Paytm by the Numbers: Mobile Payments Platform’s Incredible Gains

July 11, 2018         By: Steven Anderson

The Indian mobile payments market is one of the biggest around; take a massive population and add to it one of the biggest pushes toward a cashless society since Sweden and you’ve got a recipe for major growth. Paytm recently brought out some numbers, meanwhile, that show just how big a market the mobile payments sector really is.

The reports put Paytm as a major force; it claimed just recently that it reached an annual run rate of five billion transactions, and registered $50 billion in gross transaction value this year. It also claims to have processed over 400 million BHIM UPI transactions in the last six months, and notes that money transfer transactions have grown 500 percent over the previous quarter.

The biggest reason for these massive gains is the recent hefty increase in the tier 2 and tier 3 cities that make up around 50 percent of Paytm’s total user base. With cities like Meerut, Rohtak, Surat and several others increasingly getting in on the mobile payments bandwagon, that’s driving Paytm use heavily upward.

Additionally, the multilingual version of the Paytm app is helping out particularly well, as around 25 percent of users prefer using the app in their own language. While English and Hindi are two of the biggest languages in India, there are also several others, like Bengali, Marathi, and Telugu to consider. With Paytm working with this range of languages, it’s increased its potential market, and thus its market share. Throw in a steadily-growing bank of offline merchants—about seven million at last report—taking payments through Paytm QR and the end result is rapid growth.

Here, Paytm is demonstrating the value of diversification in mobile payments. Its ability to work with both online and offline merchants and in several different languages allows it access to more of the market than many of its competitors. When you operate in a market by yourself, that’s effectively a monopoly.

In this case, it’s a monopoly that can be readily broken by new competitors showing up, but considering how much of the market Paytm has to its credit already, that will be a tall order. Paytm is now a major force in the field, and it got there by pursuing a broad market strategy that’s clearly paid dividends.