Paytm's GMV rises 105% in Jan-Feb period of Q4FY22

Digital payments and financial service firm Paytm on Tuesday said that its gross merchandise value (GMV) processed through its platform jumped 105 per cent year-on-year to Rs 1,65,333 crore in the fist two months (January and February) of the fourth quarter of the financial year 2022-2022. 

GMV is the merchant payments processed through all instruments (Paytm Wallet, Paytm Payments bank account, other banks netbanking, credit and debit cards, UPI etc).

The company, in the January-February period, disbursed 4.1 million loans amounting to Rs 2,095 crore, which surged 449 per cent year-on-year, while the value of loans disbursed was Rs 2,095 core (y-oy growth of 366 per cent).

The average monthly transacting users grew 41 per cent to  69.5 million in the said period of Q4FY22, the company said in a statement.

Further, the company also stated that its offline payments business "strengthened as more merchants adopted Paytm payment instruments" As of February 2022-end, Paytm's total devices deployed stood at over 2.6 million.

Additionally, in an official order released on Friday, the Reserve Bank of India (RBI) had directed Paytm Payment's Bank to stop onboarding new customers on its platform with immediate effect. The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system.
 
This action is based on certain material supervisory concerns observed in the bank, the statement said.
  
Paytm, in reply, said it has been informed that RBI's action does not impact any existing customers of PPBL, who can continue to use all banking and payment services without interruption.
 
"All existing users of Paytm UPI, Paytm Wallet, Paytm FASTag, and bank accounts can continue to use these instruments, including debit cards and net banking, for payments," it said.
 
"The bank is taking immediate steps to comply with RBI directions, including appointment of a reputed external auditor to conduct a comprehensive system audit of its IT systems. PPBL remains committed to working with the regulator to address their concerns as quickly as possible," the company added.

Shares of the company on Tuesday opened 1.54 per cent lower at an all-time low of Rs 664.40 apiece on BSE.

The stock has been on a downward trend and has tanked over 49 per cent on a year-to-date basis. The shares are trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Also read: Taking steps, customers to not be impacted: Paytm Payments Bank on RBI directions