In the aftermath of the Reserve Bank of India's (RBI) recent actions against Paytm Payments Bank, rival payment apps are witnessing a notable surge in downloads. As merchants and users express concerns about Paytm's future, competitors like PhonePe and Google Pay are experiencing double-digit growth in their user bases.
According to a report from Financial Express, citing data from the app intelligence platform AppTweak, the following are the download figures for Paytm and other payment apps have been outlined following the RBI's recent restrictions on Paytm Payments Bank.
1. Paytm's Decline Amid Regulatory Scrutiny
Since the RBI imposed restrictions on Paytm on January 31, the app has witnessed a decline in downloads. According to data from AppTweak, Paytm recorded approximately 12.4 lakh downloads in the week following the restrictions, a drop from the 17.7 lakh downloads in the previous week.
2. PhonePe Emerges as the Biggest Beneficiary
PhonePe, owned by Walmart, has emerged as the primary beneficiary of the uncertainty surrounding Paytm. The app experienced a 40 per cent increase in downloads post-January 31, totaling 3.75 million downloads between February 1-6 across Google Play Store and Apple's App Store.
3. Rising Popularity of Google Pay and MobiKwik
Downloads for Google Pay rose by 14 per cent in the period following Paytm's regulatory scrutiny, reaching 1.27 million. Smaller rival MobiKwik nearly doubled its downloads to 280,588 during the same period. This shift indicates users exploring alternative platforms amidst concerns about Paytm.
4. BHIM UPI App Records Growth
The government-backed BHIM UPI app, operated by the National Payments Corporation of India (NPCI), also experienced a 40 per cent surge in downloads. Between February 1-6, the app recorded 2.11 million downloads, compared to 1.50 million downloads in the preceding six days.
5. Impact on Paytm's Business and Response
With Paytm facing a 32 per cent decline in downloads post-regulatory scrutiny, the company is actively addressing concerns through social media posts and in-app advisories. Field sales executives are reaching out to merchants to migrate QR codes from Paytm Payments Bank accounts to accounts with other banks.
6. Merchant Preferences Shifting
Among business-to-business (B2B) apps, PhonePe Business stands out with 7.4 lakh downloads, reflecting a notable preference shift among merchants. In contrast, Paytm for Business downloads decreased from 2.2 lakh to 1.6 lakh during the same period.
The recent regulatory actions against Paytm Payments Bank have triggered a significant shakeup in the Indian digital payment landscape. As users and merchants seek alternatives amid uncertainties surrounding Paytm, competitors like PhonePe, Google Pay, and BHIM are capitalizing on the opportunity, experiencing substantial growth in their user bases.
