Paytm hits $5 b GMV, clocks Rs 120 cr worth of daily deals

Capitalising the demonetisation move, Paytm has witnessed over seven million transactions worth Rs 120 crore a day to achieve over $5 billion gross merchant value (GMV) sales ahead of its four-month target.

Commenting on the development, Paytm Vice President Sudhanshu Gupta said, “Backed by a strong payment ecosystem of Paytm, and more merchants on board, the company has been able to serve 45 million users in last 10 days.”

“Paytm is registering over 7 million transactions worth Rs 120 crore a day, as millions of consumers and merchants across the country are trying to make mobile payments on our platform for the first time,” said Gupta.

“From consumers being able to pay for a cup of coffee in metros, to farmers purchasing seeds using Paytm in Kurnool, we are witnessing an exponential increase in the adoption of Paytm as a way to pay by both consumers and merchants alike,” he said.

With offline transactions now contributing to over 65% of the overall business, the company is currently doing more transactions than the combined average daily usage of credit and debit cards in India, he added.

“Paytm has over 150 million mobile wallet-users currently,  and now we have crossed the overall $5 billion GMV milestone,” said Gupta. GMV is an industry term for estimating the total worth of goods sold through a digital platform and Paytm achieved GMV of $3 billion last year.

Building ecosystem
According to RedSeer Consulting Engagement Manager Mrigank Gutgutia, “The achievement of Paytm is the net result of its investment in building the ecosystem which enabled the people to use at a time when there is difficulty in transactions.”

“Paytm has brought on board lots of merchants and people to use their app. Now they are reaping that benefit. Once the cash situation becomes normal, some portion of the consumers will go back to cash transaction. But there will be more people who will stick with the Paytm payment platform as they enjoyed its convenience,” said Gutgutia.