PayTm to get more persuasive about its Cashback strategy

To set up a strong foothold and to distinguish itself with the competitors, PayTm will focus on its Cashback strategy more aggressively.

India: PayTm the mobile wallet and marketplace player in India is focusing on its cashback strategy to enhance its competitive advantage in the market.

According to the company official Sudhanshu Gupta, head of business, PayTm, the company will get more aggressive in providing cashback offers and will add more use cases to its wallet to make cashback attractive for its customers.

According to the recent statistics, over 50% customers are the repeat customers. The company projects that close to 100 million customers will transact at least three times in the year 2016.

PayTm reported that last year it has spent INR 600 crore in cashback which resulted in repeat customers, and 95% prepaid payment on its e-commerce portal. The company further plans to increase the prepaid orders up to 99% in the current year.

According to TechSci Research, the mobile wallet market is becoming highly competitive and players are providing lucrative offers to attract new customers and to retain the old ones. As PayTm has the huge customer base for its wallet and the company is aggressively onboarding retailers and shopkeepers, it is expected that the incentivizing customers through cashback will strengthen its market position in India.

“India Mobile Wallet Market Forecast and Opportunities, 2020” report recently published by TechSci Research discusses that the mobile wallet market in India is forecast to reach US$ 6.6 billion by 2020. Growing awareness regarding the benefits of mobile wallets, rising smartphone and mobile internet penetration rates, and increasing security measures are expected to drive growth in India mobile wallet market. In 2014, Tier-I cities such as Delhi, Mumbai, Kolkata, Bangalore, Pune, etc., registered the highest number of mobile wallet users in the country, while Tier II cities such as Jaipur, Lucknow, Chandigarh, Indore, Patna, etc. are emerging cities in terms of mobile wallet usage. Banking accounted for the largest end user sector in the country’s mobile wallet market in 2014, followed by retail, telecom and transportation sectors.