As paying with phones becomes more commonplace, the company is watching its revenue rise.
Indian mobile payments company Paytm recorded a year-over-year growth in revenue of 39 percent during the second quarter of 2023, which came to a close on June 30.
The company credited increases in gross merchandise value (GMV) for the revenue increase.
The mobile payment system and financial technology firm stated that its increase in revenue was attributed to the rising GMV, merchant subscription revenues, and loans the platform distributes. This was announced in the company’s earnings release that was issued near the end of last month.
The firm’s business revenue from mobile payments alone rose 31 percent year over year. This was attributed to more than doubling the merchant subscriber base when compared to the year before. The transaction platform also experienced a 23 percent increase in monthly transacting users across the same period in time.
“As mobile payments are becoming more mainstream, our merchants are seeking more technology and the demand for products such as Soundbox and Card machine is rising,” explained a news release issued by Paytm.
Beyond mobile payments, the company saw increases in other revenue categories as well.
For instance, the loan distribution program offered by Paytm saw a business revenue increase of a tremendous 93 percent year over year, as that company continued to scale that component of its offerings.
“Our payments business is our acquisition engine, which helps us to get insights about customers’ behavior and enables us to distribute suitable credit products to them,” said the company in its news release. “As we have mentioned before, we continue to work with our partners to ensure superior credit quality for loans distributed through us.”
Furthermore, the company said in its news release that on the whole, the main growth drivers for its business in general was the broadscale adoption of technology by Indian merchants across the country. Also contributing was innovation in the transaction ecosystem combined with a massive opportunity for loan distribution product growth.
“We continue to see consistent improvement in profitability due to strong revenue growth, increasing contribution margin and operating leverage,” it said.
