Daily downloads of the Paytm app have fallen since February 1, a day after the Reserve Bank of India imposed curbs on Paytm Payments Bank (PPBL). During this time, downloads of the BHIM UPI app increased 49 percent, while Google Pay app daily downloads dropped 10.6 percent.
Paytm app downloads declined 55 percent to 60,627 on February 19 from 135,139 on February 1, according to data shared by Appfigures, a mobile analytics and intelligence platform in New York.
"The decline in Paytm app downloads echoes a narrative of uncertainty and trust deficit among consumers,” said Sharat Chandra, co-founder of India Blockchain Forum. “With Goldman Sachs projecting a significant YoY revenue decline for FY25 and an anticipated market share reduction, Paytm faces a pivotal moment in navigating consumer confidence and sustaining its position in the market."
BHIM UPI downloads jumped to 331,781 on February 19 from 222,439 on the first day of this month. Google Pay’s daily app downloads dropped to 94,163 from 105,296. PhonePe’s downloads surged to 503,436 on February 7 from 317,522 on February 1 and eased to 163,011 on February 19.
The Reserve Bank of India imposed major business restrictions on Paytm Payments Bank on January 31, including a halt to accepting fresh deposits and credit transactions. The central bank cited persistent non-compliance and continued material supervisory concerns at Paytm Payments Bank that warranted the action.
Moving On
Merchants have started shifting to other apps and bank accounts for digital payment transactions. Yogesh Singhal, chairman of the Bullion Market Association in Delhi, said that since the news of Paytm Payments Bank came out, merchants switched to apps such as PhonePe, Google Pay, and BHIM UPI.
"We are aware that the action is only against Paytm Payments Bank and there is no impact on the Paytm UPI app. But as a caution, we are moving our accounts to other payment aggregators. See, trust is the most important thing in business,” Singhal said.
"Most small vendors like us had Paytm apps and had bank accounts in Paytm Payments Bank, where we used to get daily business money. After this, I'm moving to open a new account with another bank and have started using other payment apps for daily business transactions," said Vinod Pandit, an egg seller in Laxmi Nagar of New Delhi.
The RBI, in its FAQ on Paytm Payments Bank on February 16, said the bank has been directed to allow withdrawals or transfers to other bank accounts of customers up to the amount available in the account/wallet.
The regulator added that Paytm soundboxes and Paytm POS terminals linked to bank accounts or wallets with Paytm Payments Bank will not be able to receive any credit other than refunds, cashbacks, sweep-ins from partner banks or interest after March 15, 2024.
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