Paytm Resorts To Referral Programmes Amidst Falling Downloads
According to the app's notifications, a message 'bring friends back to Paytm UPI' flashes on the top with an option of 'refer & win' below it.
One97 Communications Ltd.-operated Paytm app is now enticing existing users with referrals to bring others back.
According to the app's notifications, a message 'bring friends back to Paytm UPI' flashes on the top with an option of 'refer & win' below it.
These incentives include coupons from Boat, PharmEasy and Reebok to ITC—all luring the customers to win deals worth Rs 4,000. The options of range from invite via WhatsApp, SMS or even via a referral via QR code.
Referral for Paytm UPI (Source: NDTV Profit)
According to the terms and conditions, a Paytm UPI user can invite eligible people in their contact list to start using the app. The list of eligible users will be available in their Paytm app.
However, the process is considered completed and eligible for rewards, only after the person referred by the user makes a payment via UPI. For this, a minimum transaction of Re 1 must be done.
On Thursday, Paytm also got a third-party application provider licence from the National Payments Corporation of India for its UPI payments. Under a multi-bank model, Axis Bank, HDFC Bank, State Bank of India and Yes Bank will act as payment service providers banks for Paytm.
This essentially means that all the UPI transactions will now be done via these banks, instead of Paytm Payments Bank.
The step comes in response to dwindling Paytm app downloads (on both Playstore and Appstore) after Reserve Bank of India's crackdown on Paytm Payments Bank on Jan. 31. Owing to regulatory lapses, the payments bank was barred from accepting further credits into its customer accounts and wallets after March 15.
Other Apps Gain Share
Between Jan. 31 and March 15, across Google PlayStore and Appstore, Paytm has seen about 59.3 lakh downloads, the least among competitors, according to data from app intelligence platform AppTweak.
In comparison, PhonePe has clocked 2.06 crore downloads, the highest among peers, followed by government-backed BHIM with 1.59 crore downloads and GooglePay with 98.3 lakh downloads.
NDTV Profit previously reported that PhonePe and BHIM apps see user rush after RBI's clampdown.
Paytm's falling acceptance among users is also evident from its rankings and across both PlayStore, according to AppTweak's data.
As of March 18, Paytm's ranking on Playstore has fallen to a staggering 33, compared to 5th spot on March 15.
The fall in rankings is steeper after March 15, the deadline for RBI's curbs on Paytm Payments Bank.
However, PhonePe and GooglePay's rankings stay at 4 and 23 respectively as of March 18.
Jefferies, in its note from March 14, points out that the UPI data for Feb'24 points out to an approx. 8% MoM hit to UPI value/volumes for Paytm.
