The Indian online payments and financial services firm headquartered in Noida as well as a subsidiary of One97 Communications (NSE: PAYTM), Paytm’s loan distribution business has experienced rapid development, with disbursements across the platform currently running at an annual run rate of around INR 34,000 Crore in September 2022.
As per the most recent reports, the number of loans given out increased 482% Year Over Year (YOY) to INR 7,313 Crore, while the number of loans distributed increased 224% Year Over Year (YOY) growth rate to 9.2 million loans in the quarter ending in September this year (2022).
According to Paytm, they carry on to sight development and prospects for upselling in the industry while working alongside their partners to keep their attention on the calibre or standard of the book. Having deployed 4.8 million devices in merchant stores all over India, the corporation also continues to solidify its leadership in the offline payments market.
As per a statement released by the digital payment company, with their subscription business model, the widespread use of devices increases subscription revenues and payment volumes while widening the distribution channel for their business loan disbursement. In addition to its business of loan distribution, the Super App of Paytm continues experiencing increased consumer interest in its wide range of payment options.
Paytm made a statement saying that they are still working to increase user/customer engagement, as evidenced by the average Monthly Transacting Users (MTUs) for the quarter ending in September this year (2022), which was 79.7 million, up 39% Year Over Year (YOY). During the same period, the total merchant Gross Merchandise Value (GMV) processed on their platform amounted to around INR 3.18 Lakh Crore, representing a 63% Year Over Year (YOY) growth rate.
Furthermore, the Noida-based firm even pointed out that the credit losses on its portfolio are currently under the levels that finance partners have underwritten. This may increase the potential for its syndicated lending book’s incentive income.