Paytm Launches Electronic Application to Enter into ‘Tax-Free Allowance’ Market

The company introduced ‘food wallet’, a digital alternative to standardize meal vouchers for corporate employees

India: Mobile payment and commerce company, Paytm debuted its digital allowance food wallet to take advantage of the USD3.89 billion ‘Tax-Free Allowance’ market, which, at present, is captured by the companies including Sodexo, etc. that offer traditional meal vouchers to the corporate workforce.  

Paytm ‘food wallet’ will allow employers to offer a digital food allowance to their employees covered under the tax-redemption bracket offered by the Government of India. The unique interface offered by Paytm allows corporate employees to locate the nearest outlet, including KFC, Burger King, etc. where they can use paytm wallet to make their payments.

In addition, the wallet will minimize the probability of expiry and loss of allowance, coupled with the additional benefits including cashback, discounts, exclusive deals, capability to transfer money instantly from one wallet to another, and real-time tracking of balance via passbook. Paytm expects to challenge the established player operating in ‘Tax-Free Allowance’ market for market dominance.

TechSci Research depicts that mobile wallet market has risen at an accelerated pace in back of Government of India’s decision to ban currency notes of Rupee 500 and 1,000. This has increased the potential of mobile wallet market, offering opportunity to new market players. In addition, with the increasing venturing of companies into new domains, i.e. ‘Tax-Free Allowance’, etc. the mobile wallet market is expected to witness an upsurge in India during coming years.

According to recent report published by Techsci Research, “India Mobile Wallet Market By Application, By End User, Competition Forecast & Opportunities, 2012 - 2021”, the market for mobile wallets in India is projected to grow at a CAGR over 50% during 2016 – 2021. Evolving technologies, secure authentication process, rising adoption of online payments and growing e-commerce transactions are anticipated to significantly boost India mobile wallet market in the coming years.