India, Feb. 24 -- Merchant payments are emerging as the more attractive segment in India's digital payments ecosystem, with Paytm retaining an edge in revenue intensity and profitability, according to a February 23 report by Bernstein.

The brokerage said merchant acquiring offers structurally stronger monetisation than consumer payments, driven by higher take-rate instruments such as credit cards and online gateways, device-led revenue streams, and the ability to cross-sell credit.

In contrast, consumer payments, particularly peer-to-peer (P2P) UPI transactions, remain difficult to monetise, with take rates limited to under 0.4 basis points and incentives forming a key revenue source.

In payments, a take rate is the percentage of trans...