After demonetisation, people facing acute cash-crunch have now switched on to use mobile wallet Pay-TM, that has too witnessed surged in its transaction. Taking a note of the huge demand, the company is looking forward to aggressive expansion. Paytm has now crossed the overall USD 5 billion Gross Merchandise Value (GMV) milestone.
Surge in digital payment
Digital payments company Paytm has been witnessing over 7 million transactions worth Rs 120 crore a day, helping it crosss $5 billion GMV sales, four months ahead of its target. Gross Merchandise Value (GMV), which is an industry term for estimating the total worth of goods sold through a digital platform, for Paytm was $3 billion last year.
The Alibaba-backed company, which offers both mobile payment platform and e-commerce market place, said it is now witnessing about 7 million daily transactions worth about Rs 120 crore. "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 Paytm payment platform for the first time," Paytm Vice President Sudhanshu Gupta said.Gupta added that the company has now crossed the overall USD 5 billion GMV milestone.
The company is currently doing more transactions than the combined average daily usage of credit and debit cards in India, he added. Mobile wallet companies including Paytm have seen manifold growth in transactions and new users coming on board with people turning to digital platforms as serpentine queues outside.
Aggressive expansion plan
Paytm is now workng on expanding its merchant network by 150,000 additional merchants. Over 10 lakh offline merchants across India accept Paytmfor payment including taxis, autos, petrol pumps, grocery shops, restaurants, coffee shops, multiplexes, and parking. Paytm has over 150 million mobile wallet users currently. The company has also waived off its one per cent transaction fee for transferring money to the Bank fo KYC-enabled merchants to facilitate this shift towards digitalin merchant behavior.
Paytm has been able to serve over 45 million users in last 10 days alone and over 5 million new users added since the demonetisation drive, informed Paytm Vice President Sudhanshu Gupta.
Offline transactions now contribute to over 65 per cent of the overall business from 15 per cent about six months ago.
Mobile payment to witness 150% growth in near future
Mobile payment transaction volume is likely to register a compounded growth rate of over 90 per cent to reach 153 billion by FY2021-22. This is against a meagre 3 billion transactions in FY2015-16. Mobile payment transaction value in India is also likely to register over 150 per cent 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 apromising potential for internet on mobile and the same is expected for payments and business transactions on mobile.
Mobile banking segment contributed largest share of 49per cent in Indian mobile payment market with over 386 million transactions worth Rs 4,000 billion 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 per cent in FY2013-14 to49 per cent in FY 2015-16.