Paytm Founder Vijay Shekhar Sharma, speaking at the Global Fintech fest 2020, said that the company has seen up to 3.5% growth in transactions on its platform during the Coronavirus pandemic.
This is seen as a result of lockdown and social distancing that promotes the use of digital payments over cash payments, preventing the spread of the COVID-19 disease.
Vijay also mentioned that the company also witnessed growth in the average number of transactions taking place per week.
As reported by ET (1), Sharma said during the event that if a customer was doing X transactions earlier, he’s doing 2.5-3.5x more transactions currently.
People who have already used the company’s digital services are indulging deeper, while new customers are continually joining the platform. An active customer is doing two transactions at a week-level, he added.
Paytm has been successful in being able to expand its user base despite discontinuing cashback offers on its platform.
Bringing scalability to the table
During the company’s monetization journey, the team realized that it is easy to acquire customers and bring them back by offering cash backs. India has value-conscious users, so they wanted to understand who the loyal users of the platform are, Sharma stated during the event.
“We actually grew the customer base without giving a cashback and active, DAU (daily active users), MAU (monthly active users) over the previous year.”
While talking about neobanks, Vijay Shekhar Sharma stated that entities offering solutions are scalable and offer superlative user experience would succeed.
Neobanks refer to digital banks without any branches and can be used as a synonym to fintech firms, like Paytm, that offer digital and mobile-first financial solutions payments and money transfers, money lending, and more.
Explaining it further, he said to use the case that is scalable, meaning if tens of millions of customers use the platform and the experience is so superlative that a customer wants to return to using the platform instead of your official bank.
Paytm started with recharges and bill payments that had no revenue in it but the user experience and accessibility drove customers to the platform.