Paytm, a leading provider of digital payments and financial services released it’s business operational results on Monday for the two months that ended in February 2023. 

The average Monthly Transacting Users (MTU) for the past two months was 89 million, representing a rise of 28% in consumer interaction on the Paytm Super App (year-on-year). 

The total merchant Gross Merchandise Value (GMV) processed through the platform for the two months ended February 2023 totaled Rs 2.34 lakh crore ($28.3 billion), representing a year-over-year growth of 41%, according to the company, which claimed it is seeing consistent growth in merchant payments volume.

Paytm, which invented QR and mobile payments in India, stated that “our focus over the previous few quarters has continued to be on payment volumes that produce revenue for us, either through net payments margin or from direct upsell possibilities”. 

The financial behemoth continued to increase its focus on developing new ways to monetize payments through subscription services. 

With 6.4 million businesses now paying membership fees for payment devices, an increase of 0.3 million in the month of February, Paytm’s dominance in offline payments grew even stronger.

Its revenue from operations increased 42 percent year-on-year to Rs 2,062 crore, driven by growth in its core payments business and sustained growth momentum in the credit business and commerce business.

According to Paytm’s stock exchange filing, “With our subscription as a service model, the strong device usage increases subscription revenues and increased payment volumes, while boosting the funnel for our merchant loan distribution. 

Disbursements through the platform for the two months ending February 2023 increased 286 percent year over year to Rs 8,086 crore ($979 million), reflecting the company’s loan distribution business’s continued rapid growth in cooperation with major lenders. 

The total amount of loans given over the course of the two months increased by 94% to 7.9 million loans.

The payments consumer and merchant base of Paytm offers a sizable addressable market, the company added, adding that it continues to engage with its lending partners to remain focused on the quality of the book. 

Paytm reached the milestone of operating profitability in its recently released third fiscal quarter (Q3FY23) figures, nine months earlier than anticipated in September 2023. 

Before the cost of the employee stock ownership plan (ESOP), the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) were at Rs. 31 crores, with the EBITDA before ESOP margin at 2% of revenues, down from (27%) from a year before.