Indian Kirana Store Owners Rapidly Switch to Alternative Payment Apps Amid RBI Restrictions on Paytm Payments Bank
Following recent restrictions imposed by the Reserve Bank of India (RBI) on Paytm Payments Bank, Indian kirana store owners are swiftly embracing alternative payment apps for their business transactions, a survey by Kirana Club reveals. While 69 percent of respondents previously relied on Paytm QR codes for daily transactions, within less than a week of the RBI’s announcement, 42 percent of kirana stores have already migrated to other payment apps, showcasing a rapid adoption of alternatives.
The RBI’s restrictions, implemented on January 31, mandated Paytm Payments Bank to cease accepting deposits or top-ups in customer accounts, wallets, FASTags, and related instruments starting February 29. The survey reflects a decline in trust among retailers in Paytm, with 68 percent expressing diminished confidence, and 20 percent indicating their intention to shift to other payment apps in the near future.
Among those considering a switch, PhonePe emerges as the preferred choice for 50 percent of respondents, followed by Google Pay at 30 percent, and BharatPe at 10 percent.
Anshul Gupta, Founder and CEO of Kirana Club, remarked, “While the regulatory ban may cause disruption at kirana stores, they are not overly concerned as alternate payment options are available. Our recent survey also indicates that kiranas across states have begun using or plan to use other payment apps to ensure seamless business operations.”
The survey also underscores a growing trend towards cashless transactions at grocery and local kirana stores, particularly evident in states like Uttar Pradesh, Jharkhand, Rajasthan, Bihar, Madhya Pradesh, and Haryana. These regions show high reliance on Paytm QR codes for customer payments, ranging from 70-71 percent. However, Maharashtra and Chhattisgarh exhibit slightly lower adoption rates, with 57 percent and 65 percent of kiranas utilizing Paytm QR codes, respectively.
