Paytm’s offline payments bolster, loan distribution biz gains scale in Q4

• Average monthly tracked users reached 90 million during the three months ending March 2023.
  
• The number of sellers subscribed for Paym devices reached 6.8 million, up from 1 million in Q4.
  
• The company processed a total gross trade value of ₹3.62 lakh crore through its platform during the quarter ended March.
  

Paytm reported growth in payments and loan distribution company in an operational performance update for Q4 FY23. The payment terminals saw an increase in merchant subscriptions, while merchant payment volumes continued to grow.

The Paytm Super app has seen an increase in customer interactions, with an average monthly tracked user (MTU) of 90 million during the quarter. This represents a 27% yoy growth, the company said in the update.

For the quarter ending December 2022, the MTU was 85 million. Paytm’s UPI Lite, which enables fast and hassle-free small transactions, has passed four million users, and has exceeded transactions of one crore since its launch in February.

Higher acceptance of payment devices

The company also said it has been actively strengthening its position in offline payments. Their subscribed merchants increased by one million in the fourth quarter for payment devices, bringing the total to 6.8 million.

“With our subscription as a service model, strong device adoption drives subscription revenue and higher payment volumes, while expanding the funnel for our business loan distribution,” Paytm said in its update. It launched its payment device based on an Android platform in 2020.

Paytm also processed a total trade value (GMV) of ₹3.62 lakh crore ($44 billion) through its platform during the quarter, indicating a 40% year-over-year growth.

The company has focused in recent quarters on increasing payment volumes, which can generate profitability through net payment margin or by creating direct upsell opportunities.

Growth in loan distribution

The company’s loan distribution business, which the company conducts in conjunction with leading lenders, has experienced rapid growth. This company saw a 253% year-over-year increase in total payouts through its platform for the quarter ending March, amounting to ₹12,554 crore ($1,528 million).

“Our payment consumer and merchant base offers a large addressable market and thus offers a long lead-up to growth. We will continue to work with our partners to stay focused on the quality of the book,” the company said.

The stock of One 97 Communications (Paytm) was listed on NSE in November 2021.