Paytm to leverage merchant partnerships & consumer base to triple its wallet transactions to $10 million a day.Bengaluru | By Aditi Shrivastava, ET Bureau | 18 Feb, 2016, 05:43 AM IST.
The competition in the wallet commerce business is heating up.Mobile payments and commerce platform Paytm said it will leverage its merchant partnerships and consumer base to triple its wallet transactions to 10 million a day by the end of this year as it looks to cement its leadership position in the business. "Today we have market leadership in payments with over 120-million Paytm wallets and 1,50,000 merchants. This is backed by our marketplace that has proven to be one of our anchor use case in driving digital behaviour and repeat transaction," said Nitin Misra, vice president at Paytm. The announcement comes at a time when smaller player FreeCharge, backed by Snapdeal parent Jasper Infotech, said it too is on its way to achieve seven-million transactions a day by the end of 2016 from a current base of one-million transactions. Govind Rajan, chief operating officer of FreeCharge, said that the company is focused on creating the digital habit and making sure that each transaction is completed within 10 seconds. "While recharges continue to be the single largest use case, we are witnessing a huge growth in bill payments as well. Twenty per cent of our transaction value is now bill payments," he said. FreeCharge wallet has registered over 20-million users since the launch in September. Mobile wallets, including Paytm, Airtel Money, MobiKwik and Free-Charge, which started with mobile recharges, have aggressively moved up the value chain to provide a host of other services like shopping online and offline, cabs and ticketing. While several wallet players are looking at forging different and exclusive partnerships in a bid to get traction and wider use cases for customers, the gap between the first and the second is widening. "We don't see anyone that has this rich interlinked ecosystem of customers, merchants, data and services," Paytm's Misra said. In 2015, 100-million Paytm customers did one-billion transactions and by end of this year, the platform expects 300-million transactions per month. "Cash is the competition," he said.