After being the top leader in India’s Unified Payments Interface (UPI), Paytm underwent a sharp decline in transactions in July, while other payment gateway portals like Google Pay and PhonePe have seen usage significant number of transactions which is more than Paytm. Paytm has now surrendered its UPI transaction to Google Pay and Phonepe. Paytm recorded 200 million UPI payments in the month of Many which fell down to 140 million transactions in the month of July. While its competitors like Phonepe recorded a significant 335 million transactions.
Phone-pay has got so many transactions because of its amazing marketing techniques which involve luring customers with a good amount of cashback and other helpful assistance. The same case is with Google Pay. If several digital payment portals are launched in India then there can be a huge loss for existing digital payment portals. According to a study, people in India get attracted to payment gateway portals having features like instant service, user-friendly interface and several offers like cash backs and rewards.
Given the success of digital payments in India, many digital companies are also desperate to come to India. Just like Google Pay, which has made a stronghold in India in a very short time and around 45 million people are using it in India. This is another reason for the fall of transactions through Paytm. Paytm, nonetheless, alleges that it has completed over 600 Million transactions in July, which covers digital payment transaction through Paytm Wallet, Paytm UPI, cards and net banking.
Paytm is likely to suffer more due to the introduction of WhatsApp’s payment service in India, as WhatsApp has a significant number of subscribers. Instant messaging app WhatsApp has announced to start digital payment by the end of 2019, although there has been a lot of debate on the data security before this. It is worth noting that Paytm has termed the payment service of WhatsApp unsafe. Digital payment market of Paytm and WhatsApp in India is going to be a tough competition and will also other portals like Phonepe, Google pay and many more. Paytm alleges that foreign companies are breaking the rules in India and Facebook wants to assert its authority through WhatsApp payments in India.