Digital payments company Paytm has claimed to reach a gross transaction value (GTV) of over $50 Bn, while clocking 5.5 Bn transactions in FY19.
The Delhi NCR-based company attributed this growth to the rising adoption of Paytm across multiple use cases such as retail payments, fees, utility payments, travel booking, entertainment, games among others. Its recently launched subscription-based rewards program Paytm First also contributed to this growth along with increasing the customer retention.
Talking about the future plans, senior vice president of Paytm, Deepak Abbot said, “We are focused on developing tech-driven solutions, integrated customer lifecycle management, enhancing the user experience and expanding to Tier 4-5 cities. We are confident to achieve 12 Bn transactions by the end of this financial year.”
Earlier last month, the Ministry Of Electronics and Information Technology (MeitY) had asked Paytm to support its target of facilitating 40 Bn digital transactions in FY20.
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The company shared plans to include artificial intelligence in its model and 2x growth this year. Paytm claimed to own 50% market share of the payment gateway industry in India, with 400 Mn monthly transactions on the platform.
Founded by Vijay Shekhar Sharma in 2010, Paytm provides multiple startups and large businesses with solutions ranging from a shareable PaytmQR code to deep integration. It enables users to process digital payments through any preferred payment mode including credit and debit cards, net banking, paytm wallet and UPI (unified payment interface).
Paytm had also launched its own payments bank in 2017. Paytm Payments Bank is a mobile-first bank with zero charges on all online transactions (such as IMPS, NEFT, RTGS) and no minimum balance requirement. For savings accounts, the bank currently offers an interest rate of 4% per annum.
Rise of Digital Payments In India
According to a 2018 NITI Aayog report, India’s digital payments industry is estimated to grow to $1 Tn by 2023. The report also noted that the value of digital payments will likely jump from the current 10% to over 25% by 2023.
Multiple players are trying to tap into India’s digital payments sector including PhonePe, BharatPe, and Google Pay. Among these, Google Pay has recorded more than 240 Mn transactions in May, which made the company market leader in terms of UPI transactions volume for May. Further, Flipkart-owned PhonePe was reported to be in the second position with 230 Mn UPI payments, while Paytm was found to have clocked 200 Mn transactions in May.
The Reserve Bank of India governor Shaktikanta Das has recently said that the central bank will come up with a regulatory framework of customer-protection measures tailor-made for digital transactions.