Paytm loan disbursals up 482% YoY in Q2, firm sees 'continued growth'

Festive season preparation drives business for digital payments company

The value of loans disbursed by payments platform Paytm in the run-up to the festive season grew 482 per cent year-on-year (YoY) to Rs 7,313 crore ($894 million) in the second quarter ended September 2022 (Q2 FY23). The value was Rs 1,257 crore in Q2 FY22.

One 97 Communications Ltd, the company that runs Paytm, in a BSE filing said the number of loans disbursed grew 224 per cent YoY to 9.2 million in Q2. Paytm disbursed 2.84 million loans in the same quarter last financial year (Q2 FY22). Monday morning, the company’s share was trading 0.53 per cent up at Rs 711.6 per share on BSE.

Loans disbursed by financial institution partners through Paytm include consumer and merchant. It excludes the number and the value of loans sourced by third parties through advertising on its platform.

“We continue to see growth and upsell opportunities in this business, while we work with our partners to remain focused on the quality of the book,” said One 97 Communications. It did not give details on asset quality.

Growth in total merchant payments volume was consistent. Gross Merchandise Value (GMV) showed 63 per cent YoY growth at Rs 3.18 trillion in Q2 FY23 from Rs 1.96 trillion a year ago. It captures the value of total payments made to merchants through transactions on its app, payment instruments or through payment solutions, over a period. It excludes any consumer-to-consumer payment services such as money transfers.

The company said the Paytm super app continued to show heightened consumer engagement. The average Monthly Transacting User (MTU) clocked 39 per cent YoY growth at 79.7 million for in Q2, up from 57 million in the same period in FY22.

It deployed a total of 4.8 million offline payment devices (point of Sale terminals plus Soundbox) at merchant stores across the country in the reporting quarter, up from 1.3 million in Q2 FY22.