Paytm vs India

Vijay Shekhar tweeted a set of numbers about digital transactions in India.

India has:

47 Mn: Credit Cards

924 Mn: Debit Cards

3.7 Mn : POS

201k : ATM

— -

12 Mn Paytm Payment Merchants

44 Mn Paytm Bank Savings accounts

94 Mn Paytm KYC Wallets

371 Mn Total Paytm Users

What do they mean?

India has more QR code based point of sale than the card based POS. Debit card holders are 20 times of that of credit card holders. Paytm users are just one third of debit card holders.

Why did it happen?

Sanjay Bakshi teaches marketing at MDI ( Management Development Institute, Gurgaon). He explained the phenomenon of Paytm’s growth using behavioural economics.

1. People use Paytm more than cards because smart phones have become ubiquitous.
2. Cashbacks are instant gratification. Points from cards are difficult to use.
3. E-commerce services and food delivery apps have integrated Paytm.
4. QR code and UPI makes it easier to transact as and when.
5. As more and more people use Paytm, others join as there is a social proof.
6. Since Vijay Shekhar has skin in the game, Paytm is always improving.