Phani Raj Kuchibhotla

Curious Curator

Digital (e) Wallets

growth bug analysis on payment instruments market share

Per Growthbug, Wallets just contribute to 5% of the retail(online) + Offline non-cash payment instruments. With all UPI apps (PhonePe+Google Pay) primarily focusing on acquiring as many merchants as possible, this share will only grow. Does that mean that this is the beginning of end of wallets era? With KYC requirement deadline fast approaching , I think it really is. Livemint has an exhaustive piece on this today.

At the same time digital frauds are also increasing, even educated folks are also losing money. Call it the scammers tricks or users lack of knowledge on how these apps work. Digital wallets in this context offer a little bit of security as the damage is limited to money added to wallet, unlike UPI apps which give access to entire account.

UPI apps on their front too should offer enough education on how the app works and the instances where users should be cautious.

Coming back the wallets survival, PAYTM’s USP of easy digital payments is now taken over by other UPI apps. They now have a MF/Equity trading platform, which capture decent customer base, PayTM mall is still a blackhole and is no way near Flipkart or Amazon.

That’s brain dump for today. To be continued