Helped by the Indian government nudging (forcing) citizens to go cashless, Mobile Wallet (PPI) transactions for goods and services appear to be on their way up. Readers should note that this daily data is for only 8 of the mobile wallets, and only for goods and service transactions.
Comparing this with data with that our Digital Payments report (here), you’ll see that the total transactions using PPI’s and PPI Cards combined were the highest in July 2016 (our last available data in the report), with 96.3 million transactions in total (77 million for PPIs, and 18.4 million for PPI cards). That’s an average of 3.21 million transactions per day for that month. For March, it was 2.91 million transactions per day. Remember that a majority use case of transactions using wallets has been money transfer and recharge, and entire businesses have been built around primarily these ideas: Paytm for recharge and Money on Mobile and Idea Money for money transfer.
In that context, for the usage of just eight wallets to increase to 2.8 million per day for only goods and transactions, is a substantive number. It’s likely that money transfer transactions may have declined because of lack of availability of cash, but at the end of the month, we ought to expect a substantial increase in wallet usage.
The data also suggests that with the increase in the number of transactions, the average amount per transaction is increasing.
A month ago, Paytm had claimed to reach 5 million transactions per day, which, as you’ll notice, is double higher than the average transaction per day for July 2016. In November, the company claimed that their daily transaction volume was increasing at 140% per day. Something doesn’t quite fit.
It could be that Paytm is not included in this list from the RBI of 8 non-bank issuers for goods and services transactions, which would be odd, since Paytm claims to be the largest player in this space. It could be, given that its wallet has historically mostly been used for recharges and not transactions, that recharges are not included in these transactions.
We’ve written to Paytm for comments, and will update in case they respond (of late, they haven’t).