
According to a survey conducted by Kirana Club, 42% of kirana stores in India have shifted away from using Paytm and have started using other mobile payment apps. This shift in usage comes after the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank. The survey, which covered 5,000 respondents, revealed that nearly 20% of the respondents expressed their intention to use alternative payment apps. Additionally, the survey highlighted a decrease in trust among 68% of Indian kirana stores towards Paytm following the RBI announcement.
Before the RBI’s announcement, 69% of kirana retailers relied on Paytm QR codes for daily transactions at their stores. However, within a week of the RBI’s directive, 42% of Indian kirana stores have already moved to other payment apps, indicating a rapid adoption of alternatives. The survey also noted a growing trend towards cashless transactions at grocery and local kirana stores, particularly in states like Uttar Pradesh, Jharkhand, Rajasthan, Bihar, Madhya Pradesh, and Haryana.
It is important to note that Paytm has been actively expanding its services and offerings to kirana stores and retail chains. For instance, Paytm has launched a loyalty program for kirana stores, allowing merchant partners who accept online payments via Paytm wallet, Rupay cards, and other UPI-based payment apps to receive reward points. Paytm has also introduced cashback offers for offline merchant partners, aiming to make digital payments more attractive for customers who still prefer using cash for shopping.
The shift away from Paytm by kirana stores highlights the impact of the RBI’s restrictions and the increasing competition in the mobile payment app market. As kirana stores explore alternative payment apps, it is expected to foster innovation and provide more options for both retailers and customers.