MUMBAI: As Paytm battles a regulatory crisis, its fintech peers are attempting to capitalise on the opportunity and gain market share. While bigger players like PhonePe certainly have the advantage of deeper pockets, wider reach and resources, other firms like BharatPe and MobiKwik also seem to be benefitting.
Industry sources said that BharatPe has seen a huge spike in merchant onboarding in tier-2 and -3 cities, translating close to 95% month-on-month growth during the February 1-7 period.It has also managed to get more merchants in the metros to sign up for its services. The company’s merchant sign-ups across metros saw a month-on month growth rate of more than 104% during the period, it is learnt.
IPO-bound MobiKwik has seen an increase in both app downloads and merchant acquisitions since February 1. Offline and online merchant gross merchandise value grew by 20-40% for the Gurgaon-based firm, sources said.
“MobiKwik is doubling sales force to tap into this opportunity. It is investing heavily to expand its offline presence – across mom and pop stores, petrol pumps and organised retail chains,” said a source with direct knowledge of the matter. The company has seen a surge in orders for its soundbox and it is augmenting the availability of the devices,its QRs and POS machines. BharatPe didn’t respond. MobiKwik declined to comment citing IPO publicity guidelines.
Walmart-owned PhonePe had earlier said that it has recorded a surge in inbound requests from merchants for QRs and smart speakers. “Although Paytm is communicating that their app is up and running, trust in Paytm’s message in itself has gone down now. All companies will use this opportunity to gain market share. If companies have the right price point, merchants will want to switch to a stable alternative. Besides, most small merchants do not tend to see brands very differently,” said digital banking consultant Parijat Garg.
“Big players like PhonePe has so much market presence that they will want to capitalise on it big time,” Garg added.
Industry sources said that BharatPe has seen a huge spike in merchant onboarding in tier-2 and -3 cities, translating close to 95% month-on-month growth during the February 1-7 period.It has also managed to get more merchants in the metros to sign up for its services. The company’s merchant sign-ups across metros saw a month-on month growth rate of more than 104% during the period, it is learnt.
IPO-bound MobiKwik has seen an increase in both app downloads and merchant acquisitions since February 1. Offline and online merchant gross merchandise value grew by 20-40% for the Gurgaon-based firm, sources said.
“MobiKwik is doubling sales force to tap into this opportunity. It is investing heavily to expand its offline presence – across mom and pop stores, petrol pumps and organised retail chains,” said a source with direct knowledge of the matter. The company has seen a surge in orders for its soundbox and it is augmenting the availability of the devices,its QRs and POS machines. BharatPe didn’t respond. MobiKwik declined to comment citing IPO publicity guidelines.
Walmart-owned PhonePe had earlier said that it has recorded a surge in inbound requests from merchants for QRs and smart speakers. “Although Paytm is communicating that their app is up and running, trust in Paytm’s message in itself has gone down now. All companies will use this opportunity to gain market share. If companies have the right price point, merchants will want to switch to a stable alternative. Besides, most small merchants do not tend to see brands very differently,” said digital banking consultant Parijat Garg.
“Big players like PhonePe has so much market presence that they will want to capitalise on it big time,” Garg added.
