Paytm driving the next phase of growth through SMEs

Paytm driving the next phase of growth through SMEs

Paytm driving the next phase of growth through SMEs

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Mobile payment providers such as Paytm are increasing tapping onto the growth prospects arising from the digitalization drive in the MSME sector. Rising emphasis on the development of MSME’s from governments across the globe is playing a major role in pushing the digital drive in this sector.

Paytm is tapping on to the emergent SME sector in India to drive the next phase of growth. The company is increasingly investing merchant based products to give thrust to the digital transformation of SME’s across India.

Paytm is providing innovative payment and financial services to the merchants through the launch of various products such as Paytm business app, loyalty programmes for Kirana stores, Business Khata, Soundbox, Android-based point of sale (POS) devices and Payout services.

The company has registered more than 1.7 crore merchant partners for the new products focused on SME’s and sold approximately two lakh all-in-one POS devices since its launch. 

Paytm launched a loyalty program for Kirana stores in May 2020 aiming at promoting digital payments as a rewarding experience.  Based on the number of transactions, merchants using Paytm all-in-One QR can earn limitless reward points. The reward points earned for payment acceptance from all UPI-based payment apps, Rupay cards and Paytm Wallet can be redeemed instantly for a voucher or buying merchandise such as soundbox on Paytm for business app.

Paytm plans to invest INR100 crore for provision of marketing tools, financial services and promoting digital payments in the SME sector. The digital payment market in India is expected to record a three-fold rise to reach INR7,092 Lakh crore by 2025 from the current INR2,162 lakh crore, driven by the pandemic outbreak and encouraging government policies.

In November 2020, Paytm expanded collateral-free loans of up to INR 500,000 at a low-interest rate to MSMEs. In December 2020, Paytm collaborated with Suryoday Small Finance Bank to offer instant digital loans to MSMEs. The company intends distribute loans to over 1 lakh small businesses in the next 12 to 18 months.

To know more and gain deeper understanding of mobile payment in India, click here.

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