E-wallet firms’ customer base surges

Updated - November 25, 2016 12:08 am IST

Published - November 24, 2016 10:26 pm IST - MUMBAI:

CASHING IN: Most e-wallet companies have added a significant number of consumers post demonetisation. File photo:AP

CASHING IN: Most e-wallet companies have added a significant number of consumers post demonetisation. File photo:AP

E-wallet companies are seeing a sudden surge in customer base and transactions following the Centre’s demonetisation move, according to netCORE Solutions, whose clients include Citrus Pay, Mobikwik and Ola Money.

“E-wallet brands have been able to acquire new consumers,” said Kalpit Jain, CEO, netCORE Solutions. “Almost all e-wallet firms have acquired new consumers and in some cases it is as high as 150 per cent post demonetisation.”

Marketing spends

Paytm, the market leader, has seen transactions going up by over 300 per cent in the past days. “This validates the businesses growing post demonetisation,” Mr. Jain said.

“People have understood that in current scenario, downloading an e-wallet app to pay bills is very convenient, hence the marketing spends have increased for a lot of these companies,” he added. E-wallet companies have increased their marketing spends both online and offline as cashless transactions is the best choice till the new currency circulates in adequate numbers.

“The advertising spend by e-wallet companies has increased by two time to 2.5 times of what they would earlier do, be it Ola Money or Mobikwik or Paytm,” Mr. Jain said.

The primary objective of the advertising campaigns by e-wallet brands post-demonetisation has been to get on top of the mind of their consumers with easy money transfer solutions and transaction facilities, he said.

E-wallet companies are not just using print as a medium but also have used email, sms and push notifications as channels extensively for installation of their apps for small payments.

100 million

Currently, approximately 100 million consumers in India are using e-wallets as an option to make transaction.

“The future seems to be extremely strong. Smaller restaurants, vegetable venders are now open to accepting e-wallet payment, some merchants do not accept credit/debit cards but are now accepting e-wallet transactions,” he added.

E-wallet transactions are convenient as these are conducted through mobile phones with internet connection.

In India there are about 25-30 e-wallet companies which are in addition to e-wallets of commercial banks.

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