In April-May, Paytm loan disbursements increased by nearly sixfold, stock up 2.48%

15 Jun 2022 , 09:44 AM

On June 15, One97 Communications, the company behind Paytm, announced that the platform’s lending division saw an annualized run-rate of Rs23,000 crore in loan disbursements, while device deployment surpassed 34 lakh in May.

In April-May 2022, the fintech behemoth disbursed 5.5 million loans, up 471 % year over year.

Merchant payments processed through Paytm Wallet, Paytm Payments bank account, net banking, credit and debit cards, UPI, and other channels totalled Rs 1.96 lakh crore in May, up 105 % year on year.

The announcements come ahead of the company’s fourth-quarter financial results, which will be released on May 20. The estimates for April 2022 take into account the impact of the RBI’s March 12 regulation prohibiting Paytm Payments Bank from onboarding new customers until it receives approval from an information technology expert.

Paytm’s lending business entails earning a fee by disbursing loans on behalf of other banks and finance organizations. The company stated that the scale-up of the personal loans industry resulted in an increase in average ticket size.

The entire merchant GMV (gross merchandise value) processed on Paytm’s platform in April 2022 was around Rs0.95 lakh crore, representing a 102% increase year over year. According to the company, the personal loan industry’s expansion resulted in a rise in average ticket size.

The total loans given by Paytm lenders include both consumer and merchant loans, but omit the amount and value of loans acquired by third parties through Paytm advertising and aggregation of EMIs on card swipe machines.