The digital payment space in India has been revolutionized by Unified Payments Interface (UPI) since its introduction in 2016. UPI has brought a transformational change in the way people transact money, making it easy and accessible for everyone. One of the pioneers of UPI is Paytm, which has played a crucial role in the growth of digital payments in India. Paytm has been at the forefront of innovation in digital payments and has helped in the evolution of UPI from person-to-person transactions to personal merchant transactions.
Paytm has built a scalable model in UPI with its sole focus on merchant payments, making it the industry leader in the digital payment space. Paytm's business model has helped the company achieve profitability almost three quarters ahead of its target of September 2023. Paytm's revenue from its core payments business grew by 21%, but with UPI incentives, it would have grown by 34%. Paytm's revenue from operations also increased by 42% year-over-year to Rs. 2062 crores, and this is with no UPI incentive recorded this quarter.
Paytm emerged as the go-to app for easy and hassle-free transactions in the initial days of UPI payments. Paytm's focus on merchant payments helped it monetize its platforms by upselling loans and payment devices. Paytm has strengthened its market leadership in offline payments as well, with nearly 6.1 million devices deployed at the end of January 2023. The sound box, a device pioneered by Paytm, gave the company a massive edge and growth opportunity. The sound box announces payment confirmations whenever you use Paytm to pay your neighborhood grocery store or chaiwala.
Paytm Payments Bank is a leader in UPI transactions to merchants as the largest acquiring and beneficiary bank, as well as a leading remitter bank. Paytm Payments Bank is way ahead of all major banks in the country, remaining the largest UPI beneficiary bank for over 20 months in a row with over 1765 million transactions as of January 2023. Paytm is one of the top 10 remitter banks for UPI transactions with over 389 million registered transactions. Paytm has opened up avenues for merchant monetization, stickiness, and upsell.
Paytm has achieved operating profitability through disciplined cost management and tons of operating leverage, with a focus on building scale along with operational risk and compliance. Paytm's sole focus on user experience and effortless payments has made it the leader in innovative payment methods. Paytm Payments Bank has launched UPI Lite, a service that empowers instant UPI payments of smaller values, up to Rs. 200, without worrying about your daily transaction limit.
Paytm has made digital payments accessible and hassle-free for its users, from person-to-person transactions to personal merchant transactions. Paytm has been the pioneer of QR and mobile payments in India and has made technology accessible to everyone. With its focus on merchant payments, Paytm has built a scalable model in UPI, making it the leading name in UPI. Paytm's track record speaks for itself, and it's no surprise that Paytm is the industry leader in the digital payment space.