Fintech giant PayTM has announced an exciting promotion to attract new users and retain existing users on its platform. The company is offering a flat cash back for every transaction done through the platform for a limited period.
The promotion is expected to draw payment volumes for the company just as the festival shopping season has begun with Ganesha Chathurthi across the country. In the next six weeks, India and Indians will celebrate a number of region-specific as well as pan-Indian festivals including Durga Puja, Ayudha Puja, Deepavali, Lakshmi Puja, Dhanteras, Chatth Puja, to name a few.
In terms of value, the value of UPI-based transactions grew from INR 10.63 lakh crore in July 2022 to INR 15.34 lakh crore in July 2023, up by 44%, according to data shared National Payments Corporation of India.
– NPCI data
During this period, while it is common to expect a large number of big ticket transactions, it will also be coupled with 10x or more small ticket transactions across the country, mostly at kirana joints, small eateries and kiosks, even as discerning shoppers will be on the move.
PayTM comes third in QR code based transactions in India. Market leader PhonePe, owned by Walmart backed Flipkart has a near 46% market share followed by Google Pay with a 35% share.
PayTM, which was among the earliest to get on the online payments bandwagon has a share of a mere 15% of transactions made by Indian consumers at merchant establishments as well as for peer to peer.
To get back as many small ticket spends as possible, PayTM has undertaken this novel promotion during the festival season. This limited duration promotion is valid on all merchant payments and peer to peer payments made using the PayTM mobile app.
To get the desired cash back from PayTM, a user has to scan the Paytm QR using the Paytm App to pay anywhere and get flat INR 20 Cashback on the transaction. It must be noted that the cash back is valid only when scanned on a PayTM scanner at a merchant establishment.
The cash back offer is valid only on Paytm QR transactions with a minimum transaction value of INR 15. The company recently launched the PayTM Card Soundbox, a smart device which can accept “tap-to-pay” transactions as well as announces receipt of such payments.
Paytm announced its Q1 FY 23-24 results on 21 Jul. ‘23, reporting a consolidated net loss of INR 357 Cr, sharply narrowed compared to a loss of INR 645 Cr in the corresponding period last year.
