Paytm dominates merchant payments with a 50 pc market share: report
According to the Redseer report, Paytm has fared well over its peers as a leader in mobile wallets space and payments gateway, and is the most well-received and popular on Android-based POS devices.
A report launched on Monday revealed that India's homegrown financial services platform tops merchant payments list by constituting 50 percent of the market share, followed by at 30 percent, GPay at 10 percent, and others at 10 percent as well.
Paytm Founder Vijay Shekhar Sharma
The report, titled 'Indian Mobile Payments – 5x growth by 2025', revealed that India has about 160 million mobile payment users and this number is expected to multiply five fold to reach nearly 800 million by 2025 on the back of various drivers.
According to the report, Paytm, with its long legacy, has a strong presence in ‘Bharat’ i.e. Tier-III cities and beyond with over 16 million merchants on its platform, maintaining a huge lead in wallet payments. RedSeer said that Paytm currently is the market leader on the Payments to Merchants (P2M) side with over 50 percent market share. Its P2M consumers have also shown the highest satisfaction, leading with a Net Promoter Score (NPS) of 42 percent.
Paytm, according to the Redseer report, has fared well over its peers as a leader in mobile wallets space, payments gateway, and is the most well-received and popular on Android-based POS devices.
The report stated, "Paytm has the highest top-of-mind recall and unaided awareness among merchants, followed by Phonepe and Google Pay. Also, it is the most used app among the merchants. When asked from which payments app do you accept payments, over 68 percent of merchants cited Paytm."
According to the report's assessment, while other companies do solve a particular set of problems and help in digitising payments, they do not have the vast universe like Paytm's to bank on. It also finds Paytm as the leading Payment Gateway Provider in the country. RedSeer has covered the Payment Enablers which include EDC as well as Payment Gateway Aggregators, as a part of this report. Both these markets are the key infrastructure enablers to ensure the overall mobile payments growth in this country, and therefore will see significant growth.
RedSeer report stated, "The payment gateway aggregator market in India currently stands at Rs 9.5 trillion and is expected to grow by 2.4 times, driven by large value transactions. It is expected to grow at a CAGR of 19 percent in the next five years to reach Rs 22.6 trillion. The payment gateway market today is very competitive, and all leading players are fighting for the market share. Paytm leads this pack and has grown the fastest."
On leading the market, Paytm's Vice President Narendra Yadav said that the company is on track to enable over half a billion people with digital financial services, and is providing banking facilities to the unbanked. "Going forward we will bring out more innovations in the fintech space that will help transform India and possibly set new examples globally," he added.
Edited by Kanishk Singh