Paytm’s pioneership in payments strengthens with over 5 million device deployments

India’s digital payments ecosystem has been growing at a rapid pace over the past few years, supported by widespread adoption of payment devices by millions of merchants across the country. As a pioneer of India’s mobile payments and QR code revolution, Paytm has ensured that merchants are able to seamlessly grow their businesses with its range of payment devices such as the Soundbox and PoS.

The company has achieved another milestone in its devices business, further strengthening its offline payments pioneership. Fresh on the back of posting strong financial results for Q2FY23, Paytm said in its latest monthly operating metrics that it has now deployed over 5.1 million devices across merchant outlets in the country.

Stronger growth in the devices business has proved to be immensely beneficial for the company, contributing to both payments and financial services revenue.

The company pointed out in its Q2FY23 financial results that continued ramp up in the device business – backed by its subscription as a service model – has led to growth in subscription revenues, while also increasing the scope of merchant loans.

The greater adoption of devices was a major contributor to increased demand for merchant loans in the second quarter of the ongoing financial year. Boosted by the growth in the devices business, merchant loan disbursements stood at Rs 1,208 crore in Q2FY23, up 342% y-o-y and 46% q-o-q. It may be noted that more than 85% of such loans disbursed were to merchants with Paytm devices.

Backed by stronger growth in loan distribution, Paytm’s revenue from financial services stood at 18% of total revenue in the Q2FY23.

Paytm’s device business continues to play a pioneering role in strengthening the offline payments ecosystem in the country and empowering millions of merchants. The company remains confident that it will continue to play an integral role in the growth of key businesses like payments and loan distribution.
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