The government’s decision to demonetise Rs. 500 and Rs. 1,000 notes has come as a shot in arm for mobile wallet companies like Paytm, Freecharge and Mobikwik that now expect to see a strong pick up in user base as well as transaction sizes.

The government’s decision to demonetise Rs. 500 and Rs. 1,000 notes has come as a shot in arm for mobile wallet companies like Paytm, Freecharge and Mobikwik that now expect to see a strong pick up in user base as well as transaction sizes.

Even as citizens across the country went into a panic mode following the announcement, Paytm — that has a current user base of 150 million — jumped at the idea and issued full page advertisements asking people to go “cash free”.

It added that its platform saw a whopping 435 per cent increase in overall traffic, 200 per cent hike in number of app downloads and 250 per cent surge in number of overall transactions and transaction value — all within hours of the decision being made public.
According to industry estimates, cash still accounts for over 78 per cent of all consumer payments done in India. While the government has been taking steps to move towards a digital economy, the current move is expected to accelerate the transition.

Another player MobiKwik said it has witnessed over 40 per cent increase in download of its within less than 18 hours of the announcement, while user traffic and merchant queries went up by 200 per cent among its over 35 million users.

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