Prime Minister Modi’s announcement yesterday shook the country. Shook it so that all the loose change has come spilling out of the nooks and crannies, literally. Amid the rush to find enough loose cash to take us through the couple of days before banks open their gates to take in the old cash and roll out new, cashless economy that includes facilitators such as Paytm, has received a major boost.
According to Paytm, India’s largest mobile payment and commerce platform, there has been a massive growth of its business Pan-India, within hours of PM Modi’s announcement. The company saw a ridiculous, 435% increase in the overall traffic to its platform as the masses sought to battle the lack of any money by going cashless. We predicted it yesterday in our coverage of how the announcement could help boost cashless economy while also combating corruption.
Here are some other growth figures from Paytm:
- 200% hike in number of app downloads.
- 250% surge in both, number of overall transactions and transaction value.
- The number of Saved Cards grew by 30%.
- 1000% growth in money added to the wallet.
- 400% growth in transaction value of offline payments.
The third point is of particular importance. The fact that the number of saved cards has gone up suggests that people are finally awakening to the fact that cashless services such as Paytm, can be used for purposes other than paying your cab fare or booking movies. After all, many merchants, particularly in tier 1 and some tier 2 cities have started supporting cashless.
PM Modi’s move against corruption has also made everyone wary of accepting notes of 5,00 and 1,000 denomination — despite his assurance that they can be exchanged for new notes from the banks and post offices. Even now, many people must be, out of necessity, experiencing the convenience offered by going cashless for the first time. And there must be another group of people, who would be discovering the whole host of things that can be paid for using services like Paytm.
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.
Meanwhile, this state of affairs — and the corresponding growth for platforms facilitating cashless payments, such as Paytm — can be expected to continue for at least for during the transition period — until the government is able to get the new, higher denomination notes back into circulation.
However, one thing is certain, PM Modi’s move though focused more towards curbing fake and black money, may also have given the country a huge push towards a cashless economy.