Paytm, a leading digital payments company, witnessed a surge in its parent company's stock, One97 Communications Limited, followingthe release of its August business update. The stock price saw a 1.2% rise, reaching Rs 867.05 per share on the National Stock Exchange.
Paytm reported a significant achievement in August, distributing loans amounting to Rs 5,517 crore (equivalent to $667 million) through its platform. This highlighted the growing prominence of Paytm's financial services.
Paytm's performance in merchant payment volumes (GMV) during the first two months of the September quarter was remarkable, reaching Rs 3 lakh crore (equivalent to $36.3 billion), signifying a substantial 43% increase. The growth in GMV was attributed to various payment methods beyond UPI, including EMI and card transactions.
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Paytm continues to expand its customer base, with an average monthly transacting user count of 9.4 crore for the quarter-to-date (averaging July and August 2023), representing a significant 20% year-on-year (YoY) increase. This demonstrates Paytm's ongoing efforts to attract and retain users.
Paytm's leadership in payment monetization was highlighted, with a substantial number of 87 lakh merchants paying for payment devices as of August 2023. This marked an impressive YoY increase of 42 lakh devices, showcasing Paytm's strong presence in this sector. The subscription-based payment model has not only generated revenue but also boosted payment volumes and expanded the distribution of merchant loans.
Paytm's loan distribution business, in collaboration with lending partners, continued to grow. The company disbursed loans worth Rs 10,710 crore (equivalent to $1.3 billion) and facilitated 88 lakh loans (reflecting a 47% YoY growth) during the quarter-to-date (July and August 2023) through its platform.
Paytm emphasized its commitment to maintaining a strong credit quality, particularly in its Paytm Postpaid service. Expected Credit Loss (ECL) improved, narrowing to a range of 0.65-0.85% from the previous range of 0.75-1% in Q4FY23.Looking ahead, Paytm plans to onboard 3-4 lending partners in FY2024 as part of its growth strategy and continued expansion in the financial services sector.
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