Afterpay vs Paytm: Revenue, Profit and Business Model
Afterpay had ~$596.4M of annual revenue in FY2021 and a net loss of ~$102.8M. Paytm had ~$978.7M of annual revenue in FY2026 and ~$64.1M of net income.
Latest financial snapshot
Financial summary
Afterpay
Afterpay reported standalone results in Australian dollars before Block acquired it. Total income rose from ~$903,000 (A$1.4 million) in FY2016 to ~$596 million (A$924.6 million) in FY2021, while FY2021 statutory loss after tax was ~$103 million (A$159.4 million). Block does not publish a comparable standalone Afterpay revenue series after the January 2022 close. Afterpay was acquired by Block, Inc. (formerly Square) in 2022 for approximately $29 billion, one of the largest acquisitions in Australian corporate history.
Paytm
Paytm lost money every year after its 2021 IPO, with net losses of about $278 million (₹2,393 crore) in FY22 and ~$206 million (₹1,776 crore) in FY23. The 2024 RBI action on Paytm Payments Bank cut FY25 revenue to ~$800 million (₹6,900 crore). Recovery followed: FY26 revenue from operations rose 22.2% to ~$979 million (₹8,437 crore) with a full-year profit of about $64 million (₹552 crore), and Q4 FY26 profit was about $21.3 million (₹184 crore) against a ~$62.6 million (₹540 crore) loss a year earlier. Q1 FY27 set records with ~$284 million (₹2,448 crore) revenue (+28%), EBITDA of ~$23.5 million (₹203 crore) (8% margin) and profit after tax of ~$25.5 million (₹220 crore) (+79%). In July 2026 the board decided not to proceed with a proposed bonus share issue. One97 Communications, operating as Paytm, is India's pioneer in digital payments, experiencing a highly volatile market valuation of approximately $3 billion following severe regulatory crackdowns by the Reserve Bank of India.
Revenue and profit by year
Afterpay
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2021 | ~$596.4M | ~-$102.8M | -17.2% | +78.1% | Source |
| FY2020 | ~$334.9M | — | — | +96.6% | Source |
| FY2019 | ~$170.3M | — | — | +85.6% | Source |
| FY2018 | ~$91.8M | — | — | +521.4% | Source |
| FY2017 | ~$14.8M | — | — | +1535.7% | Source |
| FY2016 | ~$903,000 | — | — | — | Source |
Paytm
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$978.7M | ~$64.1M | 6.6% | +22.3% | Source |
| FY2025 | ~$800.4M | ~-$76.4M | -9.6% | -30.8% | Source |
| FY2024 | ~$1.2B | ~-$164.4M | -14.2% | +24.9% | Source |
| FY2023 | ~$926.9M | ~-$206M | -22.2% | +60.6% | Source |
| FY2022 | ~$577M | ~-$277.6M | -48.1% | — | Source |
Where the revenue comes from
Afterpay
- Merchant fees
Not formally reported
Fees paid by merchants on transactions processed through Afterpay were the principal source of pre-acquisition income.
- Late fees
Not formally reported
Afterpay also earned capped late fees from overdue customer installments. A current standalone percentage is not disclosed.
Paytm
- Merchant payments
Not formally reported
Monthly subscription fees for Soundbox devices and card machines, plus processing revenue on cards, EMI and online payments.
- Consumer payments
Not formally reported
UPI, bill payments, recharges and travel bookings in the Paytm app.
- Financial services distribution
Not formally reported
Paytm sources merchant and personal loans for partner lenders and does not lend from its own balance sheet. FY26 revenue from operations was ~$979 million (₹8,437 crore).
Business model and strategy
Afterpay
How it makes money
Before the Block acquisition, Afterpay earned most income from merchant fees on purchases processed through its platform, with a smaller contribution from customer late fees. Customers generally paid four installments over six weeks and paid no interest. Block now reports Afterpay within its consolidated results rather than as a standalone public company.
Growth strategy
Block stated at closing that it intended to add Afterpay BNPL to Square checkout, let Afterpay customers manage installments in Cash App, and help Cash App customers discover sellers and BNPL offers. Subsequent expansion has focused on those seller and consumer connections.
Competitive advantage
Afterpay combines installment checkout with a merchant directory and an established consumer brand. Block can connect the product to Square sellers and Cash App customers, although Block identifies merchant retention and product integration as acquisition risks.
Paytm
How it makes money
Paytm runs a capital-light, two-sided model. On the merchant side it deploys QR codes, Soundbox audio devices and Android card machines, charging monthly device subscription fees and earning payment processing revenue on cards, EMI and online payments (UPI person-to-merchant payments carry zero MDR, so device rentals and online gateway fees matter).
Growth strategy
Paytm's strategy since 2024 has three parts: grow the device merchant base and its payment processing revenue, use merchant and consumer data to distribute more loans for partner banks and NBFCs, and keep costs flat through AI and automation. In 2026 the company said it would hire about 4,000 people, mostly in sales, while trimming roughly 1% of staff. Marketing spend fell 19% in FY26.
Competitive advantage
Paytm's edge is its offline merchant base. It pioneered the Soundbox in 2019 and added about 2.7 million Soundboxes in the year to June 2026. Daily transaction data from these device merchants lets partner lenders underwrite small shopkeepers who lack credit bureau history, which is why lending distribution has become Paytm's fastest-growing revenue line.
Questions about Afterpay vs Paytm
Which company has higher revenue — Afterpay Limited or Paytm?
Afterpay Limited had ~$596.4M (FY2021), while Paytm had ~$978.7M (FY2026). By latest annual revenue, Paytm is the larger business, with Afterpay Limited showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Afterpay Limited vs Paytm?
Paytm has a market capitalisation of $12.0B. A public market cap figure for Afterpay Limited was not available (it may be privately held).
How does revenue per employee compare for Afterpay Limited and Paytm?
Afterpay Limited has $459k / employee in revenue per employee, while Paytm has $24k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Afterpay Limited and Paytm make money?
Afterpay Limited and Paytm generate revenue in fundamentally different ways. Afterpay Limited: Before the Block acquisition, Afterpay earned most income from merchant fees on purchases processed through its platform, with a smaller contribution from customer late fees. Paytm: Paytm runs a capital-light, two-sided model.
Is Afterpay Limited bigger than Paytm?
By last reported revenue, Paytm (~$978.7M (FY2026)) is the larger company compared to Afterpay Limited (~$596.4M (FY2021)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Afterpay vs Paytm overview