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Paytm Experiences Massive increase in Digital Payments as Many People Work From Home Amidst Coronavirus Fears

However, Paytm which recently launched "All in One" solutions helps offline merchants accept payments even remotely

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Paytm
While according to industry experts, several digital payments firms are witnessing a decline in transactions as the country goes into lockdown, Paytm has gained more traction in the last one month. Wikimedia Commons

Fintech major Paytm on Tuesday said it has witnessed a massive surge in digital payments as more people work from home, avoid venturing out and touching cash to stop the spread of coronavirus.

“We have been witnessing 20 per cent growth in digital payments as compared to the regular days. Since February, the number of users visiting the Paytm app and the number of sessions per user has also increased,” a Paytm spokesperson told IANS in a statement.

“There has been a massive surge in repeat transactions for various use-cases like fuel stations, utility payments among others. Offline payments have grown by 12 per cent owing to more people preferring Paytm over cash,” the statement added.

Reserve Bank of India Governor Shaktikanta Das on Monday asked banks to encourage the use of digital payments.

While according to industry experts, several digital payments firms are witnessing a decline in transactions as the country goes into lockdown, Paytm has gained more traction in the last one month. With a 16 million-strong merchant base, Paytm is seeing more businesses extensively accepting payments online.

The Noida headquartered digital payments firm is seeing more people using Paytm for food and grocery delivery, as well as other services, to avoid touching cash as much as possible. Some merchant acquirers such as BharatPe and service providers like Pine Labs have seen a slump in transactions due to shops, malls, eateries remaining shut.

However, Paytm which recently launched “All in One” solutions helps offline merchants accept payments even remotely. This, according to industry insiders, is finding many takers among businesses as more merchants and users are coming on board for digital transactions.

 

Paytm
Fintech major Paytm on Tuesday said it has witnessed a massive surge in digital payments as more people work from home, avoid venturing out and touching cash to stop the spread of coronavirus. Wikimedia Commons

“There has been a 15 per cent increase in incoming requests from offline merchants to partner with Paytm. We are seeing a trend that merchants are offering home deliveries in their neighbourhood and suggesting their customers to Paytm as they fear the bacterial load on the hands and cash,” a Paytm spokesperson said.

As the number of people diagnosed with coronavirus in India rises to 126, experts are emphasising on the usage of contactless payment options.

Currency notes are one of the most potent carriers of coronavirus and health departments and experts across India are asking people to avoid touching cash and use digital payments.

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The World Health Organisation (WHO) earlier warned that coronavirus can survive on banknotes for several days and the risk of contagion through cash is manifold as it keeps changing hands. (IANS)

Next Story

Weakning Demand Caused by Coronavirus Pandemic To Impact Indian Smartphone Market

Some brands like Apple, Samsung, Xiaomi, Realme, OPPO, Nokia HMD and Lava have already set up services on top of the active user base

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Smartphone
Some brands like Apple, Samsung, Xiaomi, Realme, OPPO, Nokia HMD and Lava have already set up services on top of the active user base. Pixabay

More than the supply concerns, weakening demand due the uncertainties brought about by the novel coronavirus is set to impact the India smartphone market the most, according to a projection by market research firm techARC.

During the calendar year 2020, demand is likely to be low particularly during the April-August period. “There can be no qualitative deterministic measurement of the impact done in this situation. There are so many uncertainties around and the situation is impacting both the supply and the demand side of the market,” said Faisal Kawoosa, Founder and Chief Analyst, techARC.

“We expect supply chain to resume in June in India. Thus April and May will be the worst affected months in terms of shipments, be it out of China or in India,” Kawoosa added. What is more worrying is the weakening demand as consumers are now focusing on spending their money only on essentials like food and medicine.

“Only those requiring a smartphone in case of breakdown will be the primary buyers. The elective upgrades and replacements will be at minimal,” said Kawoosa. Supply, including the channels (offline as well as online) should be back to normal in September. This will be fundamentally triggered by ground-up to festive season.

Smartphone
More than the supply concerns, weakening demand due the uncertainties brought about by the novel coronavirus is set to impact the India smartphone market the most, according to a projection by market research firm techARC. Pixabay

But even during the October-December quarter, demand could be lukewarm due to the the macro-economic scenario by then as well as fear of the viral infection resurfacing towards the winter. “Only if, there would be a vaccination available by then at mass scale, the market could see revival, but not at the normal levels,” Kawoosa said, adding that the smartphone industry will have to look at other revenues, especially service-oriented offerings, to offset the gap which will arise due to low sales of smartphones in 2020.

Some brands like Apple, Samsung, Xiaomi, Realme, OPPO, Nokia HMD and Lava have already set up services on top of the active user base.

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“They need to further look for more paying services to narrow the gap between the potential earnings through sale of hardware and the actual revenues they can realise in 2020,” said the report. (IANS)