Active Stocks
Fri Mar 01 2024 15:59:51
  1. Tata Steel share price
  2. 150.00 6.46%
  1. State Bank Of India share price
  2. 769.30 2.67%
  1. Tata Motors share price
  2. 977.20 2.78%
  1. ITC share price
  2. 409.50 0.74%
  1. ICICI Bank share price
  2. 1,086.90 3.18%
Business News/ Industry / Banking/  Paytm's loss is BharatPe, PhonePe, MobiKwik and other fintechs' gain; 42% Kirana stores switch to alternatives
BackBack

Paytm's loss is BharatPe, PhonePe, MobiKwik and other fintechs' gain; 42% Kirana stores switch to alternatives

Paytm exodus: The recent RBI action against Paytm Payments Bank has triggered a seismic shift in the digital payments landscape for Kirana stores. While Paytm once held a dominant position, a new survey reveals a mass exodus to alternative platforms like BharatPe and PhonePe.

Paytm witnessed a drop in merchant users after the RBI action. (Bloomberg)Premium
Paytm witnessed a drop in merchant users after the RBI action. (Bloomberg)

Paytm Trust Issues: A ripple of panic spread through India's vibrant Kirana stores after the Reserve Bank of India's decision to stop Paytm Payments Bank's operations after February 29. For many, Paytm's QR code had become synonymous with digital payments, but with its sudden halt looming, Kirana owners faced a crucial decision: adapt or be left behind. Over 42 per cent of Kirana stores have already switched from Paytm to Mobikwik, Bharatpe, Phonepe and GooglePay, with 20 per cent more planning to do so.

BharatPe has witnessed a 100 per cent increase in merchant sign-ups across tier-1, tier-2, and tier-3 towns and cities across the country, underscoring its robust expansion and profound impact on the market. The company's merchant sign-ups across metros experienced a month-on-month growth rate of over 104%. Additionally, there was a huge spike in merchant onboarding at tier 2 and tier 3 cities, clocking at close to 95% growth month-on-month, people aware of the matter told Livemint.

Meanwhile, a survey conducted by Kirana Club indicated that 42 per cent of Indian Kirana stores have already started using other payment apps. Earlier, Paytm enjoyed around 69 per cent of the market share in the Kirana stores, the report added.

The survey further revealed another stark finding about the trust among local retailers regarding Paytm. While 42 per cent of Kiranas have already started using other payment apps, another 20 per cent of respondents indicated their intent to use other payment apps in the near future. Of the retailers who have started to use or are planning to use other payment apps, a majority of 50 per cent of retailers chose PhonePe, 30 per cent are inclined towards Google Pay, and 10 per cent are inclined towards BharatPe.

Kirana Club Founder & CEO Anshul Gupta said, “While the ban imposed by the regulatory authority might lead to disruption at Kirana stores, they are not much worried because there are alternate payment options available. Our recent survey also indicates that Kiranas across states have already started using or plan to use other payment apps to ensure smooth business operations."

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 13 Feb 2024, 04:36 PM IST
Next Story footLogo
Recommended For You
Banking Stocks
₹1,075.72.2%
₹1,402.752.02%
₹1,053.453.18%
₹121.952.38%
₹749.32.67%
Switch to the Mint app for fast and personalized news - Get App