Paytm is set to leverage the power of generative artificial intelligence (AI) on its new tech platform. In a post-earnings call with analysts on May 6, Paytm's founder and CEO Vijay Shekhar Sharma revealed that the platform has been developed over the past year and will enable generative AI in areas such as fraud detection, customer care, and customer onboarding.
"Generative AI will do a lot of work of humans from onboarding to customer care and fraud detection. Not only will those things become more efficient, but also help the business to scale to a new level of solutions," Sharma said.
Sharma believes that generative AI will revolutionise the way server-side components are used, much like Google did with internet searches. This advanced technology will replace much of the work done by humans and bring greater efficiency to areas such as customer care and fraud detection. Additionally, it will help the business scale to new heights of solutions.
Generative AI involves producing new content, code, or synthetic data either automatically or based on a prompt given by the user. This technology is expected to make Paytm's platform more cost-efficient and capable of carrying out ten times the current number of transactions.
Paytm's new tech platform is fully developed in-house and is expected to give the company an edge over its competitors. In the March quarter, Paytm's revenue increased by 52 per cent to Rs 2,335 crore, while its loss narrowed to Rs 168 crore from Rs 763 crore in the previous year.
In Q4FY23, Paytm witnessed a notable 41 per cent year-over-year growth in its payment services revenue, which reached Rs 1,467 crore. However, if we exclude the UPI incentive from the government that was granted in previous quarters, the YoY growth in payments revenue was 28 per cent. Additionally, the company's gross merchandise value (GMV) surged by 40 per cent YoY to reach Rs 3.62 lakh crore in Q4 FY 2023.
The company's net payment margin expanded 158 per cent YoY to Rs 687 crore in Q4FY23, while the net payments margin was Rs 554 crore, up 107 per cent YoY after excluding the previous quarters' UPI incentive. Throughout FY23, Paytm's net payments margin underwent a staggering 2.9-fold growth, amounting to Rs 1,970 crore.
Paytm's focus on creating additional payment monetisation has also led to the growth of its subscription revenues, with 68 lakh merchants paying for device subscriptions as of March 2023, almost doubling its growth YoY from 29 lakh as of March 2022.
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