India’s Paytm reported net profit of 2.25 billion rupees for the July to September quarter, more than ten times the figure a year earlier. Revenue rose 28% to 26.48 billion rupees, while earnings before interest, tax, depreciation and amortisation grew 90% to a record 2.7 billion rupees, with a margin of 10% for the first time. Income from distributing loans and other financial products increased by 49%. It was the company’s sixth profitable quarter in a row.

What it means: Paytm went through a hard period after India’s central bank restricted the group’s payments bank, and these results show it has found a stable model again. The most instructive part is where growth comes from: not payments as such, which in India run mostly over the free UPI system, but the distribution of loans and investment products with licensed partners. Payments bring customers and data, and the money is made from services built on top of them. The same dynamic is appearing in Europe, where instant payment schemes and Wero put pressure on card fees. For Greek fintechs and POS providers, this means income from transaction fees will shrink over time, while value moves to services such as merchant financing, cash advances against receipts and treasury tools. Building those services takes partnerships with banks, sound risk assessment and compliance with consumer credit rules. Anyone designing a payments product today should decide from the start which higher-value service will sit on top of the transaction.

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