New Delhi, June 7 (IANS): Payment and financial services company Paytm is witnessing early signs of recovery and strong stabilisation for its Unified Payments Interface (UPI) business, marking a strong turnaround for the company.

The total value of UPI transactions processed on the Paytm platform grew to Rs 1.24 trillion in May, on the back of the company launching several initiatives for users such as Credit Card on UPI, as well as pushing the lever on UPI Lite.

With total transactions on the platform stabilising at 1.14 billion in May, Paytm which became a Third-Party Application Provider (TPAP) in March, continues to be the third largest player in terms of market share. Further, considering the breadth of its merchant base, the company continues to be leading among peer-to-merchant (P2M) UPI transactions.

Paytm also remains the only Indian company to challenge the duopoly of Google Pay, the Indian payments arm of US search behemoth Google and PhonePe, which has US retail giant Walmart as its majority shareholder.

In May 2024, UPI reached a milestone by handling nearly 14 billion transactions, a substantial 49 per cent (year-on-year) increase, and processed transactions worth Rs 20.45 trillion -- its highest since launch in 2016. This surge underscores the growing preference for digital payments among Indian consumers and businesses.

Paytm has been bullish on UPI and has formed partnerships with various banks and financial institutions including Axis Bank, HDFC Bank, State Bank of India (SBI) and YES Bank to enhance its UPI service.

As a part of its earnings, the Noida-headquartered company said that the move further ‘de-risks’ its business model. Features like UPI Lite launched by Paytm on its platform help users make seamless payments avoiding the risk of payment failures.

This service is especially useful for those who frequently handle small payments like buying groceries, paying for parking, or settling daily commute fares. It also keeps the bank statement clutter-free with only a single entry, regardless of the number of payments made, which is a significant convenience for users who prefer a clean financial overview.

The company received UPI incentives of Rs 288 crore for FY 2024 (recorded in Q4 FY24), compared to Rs 182 crore in FY 2023 (recorded in Q4 FY23), showcasing its sustained growth with the payments infrastructure.

The overall growth in digital payments in India, driven by supportive government policies, indicates a shift in consumer behaviour towards cashless transactions.