42% of Indian kirana stores have already shifted away from Paytm: Report

The trust in Paytm has decreased among 68% of Indian Kirana stores after the RBI announcement on January 31, a report released on Thursday said

Since the Reserve Bank of India (RBI) announced restrictions on the Paytm Payments Bank on January 31, 42 per cent of kirana stores in India have already started using other mobile payment apps, a survey released on Thursday said. It added that another 20 per cent of the respondents said they intend to use other payment apps.

According to a survey released by Kirana Club, based on 5,000 respondents, 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.

 

Anshul Gupta, founder and chief executive officer (CEO) at Kirana Club 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."

The survey highlighted that of the retailers who have started to use or are planning to use other payment apps, a majority of 50 per cent of retailers chose PhonePe. It is followed by 30 per cent towards Google Pay and 10 per cent towards BharatPe.

On January 31, the RBI imposed restrictions on Paytm Payments Bank and said it will not be able to accept more deposits from February 29.

On Thursday, at the post-monetary policy committee meeting press conference, RBI Governor Shaktikanta Das said that the step taken against Paytm Payments Bank was not due to regulatory issues but owing to compliance issues.

Swaminathan J, deputy governor of RBI, said that several bilateral meetings had taken place between Paytm and RBI, and the decision has been taken only after that. He added that it does not impact the Paytm app.