November 8, the Indian government suddenly released a large financial reform, the Prime Minister Modi called the fight against corruption by the abolition of the existing 500 and Rs 1,000 notes via nationally televised speech.
This lead to chaos at Banks due to exchange of old notes with the new ones. Thus, due to the lack of cash, Indians had to turn to online payment. Therefore, Paytm, India’s most preferred destination for cashless transactions got a huge increase in users and transactions in a short span of time.
According to data released by Paytm, after the demonetisation news 400 million people started using Paytm. The number of transactions per day has reached a record 500 million transactions for an amount of processing payments and transfers of $ 3.5 billion has taken place. The existence of the funds in the account has grown up 10-fold. Even the company’s Web site traffic has increased by 700%. The application downloads increased threefold than in the average volume of transactions. The average weekly number of transactions per user reaches 18 percent, while the week before the figure was 3 percent.
SO overall, it has acted as a game changer for paytm. Even, Reserve Bank of India has issued the first license to Paytm to pay the bank, and allowed to carry out payment in the Indian market.
Right Now, Paytm has more than 150 million subscribers, their next goal is to lift this figure to 500 million.