Business

m-Wallet companies laugh all their way to the bank

M-wallets allow users to pay for offline needs such as cabs, petrol pumps etc., as well as online recharges and bill payments.

M-wallets allow users to pay for offline needs such as cabs, petrol pumps etc., as well as online recharges and bill payments.  

The scrapping of Rs.500 and Rs.1,000 notes has given a thrust to digital transactions with m-wallet providers such as Paytm, Freecharge and MobiKwik seeing a spike in usage within hours of the demonetisation announcement.

Mobile payments and commerce firm Paytm said it recorded a whopping 435 per cent increase in traffic in less than 24 hours after the announcement as “millions of consumers across India” used the Paytm wallets to transact offline. Paytm has a user base of 150 million users.

“We have registered a strong surge in volume on our platform. We saw 200 per cent increase in number of application downloads and 250 per cent surge in number of overall transactions and transaction value,” Madhur Deora, CFO – Paytm said.

Further, the firm claimed that there has been a jump of 1,000 per cent in money added to the wallet and 400 per cent growth in transaction value of offline payments.

M-wallets allow users to pay for offline needs such as cabs, petrol pumps etc., as well as online recharges and bill payments. Cab service providers like Uber also sent out messages to riders encouraging them to link their accounts to their digital wallets.

Likewise, Freecharge, the mobile wallet owned by e-commerce marketplace Snapdeal, saw an increase in average wallet balance of its users by 12 times.

“The announcement made by the Prime Minister yesterday is the biggest boost to creating a cashless India. The 12x surge we have witnessed is unprecedented and clearly driven by this big announcement,” Govind Rajan, CEO Freecharge said.

Mr. Rajan added that presently, the average wallet spend for retail is about Rs.500-Rs.700. Going by the surge trend the company is seeing, Freecharge expects it to gradually rise to Rs.2,000-Rs.10,000.

Sunil Kulkarni, deputy managing director at Oxigen Services India said that Oxigen Wallet saw significant increase in the load money transactions by up to 40-45 per cent during the first half of Wednesday. “We were expecting the spike in the short-term, ” he said.

MobiKwik mobile wallet witnessed over 40 per cent rise in application downloads within 18 hours of Rs.500 and Rs.1000 notes being pulled out, encouraging the company to revise growth projections upwards to achieve a GMV of 10 billion by 2017.

The user traffic and merchant queries, MobiKwik said, went up by 200 per cent among its over 35 million users.

Ola Money, the digital payment solution from Ola, too reported over 1,500 per cent increase in wallet recharges across the 102 cities of its operation since 8:30 pm till 12:00 pm on Wednesday.

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Printable version | Feb 22, 2020 12:26:32 AM | https://www.thehindu.com/business/m-Wallet-companies-laugh-all-their-way-to-the-bank/article16441009.ece

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