Paytm posts robust growth in Jul-Aug; in-store payments strengthen, 87 lakh devices deployed

New Delhi [India], September 5 (ANI): Paytm, India's leading payments and financial services company on Tuesday announced its business operating performance for the two months ended August 2023. Registering a robust growth in its consumer base, the company has reported the average monthly transacting users (MTU) at 9.4 crore for the quarter to date (average for July and August 2023), up 20 per cent on a year-on-year basis.

Merchant Payment Volumes (GMV) for the month of July and August stood at Rs 3 lakh crore (USD 36.3 billion), with a growth of 43 per cent on yearly basis.

"We continue to see increase in GMV of non-UPI instruments like EMI and cards. Growth in payments volumes drives profitability for us, through net payments margin and or from direct upsell potential," Paytm said in its stock exchange filing.

With the number of merchants paying subscriptions for payment devices standing at 87 lakh as of August 2023, the company's leadership in payment monetization also continues.

The fintech giant has registered an increase of 4.9 lakh devices in the month, it said.

Further, the loan distribution business of the company also continues to scale as the total loans distributed through its platform for July and August grows 137 per cent YoY to Rs 10,710 crore (USD1.3 billion).

The number of loans disbursed through the Paytm platform for the quarter till date jumped 47 per cent YoY to 88 lakh.

With a focus on calibrating growth to tighten the credit quality of loans disbursed through its platform, Paytm said that it has been successful in improving the credit quality for Paytm Postpaid for which ECL has reduced to a range of 0.65-0.85 per cent from a range of 0.75-1.00 per cent in Q4FY23. It further added that portfolio management of its lending partners remains a key focus and its growth is likely to be subdued till the industry outlook improves.

In its recently announced Q1FY24 results (April-June 2023), Paytm had reported a 39 per cent YoY growth in revenue from operations to Rs 2,342 crore. (ANI)