India is a democratic country and Narendra Modi’s move to take down Rs 500 and Rs 1000 notes is act of communism says few people. On the other hand Demonetization is favoring online wallet startups. We contacted PayU and Paytm to understand their views on this subject matter.
Amrish Rau, CEO, PayU India says that this move is a “Welcome Move” for the growth in digital payments industry and this will definitely push the internet commerce and payments. Further he spoke about his views on this situation and positive impact it had on the business.
“We need to understand that despite the advent of digital payments service providers and mobile wallets, India has predominantly been a cash-dependent economy. While recognizing the challenges, we favor to move by the government, since it is essentially meant to curb black money. Besides, we certainly believe that the move to ban 500 and 1000 will inspire and urge more users to opt for digital payments, since they are immune to money laundering and other harms that cash is inherently susceptible to. Within 24 hours of this announcement our transactions have dramatically increased to 85%.Besides, new merchants are also opening to the idea of cashless economy, since the enquiries by merchants have increased by 50%. While our average daily transactions amount to 12 lakhs daily, we are anticipating the same to increase by 25 lakhs in the upcoming months”
On the other hand Paytm tells media that post Narendra Modi’s statement they saw a 435% increase in overall traffic, since people were looking for alternate methods of cash transactions. There was a 200% hike in app downloads, 250% increase in transactions, saved cards grew by 30%, and stunningly a 1000% growth in money added to the wallet.
In reply to this situation Madhur Deora, CFO – Paytm said, “This is the biggest and most ambitious step ever to crack down on black money and fake currency. We stand by the government in its efforts towards taking black money out of the equation and offering a major boost to the Indian economy. Since Paytm is fast becoming synonymous to all kinds of payments, we are happy to announce we have registered a strong surge in volume on our platform.”
Online wallet Startups are happy and this is the golden era for them. This move of the government has created more business opportunity for startups in online wallet business. The next question that people may ask is which online wallet to choose ? If many startups rise in this industry, will this become a startup battle field like Ola vs Uber and Amazon vs Flipkart? Read more Business News.
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