{"id":178407,"date":"2026-01-30T01:12:05","date_gmt":"2026-01-30T06:12:05","guid":{"rendered":"https:\/\/alphastreet.com\/india\/?p=178407"},"modified":"2026-01-30T01:12:05","modified_gmt":"2026-01-30T06:12:05","slug":"paytm-payments-growth-accelerates-as-gmv-upi-usage-and-merchant-base-expand","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/paytm-payments-growth-accelerates-as-gmv-upi-usage-and-merchant-base-expand\/","title":{"rendered":"Paytm payments growth accelerates as GMV, UPI usage and merchant base expand"},"content":{"rendered":"\n

One 97 Communications (NSE:PAYTM), which operates the Paytm digital payments platform, reported robust momentum in its core payments business for the quarter ended December 2025. Gross merchandise value (GMV) processed through the platform rose 24% year-on-year to \u20b96.2 lakh crore, reflecting increased consumer spending and wider merchant acceptance of digital payments.<\/p>\n\n\n\n

Strong surge in payment volumes<\/strong><\/h2>\n\n\n\n

Total transactions increased 39% to 1,716 crore, while merchant transactions grew 32% to 1,466 crore, pointing to higher activity across both online and offline channels.<\/p>\n\n\n\n

Payment services revenue and margins improve<\/strong><\/h2>\n\n\n\n
    \n
  • Payment services revenue, including other operating income, climbed 21% year-on-year to \u20b91,284 crore. Net payment revenue rose faster, up 25% to \u20b9613 crore, as payment processing margins improved and subscription-based merchant monetisation expanded.<\/li>\n\n\n\n
  • The company said payment processing margin is now trending comfortably above 4 basis points, supported by faster growth in credit card and EMI-based transactions relative to overall GMV.<\/li>\n<\/ul>\n\n\n\n

    Merchant expansion deepens network reach<\/strong><\/h2>\n\n\n\n
      \n
    • Merchant adoption continued to scale, with subscription merchants (including devices such as QR, Soundbox and card machines) reaching 1.44 crore, an increase of 27 lakh from a year earlier.<\/li>\n\n\n\n
    • Registered merchants on the platform rose 12% to 4.8 crore. To support this expansion, Paytm increased its sales and service workforce by 39% year-on-year, focusing on deeper penetration in tier-2 and tier-3 cities and driving uptake of its full-stack omni-channel payment offerings.<\/li>\n\n\n\n
    • Lower device costs and higher merchant lifetime value allowed the company to selectively reduce device rentals for highly engaged merchants to improve retention and long-term monetisation.<\/li>\n<\/ul>\n\n\n\n

      UPI market share gains and consumer engagement<\/strong><\/h2>\n\n\n\n
        \n
      • Average monthly transacting users reached 7.6 crore, up 9% year-on-year. Paytm reported that its consumer UPI GMV grew 35% over the nine months to December, outperforming industry growth of 16% and delivering market share gains for three consecutive quarters.<\/li>\n\n\n\n
      • Management attributed the outperformance to AI-led product enhancements and targeted promotional incentives aimed at improving engagement and retention among higher-quality users.<\/li>\n<\/ul>\n\n\n\n

        Regulatory approvals enable merchant onboarding<\/strong><\/h2>\n\n\n\n
          \n
        • During the quarter, subsidiary Paytm Payments Services Limited received Reserve Bank of India approvals for online, offline and cross-border payment aggregation. This allowed consolidation of the merchant acquiring business under a fully licensed entity and enabled the resumption of onboarding new online merchants.<\/li>\n\n\n\n
        • The approvals position the company to offer end-to-end payment acceptance across domestic and international channels.<\/li>\n<\/ul>\n\n\n\n
          \"\"<\/figure>\n\n\n\n

          Managing incentive changes and regulatory shifts<\/strong><\/h2>\n\n\n\n
            \n
          • Paytm earned \u20b9216 crore from the government’s Payment Infrastructure Development Fund (PIDF) over the nine months to December, a scheme that ended in December 2025. The company expects to offset the impact of the incentive ending through higher core revenues and targeted sales efforts, while keeping contribution margins in the mid-50% range.<\/li>\n\n\n\n
          • It also reported negligible impact from recent regulatory changes on credit card rent payments and online real-money gaming due to proactive compliance measures.<\/li>\n<\/ul>\n\n\n\n

            Positioned for scale-led payments profitability<\/strong> <\/h2>\n\n\n\n

            With rising GMV, growing UPI share, an expanding merchant device network and improving processing economics, Paytm’s core payments business is showing stronger operating leverage, supporting its push toward sustained, scale-driven profitability.<\/p>\n","protected":false},"excerpt":{"rendered":"

            One 97 Communications (NSE:PAYTM), which operates the Paytm digital payments platform, reported robust momentum in its core payments business for the quarter ended December 2025. Gross merchandise value (GMV) processed through the platform rose 24% year-on-year to \u20b96.2 lakh crore, reflecting increased consumer spending and wider merchant acceptance of digital payments. Strong surge in payment […]<\/p>\n","protected":false},"author":2378,"featured_media":125269,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5,1941,392,8],"tags":[8797,11638,12353],"class_list":["post-178407","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","category-stock-analysis","category-earnings","category-technology-stocks","tag-fintech","tag-paytm","tag-upi"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":178403,"url":"https:\/\/alphastreet.com\/india\/paytm-reports-profitable-third-quarter-as-revenue-climbs-20-to-%e2%82%b92194-crore\/","url_meta":{"origin":178407,"position":0},"title":"Paytm Reports Profitable Third Quarter as Revenue Climbs 20% to \u20b92,194 Crore","author":"Staff Correspondent","date":"January 30, 2026","format":false,"excerpt":"One 97 Communications (NSE:PAYTM), the parent company of Indian fintech pioneer Paytm, announced its financial results for the quarter ending December 2025, reporting a significant swing to profitability alongside robust revenue growth. The company's operating revenue rose 20% year-on-year to \u20b92,194 crore, driven by momentum in payment services and the\u2026","rel":"","context":"In "LATEST"","block_context":{"text":"LATEST","link":"https:\/\/alphastreet.com\/india\/category\/latest\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":129847,"url":"https:\/\/alphastreet.com\/india\/one97-communication-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":178407,"position":1},"title":"One97 communication Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 23, 2022","format":false,"excerpt":"https:\/\/youtu.be\/OgwfSOow4ZE Key highlights from One97 communication Ltd (PAYTM) Q4 FY22 Earnings Concall Management Update: PAYTM said that in payments, which is the company\u2019s primary bet, it will be able to earn all its cost and achieve EBITDA contribution standalone for payment also. PAYTM said it will be delivering operating profitability\u2026","rel":"","context":"In "Concall Highlights"","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":129967,"url":"https:\/\/alphastreet.com\/india\/paytm-research-tear-sheet-q4-fy-2022\/","url_meta":{"origin":178407,"position":2},"title":"Paytm Research Tear Sheet Q4 FY 2022","author":"sreerupa","date":"May 24, 2022","format":false,"excerpt":"The word Paytm means pay through mobile. It is an Indian multinational company which is specializes in digital payment systems,\u00a0e-commerce\u00a0and\u00a0finance. The company is headquartered in Noida, Uttar Pradesh. It was incorporated in August 2010. The founder is Vijay Shekhar Sharma. The services include payment system, mobile payments and online shopping.\u2026","rel":"","context":"In "Research Summary"","block_context":{"text":"Research Summary","link":"https:\/\/alphastreet.com\/india\/category\/research-summary\/"},"img":{"alt_text":"Research Summary","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":132681,"url":"https:\/\/alphastreet.com\/india\/one-97-communications-ltd-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":178407,"position":3},"title":"One 97 Communications Ltd Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 9, 2022","format":false,"excerpt":"Key highlights from One 97 Communications Ltd (PAYTM) Q1 FY23 Earnings Concall Q&A Highlights: Sachin Salgaonkar of Bank of America asked about Soundbox monthly rental going down to zero and the monetization of it. Bhavesh Gupta CEO, Lending replied that on Soundbox, the rental going down to zero is not\u2026","rel":"","context":"In "Concall Highlights"","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":132627,"url":"https:\/\/alphastreet.com\/india\/paytm-research-tear-sheet\/","url_meta":{"origin":178407,"position":4},"title":"Paytm Research Tear Sheet","author":"sreerupa","date":"August 8, 2022","format":false,"excerpt":"Stock Data Ticker: PAYTM Exchange : NSE and BSE Industry: Financial technology E-commerce Price Performance Last 7 days\u00a0\u00a0\u00a0 12.17% YTD\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 -37.44% Last 12 months\u00a0\u00a0\u00a0\u00a0 0.00% The stock of Paytm has underperformed by falling 34% in the last six months. 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