Paytm, MobiKwik claim boost in business after currency demonetisation
Both companies have also announced their intentions to expand their offline presence by partnering with merchants across the country.
Mobile payments and wallet companies Paytm and MobiKwik have claimed a huge boost in business and app usage following the Centre’s demonetisation of Rs 500 and Rs 1,000 currency notes. Paytm claimed to have recorded a 700% increase in traffic and MobiKwik said that it has seen its transactions rise by eighteen times, according to The Indian Express.
In a statement, Paytm said it was on the way to “process over Rs 24,000 crore by March 2017, more than any other payment network in the country”, according to Mint. It has also claimed a 1000% growth in the value of money added to accounts on its platform, with the average transaction value rising by 200%. The company said the number of downloads for its apps across various platforms has also increased by 300%.
Similarly, MobiKwik has claimed a 2000% increase in the addition of money and transaction value. The company said that its partners, such as Lemontree, Makemytrip, and IndiGo, have seen a 300% rise in mobile wallet-based transactions. Both companies have also announced their intentions to expand their offline presence by partnering up with merchants across the country. While MobiKwik says its app will be accepted at over 1 million merchants in the next thirty days, Paytm’s senior vice-president Kira Vasireddy said the company aimed to “target five million merchants by the end of the financial year”.
The claims by both companies come even as the Bharatiya Janata Party-led government faces flak from several Opposition parties for the demonetisation of the high-value notes. Delhi Chief Minister Arvind Kejriwal alleged that Prime Minister Narendra Modi warned his aides before making the announcement, so that they could deposit their unaccounted money. The Income Tax Department has asked banks to keep them informed of deposits of Rs 2.5 lakh and above, and has said previously unaccounted money will be taxed up to 200%.