In a recent survey, it has been revealed that 42% of vendors in India, totaling around 7.56 lakh grocery stores, have ceased using the Paytm app for digital payments. This significant decline comes in the aftermath of actions taken by the Reserve Bank of India (RBI) against Paytm, citing rule violations.
The repercussions of losing more than 42% of its user base have left Paytm Payment Bank grappling with the challenge of regaining the trust of its customers. Adding to the woes, an additional 20% of users are contemplating abandoning the app, signaling further trouble for the platform.
As users seek alternatives, a considerable portion of the public has migrated to PhonePe, with 30% choosing Google Pay, and 10% opting for Bharat Pay. This shift is indicative of a growing preference for alternative online payment options.
The surge in digital money transfers, particularly during the COVID-19 pandemic, has amplified the reliance on digital platforms for financial transactions. However, the recent actions by RBI have impacted Paytm’s ability to accept deposits or top-ups in customer accounts, prepaid instruments, wallets, and Fastag after February 29, 2024.
In response, Paytm has assured users that the Paytm Payment Bank is in discussions with the RBI to continue its operations, pledging to adhere to the instructions provided by the regulatory authority. CEO Vijay Shekhar Sharma affirmed on Friday, 9th February, 2024, that the digital payment and service app of Paytm will persist and function seamlessly even after the specified date.
