KOCHI: “Your mobile phone is also a bank. It can be used for purchasing things, making payments,” tweeted Prime Minister Narendra Modi recently. Now going by the trends post demonetisation, Keralites seem to have taken his words to their hearts as digital wallet firms such as Paytm, Mobikwik, Freecharge and Oxigen Wallet have made huge inroads in the state in the past few weeks. The overall traffic for Paytm in Kerala increased by 40 per cent after the demonetisation of high-value currencies by the Central Government and the offline transactions witnessed a 45 per cent growth spurt.
The business of its rival Mobikwik has registered a phenomenal 15 times growth in the state. Freecharge and Oxigen Wallet are also garnering considerable business share in their rush to have a pie of the digital payment market in the state. These digital wallets provide the provision to pay at petrol pumps, chemists, phone recharging, grocery stores, parking, shopping, travelling by bus, auto and taxis and much more. With the recent RBI decision to increase the limits on wallets to Rs 20,000 for users and to Rs 50,000 for merchant bank transfers, players expect a deeper penetration into the ‘pockets’ in the state.
“The cash-strapped consumers across Kerala are using Paytm as an alternative to queuing up for long hours outside ATMs. Be it while savouring delicious Kerala delicacies or shopping at malls or local kiranas, consumers across the state are now realising Paytm’s diverse use-cases. The time is here for the people of Kerala to educate each other about the benefits of cashless transactions and help India leapfrog from cash payments to quick and easy mobile payments,” said Sonia Dhawan, Deputy General Manager, Paytm.
Among cities in Kerala, Kochi, a hot-spot for growth, shows some significant month-on-month traction on switching to the digital payment system, followed by Thiruvananthapuram.
Another payment system, Unified Payment Interface (UPI), is yet to get the support of most supermarkets and retail stores. “The surge in transactions from Kerala has been phenomenal. We have recorded a 15 times growth here. Demonetisation has impacted masses and we are aware that mobile wallets have to move at light speed to resolve the issues arising due to cash crunch. The cash blues have prompted the masses to shift to mobile wallet payments to overcome the challenges,” said Mrinal Sinha, Chief Operating Officer, MobiKwik. He revealed that the company will increase its on-ground workforce to 12,000 to educate local retailers and get them on board. According to Sunil Kulkarni, Deputy Managing Director, Oxigen Services India Private Limited, the situation will stabilise to a new normal which should be at least 40-45 per cent more than that of the pre-demonetisation period. “The average ticket size is also expected to jump by 50 per cent going forward as the people will be more comfortable using digital wallets for their cashless transactions,” he added.