There are a total of 18 lakh grocery stores in India out of which 42 per cent of shopkeepers across the country have stopped using the Paytm app to make payments digitally.
This has taken place after the Reserved Bank Of India (RBI) took action on Paytm based on a violation of rules.
Due to losing more than 42% of its users, Paytm Payment Bank is now facing issues in gaining the trust back of its users.
Amidst this, another 20% of users are considering to quit the app.
The public is now shifting to other online payment options. Most of the public has shifted to using Phone Pay as their alternative for making online payments. Other than this, 30 per cent shifted to the Google Pay app and 10 per cent to the Bharat Pay app.
Amidst the COVID-19 pandemic, more digital transfer of money was promoted and users to these digital platforms have only increased since then.
RBI has directed Paytm Payment Bank Limited not to accept deposits or top-ups in customer accounts, prepaid instruments, wallets and Fastag after February 29, 2024.
To this, Paytm has said that the Paytm Bank of Payment is in discussion with RBI to continue business promising to follow the instructions given by RBI.
On Friday, 9th February, 2024 CEO, Vijay Shekhar Sharma said that the “digital Payment and service app of Paytm is working and will continue to work even after 29th February. “