NEW DELHI: The growth of digital payments in India has been significant, especially over the past couple of years when millions of merchants transitioned towards accepting online payments from consumers. This change in consumer behaviour has led to the massive popularity of payment-based devices.
Amidst the online payments boom in India, Paytm, India’s leading digital payments and financial services company, has played a significant role in empowering merchants with its payment-based devices such as QR, all-in-one PoS and Soundbox.
Such is the popularity of Paytm’s devices among merchants that the company is now witnessing 10 lakh deployments per quarter, helping it further strengthen its offline payments vertical.
In a regulatory filing to stock exchanges on October 10, Paytm said its total device deployment base has exceeded 48 lakh as of Q2 FY23, compared to 38 lakh at the end of Q1FY23. It effectively added one million new deployments during the second quarter.
Paytm said that with its subscription-as-a-service model, the strong adoption of devices has been driving higher payment volumes and subscription revenues while increasing the funnel for their merchant loan distribution. The rapid growth in the devices business has not only helped the company remain ahead of its competitors, but also paved the way for higher merchant engagement and monetization.
Additionally, the strong adoption of devices is also helping the company’s high-margin loan distribution business, as it is paving the way for more small business owners to become eligible for merchant loans, offered on its platform in partnership with marquee lenders.
In its Q1 FY23 financial results, the company said merchants with devices accounted for over 75 per cent of merchant loan disbursals and it expects the percentage is likely to rise further in the second quarter given the higher device penetration.
The Paytm Super App continues to drive higher consumer engagement for the company’s comprehensive payment services. With this, the company’s average monthly transacting users (MTU) for the quarter stood at a record 79.7 million for the quarter, marking a growth of 39 per cent year-on-year, it said recently.
These indicators imply that the growth of Paytm’s business continues to accelerate with every passing quarter and is expected to contribute majorly to revenue generation, which is a crucial aspect of the company’s profitability plans. (ANI)