Paytm’s Diversified Business Generates Huge Revenue, Leaving Competitors Telecom News, ET Telecom Behind


New Delhi: One97 Communications Limited, the parent company of the fintech giant, is heading for a $ 3 billion initial public offering (IPO), the highest initial IPO on record in India, and although the leader The market has established its presence in a plethora of companies, its competitors are only now exploring an expansion in other services.

The company, which has long been a public limited company, is expected to be listed on the Indian Stock Exchange by November.

The company has taken advantage of its multi-payment architecture and is reporting revenue several times higher than any other company in the digital payments and financial services category.

“Paytm’s strong focus on merchants – merchant and inventory portfolio integrations, merchant point-of-sale, online payments and cross-selling to consumers have enabled Paytm to generate a strong revenue base through compared to its UPI-focused competitors. per active user, compared to its competing UPI-focused payment apps, ”said a recent report from global analytics firm Bernstein.

In India, while most fintech companies have so far targeted a particular business model, Paytm, led by Vijay Shekhar Sharma, has branched out from mobile, broadband, DTH top-ups and P2P transfers and now offers now a range of financial services.

Within the payments space, the company operates its wallet, banking services, UPI, postpaid services and much more. But it’s not just that. Paytm has added a plethora of businesses Paytm Payments Bank, Paytm Payments Gateway, Paytm Payout, Paytm Money to democratize wealth creation, Paytm Insurance, Paytm Postpaid, Paytm Credit Cards as well as utility bill payments, merchant payments offline, content and games. a service.

“With its presence in a large number of allied financial services, it (Paytm) has managed to become the largest player in terms of consolidated revenue. Additionally, an important distinction to note is that most of the ancillary services of Paytm are offered through in-house establishments such as Paytm Money, Paytm bank, etc. It may fare better in terms of margins in the times to come, ”said a recent report on RedSeer’s Indian fintech ecosystem.

Although it has established all of these businesses, its competitors are only now considering expansion into other services.

Paytm, with a first-mover advantage, has already become a leader and is a brand to be reckoned with.

“Paytm with its long heritage has a strong presence in” Bharat “ie level 3 and below as well as with a total of 20 million merchants on board it maintains a huge lead in wallet payments in particular, ”the report from market research firm RedSeer said.

The company is also a major player in UPI transactions in India. UPI transactions are not becoming a revenue-generating feature for third-party applications. “… maintaining UPI’s market share takes marketing dollars on a treadmill without generating revenue,” the Bernstein report said.

Instead, they go through a banking funnel, and this is where Paytm Payments Bank is already the highest recipient bank ahead of SBI, HDFC, and ICICI Bank.

The NPCI also proposed market capitalization in UPI transactions, where it said no player can have more than 30% market share by 2022. Players who violate the market share rule will be penalized.

However, for Paytm, UPI is just one of the services. Today, the business ends up managing the entire customer lifecycle and not just a payment transfer. All of this contributes to multiple revenue growth funnels for Paytm, whether through users, online merchants, or offline merchants.

The company also recorded more than 1.4 billion transactions reported in March with more than 20 million partner merchants accepting Paytm QR, Paytm IoT devices and App POS.

With the lockdown and restrictions across the country, users continue to turn to Paytm for all of their daily needs – mobile top-ups, broadband and DTH, credit card payments, utility bill payments, water bills, money transfers and more.

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