customisable billing and payment solutions, the all-in-one PoS machine has gained wide acceptance across businesses. Built for smart retail, it also provides invoicing and tracking solutions. With offerings such as Smart PoS and Linux PoS, Paytm has elevated its product portfolio, delivering numerous benefits. The company continues to strengthen its leadership in merchant payments with over 75 lakh devices, both Soundbox and PoS, deployed across the country. The growing popularity of the Payment Solutions app has led to expansion of its consumer base with average monthly transacting users (MTU) at 9.2 crore for April &amp; May 2023, growth of 24% YoY, as per the latest earnings release. Paytm Super App has become the go-to choice for millions of Indians for all their payment needs be it paying utility bills, booking tickets, or money transfer. Paytm is the only payments platform to have both a payment gateway and a PSP (payment service provider) under the same banner supported by the groundbreaking superior technology stack of Paytm Payments Bank. Building on their pioneership in UPI, their associate Paytm Payments Bank Limited is also at the forefront of fintech innovations. Powered by the latest infrastructure in banking, Paytm Bank ensures superfast, secure and seamless transactions with one of the lowest transaction decline rates. The Bank has always been the first on the block to take NPCI’s UPI inventions to the masses. PaytmBank made waves with the introduction of UPI Lite, a lightning-fast payment solution that never fails. Within three months of its launch, Paytm Bank’s Paytm UPI Lite crossed 9 million users, resulting in 10 million transactions. After UPI Lite for consumers, the company brought Paytm UPI SDK for its merchants, a game-changing product that enables quick, one step UPI payments. The Bank also came up with a slew of product collaborations i.e Paytm RuPay Credit Card, Paytm SBI Credit Card and made UPI Lite available on not just Android but iOS as well. Paytm UPI SDK As the market leader in UPI, Paytm Bank is the most preferred destination for most of India’s UPI transactions, especially for UPI person-to-merchant payments. Merchants on the Paytm ecosystem, where Paytm Bank is the Payee PSP, accounts for almost 40% of all UPI person-to-merchant (P2M) transactions. Paytm Payments Bank is also responsible for products like Paytm Food Wallet, automating recurring payments such as EMIs, insurance payments, SIP deductions through NACH or National Automated Clearing House and providing FASTags for ease of travel. At present, Paytm Bank is the largest issuer of FASTags in India. Technology is at the core of Paytm’s business and it has leveraged it to create a comprehensive range of simplified products and services that can be accessed by everyone. The homegrown brand is driving financial inclusion in the country, taking mobile payments to India’s farthest corner. Innovation and security are in the DNA of this OG of fintech that is taking Digital India to new heights. 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 growth potential: The tech innovator's journey of disruption and success

<ul><li><keyword id="20940216" type="General" weightage="20" keywordseo="Synology" source="keywords" meta.keywordsubtype="org" meta.entityname="Synology" meta.hostid="261" meta.entityid="Synology">Synology</keyword> launched several new products at the Synology Solution Exhibition 2024.</li><li>The company has registered double-digit growth in India in the last three years.</li><li>We speak to the company’s <keyword id="22416016" type="General" weightage="20" keywordseo="joanne-weng" source="keywords">Joanne Weng</keyword> to learn more about the company and its plans in India.</li></ul> Taiwanese <keyword id="20653112" type="General" weightage="20" keywordseo="storage-solutions" source="keywords">storage solutions</keyword> provider Synology<a href="https://www.businessinsider.in/tech/news/synology-introduces-new-products-aimed-at-data-protection-and-scalability/articleshow/110711086.cms"> introduced</a> several new products aimed at offering <keyword id="20285436" type="General" weightage="20" keywordseo="data-management" source="keywords">data management</keyword> and protection needs of business organisations at the Synology Solution Exhibition 2024 held in Taiwan. The company announced products such as ActiveProtect, the new GS Series and surveillance solutions at the event. The company also offers Network-attached storage (NAS) devices. Business Insider India spoke with Joanne Weng, Director of International Business, Synology during the event about the company’s operations in India and its future plans. To start, can you tell us about Synology's mission and its recent focus on the Indian market? Synology's mission has always been to simplify IT management, making it accessible for everyone from tech-savvy users to those with minimal technical expertise. Recently, we've been focusing on expanding our presence in India, recognising the country's immense potential as a key market for our solutions. Can you share some insights into Synology's performance in India? Our performance in India has been impressive, with consistent double-digit growth over the past three years. The Indian market is among the top five for Synology in the Asia-Pacific region, reflecting the growing demand for reliable and scalable data storage solutions. Despite the challenges posed by the COVID-19 pandemic, the demand for our products has remained strong, highlighting their relevance in supporting business continuity. How has Synology built its local presence and support in India? We recognise the importance of being present in the market. We've invested in building a dedicated team to look after the Indian market, working closely with local partners to provide on-ground support and consultation. Our strategy of selling through channels ensures that customers can get the help they need from partners familiar with their specific requirements. How does Synology ensure ease of management for its users? Our solutions are designed for easy setup and management, ensuring minimal hassle for users. We focus on user-friendly interfaces and pre-configured settings, making our products accessible for small and medium-sized businesses (SMBs) as well as large enterprises. This approach helps streamline IT management, allowing users to focus on their core business activities. What steps does Synology take to set itself apart in terms of flexibility and scalability? One of our core strengths is the flexibility and scalability of our solutions. As businesses grow, their data storage needs evolve, and Synology offers scalable solutions that can adapt to these increasing demands. This makes us an ideal choice for enterprises experiencing rapid growth, especially with emerging technologies like AI that require robust data management capabilities. Security is a major concern for businesses today. How does Synology address this? Security is a top priority for us. Our solutions come with end-to-end encryption and other advanced security features to protect data. We have a dedicated PSIRT Team that collaborates with global security organisations and ethical hackers to ensure our products remain secure against evolving threats. Additionally, to strengthen our backup solutions, the upcoming ActiveProtect appliances will include features like air-gapping and isolating backup copies in a secure environment to protect against ransomware attacks. How does Synology maintain a customer-centric approach? Customer feedback is extremely valuable to us and drives our continuous improvement efforts. We work with organizations like Gartner for peer reviews to ensure we are meeting customer expectations and delivering high satisfaction levels. This customer-centric approach is a cornerstone of our strategy, ensuring that our products and services evolve in line with user needs. What can we expect from Synology in the future, especially in the Indian market? Looking ahead, we plan to continue focusing on the Indian market, leveraging our robust product portfolio to meet the growing demands of enterprises. Our upcoming products are set to offer even greater scalability and performance, catering to businesses with extensive data management needs. We're excited about the future and are committed to supporting the evolving needs of businesses in India. 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Synology bets big on the Indian market amid strong growth, growing demand

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> 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

<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

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