Over the time, things have become quite a modern and easy these days as technology has not only fasten the processes but at the same time changed the ways for transaction. Very sector is now turning digitalized; this can also be observed in the multiple digital ways of transactions. Mobile wallets have bought a revolution to the market where it allows one individual to go cashless, pay and avail the service/product.
No matter what you do, mobile wallets have simplified the payment processes making it very easy and convenient to use for any novice. Such one giant in India is Paytm which have changed the means of payments providing attractive cashbacks and discounts to the customer. Recently, Alipay and Paytm have joined hands to strengthen the mobile payment ecosystem. Alibaba will not only provide funds but will also provide Paytm strategic and technical support for the growth of the business.
Everyone like simple and easy things and the same thing was observed in case of transactions. Once the user has started transacting offline, the user will surely repeat the same due to which this usage turns rise by time. Noticing the same aspect, Paytm and Alipay have now come together to strengthen their merchant base so as to attract more customers towards e-wallet. The strategies are formulated among the two giants so as to convert the offline payment mode in to the e-wallets payment mode and transact digitally. Currently, Alipay has offered Paytm its technology efficiencies and risk management systems so as to grow at a faster pace. In China 30% of the people are paying offline, but in India its around 95% that majorly includes pan shops, vegetable vendors, petrol pumps and many other retail outlets.
Kiran Vasireddy, senior vice president-payments at Paytm said- “We are trying to get them to transact digitally, from paying at the milk booth, to booking cabs and movie tickets and paying for utilities.”
The president of payment business unit at Ant Financial, Zhiming Fan, said “India is different from China, cash plays a dominant role in daily transactions and the lack of payment options gives Paytm…the opportunity (to offer) convenient, fast and secure payment solution to brick-and-mortar merchants, as well as other O2O payment scenarios.”
Verdict: Paytm has become a giant and this effort has made his competitors to gear up for a tough competition as soon it will be available across globe. It seems great to imagine vegetable vendor or pan wala say “Mam you just buy, don’t worry about cash. Pay via Paytm”.
Author: Viveka Nagar