Where the E-commerce sites takes a dive downwards on the most popular cash-on-delivery orders, online wallet picked up the pace in just 8 days of demonetization.
The announcement of the ban on Rs. 500 and 1,000 notes has caused quite a bit of hardship. I had my convocation day and due to facing monetary issues, I opted to download Paytm for my benefit. As people are pushed to do cashless transactions, and mostly online, the number of transactions done on Paytm has risen to 5 million per day. The traffic increased by 700% in a couple of days and the amount of money being added to wallets has also increased by 1000%. The number of transactions per person have already risen from 3 to 18, as more people download the app and use the digital wallet for payment. The company plans to acquire over 5 million merchants by this year end, which means more transactions and more customers. Paytm has made everything easy with QR code scanning and transfers. As there are difficulties for consumers to transact with cash in the next couple of months, more people will be convinced to do online transactions and cashless ones at merchants.
The biggest benefit of demonetization of higher denomination notes in India has been to the digital wallet companies like Paytm and FreeCharge. Snapdeal recently announced ‘Wallet on Delivery’ as a feature in partnership with FreeCharge to offer an alternative to the cash-less people in India. To further provide help to the people using Paytm, the company announced a new feature called ‘Nearby’ in the app. If you have the latest version, you will see a nearby image at the top right on the front page of the app. As soon as you click the icon, you will be directed to their new page which will request you to share your location. Upon doing so, it will suggest you all the merchants nearby that accept Paytm, which ultimately means no need of cash for transactions. Right now, Paytm is being accepted at a lot of local stores, even small vegetable and fruit sellers and larger chains like Big Bazaar. This also means that a lot of people who were not using Paytm yet will eventually give in and start using it immediately to purchase the basic materials. Paytm has partnered with almost 8 lakhs merchants in the country and this offers a lot of options to consumers. It is as simple as sending cash, except you only need the phone number of the seller. In most cases, scanning a QR code has made it even more convenient.
I think it is great step that will help the Government regulate black money in circulation, and move India into a digital economy.