Paytm Lending Unit Paying Off with Record Gains

Digital payments service Paytm has been taking a hit lately, with negative buzz about sliding share prices and widening losses as it closed out 2021. But January is showing a few signs of a rebound as its lending business takes off and other indicators climb.

A subsidiary of One97 Communications Limited (OCL), Mumbai-headquartered Paytm scaled its lending business to $1.9 million in loan disbursements in January, with year-on-year (YoY) growth of 331%. The total value of 921 crore rupees ($121.6 million) marked a YoY growth of 334%, according to a press release emailed to PYMNTS on Monday (Feb. 14).

See also: Paytm, Fullerton, Partner on Consumer Lending

Despite the shadow of the COVID-19 omicron variant that temporarily darkened merchant loan volumes, Paytm found its lending products are being well received.

Last month Paytm partnered with credit company Fullerton India to further extend lending solutions to both individuals and businesses and grow the rollout of the buy now pay later (BNPL) product Paytm Postpaid.

Offline payments growth is also solidifying, Paytm said, with 2.3 million devices in circulation. The 22-year-old company also experienced its highest-ever increase in average monthly transacting users at 68.9 million, up 40% YoY.

Read more: Paytm Sees Bigger Losses as It Reels From IPO Fallout

“Paytm is witnessing a broad growth across our platform as we continue to register increased adoption of our lending products, Paytm Postpaid (BNPL), merchant loans and personal loans. We are also continuously expanding our offline payments business, with more devices being deployed across the country. Our efforts are seen in the trust our consumers and merchants place in us, as we see record user engagement on the platform,” a Paytm spokesperson said.

Gross merchandise value — which includes Paytm Wallet, Paytm Payments bank account, other banks net banking, credit and debit cards, UPI and more — went up 105% YoY, reaching 83,481 crore rupees ($11 million).