Paytm has just launched an affordable healthcare and income protection plan called ‘Health Saathi’, and it’s priced at just ₹35 per month. This initiative, by One 97 Communications Limited (OCL), the company behind the Paytm brand, is designed to support its merchant partners.
Available on the Paytm for Business app, this plan offers comprehensive health benefits and safeguards users’ well-being. Let’s explore how it will impact Paytm!
What is ‘Health Saathi’?
‘Health Saathi’ is a subscription-based health and income protection plan aimed at Paytm’s vast network of merchant partners. Priced at an accessible ₹35 per month, it ensures that small business owners have access to crucial healthcare services and financial protection.
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Key features of ‘Health Saathi’
Unlimited doctor teleconsultations and in-person visits
For just ₹35 per month, ‘Health Saathi’ provides unlimited doctor teleconsultations and in-person doctor visits within its partner network. This feature allows merchants to seek medical advice whenever needed, ensuring they maintain good health and can focus on their business operations.
Income protection cover
One of the standout features of ‘Health Saathi’ is the income protection cover. In the event of business interruptions due to accidents or natural calamities like floods, fires, or strikes, merchants receive financial support. This protection ensures that their income remains stable even during unforeseen circumstances.
Additional benefits
The plan includes discounts at leading pharmacies and on diagnostic tests, making healthcare more affordable for merchants. These benefits are part of the teleconsultation service powered by MediBuddy.
Easy claim process
Paytm has streamlined the claim process for ‘Health Saathi’, which can be completed with just a few clicks within the app. This simplicity encourages more merchants to utilise the benefits without worrying about complicated procedures.
Initial success and rollout
The ‘Health Saathi’ plan had a pilot launch in May and has already seen over 3,000 merchant partners enroll. Due to its initial success, Paytm rolled out this feature to all its merchants earlier this month.
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Impact on Paytm’s business
Since the Reserve Bank of India (RBI) sanctioned Paytm’s payments bank, leading to the closure of some bank accounts, the company has faced challenges. Despite this, Paytm continues to support its merchant base, which grew to 1.07 crore paying for device subscriptions as of March 2024, up from 68 lakh in March 2023.
However, the active device base saw a decline of approximately 10 lakh due to higher attrition in February and March.
Merchant subscription revenue
In Q4, Paytm’s merchant subscription revenue was ₹90 per device per month. The company anticipates a dip to ₹80 in the first quarter of FY25 but expects it to rise to ₹100 by the fourth quarter of FY25. Loans to merchants also fell by 28% to ₹1,671 crore in Q4FY24.
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Paytm’s vision
Paytm, India’s leading mobile payments and financial services distribution company, is a pioneer of the mobile QR payments revolution. The company’s mission is to serve half a billion Indians and bring them into the mainstream economy. ‘Health Saathi’ is a significant step towards this mission, empowering small business owners with affordable healthcare and financial protection.
Financial performance
Shares of One 97 Communications are trading 0.63% lower at ₹418.15 compared to their last closing price. They have been trading in the range of ₹425.00 to ₹417.50. The company posted a net profit of -₹549.60 crores in its last quarter.
Annual results:
| Year | March 2024 | March 2023 | March 2022 |
| Sales | 9,977 | 7,990 | 4,974 |
| Other Income | 546 | 409 | 290 |
| Total Income | 10,524 | 8,400 | 5,264 |
| Total Expenditure | 11,626 | 10,107 | 7,564 |
| EBIT | -1,101 | -1,707 | -2,299 |
| Interest | 24 | 23 | 39 |
| Tax | 32 | 33 | 11 |
| Net Profit | -1,157 | -1,764 | -2,350 |
Conclusion
‘Health Saathi’ is a groundbreaking initiative by Paytm to support its merchant partners with essential healthcare and income protection services. Priced at just ₹35 per month, this plan is a testament to Paytm’s commitment to enhancing the welfare of small business owners.
As the company continues to innovate and provide valuable services, Health Saathi is poised to significantly impact the lives of its merchant partners and Paytm’s business.
