Paytm sees customer transactions increase up to 3.5 times amid Covid-19
Jul 24, 2020
Digital payments and e-commerce business Paytm has seen its customer transactions increase by up to 3.5 times during the coronavirus pandemic and lockdown as more Indian shoppers go online.
“If a customer was doing X transactions before, right now he's doing 2.5-3.5 (that number of) transactions,” said Paytm’s founder Vijay Shekhar Sharma at Global Fintech Fest 2020 on July 23, the Press Trust of India reported. “Customers who are used to digital are getting engaged deeper and newer customers are coming on the platform...the number of customers who are on the platform and are doing more number of transactions has phenomenally increased.”
Sharma shared that customers are now conducting on average around two transactions a week on the platform. The business launched a number of bill payment services during lockdown which Sharma said did little to generate income but on-boarded many new customers onto the payments platform.
“In the monetisation journey, we figured out that it is easy to acquire customers and to bring customers back by handing over cash back,” said Sharma. “This country has value conscious users. So we wanted to figure out who are the customers who are loyal on a platform for its service, not necessarily for the cash back...we actually grew the customer base without giving a cash back.”
Lockdown increased the trend of shoppers going online and embracing e-commerce. As stores open with social distancing measures in place, many shoppers still prefer to shop from home. As well as harnessing the market through its digital payment services, Paytm is working to tap into this demand by offering discounts and promotions on fast moving consumer goods products on its e-commerce platform Paytm Mall.
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