PhonePe downloads see a surge amid Paytm scrutiny
Market data reveals a decline in daily app downloads for Paytm on the Google Play Store, while rival PhonePe experiences an increase. The shift follows regulatory concerns surrounding Paytm Payments Bank (PPBL).
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FollowIn a notable shift within the digital payment landscape, market intelligence platform AppTweak has reported a decline in the daily average downloads of Paytm's app on the Google Play Store, coinciding with a surge in downloads for rival PhonePe. Data gathered from industry executives revealed that Paytm's daily downloads on the Play Store dipped from 2.4 lakh (January 24-31) to 1.4 lakh (February 1-7).
In contrast, PhonePe experienced a significant uptick in daily app downloads on the Play Store, rising from 4.4 lakh to 5.5 lakh during the same period. The BHIM app also saw increased traction, with daily downloads totalling 3.6 lakh in the first seven days of February. Google Pay's app downloads approached 2 lakh during this period.
AppTweak, citing an accuracy rate of 85-90% for their download estimates, noted that PhonePe's share in app downloads had been steadily increasing. The momentum gained an extra boost after January 31, following the Reserve Bank of India's (RBI) directive concerning Paytm Payments Bank, according to Karan Lakhwani, head of India at AppTweak, as reported by the Times of India.
Smaller players in the digital payment space, like MobiKwik, also showed an increase, registering about 45,000 daily downloads on the Play Store. On Apple's App Store, Paytm's daily app downloads averaged around 8,000, lagging behind PhonePe and Google Pay, which recorded 25,000 downloads each from February 1-7.
PhonePe declined to provide a comment on the market shift. During this period, PhonePe led with the highest share of total downloads, reaching approximately 40 lakh across both platforms, followed by BHIM at around 25 lakh downloads. Paytm lagged behind with about 11 lakh downloads, the data revealed.
Responding to the changing landscape, a Paytm spokesperson mentioned, "We do not consider market reports as a reliable source. However, our internal report suggests consistent growth in the past week." The recent restrictions imposed by RBI on Paytm Payments Bank led to uncertainties, prompting some PPBL employees to seek new job opportunities. The company's stock price, under the umbrella of One 97 Communications (Paytm parent), closed at Rs 447 on the BSE on Thursday, reflecting a nearly 10% decline.
Despite the challenges, Paytm assured that jobs would not be lost, and the company is actively working on ensuring business continuity. However, with uncertainties surrounding compliance and risk-related roles, some PPBL employees express concerns about the future.
The RBI's clarification on Thursday that the Paytm app itself would not be impacted by the recent regulatory order against PPBL provided a measure of relief for the company.
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