In a startling move last week, the Reserve Bank of India (RBI) issued a directive ordering Paytm Payments Bank to cease accepting fresh deposits or top-ups in any customer account, wallets, or FASTags after February 29, citing concerns regarding non-compliance and regulatory issues. Despite efforts by the company to reassure users, including a statement from CEO Vijay Shekhar Sharma affirming that the Paytm app will remain functional beyond February 29, apprehensions among consumers have prompted a notable shift in app preferences.
Increased Interest in Competitors
A recent report by Moneycontrol has unveiled a remarkable uptick in downloads from the Google Play store for several competitors of Paytm, including PhonePe, Google Pay, and the National Payments Corporation of India’s (NPCI) BHIM app.
PhonePe Leads the Charge
According to data from app intelligence firm Appfigures cited in the report, PhonePe witnessed a substantial surge in app downloads, recording a 45% week-on-week increase on February 3, with 2.79 lakh app downloads compared to 1.92 lakh downloads on January 29. Moreover, in the four-day period following the RBI directive, PhonePe experienced a 24.1% increase in app downloads, rising from 8.4 lakh downloads between January 24-27 to 10.4 lakh downloads between January 31 and February 3.
BHIM App Sees Significant Growth
Similarly, the NPCI’s BHIM app saw a notable 21.5% week-on-week rise in app downloads, surging from 1.11 lakh downloads on January 27 to 1.35 lakh downloads on February 3. During the four-day interval from January 31 to February 3, BHIM witnessed a remarkable 50% increase in app downloads, soaring from 3.97 lakh in the previous week to 5.93 lakh in the week ending February 3.
Google Pay Registers Moderate Growth
While Google Pay observed a modest week-on-week increase in Android app downloads, rising from 1.04 lakh on January 27 to 1.09 lakh on February 3, it experienced an 8.4% surge in downloads from 3.64 lakh in the prior week to 3.95 lakh downloads between January 31 and February 3, following the RBI’s decision.
Paytm’s Decline in Downloads
In contrast, downloads of the Paytm app reportedly witnessed a 24% week-on-week decline in Android downloads, dropping from 90,039 downloads on January 27 to 68,391 downloads on February 3. Additionally, the company’s ranking in the Google Play store plummeted from 18th to 40th in the free apps category, as per the Moneycontrol report.
The surge in downloads for competitors suggests a shifting landscape in the digital payment sector, as consumers seek alternative platforms amidst regulatory challenges faced by Paytm.
