Paytm says transactions crossed Rs10,000 crore during Diwali season
New Delhi: Paytm on Monday said transactions on its platform crossed $1.6 billion (Rs10,000 crore) during the Diwali season, 3.5 times more than a year earlier.
Volumes during the month-long period ended 20 October were driven by the food and transportation categories, while increase in payments at mom-and-pop stores through the Paytm app also contributed to the surge, the company said in a statement.
“Mobile payments have become mainstream over the last few quarters. Owing to the convenience and security, people prefer Paytm to card and other modes of payments,” Paytm chief operating officer Kiran Vasireddy said in the statement.
In August Indians transacted Rs45,710 crore through debit and credit cards, Rs4,130 crore over the Universal Payment Interface, and Rs2,720 crore through pre-paid payment instruments, according to data from the Reserve Bank of India.
Delhi, Mumbai, Bengaluru and Pune recorded the highest number of Paytm transactions during the festival season, while use of the payments service also rose in smaller towns such as Jaipur, Ahmadabad, Mysore and Visakhapatnam.
Paytm said its service was especially popular with local vendors and small store owners in tier II and tier III cities.
“It’s encouraging to see that a majority of growth in offline payments is from smaller towns and cities. This has resulted in over $1.6 billion worth of transactions in a month, making this the largest Diwali for mobile payments in India,” Vasireddy added.
With a boost from demonetisation, Paytm has deepened its reach into small towns, besides metro areas, as it aggressively deploys its QR-code (quick response) solution that allows local shops to accept payments over Paytm. The company claims that 5 million merchants are using its service.
A part of Paytm’s volumes is driven by its e-commerce venture Paytm Mall. The company has been offering cash back deals on nearly all popular products in an attempt to lure more customers to its portal.