Paytm gains edge in fintech race with diversified revenues

New Delhi: Noida-based payments major Paytm has pulled ahead in its monetisation journey compared to peers, driven by a more diversified mix across high-monetisation categories such as merchant lending and financial services, helping it improve profitability and strengthening its position in India’s evolving fintech landscape, according to a BofA Global Research report.

BofA said Paytm continues to extend leadership in medium- to high-monetisation segments such as merchant payments and lending, placing it ahead of rivals with a diversified revenue mix.

The report noted that while consumer payments remain a low-monetisation segment, merchant payments, lending and financial services distribution continue to generate higher returns for payment platforms.

In this context, Paytm’s revenue mix stands out, with significantly lower dependence on consumer payments and higher contribution from merchant payments and financial services distribution. This diversified mix has enabled stronger margin progression and a more balanced earnings profile.

Payments accounted for 55 per cent of Paytm’s total revenues in the first half of FY26, compared with 87 per cent for its closest rival, underscoring a stronger cross-sell engine and greater ability to cushion against regulatory headwinds.