Paytm said it hit a record 5-million transactions a day, processing Rs 24,000 crore worth of payments, less than a week into the Indian government’s decision to demonitise Rs 500 and 1,000 notes making it the largest digital payments company in the country.
“This is a historic opportunity for India to skip the plastic generation and leapfrog to mobile payments,“ said Nitin Misra, senior vice-president, Paytm.
According to the company, the number of transactions per user also went up from three transactions to over 18 transactions in a week. “This points to a strong set of repeat customers that Paytm has now acquired. The traction was visible on the ground as well,“ Misra said.
As demand surges and an opportunity to capture the untapped market opens up, leading mobile wallet and digital payments players in the country are working on hiring feet on the ground, running awareness campaigns and some are accelerating UPIintegration on their platforms.
In the first few hours following the announcement, Paytm saw a 200% increase in mobile downloads and a 250% increase in the overall transactions, the company had said. Paytm is now working to hire over 10,000 agents to expand its offline merchant network and strengthen its on-boarding teams to expand to 20 lakh touch points by the end of the fiscal year.
Mobile wallet company MobiKwik has also seen 200% more downloads in the past few days, adding 2,00,000 users every day, said CEO Bipin Preet Singh. While it may seem that this is shift from cash to digital is temporary , Singh believes otherwise.
“It is not a temporary thing. People will understand the convenience. These are the times, the businesses get built, since it makes a big shift in the customer behaviour,“ Singh said, adding that the company will get on a $10 billion run rate by next year compared to the $1 billion worth of transactions annually it does at present.
Apart from customer acquisition, MobiKwik is on its way to onboard 1 million merchants in “45 days“ Singh said. “We have super-accelerated our plans to reach small merchants and businesses parallely across top cities through multiple tie-ups, radio campaigns and SMS campaigns.“
PayU has seen a 200% uptick on the use of its payment links since the demonetisationannouncement, with cash-on-delivery orders being channelled to the payment links that can also be sent on email, WhatsApp or SMS.
The company has also seen inbound leads triple through point-of-sale (POS) devices. The demonetisation has given a big push to PayU to accelerate UPI integration. PayU will launch the UPI feature in partnership with Axis Bank.