Fuelled by a cash crunch after the demonetisation drive, people feel compelled to switch to digital wallets like Paytm.
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.
GMV, is a term used for the total worth of goods sold through a digital platform.
The Alibaba-backed company, which offers both mobile payment and e-commerce marketplace, said, “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,” company vice-president Sudhanshu Gupta said.
The company is currently doing more transactions than the combined average daily usage of credit and debit cards in India, he added.
Paytm has served over 45 mn users in last 10 days and over 5 mn new users were added since the demonetisation decision was announced on November 8, Gupta said. Paytm has over 150 mn mobile wallet users currently.
Mobile wallet companies including Paytm have seen manifold growth in transactions and new users as people turn to digital platforms after serpentine queues outside ATMs, banks continue to hassle them.
“Offline transactions now contribute to over 65% of the overall business from 15% about six months ago. We are also working on expanding our merchant network by 150,000 additional merchants,” he said.
Gupta added that the company has now crossed the overall $5 bn GMV milestone.
Over 10 lakh offline merchants across India accept Paytm for payment including taxis, autos, petrol pumps, grocery shops, restaurants, coffee shops, multiplexes, and parking lots.
The company has also 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.
Mobile payment transaction value in India is also likely to register over 150% CAGR and cross Rs 2,000 trillion by FY 2021-22 from just over Rs 8 trillion as of FY 2015-16, the study titled Indian M-wallet market said.
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.
Mobile banking segment contributed largest share of 49% in Indian mobile payment market with over 386 mn transactions worth Rs 4,000 bn in FY 2015-16, with majority being money transfers, the study noted.
Besides, share of mobile banking in mobile-payment market has increased tremendously from eight percent in FY 2013-14 to 49 percent in FY 2015-16.