Navigating Paytm’s Trust Crisis: A Turning Point for Kirana Stores
In the heart of India’s bustling Kirana stores, a ripple of apprehension swept through as the Reserve Bank of India made the unprecedented decision to halt operations for Paytm Payments Bank after February 29. For countless merchants, the iconic Paytm QR code had become synonymous with the realm of digital transactions. However, with the imminent cessation of its services, Kirana owners found themselves standing at a critical juncture: either adapt to the changing landscape or risk being left in the shadows of progress. Already, a significant shift is underway, with over 42 percent of Kirana outlets bidding farewell to Paytm in favor of alternatives such as Mobikwik, Bharatpe, Phonepe, and GooglePay. And the momentum shows no signs of slowing, with an additional 20 percent of stores actively planning to make the transition.
BharatPe’s Resilience and Expansion
Amidst this period of flux, BharatPe emerges as a beacon of resilience and growth. The company has borne witness to an extraordinary surge, marking a 100 percent increase in merchant sign-ups across the spectrum of tier-1, tier-2, and tier-3 towns and cities nationwide. This meteoric rise not only underscores BharatPe’s robust expansion but also its profound impact on the market dynamics. Notably, the company’s merchant sign-ups within metropolitan hubs have experienced a staggering month-on-month growth rate exceeding 104 percent. Furthermore, there has been a notable spike in merchant onboarding in tier 2 and tier 3 cities, with growth rates hovering close to 95 percent month-on-month, as reported by informed sources to Livemint.
Kirana’s Shift in Allegiance
Simultaneously, a survey conducted by Kirana Club has unveiled a significant trend: 42 percent of Indian Kirana stores have already embarked on the journey of embracing alternative payment applications. It’s a stark departure from the days when Paytm reigned supreme, commanding a commanding 69 percent market share within Kirana stores, as outlined in the report’s findings.
Moreover, the survey delves deeper into the sentiments prevailing among local vendors regarding Paytm’s reliability. While 42 percent of Kirana merchants have swiftly transitioned to alternative payment channels, an additional 20 percent have signaled their intent to follow suit in the near future. Amongst those merchants poised to make the shift or already in the process, a majority of 50 percent have set their sights on PhonePe, while 30 percent lean towards Google Pay, with BharatPe garnering the interest of 10 percent of respondents.
Anshul Gupta’s Reassurance
In the midst of this seismic shift, Anshul Gupta, the Founder & CEO of Kirana Club, offers a reassuring perspective. While acknowledging the potential disruptions posed by regulatory interventions, Gupta asserts that Kirana stores need not fret, as viable alternative payment avenues abound. Indeed, a recent survey conducted by Kirana Club reaffirms this sentiment, revealing a widespread adoption of alternative payment applications among Kirana establishments nationwide, ensuring the smooth continuity of business operations.
