No-cash November pushes four-fold jump in e-wallet downloads
PM Modi's demonetisation move pushed e-wallet app downloads to grow four-fold in the midst of a cash crunch.
The demonetisation of higher currency has turned out pretty well for e-wallet apps especially for Paytm and State Bank of India’s mobile wallet.
“The daily download activity has been 1.7x to 4.6x average pre-demonetization levels,and Paytm and SBI have seen the biggest increases, to 190k/day and 107k/day, respectively,” Parag Gupta, Utkarsh Khandelwal and Gaurav Rateria, analysts from Morgan Stanley said in a report dated December 8.
The report said that before the announcement Paytm used to register 45,000 per day downloads while SBI had 23,000 downloads per day.
Image Source: Morgan Stanley report
Just a couple of weeks after PM Modi’s announcement Paytm said it had registered over 100% growth in online recharges and its user base doubled.
In August this year, Paytm had incorporated Paytm E-commerce Pvt Ltd and Paytm Payments Bank Ltd as separate entities.
And on December 5, the company announced that it would transfer its e-wallet business to its Payment Banks portal after it is granted license from Reserve Bank of India.
Exactly a month after the announcement the analysts said, “…download activity has picked up even more in the last two weeks vs the first two weeks of currency replacement.”
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