Paytm transactions cross $1.6 bn, up 3.5 times on festive boost

NEWDELHI: Paytm on Monday said transactions on its platform crossed $1.6 billion (₹10,000 crore) during the Diwali season, 3.5 times more than a year earlier.

Volumes during the monthlong period ended October 20 were driven by the food and transportation categories, while rise in payments at mom-and-pop stores through the Paytm app also contributed to the surge, the company said in a statement.

“Mobile payments have become mainstream over the last few quarters. Owing to the convenience and security, people prefer Paytm to card and other modes of payments,” Paytm chief operating officer Kiran Vasireddy said in the statement.

In August Indians transacted ₹45,710 crore through debit and credit cards, ₹4,130 crore over the Universal Payment Interface, and ₹2,720 through pre-paid payment instruments, according to the RBI. Delhi, Mumbai, Bengaluru and Pune recorded the highest number of Paytm transactions during the festival season, while use of the payments service also rose in smaller towns such as Jaipur, Ahmedabad, Mysuru and Visakhapatnam.

Paytm said its service was especially popular with local vendors and small store owners in tier II and tier III cities.

With a boost from demonetisation, Paytm has deepened its reach, as it deploys its QR-code (quick response) solution that allows local shops to accept payments over Paytm. The company claims that 5 million merchants are using its service.