Paytm transactions surpass combined usage of credit, debit cards in India
India’s largest mobile payment platform Paytm has announced that it registered over seven million transactions worths Rs 120 crore in a day.
After Prime Minister Narendra Modi’s demonetisation move daily activities and business were disrupted due to the cash crunch. The cash deficit is now compelling people to switch to digital wallets like Paytm. About seven million daily transactions on Paytm have helped the company to cross $ 5 bn Gross Merchandise Value (GMV) sales, four months ahead of its target. GMV is a term used for the total worth of goods sold through a digital platform.
The company has said that it served over 45 million users in last 10 days alone and over five million new users added since the demonetization drive. Paytm vice-president Sudhanshu Gupta has claimed that the company is currently doing more transactions than the combined average daily usage of credit and debit cards in India.
The company has expanded its merchant network by 150,000 additional merchants which will ensure consumers have more shops in their neighbourhood accepting Paytm than ever before.
“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 by both consumers and merchants alike,” Gupta told media agencies.
Over 10 lakh offline merchants across India now accept Paytm as their preferred payment mode. According to an Assocham-RNCOS joint study, the mobile payment transaction volume is likely to register a compounded growth rate of over 90 per cent to reach 153 bn by Financial Year 2021-22. This is against a meagre 3 bn transactions in FY 2015-16.
Mobile banking segment contributed the largest share of 49 per cent in Indian mobile payment market with over 386 mn transactions worth Rs 4,000 bn in FY 2015-16.