New Delhi Digital payments and financial services firm Paytm has claimed that larger merchants than its competitors are now switching to its platform and it sees a huge opportunity to capture the mid-tier market and start-up community with its payment products. A top official said during the company’s earnings call.
Paytm Chairman and Managing Director Vijay Shekhar Sharma said the company is one of the largest “acquisition party partners” for all payment networks such as Visa, Master and PCI, Amex, UPI and this is the reason why large corporates including Flipkart and others are using it. Paytm Payment Solution.
“Some of the recent trends that we are seeing are even large merchants who are just starting out with Paytm… These are partners that were exclusive with a competitor for many, many years. They are only Switching locks, stocks and barrels for Paytm and I think the next big opportunity here for us is to continue our penetration into the middle market and startup community,” Madhur Deora, CFO and President, Paytm Group, said during the call on Saturday evening.
One97 Communications, which operates under the Paytm brand name, on Saturday reported a consolidated loss of around . reported to widen 473 crore in the second quarter ended September 30, 2021 mainly on account of increase in payment processing fee.
The company had recorded a loss of 436.7 crore in the same quarter a year ago, according to an exchange filing.
Paytm’s consolidated net income jumps nearly 64 percent 1,086.4 crore during the reported quarter 663.9 crore in the same quarter of 2020-21.
“Payments revenue and profitability increased. This is due to an increase in payment volume from non-UPI devices. We are seeing recovery of the high-margin commerce business and growth of the cloud business. We see growth in financial services revenue are looking at. Driven by the huge jump in lending,” Deora said.
He said that Paytm has a huge commercial business around ticketing, and it has been hit hard due to COVID-19.
“It is starting to recover, and that is why we are seeing year-on-year growth as well as QoQ growth. Our device merchant base has expanded by 1 million in the last 12 months. We have seen some Started this business years ago, Deora said.
He added that the growth in Paytm payment devices is strategically important as device merchants continue to show higher retention and higher average spend.
“Four percent of our device merchants have already taken loans through our platform, where it is a merchant loan program. This business is booming,” Deora said.
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