Paytm Prioritizes UPI, Card Processing, and EMI for Payment Services Growth

Paytm, India’s premier payments and financial services provider, is focusing on Unified Payments Interface (UPI), debit and credit card processing, and EMI payments to drive growth in its payment services sector. The company emphasized UPI's crucial role, now accounting for 80-85% of its total Gross Merchandise Value (GMV), up from 70%.

Following its Q4FY24 and FY24 earnings release, Paytm reported a significant recovery in merchant GMV, which increased by 39% year-on-year to Rs 18.3 lakh crore. The company's revenue from payment services rose by 26% to Rs 6,235 crore, with a 50% increase in net payment margin to Rs 2,955 crore. UPI incentives and higher payment processing margins from RuPay credit card transactions, overdrafts, and EMI aggregations contributed significantly to this growth.

Key Highlights:

UPI Growth: UPI now constitutes 80-85% of Paytm’s total GMV.

Revenue Increase: Payment services revenue grew by 26%, net payment margin up by 50%.

UPI Incentives: Received Rs 288 crore in Q4FY24 compared to Rs 182 crore in Q4FY23.

Merchant GMV Recovery: Recorded a 39% year-on-year growth in GMV.

Device Subscriptions: Focus on expanding device subscriptions with new “Made in India” Soundbox variants tailored to merchant needs.

Ad Campaigns: New campaigns launched to boost user engagement and promote various payment instruments.

Paytm also introduced Rupay Credit Card on UPI through its Soundboxes, offering zero Merchant Discount Rate (MDR) for transactions under Rs 2,000, aiding small businesses in saving on transaction fees. The company plans to continue addressing merchant needs with innovative product launches and a robust distribution network, aiming to reactivate inactive merchants and attract new ones. Merchant subscriptions increased by 39 lakh year-on-year, totaling 1.07 crore as of March 2024.