Daily installations of the Paytm application have experienced a downturn since February 1, the day following the Reserve Bank of India’s imposition of restrictions on Paytm Payments Bank (PPBL). Meanwhile, downloads of the BHIM UPI app surged by 49 percent during this period, whereas daily downloads of the Google Pay app witnessed a decline of 10.6 percent.
According to data disclosed by Appfigures, a mobile analytics and intelligence platform based in New York, downloads of the Paytm app plummeted by 55 percent to 60,627 on February 19, down from 135,139 on February 1.
Sharat Chandra, co-founder of India Blockchain Forum, commented on the decline in Paytm app downloads, attributing it to consumer uncertainty and a lack of trust. He highlighted concerns about Goldman Sachs forecasting a significant year-over-year revenue decrease for FY25 and anticipated market share shrinkage, suggesting a critical juncture for Paytm in restoring consumer confidence and maintaining its market position.
Meanwhile, BHIM UPI downloads surged to 331,781 on February 19 from 222,439 at the beginning of the month, while daily downloads of the Google Pay app dropped to 94,163 from 105,296. PhonePe’s downloads saw a notable increase to 503,436 on February 7 from 317,522 on February 1, later moderating to 163,011 on February 19.
The Reserve Bank of India’s imposition of significant business constraints on Paytm Payments Bank on January 31, including a halt on accepting fresh deposits and credit transactions, prompted merchants to transition to alternative apps and bank accounts for digital payments. Yogesh Singhal, chairman of the Bullion Market Association in Delhi, noted a shift among merchants towards platforms such as PhonePe, Google Pay, and BHIM UPI since the news regarding Paytm Payments Bank surfaced.
Despite clarification from the RBI on February 16 that the action solely pertains to Paytm Payments Bank and not the Paytm UPI app, Singhal emphasized the importance of trust in business and the cautious approach of migrating accounts to other payment aggregators.
The RBI’s FAQ on Paytm Payments Bank issued on February 16 outlined directives for allowing withdrawals or transfers to other bank accounts up to the available amount and specified limitations on transactions involving Paytm soundboxes and POS terminals linked to bank accounts or wallets with Paytm Payments Bank after March 15, 2024.
