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Biggest Threats To Mobile Payment Giant PayTM[/caption]
Prime Minister Narendra Modi's demonetisation announcement has massively impacted the 'digital wallet' industry as due to shortage of currency notes (and as per PM Modi's advice) more and more people turn to mobile payment transactions.
Although, currently Paytm is leading in scope and popularity, with around 100 million users, other mobile payment companies are not far behind. As the economy switches to a more cashless mode, competition among mobile payment companies will likely become fierce.
Here are some competitors, that may become a threat to Paytm:
Licensed from Reserve Bank of India for PrePaid Payment since 2013, MobiKwik enables the user to add cash to their mobile account from online website or from mobile. The MobiKwik e-wallet comes with extra in-app security settings and is accepted for Mobile/DTH payments and a large number of famous brands such as BookMyShow, Big Bazaar, Jabong, Snapdeal, MakeMyTrip etc.
One of the youngest e-wallets in the market, FreeCharge was launched in September 2015 and is still in the expansion phase but is gaining popularity. FreeCharge provides easy way to recharge mobiles, post-paid and prepaid, DTH and a variety of offline stores such as Shoppers Stop, McDonalds, Crosswords. Interestingly, FreeCharge can also be used to pay for E-Rickshaws.
PayUMoney is an Indian e-wallet launched by the international Naspers groups which is based in London and making great strides in the market. PayU has tied up with major banks like State Bank of India, CitiBank, Bank of India, ICICI Bank and HDFC Bank. PayUMoney which earlier focussed on merchants, having link ups with more than 4,000 merchants is now rapidly expanding in consumer market, already having links with Zomato, Lenskart, Olx and Amity University.
All e-wallets however, are currently limited to a maximum amount of Rs 10,000 per month by Reserve Bank if they do not have KYC (Know Your Customer) verification. After verification, the spending limit rises to a massive Rs 1 lakh per month. Race is on among the e-wallets on who can easily and accurately complete KYC.