paytm and other wallets that saw an unprecedented surge in number of users and transactions in past couple of months are treading on an uncertain path. they may want to ignore this, but the front full-page ads lately by paytm to call upon users are a sign of underlying distress.
seemless, uninterrupted money transfer without moving fund to wallets is the call of today; and payment banks may find no account seekers in their branches since no-frills jan dhan accounts are ready to serve the until-now unserved populace of india.
needless to acknowledge, paytm proved its capability to integrate with indian commercial landscape by enabling wallet transactions at tea stalls and barber shops. indian banks couldn’t foresee the impending digital transformation prior to when they were forced post-november 8 demonetisation announcement.
this means that paytm may not die the death that some analysts are predicting in the backdrop of uninterrupted bank to bank transfer of money enabled by upi and state-backed apps.
this can be the case, however, only when either paytm lobbies with the government and rbi to change the norms for payment banks. another case is to integrate with the government-backed solutions to bring synergy, paytm has a remarkable hold today, is equipped with robust infrastructure, and government can and should be the taker.
no other way, be it burning more cash by offering discounts or spending on ads, can save paytm and other wallets from awaiting gallows.
give your verdict