Paytm Emphasizes UPI, Card Processing, EMI For Strong Payment Growth

Paytm, India’s leading payments and financial services distribution company, is strategically focusing on Unified Payments Interface (UPI) alongside debit and credit card processing and EMI payments to propel its payment services business forward. These business lines are anticipated to play a pivotal role in Paytm’s robust revival and uphold its position as a payments leader in the country.

During an earnings call following the release of Q4FY24 and FY24 results, Paytm highlighted the significance of UPI, which now accounts for nearly 80-85% of the total Gross Merchandise Value (GMV), up from 70% previously. This underscores the essential role UPI plays in Paytm’s business model.

In FY24, Paytm witnessed a remarkable surge of 39% year-on-year in GMV, reaching Rs 18.3 lakh crore. The company’s revenue from payment services also experienced a notable increase of 26% to Rs 6,235 crore. Moreover, the net payment margin rose by 50% to Rs 2,955 crore.

A significant portion of Paytm’s revenue stream comprises UPI incentives and higher payment processing margins from RuPay credit card transactions, overdrafts, and EMI aggregations. In Q4FY24, Paytm received UPI incentives amounting to Rs 288 crore, compared to Rs 182 crore in Q4FY23.

To further bolster its payment services, Paytm has introduced innovative solutions such as Paytm Soundboxes, which enable the use of RuPay Credit Cards on UPI with zero Merchant Discount Rate (MDR) for transactions under Rs 2,000. This initiative aims to empower small merchants by reducing transaction fees and enhancing profitability, thereby facilitating the adoption of digital payments.

In addition to focusing on payment services, Paytm is actively working on the recovery of its merchant GMV. The company aims to reactivate inactive merchants and onboard new ones onto its platform. As of March 2024, merchant subscriptions stood at 1.07 crore, reflecting an increase of 39 lakh compared to the previous year.

Looking ahead, Paytm anticipates net additions to recover to past trend lines by Q3 FY 2025. The company is committed to addressing its merchants’ needs through innovative product launches, such as customised Soundboxes tailored to merchant requirements, equipped with louder speakers and longer battery life.

Furthermore, Paytm is expanding its device subscriptions and launching new advertising campaigns to enhance user engagement and promote various payment instruments, including UPI and Soundbox. These initiatives underscore Paytm’s unwavering focus on growth and revival in the evolving digital payments landscape.

READ MORE : What is the WhatsApp group scam on the rise in India, and how can one stay safe from it?