How did Demonetization help Vjjay Shekhar Sharma’s Paytm?
How Paytm growth after demonetization helped Vijay Shekhar Sharma quadrupled his customer base?
Paytm had already made itself a business leader in mobile payments even before Demonetization happened. Paytm used to see about 50 million transactions a month till November 8, 2016. Its monthly transactions quadrupled when Demonetization happened, leading to 200 Million transactions a month. Paytm used to give huge cash backs in the pre-Demonetization period, which the company has stopped offering to repeated customers now.
How does Paytm respond when people say Paytm it benefitted from Demonetisation?
Paytm CEO Vijay Shekhar Sharma accepted that Paytm growth after demonetization accelerated their growth in the market. But it is not the only reason for their phenomenal rise. Paytm is investing consistently a lot in mobile payments since 2014, which gives it an edge over other mobile payment service providers. According to Vijay Shekhar, the market took three 3 years to mature, while they alone have spent Rs. 5,000 crore on mobile payments in India.
Did Paytm noticed any changes in its customer demographics before and after Demonetization?
In the Pre-Demonetisation period , most Paytm customers were English-speaking ones, who used Smart Phones. But after Demonetization, Paytm got customers from almost every section and region in India. The change was so big that PayTm regional app is accessed by 20% of Paytm overall customer base.
Is Paytm Payments Bank an alternative for Wallet?
The fact is that Paytm Payments Bank is already seeing 97-98% of its wallet users in opening a bank account with Paytm. Users can move money between their wallet account and bank account seamlessly, making it easier to make mobile payments. The good news is that RBI also allowed transfer of unlimited amount of money between users’ own bank and wallet.