Paytm crosses $4 billion in monthly GTV

By NT Bureau Published on Jul 09, 2018 02:52 PM IST

Chennai: Paytm claims to have breached the $4 billion in monthly gross transaction value. The number of transactions also peaked to 1.3 billion in June, the company said today.

Owned by One97 Communications Limited, Paytm has been witnessing increase in adoption of digital payments in tier 2 and tier 3 cities, which constitutes 50 per cent of its total user base. This has helped the company to achieve an annual run rate of 5 billion transactions and $50 billion in GTV (gross transaction value).

The company had a GTV of $1 billion in June 2017. It, however, did not disclose the numbers for April and May 2018. While GTV is not a true indicator of a company’s health, it does reflect the high adoption of Paytm as a payments platform in the country.

Gross transaction value for Paytm includes everything from recharges, bill payments to peer-to-peer transactions via UPI (unified Payments Interface), peer-to-peer wallet transactions, and all purchases made via the Paytm Mall platform or the Paytm payment gateway. It does not include NEFT, or debit and credit card transactions, the company clarified.

"Since January 2018, the platform has processed over 400 million BHIM UPI transactions, which is fast becoming the preferred alternative to net banking," Paytm said in a statement.

However, these transactions do not help in generating significant revenue for the company. For instance, it only makes 25 paisa per UPI transaction, according to Deepak Abbot, senior vice president, Paytm.

"These transactions are not for revenue for us…it does not even help us cover our technology cost. We are trying to become the preferred app for UPI transactions."

"It is all about up-selling and cross selling to consumers. Our larger goal is to be the only payments app in a consumer’s phone," Abbott said over the phone.

Surat, Durgapur, Rajkot, Meerut, Imphal, Rohtak, Panipat, Mangalore, Ranchi, Puducherry, Rajahmundry, Warangal, Jodhpur, Thrissur, Karnal, Madurai and Jamnagar were among the fastest adopters for Paytm.

The company also claimed that the Paytm multilingual app has been another catalyst for growth. "25 per cent of Paytm users prefer using the app in their regional languages. Hindi is the most used language after English, followed by Gujarati, Telugu, Marathi, Bengali, Tamil and Kannada," it added.