One of India’s leading online payment company Paytm along with its Chinese partner Alipay are now aiming to increase the adoption of digital wallets by small store owners in both the countries.
Alipay will offer its technological features and risk management system to Paytm to help it grow faster and enhance its consumer experience. Expressing his gratitude towards the same, Paytm’s Senior VP Kiran Vasireddy said that the company is trying its best in order help these store owners to transact digitally. This includes digital payment mechanism at milk booth, cabs bookings, movie tickets and paying utility bills.
The company believes that once a user starts transacting online, the repeat usage is likely to get high. About 10 per cent transactions come from these offline merchants and Paytm aims at increasing it by 50 per cent by the end of 2017.
On the above mentioned trend, Zhiming Fan from Alipay’s parent company Ant Finance said that India and China are adverse market. Cash plays a pivotal role in daily transactions in India and lack of payment options here gives Paytm, the opportunity to offer convenient, fast and secure payment solution to offline merchants.
In China too Alipay gets about 10% transactions from offline merchants.
The above mention facts show a bigger opportunity to tap offline merchants in India. Paytm's offline merchant network includes small 'paan' shops and vegetable vendors to big retail outlets such as Aditya Birla Group's food and grocery retail arm More, Indian Oil petrol pumps, taxi hailing app Uber, food chains such as Cafe Coffee Day and Pizza Hut.