Credit and finance for MSMEs: Digital payments and financial services company Paytm on Monday reported a 63 per cent year-on-year (YoY) increase in merchant payment volumes (gross merchandise volume or GMV) for the quarter ended September 2022 to Rs 3.18 lakh crore from Rs 1.96 lakh crore in Q2 FY22. In its Q2 update on operating metrics, the company noted 7.4 per cent quarter-on-quarter growth from Rs 2.96 lakh crore for Q1 ended June 2022.
GMV at Paytm is defined as the value of total payments made to merchants through transactions on its app, through its payment instruments or through its payment solutions and excludes any consumer-to-consumer payment services such as money transfers.
Paytm also reported a 270 per cent jump in devices (point of sale and soundbox) deployed at merchant stores across India to 4.8 million during Q2 from 1.3 million during the same quarter last fiscal and 26 per cent growth from 3.8 million devices deployed during the previous quarter.
“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.
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The company also reported loan disbursals, in partnership with multiple lenders, at an annualised run rate of Rs 34,000 crore in Q2. The number of loans disbursed jumped 224 per cent y-o-y to 9.2 million loans in the quarter ended September 2022, while the value of loans disbursed grew 482 per cent y-o-y to Rs 7,313 crore. The loans disbursed included both consumer loans and merchant loans but excluded the number and the value of loans sourced by third parties through advertising on Paytm, and aggregation of EMIs on Paytm’s POS devices.
According to Paytm, its merchant base jumped to 26.7 million in FY22 which also contributed to higher revenue from payment services. Revenue from payment services to merchants was up 87 per cent to Rs 1,892 crore in FY22 from Rs 1,012 crore in FY21. Moreover, the number of merchant Loans disbursed grew 123 per cent y-o-y in Q4 FY 2022, while the value of merchant loans grew 178 per cent y-o-y.