Step 1:

Estimating Active Paytm UsersIndia has a population of around 1.4 billion. With a smartphone penetration of about 40%, we have 560 million smartphone users. Now, let's assume that Paytm, being one of the leading digital wallets, is used by 60% of these smartphone users. This gives us around 336 million active Paytm users.

Step 2:

Estimating Transactions per UserNow, we need to estimate the average number of transactions per user per week. Given that Paytm can be used for a wide variety of transactions, from small retail purchases to bill payments and online shopping, let's assume that an average active user makes about 10 transactions per week.

Step 3:

Estimating Average Transaction ValueThe value of these transactions would vary widely. For the purpose of this estimation, let's assume an average transaction value of INR 300. This balances out smaller transactions like daily retail purchases and larger ones like bill payments.

Now, the total value of transactions processed by Paytm in a week can be estimated as:336 million users * 10 transactions/user/week * INR 300/transaction = INR 1,008 billion.