One97 Communications, the company that owns Paytm, the payment app, has reportedly breached the $4 billion in monthly gross transaction value. According to a report in Livemint, citing Paytm, the number of transactions also hit 1.3 billion in the June ending quarter.
“Paytm has been witnessing [a] tremendous increase in adoption of digital payments in tier 2 and tier 3 cities, which constitutes 50 percent of its total user base. This has helped the company to achieve an annual run rate of five billion transactions and $50 billion in GTV (gross transaction value),” the company said in a statement.
The report noted that One97 didn’t disclose figures of April and May of this year. Although gross transaction value isn’t seen as a true indicator of the health of the company, Livemint said it does show the high adoption rates of the Paytm platform. Gross transaction value includes recharges, bill payments to peer-to-peer transactions via UPI, peer-to-peer Walter transactions and all purchases made on the Paytm Mall and Paytm payment gateway. It does not include NEFT, debt or credit card transactions.
“Since January 2018, the platform has processed over 400 million BHIM UPI transactions, which is fast becoming the preferred alternative to net banking,” Paytm said in a statement, noted Livemint.
In May, BGR reported that Paytm was gearing up to invest Rs 5,000 crore during the next three years as it aims to expand the services provided via its mobile platform. BGR, citing Paytm, said the company is investing to enhance its bank transfers and other payment options.
The company said it has moved bank transfers under a new My Payments feature on the app, which will now allow users to transfer money from one bank account to another. Paytm is relying on UPI and IMPS methods to enable the transfers. The report also noted that an app upgrade has made it easier for customers to make recurring payments.