Marking a strong turnaround, popular fintech brand Paytm said it is seeing early signs of recovery and strong stabilisation for its Unified Payments Interface (UPI) business.
The total value of UPI transactions processed on the Paytm platform grew to Rs 1.24 trillion in May, on the back of the company launching several initiatives for users such as Credit Card on UPI, as well as pushing the lever on UPI Lite.
With total transactions on the platform stabilising at 1.14 billion in May, Paytm that became a Third- Party Application Provider (TPAP) in March, continues to be the third largest player in terms of market share.
Further, considering the breadth of its merchant base, the company continues to be leading amongst peer-to-merchant (P2M) UPI transactions.
In May 2024, UPI reached a milestone by handling nearly 14 billion transactions, a substantial 49 per cent year-on-year increase, and processed transactions worth Rs 20.45 trillion-its highest since launch in 2016.
This surge underscores the growing preference for digital payments among Indian consumers and businesses.
Paytm has been bullish on UPI and has formed partnerships with various banks and financial institutions including Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank to enhance its LIPI service.
As part of its earnings, the Noida-headquartered company said that the move further 'de-risks' its business model. Features like UPI Lite launched by Paytm on its platform helped users make seamless payments avoiding the risk of payment failures
This service is especially useful for those who frequently handle small payments like buying groceries, paying for parking, or settling daily commute fares. It also keeps the bank statement clutter-free with only a single entry, regardless of the number of payments made, which is a significant convenience for users who prefer a clean financial overview
The company said it received UPI incentives of Rs 288 crore for the financial year 2024 (recorded in 04 FY24), as compared to Rs 182 crore in the financial year 2023 (recorded in Q4 FY23), showcasing its sustained growth with the payments infrastructure.
In May, PhonePe and Google Pay, were the two key players in the Indian fintech ecosystem. These two companies handled transactions to the tune of Rs 7.23 trillion and Rs 10.33 trillion, respectively. (ANI)
