Shares of digital payments giant Paytm’s parent company, One97 Communications Limited, surged in early trade after the company shared its August business update. At 10:27 am, shares of the company were up 1.2 per cent at Rs 867.05 apiece on the National Stock Exchange.
The company reported that it distributed loans worth Rs 5,517 crore ($667 million) through the Paytm platform in August.
Additionally, Paytm’s merchant payment volumes (GMV) for the first two months of the September quarter reached Rs 3 lakh crore ($36.3 billion), showing a 43 per cent increase. The growth in GMV was attributed to non-UPI instruments like EMI and cards.
The average monthly transacting users (MTU) for the quarter-to-date (averaging July and August 2023) stood at 9.4 crore, reflecting a 20 per cent year-on-year (YoY) increase, indicating a continued expansion of the customer base.
Paytm’s leadership in payment monetization was emphasized, with 87 lakh merchants paying a subscription for payment devices as of August 2023, a 42 lakh device YoY increase. “Our leadership in payment monetization continues with number of merchants paying subscription for payment devices at 87 lakh as of August 2023, an increase of 42 lakh devices YoY,” Paytm said.
Paytm’s subscription-as-a-service model has driven subscription revenues, increased payment volumes, and expanded the merchant loan distribution funnel, the company added.
The loan distribution business, in partnership with lending partners, continued to scale up, with disbursements of Rs 10,710 crore ($1.3 billion) and 88 lakh loans (47% YoY growth) disbursed for the quarter-to-date (July and August 2023) through the Paytm platform.
Paytm highlighted its focus on lending partner portfolio performance, with expectations of subdued growth until the industry outlook improves. The company plans to onboard 3-4 lending partners in FY2024.
In addition, Paytm noted an improvement in credit quality for Paytm Postpaid, with the ECL (Expected Credit Loss) reduced to a range of 0.65-0.85 per cent from a range of 0.75-1 per cent in Q4FY23.
Source By: indiatoday
