Paytm claims leadership in payment gateway market with over 50% share

Paytm claims leadership in payment gateway market with over 50% share
Photo Credit: Photo Credit: VCCircle
31 May, 2019

One97 Communications, which operates digital payments unicorn Paytm, said on Friday that it is leading the payment gateway (PG) industry with over 50% market share. The Paytm payment gateway, a company statement said, processes over 400 million transactions per month on average, which is five times higher than the next biggest player PayU.

One97 Communications said that Paytm is the preferred payment gateway for the Indian Railways Catering and Tourism Corporation (IRCTC), Zomato, OYO, Grofers, PVR, Bigbasket, Club Factory, Domino’s, Jio and Idea, among others. The payments platform has seen a three-fold growth in the number of digital transactions over the past year as it garners higher transactions from third-party apps and websites. It competes with the likes of PayU and RazorPay in the payment gateway sector.  

“We continue to witness impressive growth in transactions through the Paytm payment gateway across fast-growing categories such as transportation, food delivery, gaming as well as existing verticals of travel and telecom,” said Kiran Vasireddy, COO, Paytm. Vasireddy reportedly resigned from Paytm after nearly 10 years of service.

Paytm said that it is the largest transaction processor for Indian payment platforms such as the RuPay cards Unified Payments Interface (UPI), which recorded its highest transaction volume in January. The unicorn said that with over 150 million saved cards and bank accounts in its database, it drives significant checkout volumes.

This April, Paytm launched the recurring payment facility to allow its customers the option to make timely payments to subscription-based businesses.

Earlier this month, Paytm launched its first credit card in collaboration with Citigroup, which offers 1% cashback on every transaction.

Founded in 2010 by Vijay Shekhar Sharma, the One97 Communications-run Paytm has raised funding from the likes of SoftBank, SAIF Partners, Alibaba Group and its financial affiliate Ant Financial.