IGI Logo

Below is quote on digital payment industry and Paytm by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd   

The Covid 19 pandemic has led to an accelerated shift towards a more contactless and digital economy which is leading to a shift from physical to digital transactions. It is estimated that total digital payments will grow at a CAGR of 17% between FY21-FY26 from USD 20.2 trillion to between USD 40-50 trillion. However mobile payments is expected to grow 5x to USD 3,065bn during the same period within which consumer to merchant payments are expected to grow by 7.6x to USD 800bn. Moreover, the TPV of digital payments accepted by merchants across all digital modes are expected to grow 4x from USD 300bn in FY21 to USD 1100-1400bn by FY26.

Paytm offers consumers a wide variety of payment instruments, including third-party instruments, such as debit and credit cards and net banking, and Paytm Payment Instruments including wallet, postpaid etc. In addition, Paytm provides merchants with various products enabling them to accept payments digitally through Paytm Payment instruments and major third party instruments. Given the wide suite offerings to both consumers and merchants, Paytm has almost become synonymous with digital payments and is the market leader in the consumer to merchant payments through mobile with a 40% market share. Given Paytm’s brand recall and ability to drive higher consumer engagement through Paytm Payment instruments we believe that it will be the biggest beneficiary of the multifold increase in consumer to merchant payments through mobile.

Above views are of the author and not of the website kindly read disclaimer