Paytm Revenue Climbs 39% as Mobile Payments Become More Mainstream

Paytm recorded 39% year-over-year revenue growth during the quarter ended June 30.

The Indian eCommerce and payment system and financial technology company attributed the growth to increases in gross merchandise value (GMV), merchant subscription revenues and loans distributed through its platform, according to a Friday (July 21) earnings release.

The company’s payment business revenue was up 31% year over year, with its merchant subscriber base more than doubling over the past year and the Paytm app’s average monthly transacting users growing 23% over the same period.

“As mobile payments are becoming more mainstream, our merchants are seeking more technology and the demand for products such as Soundbox and Card machine is rising,” Paytm said in the release.

Paytm’s loan distribution business revenue leaped 93% year over year as the company continued to scale the business.

“Our payments business is our acquisition engine, which helps us to get insights about customers’ behavior and enables us to distribute suitable credit products to them,” Paytm said in the release. “As we have mentioned before, we continue to work with our partners to ensure superior credit quality for loans distributed through us.”

In addition, overall, the company said the growth drivers for its business include the increasing adoption of technology by merchants in India, innovation in the payments ecosystem and the ample opportunity for growth of loan distribution products, according to the release.

Paytm’s growth is also being supported by greater regulatory clarity on digital lending and the addition of new lending partners, the release said. The company now has eight bank and nonbank financial company (NBFC) lending partners.

“We continue to see consistent improvement in profitability due to strong revenue growth, increasing contribution margin and operating leverage,” the company said in the release.

It was reported in February that Paytm benefited from India’s banning of Chinese apps, as some were its competitors.

India banned 138 betting and gaming apps and 94 credit services connected to China in February as relations between the neighboring countries worsened, Bloomberg News reported on Feb. 7.

About three years earlier, in 2020, India banned more than 160 Chinese apps following a border dispute in which 20 Indian soldiers were killed.