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Paytm CEO anticipates revenue and monetisation strategies to grow in the coming quarters

During a conference call with analysts in the United States, Paytm Chairman and CEO Vijay Shekhar Sharma said the company is seeing scale in system deployment and non-UPI revenue, which includes revenue charges, MDR (merchant discount rate) for payments and credit led financial services, and provides the company with the next level of monetisation.

According to a top corporate official, Paytm, a digital payments and financial services startup, expects to grow income and monetisation methods on its platform in the next quarters.

During a conference call with analysts in the United States, Paytm Chairman and CEO Vijay Shekhar Sharma said the company is seeing scale in system deployment and non-UPI revenue, which includes revenue charges, MDR (merchant discount rate) for payments and credit led financial services, and provides the company with the next level of monetisation.

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“We anticipate that over the next several quarters, we will be able to not only raise revenue, but also extend the variety of monetisation techniques and, as a result, boost contribution margins. “Seeing the opportunity in front of us has energised our team, myself, and everyone else, and we are determined to executing and producing tremendous outcomes in the next quarters,” Sharma added.

On Saturday, One 97 Communications, which operates under the Paytm brand name, posted a consolidated loss of Rs 473 crore for the second quarter ended September 30, 2021, because to a rise in payment processing prices.

According to an exchange filing, the company lost Rs 436.7 crore in the same quarter a year ago.

Paytm’s consolidated total income climbed by roughly 64% to Rs 1,086.4 crore in the reporting quarter, up from Rs 663.9 crore in the previous quarter.

“Our revenues have risen year over year, and they are continuing to rise quarter over quarter. “The impact of COVID, the scale of system deployment, and scale in our non-UPI revenue, where merchants give us revenue charges, MDR for payments, and credit led financial services, which offers us the next level of monetisation, are all showing up,” Sharma explained.

During a conference call on Monday evening, Paytm Group CFO and President Madhur Deora stated that the company’s objective is to bring half a billion Indians into the mainstream economy through technology-led financial services.

Read More : Paytm reports loss of 461cr for recent quarter

“Some newly announced bank collaborations for point of sale may have caught your attention (PoS). There is an announcement from HDFC Bank, as well as agreements with other financial institutions. This is propelling us forward in the large format retailer industry, as well as the large format retail business in the offline world,” Deora remarked.

Paytm also stated that large merchants from competitors are converting to its platform, and that it now sees a huge chance to capture the mid-market and startup sector with its payment products.

Platforms like Myntra, Oyo, Domino’s, and others have recently joined with the company to use the “Paytm Token Gateway” service to conduct transactions without saving actual debit and credit card information.

In a recent earnings call, Paytm executives stated that they are experiencing a lot of progress “Recovery of high-margin commerce business and expansion of cloud business” as well as an increase in financial services revenue due to increased lending.

Paytm’s gross merchandise value (GMV) in the second quarter more than quadrupled to Rs 1,95,600 crore from Rs 94,700 crore in the same quarter of 2020-21, according to its financial performance report for the second quarter ended September 30, 2021.

Paytm said in a statement that its average monthly transacting users (MTU) climbed by 33% year over year (y-o-y) to 5.74 million in the reported quarter.

Payments and financial services income increased by 69 percent year over year to Rs 842.6 crore, while commerce and cloud services revenue increased by 47 percent to Rs 243.8 crore.

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