Paytm solidifies its merchant payments leadership; records 21 lakh devices deployed in 2023 so far

livemint.com:

India’s leading mobile payments and financial services company Paytm, which has pioneered digital payment, has continued to be in a leadership position in the segment. The company added 4 lakh new merchants in June, who have subscribed to its premium devices including Soundbox and card machines, taking the total count to 79 lakh merchants. So far till June 2023, Paytm has added 21 lakh merchants who are paying subscriptions for its devices.

With the help of 79 lakh merchants from Rishikesh to Varanasi to Gujarat to metro cities like Mumbai, Delhi and from the smaller shopkeepers to the biggest enterprises across India, who pay subscription fees to Paytm for payment devices. With this, the consumer base has also expanded with over an average monthly transacting users (MTU) rising to over 9.2 crore at the end of June quarter. The company’s management believes India has potential of at least 10 crore merchants and more than 50 crore payment users in the near future.

Analysts say Paytm is the dominant player in the merchant payment solutions with limited competition especially because of its successful Soundbox model. “We find Paytm well positioned to continue to dominate the SME merchant landscape where the subscription model via Soundbox is improving merchant stickiness," said BofA Securities in a report. Paytm Soundbox is a good revenue generating model for the company as it earns revenue through subscriptions paid by merchants as the device provides real time audio confirmation of mobile payments.