The Online payment major's witnessing a financial windfall
The Online payment major’s witnessing a financial windfall

Thanks in major part to the recent demonetisation move by the Indian government and the resulting cash crunch, Paytm, India’s leading mobile payment and e-commerce market player, has seen a financial windfall as people feel compelled to switch to digital wallets like those offered by Paytm. It has been confirmed now that the company is currently doing more transactions than the combined average daily usage of credit and debit Cards in India. This may prove to be a major boost for the Alibaba-backed group.

With offline transactions now contributing to over 65 percent of the overall business from 15% about six months ago, the company has also expanded its merchant network by 150,000 additional merchants. This will ensure consumers have more shops in their neighbourhood accepting Paytm than ever before.

Paytm Vice President Sudhanshu Gupta was quoted as saying,”Paytm is registering over 7 million transactions worth Rs 120 crore in a day as millions of consumers and merchants across the country try mobile payments on the payment platform for the first time. From consumers being able to pay for a cup of coffee in metros, to farmers purchasing seeds using Paytm in Kurnool, we are witnessing an exponential increase in adoption of Paytm as a way to pay for both consumers and merchants alike. We are working around the clock to ensure we can enable users and merchants to complete everyday transactions seamlessly.”

Over 10 lakh offline merchants across India now accept Paytm as their preferred payment mode. Paytm is accepted everywhere including taxis, autos, petrol pumps, grocery shops, restaurants, coffee shops, multiplexes, parking, pharmacies, hospitals, local ‘Kirana’ shops and many more establishments.

VP Gupta added that the company has now crossed the overall $5 Bn GMV milestone. The company is now witnessing about 7 million daily transactions worth about Rs 120 crore, helping it cross $ 5 Bn Gross Merchandise Value (GMV) sales, four months ahead of its target. Last year, Paytm’s GMV was at $3 Bn, indicating that the company has had a financial windfall. Some logistical hurdles, however, remain. The company has therefore waived off its 1% transaction fee for transferring money to the Bank for KYC-enabled merchants.

According to an Assocham-RNCOS joint study, the mobile payment transaction volume is likely to register a compounded growth rate of over 90% to reach $153 Bn by Financial Year 2021-22. This is against a meagre $3 Bn transactions in FY 2015-16.

With over one billion mobile subscribers, India has a promising potential for internet on mobile and the same is expected for payments and business transactions. And the recent government move just might help achieve that target in the foreseeable future.

 

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