Recent Data Shows Decline in Paytm App Downloads

23 Feb 2024 , 10:47 AM

Since February 1, when the Reserve Bank of India placed restrictions on Paytm Payments Bank (PPBL), the number of daily downloads of the Paytm app has decreased. Daily downloads of the Google Pay app decreased by 10.6% over this period, whereas the BHIM UPI app had a 49 percent surge in downloads.

The number of Paytm app downloads fell by 55% to 60,627 on February 19 from 135,139 on February 1, as per statistics released by Appfigures, a New York-based mobile analytics and intelligence platform.

Sharat Chandra, co-founder of the India Blockchain Forum, said, ‘The decline in Paytm app downloads echoes a narrative of uncertainty and trust deficit among consumers.’ ‘Paytm faces a critical moment in navigating consumer confidence and maintaining its position in the market, with Goldman Sachs projecting a significant YoY revenue decline for FY25 and an anticipated reduction in market share.’

From 222,439 on the first day of this month to 331,781 on February 19, BHIM UPI downloads increased dramatically. Daily downloads of the Google Pay app decreased from 105,296 to 94,163. From 317,522 on February 1 to 503,436 on February 7, PhonePe’s downloads increased and then decreased to 163,011 on February 19.

On January 31, the Reserve Bank of India placed significant business limitations on Paytm Payments Bank, which included a ban on new credit transactions and deposits. The move was justified by the central bank’s citation of Paytm Payments Bank’s ongoing material supervisory issues and continuous non-compliance.

The RBI stated that the bank has been instructed to permit withdrawals or transfers to other bank accounts of customers up to the amount available in the account/wallet in its FAQ on Paytm Payments Bank on February 16.

The regulator further stated that after March 15, 2024, Paytm soundboxes and Paytm POS terminals connected to bank accounts or wallets with Paytm Payments Bank will not be eligible to receive any credit other than interest, sweep-ins, cashbacks, and refunds from partner banks.

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