Paytm: 72% YoY increase in merchant payments volume to Rs 2.10 lakh crore in July-August | The Financial Express

Paytm: 72% YoY increase in merchant payments volume to Rs 2.10 lakh crore in July-August

Credit and finance for MSMEs: The company’s overall loan distribution business scaled to 6 million loans disbursed during July and August, registering a growth of 246 per cent from last year’s disbursements during the two-month period that stood at 1.7 million.

Paytm: 72% YoY increase in merchant payments volume to Rs 2.10 lakh crore in July-August
The company also announced the deployment of 4.5 million devices (point-of-sale and soundbox) at merchant stores across the country during the period

Credit and finance for MSMEs: Digital payments and financial services company Paytm, in an update on its operating performance on Tuesday, reported a 72 per cent year-on-year increase in its merchant payment volumes for the July and August period. Paytm said its total merchant GMV — the value of total payments made to merchants – increased to Rs 2.10 lakh crore during the two months ended August 2022 from Rs 1.22 lakh crore during the year-ago period.

The company also announced the deployment of 4.5 million devices (point-of-sale and soundbox) at merchant stores across the country during the period, up 3.75x from 1.2 million devices as of August 2021 during the two-month period. “With our subscription as a service model, the strong adoption of devices drives higher payment volumes, subscription revenues as well as merchant loan distribution,” Paytm said in an exchange filing.

The company’s overall loan distribution business scaled to 6 million loans disbursed during July and August, registering a growth of 246 per cent from last year’s disbursements during the two-month period that stood at 1.7 million. In terms of the amount disbursed, the value increased 484 per cent to $568 million from around $96.8 million during the said period. “We continue to work with our partners to review the evolving macro environment and accordingly moderation may be expected in our growth. That said, we continue to see ample growth and upsell opportunities in this business and are focusing on the quality of the book,” Paytm said. 

Subscribe to Financial Express SME newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises 

Meanwhile, according to its Q1 FY23 results announced in August 2022, the company’s merchant count stood at 28.3 million, up by 6.5 million from 21.8 million in Q1 FY22. Its merchant loans vertical had also reported 56 per cent growth quarter on quarter in terms of volume, translating into disbursements of Rs 827 crore for the first quarter.

The announcement on July-August operating metrics has come just days after the Enforcement Directorate (ED) conducted a search operation at six of Paytm’s premises in Bengaluru in the Chinese loan app case. Apart from Paytm, ED had carried out raids at other payment gateways as well including Razorpay and Cashfree Payments, according to a statement by ED on September 3. However, Paytm in its statement on September 4 said merchants under ED scrutiny are not linked to the company and that the funds frozen by ED don’t belong to Paytm or any of its group companies.

Also read: RBI: HDFC Bank’s digital payments solution for merchants, customers in low network areas shortlisted for on-tap application facility

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.