Paytm for digital payments and financial services expects to increase revenue and methods of monetization on its platform in the next few quarters, according to a top company official.
Paytm chairman and CEO Vijay Shekhar Sharma during an earnings call with analysts in the US said the company looks at scale in system deployment and non-UPI revenue, where merchant provides revenue costs, MDR (discount rates for buyers) for payments and credit lead financial service, and provide the company with the next level of monetization.
“We believe, in the next few quarters, we will be able to not only expand revenue, but also increase more monetization methods and later increase contribution margins. And we are committed to executing and delivering great results going forward. quarters, “said Sharma.
One 97 Communications, operating under the Paytm brand name, reported on Saturday broadening consolidated losses to around Rs 473 crore in the second quarter ended September 30, 2021, mainly due to an increase in payment processing costs.
The company had posted a loss of Rs 436.7 crore in the same quarter a year ago, according to an exchange.
Paytm’s consolidated total revenue increased by approximately 64 percent to Rs 1,086.4 crore in the reported quarter from Rs 663.9 crore in the corresponding quarter of 2020-21.
“Our revenue has increased year-on-year, our revenue is growing quarter-on-quarter. Coronavirus Influence (Covid-19), the system deployment scale and scale in our non-UPI revenue, where merchant us income expenses, MDR for payments and credit led financial service, which gives us the next level of monetization appears, “said Sharma.
Paytm Group CFO and President Madhur Deora during the call held on Monday night said that the company is on the mission to bring half a billion Indians to the mainstream economy through technology-led financial services.
“You may have noticed some recently announced point of sale (PoS) banking partnerships. There is an announcement with HDFC Bank and there are also partnerships with other banks. This gives us a very strong momentum in the market for large format retailers, the large format retail market in the offline world, “said Deora.
Paytm has also claimed that it sees large buyers of competitors now switching to their platform and it will now see a great opportunity in conquering the mid-level market and startup community with their payment products.
Recently, platforms like Myntra, Oyo, Domino’s and others have partnered with the company for the “Paytm Token Gateway” service to execute transactions without storing actual debit and credit card details.
Paytm executives in an earnings call last week said they saw “recovery of high-margin commerce, and growth of cloud business” and increase in revenue for financial services driven by the rise in lending.
According to Paytm’s financial performance report for the second quarter ended September 30, 2021, its gross merchandise value (GMV) in the second quarter more than doubled to Rs 1,95,600 crore from Rs 94,700 crore in the corresponding quarter of 2020-2021.
The company’s average monthly transaction (MTU) users in the reported quarter increased by 33 percent on a year-on-year (yoy) basis to 5.74 million, Paytm said in a statement.
Revenue from payments and financial services grew by 69 percent on a year-on-year basis to Rs 842.6 crore, while trade and cloud services revenue grew by 47 percent to Rs 243.8 crore.
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