Paytm Powers Up The Digital Economy With AI-Led Revenue Surge And Merchant Growth

Paytm (One 97 Communications Limited), India’s full-stack merchant payments powerhouse, has reported a solid turnaround with a ₹123 Crore Profit After Tax (PAT) in its latest quarterly earnings. The Noida-headquartered fintech leader clocked ₹1,918 Crore in operating revenue, marking a 28% year-on-year growth. What’s driving this leap? A strong increase in high-quality subscription-based merchants, continued expansion in Gross Merchandise Value (GMV), and momentum in the distribution of financial services. The company’s EBITDA for the quarter hit ₹72 Crore. Its contribution profit jumped 52% year-on-year to ₹1,151 Crore with a margin expansion to 60%, thanks to better net payment margins and a higher share of financial services revenue. “On the back of this, the company estimates that over 10 Crore merchants will accept digital payments, and anticipates that 40-50 per cent of them will require subscription-based services for managing their business operations,” Paytm said in a statement.

Paytm Pushes Merchant Subscriptions To All-Time High

Paytm recorded a milestone in merchant subscriptions, hitting an all-time high of 1.30 Crore merchants. This surge reflects Paytm’s razor-sharp focus on acquiring and retaining small and medium enterprises (SMEs) and large-scale merchants through a tech-led approach. The company improved operational efficiency by reducing device costs and increasing sales team productivity. It continues to streamline its capital expenditure (CAPEX) as it scales its physical hardware deployment, namely, its in-store devices that form the backbone of its digital payments ecosystem. 

Paytm Powers AI In Every Corner Of Payments

Paytm confidently stated that it remains India’s first and only AI-powered omni-channel payments platform. It offers a fully integrated stack of hardware, software, and services—designed to help merchants digitize, grow, and manage operations better. The company has embedded Artificial Intelligence into key journeys including merchant onboarding, transaction monitoring, and customer experience, leading to faster onboarding and fraud mitigation. As one of the earliest AI adopters in India’s fintech space, Paytm aims to ride the wave of digitization and expand its leadership in the digital economy.

Paytm Powers Financial Services With Scalable Innovation – Key Highlights

• Paytm reports strong financials and rising contribution margins, reflecting confidence in long-term, sustainable growth.
• The company focuses on scalable innovation powered by merchant-centric AI tools.
• It delivers seamless service across hardware, software, and financial product layers.
• Paytm positions itself as a core enabler of India’s rapidly expanding digital economy.
• It estimates that 10 Crore merchants will adopt digital payments soon.
• Approximately 40–50% of these merchants are expected to subscribe to its value-added services.
• The company sees vast potential in the merchant subscription model for future expansion.
• Paytm continues to set industry benchmarks in revenue growth, innovation, and digital empowerment of businesses.
• Its AI-led fintech strategy further cements its leadership in India’s digital transformation.

(With Inputs From ANI)

Also Read: Swastika Castal IPO Subscribed Over 2 Times Ahead Of Allotment: Key Dates, Price, And Investment Details