After the RBI’s restrictions against Paytm Payments Bank last week, 42 per cent of mom-and-pop stores (or kirana stores) have moved away from Paytm and started using other mobile payment apps, according to a survey by Kirana Club on Thursday.
According to the survey, which covers 5,000 respondents, nearly 20 per cent said they intend to use other payment apps. The survey said the trust in Paytm has decreased among 68 per cent of Indian Kirana stores after the RBI announcement.
“The survey revealed another stark finding about the trust among local retailers regarding Paytm. It indicates that trust in Paytm has decreased among 68 per cent of Indian kiranas after RBI restrictions,” it said.
Kirana Club founder and CEO Anshul Gupta said, “While the ban imposed by the regulatory authority might lead to disruption at Kirana stores, they are not much worried because there are alternate payment options available.”
According to the survey, a majority of 50 per cent of the retailers who have started to use or are planning to use other payment apps chose PhonePe. It is followed by 30 per cent towards Google Pay and 10 per cent towards BharatPe.
The RBI on Wednesday, January 31, directed Paytm Payments Bank Ltd (PPBL), which houses all of Paytm’s 330 million wallet accounts, to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29. Till then, customers can add money as well as withdraw money from the Paytm wallet and PPBL account.
RBI said the action against PPBL followed a comprehensive system audit report and subsequent compliance validation report of external auditors. One97 Communications Ltd (OCL) holds a 49 per cent stake in PPBL but classifies it as an associate of the company and not as a subsidiary.
The central bank, however, said any interest, cashbacks, or refunds may be credited back to customers anytime. It said the direction follows persistent non-compliances and continued material supervisory concerns.
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