The crash crunch after the demonetisation drive has compelled people to switch over to digital wallets like Paytm.

The company has witnessed about 7 million daily transaction worth over 120 crore, helping it cross $5 Billion GMV sales (Gross Merchandise Value). The company claims that they have crossed the target for the next 4 months. The company is backed by the famed Alibaba/ Ali-express group.

Gross Merchandise Value is a term used for the total work of goods sold through their digital platform.

According to the company vice-president Sudhanshu Gupta, “Paytm has registered over 7 million transactions worth 120 crore in a day as millions of consumers and merchants across the country try mobile payments on the payment platform for the first time. The company is currently doing more transaction as compared to the average daily usage of credit and debit cards in India.”

Paytm has served over 45 million customers in the last 10 days and over 5 million new customers have added since the demonetisation decision was announced. Paytm has over 150 million mobile wallet users.

Mobile wallet companies have been seeing a spurt in the grown in transactions as well as new users who have turned over to digital platforms thus avoiding serpentine quest outside bank ATMs.

Gupta adds, “Offline transactions now contribute to over 65% of the overall business from 15% about six months ago. We are also working on expanding our merchant network by 150,000 additional merchants”.

In India, over 10 lakh offline merchants across India accept Paytm for payment including taxis, autos, petrol pumps, grocery shops, restaurants, coffee shops, multiplexes, and parking lots.

The company has also waived off its 1% transaction fee for transferring money to the Bank for KYC-enabled merchants.

According to an Assocham-RNCOS joint study, the mobile payment transaction volume is likely to register a compounded growth rate of over 90% to reach 153 bn by Financial Year 2021-22. This is against a meagre 3 bn transactions in FY 2015-16.

Mobile payment transaction value in India is also likely to register over 150% CAGR and cross Rs 2,000 trillion by FY 2021-22 from just over Rs 8 trillion as of FY 2015-16, the study titled Indian M-wallet market said.

With over one billion mobile subscribers, India has a promising potential for internet on mobile and the same is expected for payments and business transactions.

Mobile banking segment contributed largest share of 49%  in Indian mobile payment market with over 386 mn transactions worth Rs 4,000 bn in FY 2015-16, with majority being money transfers, the study noted.

Besides, share of mobile banking in mobile-payment market has increased tremendously from eight percent in FY 2013-14 to 49 percent in FY 2015-16.