Less than 24 hours after PM Narendra Modi’s announcement demonetizing the Rs 500 and Rs 1,000 notes, the repercussions are already being felt. Most online services have halted cash on delivery (CoD) payment option, and are encouraging customers to opt for cashless payments. Amid this, Paytm has registered a massive growth in a very short time.
Paytm has a user base of over 150 million users, and the company has announced that in less than 24 hours, it has recorded an increase in traffic by 435 percent. The app is available on iOS, Android and Windows Phone platforms, and the company says there’s been a 200 percent jump in downloads. With Rs 500 and Rs 1,000 notes being discontinued the app has recorded a whopping 1,000 percent increase in users adding money to their wallets. This has resulted in an increase of 400 percent in offline payment transactions and 250 percent in overall transactions. The company has also recorded a 30 percent increase in users saving their card details on the app, and a 200 percent increase in the value of the overall transactions.
Modi’s announcement to fight the ‘disease of black money’ received unanimous positive reactions from the tech industry, include Paytm founder and CEO Vijay Shekhar Sharma. Immediately after Modi’s announcement, Sharma took to Twitter to express his views.
— Vijay Shekhar (@vijayshekhar) November 8, 2016
Like Amazon India, Flipkart and Snapdeal, even Paytm has halted cash on delivery option on its marketplace. However, the company claims it won’t have much effect since nearly all items on its platform were bought either using Paytm wallet or credit and debit cards. “It is a historic day for India and it re-validates our belief in giving consumers a great experience through non-cash purchases. This reflects in the fact that over 98 percent of items are bought through our wallet and other pre-paid payment instruments on our marketplace. Keeping in spirit of the moment we are temporarily disabling CoD orders to avoid any inconvenience to our consumers at the time of delivery. We will continue to focus on making payment simpler for our consumers and providing them with a great experience,” said Saurabh Vashishtha, Vice President – Paytm.
Apart from e-commerce players, even services like UrbanClap, Box8, Swiggy, Ola and Uber have also stopped accepting cash on delivery. They are instead encouraging their customers to move on to cashless payments using debit/credit cards, net banking or wallet. RELATED: Amazon, Flipkart stop CoD orders after Rs 500, Rs 1,000 notes abolished
Citizens on social media though weren’t so welcoming of this move. While most lauded the bold move, there were some that didn’t take too kindly to the suddenness of the entire scenario. ALSO READ: Rs 500, Rs 1,000 notes now illegal says PM Narendra Modi, citizens react on social media