Paytm transactions exceed total usage of credit, debit cards

The company is now witnessing about 7 million daily transactions worth about Rs 120 crore, helping it cross $5 billion Gross Merchandise Value (GMV) sales, four months ahead of its target. Last year, Paytm’s GMV was at $3 bn. GMV, is a term used for the total worth of goods sold through digital platform. The Alibaba-backed company, which offers both mobile payment and e-commerce marketplace, said, “Paytm is registering over 7 million transactions worth Rs 120 crore in a day as millions of consumers and merchants across the country try mobile payments on the payment platform for the first time,” company vice-president Sudhanshu Gupta said. 

The company is currently doing more transactions than the combined average daily usage of credit and debit cards in India, he added. Paytm has served over 45 million users in last 10 days and over 5 million new users were added since the demonetisation decision was announced on November 8, Gupta said. Paytm has over 150 million mobile wallet users currently. Mobile wallet companies including Paytm have seen manifold growth in transactions and new users as people turn to digital platforms after serpentine queues outside ATMs, banks continue to hassle them. “Offline transactions now contribute to over 65 per cent of the overall business from 15 per cent about six months ago. We are also working on expanding our merchant network by 150,000 additional merchants,” he said. 

Gupta added that the company has now crossed the overall $5 billion GMV milestone. Over 10 lakh offline merchants across India accept Paytm for payment including taxis, autos, petrol pumps, grocery shops, restaurants, coffee shops, multiplexes, and parking lots. The company has also waived off its 1 per cent transaction fee for transferring money to the Bank for KYC-enabled merchants. According to an Assocham-RNCOS joint study, the mobile payment transaction volume is likely to register a compounded growth rate of over 90 per cent to reach 153 billion by Financial Year 202122. This is against a meagre 3 billion transactions in FY 2015-16. Mobile payment transaction value in India is also likely to register over 150 per cent CAGR and cross Rs 2,000 trillion by FY 2021-22 from just over Rs 8 trillion as of FY 2015-16, the study titled Indian M-wallet market said.