Paytm claims lead in UPI payments, but it may be tough road ahead

Paytm claims lead in UPI payments, but it may be tough road ahead

Digital payments company Paytm claims it clocked 171.4 million transactions during the month of February 2018, as per the data released by National Payments Corporation of India (NPCI). This means a growth of up to 13.5% from the previous month. NPCI is the government ageancy that runs UPI platform in the counytry.

The company’s senior vice-president Deepak Abbot announced on microblogging website Twitter, “In two months of launch, @Paytm has achieved top spot in UPI contributions. Soon touching largest contribution than everyone else combined!”

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The mobile wallet company claimed that it clocked 68 million transactions on UPI in February. The number accounted for approximately 40% of the country’s total UPI transactions. It i said to have recorded 51.2 million UPI transactions in January 2018 and 37-million in December 2017.

“We have the largest share of UPI transactions within three months of launch,” Abbot told economic times (ET). “Paytm UPI is a part of our efforts to make money
transfers simpler, and bring convenient mobile payments to new and existing consumers across India,” added Abbot.

The Noida-based company is one of the biggest beneficiary of the government’s demonetisation move announced on November 8 2016. Post the banning of Rs 500 and Rs 1,000 notes, Paytm grew at a fast pace both in number of subscribers as well as in valuation. The company today boasts of over 250 million subscribers and billions in valuation.

However, the company faces a tough battle this year with the apex bank Reserve Bank of India’s (RBI) new KYC (Know Your Customer) guidelines kicking in from earlier this month and the world’s most-popular instant-messaging app company WhatsApp joining the mobile digital payments race. These new norms require companies to collect information from customers including their identification details and biometrics.

The Facebook-owned WhatsApp launched a beta of its payments feature, WhatsApp Payments, in February this year. The beta launch saw Paytm founder Vijay Shekhar Sharma lashing out at NPCI for being partial towards the messaging platform. He also claimed that WhatsApp Payments has security flaw.

Search giant Google too had launch a UPI-based payments app called Google Tez in September 2017.

With global giants like Google and Facebook in fray and opening up payments applications in India, the competition has surely become tough for Paytm. It now remains to be seen how the company is able to maintain its edge.

 

Source by gadgetsnow..

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