In the right place, at the right time: Paytm is laughing all the way to the bank

Currently, 8,50,000 offline merchants accept Paytm, says the company, reports Tech in Asia

Alibaba-backed mobile ecommerce player Paytm put out an ad on the front pages of newspapers last week congratulating Indian prime minister Narendra Modi for “taking the boldest decision in the financial history of independent India.” 
 

It’s also true that the pain of withdrawing cash from ATMs has turned into a windfall for Paytm. The company announced that its payment network has touched a record 5 million transactions a day and is on the way to processing US$3.5 billion in payments and money transfers. Here are more aftereffects of the PM’s announcement for Paytm:
 

• 1,000 percent growth in money added to the Paytm account

• 700 percent increase in traffic

• 300 percent rise in app downloads

• 200 percent transaction value compared to earlier average ticket size

• 18 transactions a week per user compared to three per week earlier
 

Beyond the immediate spike in numbers, this is a fundamental shift in consumer behavior and Paytm was in the right place at the right time to benefit from it. After becoming the payment wallet within Uber, it has forged partnerships with apps and websites across the board, from top ups and bill payments to movie tickets and travel bookings, food ordering, and shopping.
 

More importantly for the hundreds of millions in India who use cash in their everyday transactions, Paytm has been enabling grocery shops, pharmacies, restaurants, gas stations, and many more to accept payments through its wallet. Its recent acquisition of online-to-offline player Shopsity was a step in that direction. 
 

Other digital wallets like MobiKwik have also gained from the PM’s move for a cashless society, but none are in as strong a position as Paytm to cash in.

This is an excerpt from Tech in Asia. You can read the full article here