Paytm claims that it has achieved an annual run rate of 5 billion transactions and $50 billion in Gross Transaction Value (GTV), largely driven by a surge in unified Payments Interface (UPI) payments and an increase in adoption of digital payments in tier-2 and tier-3 cities.

“A bulk of these transactions are originating in tier-two and three cities like Surat, Durgapur, Meerut and others with more than 25% of the users using Paytm in regional languages,” said the company in a statement.  According to Paytm, tier II & tier III cities now constitute 50% of the company’s total user base.

The company also attributed its offline payment network and its multilingual app for the surge in its growth. “25% of Paytm users prefer using the app in their regional languages. Hindi is the most used language after English, followed by Gujarati, Telugu, Marathi, Bengali, Tamil and Kannada,” the statement from Paytm added. Further, it claims to have the largest offline payments network in the country, with over eight million offline merchant partners, which is three times larger than any card payments network in the country.

In a related development, Livemint reported that One97 Communications Ltd, which owns and runs Paytm, claimed to have breached the $4 billion in monthly gross transaction value. The number of transactions also peaked at 1.3 billion in June, the report added.

Livemint explained that Gross Transaction Value for Paytm includes everything from recharges, bill payments to peer-to-peer transactions via UPI , peer-to-peer wallet transactions, and all purchases made via the Paytm Mall platform or the Paytm payment gateway. It does not include NEFT, or debit and credit card transactions, the company clarified. In the 2017-18 (Apr-Mar), Paytm recorded a GTV of $14 billion.

Paytm also claimed to have processed more than 400 million UPI transactions since January when it launched the product on its platform. However, these transactions do not help in generating significant revenue for the company, according to the report by Mint. For instance, it only makes 25 paisa per UPI transaction, according to Deepak Abbot, senior vice president, Paytm. “These transactions are not for revenue for us…it does not even help us cover our technology cost. We are trying to become the preferred app for UPI transactions,” the statement from Paytm said.

As per the data shared by the National Payments Corporation of India, UPI clocked 246.3 million transactions with more than Rs 40,000 crore being settled in June alone. The NPCI is a private company owned by Indian banks and owns and operates payments systems such as UPI and IMPS.

Intense competition in the digital payments arena

According to a report by the Times of India, Paytm is said to account for nearly a third of the UPI payments in the country. Amongst a host of other players, Paytm’s biggest competition comes in the form of Flipkart backed PhonePe and Google’s Tez.

In June, PhonePe also claimed to have clocked more than 50 million UPI transactions with around $1.4 billion being paid through the platform in a month. At an annualised basis, PhonePe claims to have around $20-billion worth of transactions flowing through its platform. Earlier this year, PhonePe took a swipe at Paytm for claiming to be the largest player on the Unified Payments Interface (UPI) platform, calling them “uni-dimensional and misleading”.

On the other hand, Google Tez could have clocked around 54 million transactions in June according to sources, reports the Economic Times. Google did not share the latest transaction numbers officially.