Our devices business has been growing rapidly for the past few quarters and it has further accelerated in the second quarter of the ongoing financial year, with increased demand for payment-based devices such as QR, all-in-one POS and Soundbox. We have strengthened our offline payments pioneership with 10 lakh device deployments per month.
In our recent stock exchange filing, we highlighted that the total device deployment base has exceeded 48 lakh as of Q2 FY23, compared to 38 lakh at the end of Q1FY23. This growth has paved the way for higher merchant engagement and monetization, and also helped us generate higher revenue from device subscriptions.
Our subscription-as-a-service model continues to see stronger growth and has been the key driver behind higher payment volumes, and subscription revenues, while increasing the funnel for our merchant loan distribution.
Our network ecosystem kicks off here, as stronger device deployment is also contributing to the growth of our high-margin loan distribution business. This allows small business owners to become eligible for merchant loans, offered on our platform in partnership with marquee lenders. In our Q1 FY23 financial results, we highlighted that merchants with devices accounted for over 75% of merchant loan disbursals.
As the pioneer of mobile and QR payments in the country, the growing adoption of our devices among merchants is encouraging and we remain committed to driving greater financial inclusion with our innovative solutions.