Strong growth in the devices business has contributed to both payments and financial services revenue

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India’s digital payments ecosystem has been growing at a rapid pace over the past few years, supported by widespread adoption of payment devices by millions of merchants across the country. As a pioneer of India’s mobile payments and the QR code revolution, Paytm has ensured that merchants are able to seamlessly grow their businesses with its range of payment devices such as the Soundbox and PoS.

The company has achieved another milestone in its devices business, further strengthening its offline payments leadership. Fresh on the back of posting strong financial results for Q2 of FY23, Paytm said in its latest monthly operating metrics that it has now deployed over 5.1 million devices across merchant outlets in the country.

According to Paytm, strong growth in the devices business has proved to be immensely beneficial for the company, contributing to both payments and financial services revenue.

The company pointed out in its Q2 FY23 financial results that continued ramp-up in the devices business—backed by its subscription-as-a-service model, has led to growth in subscription revenues, while also increasing the scope of merchant loans.

The greater adoption of devices by merchants was a major contributor to increased demand for merchant loans in the second quarter of the ongoing financial year. Boosted by growth in the devices business, merchant loan disbursements stood at Rs 1,208 crore in Q2 of FY23, up 342 percent year-on-year and 46 percent quarter-on-quarter. According to the company, more than 85 percent of merchant loans disbursed were to merchants with Paytm devices.

Backed by stronger growth in loan distribution, Paytm’s revenue from financial services stood at 18 percent of total revenue in Q2 of FY23.

According to the company, Paytm’s devices business continues to play a pioneering role in strengthening the offline payments ecosystem in the country and empowering millions of merchants. The company remains confident that it will continue to play an integral role in the growth of key businesses like payments and loan distribution.