Paytm expands merchant network amid rising competition

Paytm is aggressively expanding its merchant payment business to mitigate concerns regarding increasing competition in India’s digital payments market. According to a report by global brokerage firm Bernstein, the fintech company added approximately 700,000 merchant devices during the July-September quarter, maintaining its recent pace of expansion.

Paytm’s merchant device network has grown to 16.4 million. The company also reported a rise in consumer engagement, with monthly transacting users increasing by 5 million over the previous quarter to reach 85 million.

Financially, Paytm reported a 28 percent year-on-year revenue increase to 2,648 crore rupees, while EBITDA rose by 90 percent to 270 crore rupees. Bernstein maintained an ‘outperform’ rating on the company with a target price of 2,200 rupees, noting improved earning potential within the payment business despite rising operating expenses.