Paytm loses 42% of kirana store partners
A recent report indicates that since the Reserve Bank of India (RBI) announced restrictions on Paytm Payments Bank on January 31, 42% of kirana stores in India
A recent report indicates that since the Reserve Bank of India (RBI) announced restrictions on Paytm Payments Bank on January 31, 42% of kirana stores in India have transitioned to using alternative mobile payment apps, with an additional 20% intending to do so. The trust in Paytm has notably declined among 68% of Indian kirana stores following the RBI's announcement, as revealed by a survey conducted by Kirana Club based on 5,000 respondents.
Anshul Gupta, the founder and CEO of Kirana Club, mentioned that although the regulatory ban might initially disrupt operations at kirana stores, they remain relatively unconcerned due to the availability of alternative payment options.
The survey also highlights the preferences of retailers shifting towards other payment apps, with 50% opting for PhonePe, followed by 30% choosing Google Pay, and 10% favoring BharatPe.
The RBI's decision on January 31 restricted Paytm Payments Bank from accepting further deposits starting from February 29. However, during a post-monetary policy committee meeting press conference, RBI Governor Shaktikanta Das clarified that the action against Paytm Payments Bank stemmed from compliance issues rather than regulatory concerns. Deputy Governor Swaminathan J emphasized that the decision was made following multiple bilateral meetings between Paytm and the RBI and assured that it does not impact the Paytm app itself.