The number of transactions also peaked to 1.3 billion in June, said One97 Communications Ltd, which owns and runs payments app Paytm
One97 Communications Ltd, which owns and runs payments app Paytm, claims to have breached the $4 billion in monthly gross transaction value. The number of transactions also peaked to 1.3 billion in quarter ending June, the company said on Monday.
“…Paytm has been witnessing tremendous increase in adoption of digital payments in tier 2 and tier 3 cities, which constitutes 50% 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)," it added.
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 transcations."
“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.
In May, Mint had reported that the company posted total consolidated losses of ₹ 1,259.5 crore, including a one-time exceptional item of ₹ 591.3 crore, on revenues of ₹ 828.6 crore for the year ended 31 March 2017.
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% 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.
Paytm claims to power the largest offline payments network with over eight million offline merchant partners accepting Paytm QR for payments. According to the company, women users on the Paytm platform have more than doubled in the past one year, while millennials continue to be the most active users of digital payment. The platform has also witnessed an increase in the number of users above the age of 35 years.