Paytm Revenue Surges 39% with Mobile Payments’ Rise
Paytm saw a 39% increase in revenue over the prior year in the three months ending June 30.
According to a Friday (July 21) earnings statement, the Indian eCommerce, payment system, and financial technology company attributed the growth to gross inventory value (GMV) gains, merchant subscription earnings, and loans spread through its platform.
The company’s payment business income increased by 31% year over year, with its merchant subscriber base more than creasing and the average monthly active users of the Paytm app increasing by 23% during that time.
According to a press release from Paytm, “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,”
As the company grew the business, Paytm’s loan distribution division saw a 93% increase in revenue year over year.
“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.”
Additionally, according to the announcement, the company stated that the main growth drivers for its business include:
The expanding use of technology by Indian dealers.
The creation of the payments environment.
The multiple possibilities for the growth of loan distribution products.
According to the press, statements including further lending partners and more regulatory clarity about digital lending also contribute to Paytm’s development. Eight banks and nonbank financial companies (NBFCs) are now the company’s lending partners.
According to the company’s press statement, “We continue to see consistent improvement in profitability due to strong revenue growth, increasing contribution margin, and operating leverage.”
According to a report from February, Paytm benefited from India’s ban on Chinese apps because some of those apps were rivals of the company.
According to a report from Bloomberg News on February 7, As ties between the two nations’ neighbors declined in February, India banned 138 betting and casino apps as well as 94 credit services linked to China.
Following a border altercation in which 20 Indian soldiers were killed, India banned more than 160 Chinese apps about three years early in 2020.
