Ground Report: Paytm 12.12 Festival
“True digitisation in India will happen when a large majority of in-store payments move from cash to digital. With our ‘12/12 festival’, we celebrate customers walking into stores where our merchants partners welcome digital payments,” Vasireddy added.
5 million merchants, big and small, organised and unorganised participated.
How Did It Go?
Paytm claimed that their transaction grew three times.
It also claimed that merchants’ revenues increased 1.5 times. They did not release the exact numbers.
Branded Stores In Noida
They ranged from a mall showrooms, QSR, street vendors and milk booth.
Only UCB claimed that their sales went up by nine times on the day of the sale.
Pantaloons said that uptick was small, as they had limited stock.
Eateries such as Carl’s Junior and Chai Point cited processing delay and transaction limit ( Minimum of INR 350) for tepid response.
Apollo Pharmacy did not see the increased footfall on 12th.
US Polo, Ruosh Shoes and PC Jewellers were disappointed with the processing issues. Customers did not rush to them.
Sketchers was most responsive. Even, though the offer was over, they logged into Paytm Mall, and helped a customer get 20% discount.
Street Vendors Of Sector 18
They form the bulk of unorganised sector. They were not aware.
Cash is the king here.
PSA: Two littis come for INR 20.
Shoppers & Customers
One user did not get what he wanted.Most in-store workers used Paytm.
They use it for discounts and cash back.
A customer at Chaipoint said that Paytm is a hassle if there is no cash back.
General Trends
Paytm, Flipkart and other e-commerce websites have disrupted the seasonal sale market. Every day is a sale day. People always expect discounts.
Users love Paytm when they offer cash back and discounts.
At times Paytm is a hassle to use due to connectivity issues.
People use cash and card more, then PPI instruments.
Our Take:
Merchants either seek higher revenues or easing of their process. Higher revenues may not come from digital payments. Process can be improved.
Digital payments should start an education program for their merchants.
Update:Brahmaputra Market:
Suresh Chole Bhature:
It’s been here for the past nine years. More than 90% of the payment is in cash. Only Suresh uses Paytm, but he is not in the shop most of the time. So, it’s cash.
Sonu Book Stall:
Sonu has been selling books and newspapers for the past 25 years. He used Paytm for the first five months. He stopped using it after a technical glitch. He returned to cash. He says that it’s useful for people, who can use Paytm without problems.
Amul Milk Parlour
Shop owner avoids Paytm for low margin products such as milk, bread and eggs. Paying 1.86% as processing fees cuts into his margins.
However, he accepts Paytm money for grocery items such as cold drinks and bakery items.
He also cited Paytm’s inability for the instant payment, as merchants’ accounts get money after a day or two.
Paytm should do something about it.
Evergreen Sweets:
One of the most popular food joints. They do not accept Paytm. They only use cash and card.
Update 002: Paytm Launches Zero Transaction Fees + Instant Payment
25.12.17. 11:20am.
A while ago Vijay Shekhar, Paytm’s CEO tweeted that Paytm has launched ‘zero acceptance fees’ for merchants.
Also, the payment will reflect in their bank accounts instantly.
He also tweeted that Zero % is for all Payments :
- Even more than ₹2,000.
- It’s for all cards including credit cards.
- Any amount per transaction.
- No card machine required.
- Consumer scans QR and enters details in her own app.
