Fintech firm PhonePe envisages a 3x growth for its merchant base in Tamil Nadu, which at present stands at 1.5 lakh. The UPI based digital payments platform, whose parent firm is Flipkart, plans to increase its app count also significantly.
Chennai:
Open Source
On the merchant access, we work on an open model, based on a QR code system in an offline space, using which a consumer of any app can make a payment to a PhonePe merchant using his app. On the consumer front, there’s the ‘super’ app which lets you do everything from booking cabs to placing an order for a meal or groceries. On the banking front, PhonePe is among the first UPI based platforms to be integrated with other wallets like JioMoney or Airtel Money.
Numbers game
While the first phase of growth post demonetisation took place in Tier 1 cities (about 10) among the digitally savvy population, the last 12 months has witnessed significant growth coming from non-metro cities.
What we have also seen is service professionals like delivery staff and cab drivers investing in gold coins on PhonePe, which has a very low entry barrier. These individuals invest any surplus amount on gold.
Tamil Nadu specifics
Expansion plans
Collectively, platforms such as ours have gotten the first 100-200 mn digitally savvy Indians to use e-payments. Over the next 3-5 years, we must to get the next 300 mn Indians, who may not necessarily be digitally savvy onboard.
Karthik Raghupathy, Vice President of Strategy and Business Development at the three-year-old Bengaluru-based start-up talks about the company’s growth avenues in TN and across India.
Open Source
Over the past 2-3 years, UPI has single-handedly driven digital payments in India. It has grown exponentially and PhonePe had early on embraced this technology. It has driven our growth in a big way. Paytm, PhonePe and Google Pay put together form 90 per cent of the Indian digital payment ecosystem.
On the merchant access, we work on an open model, based on a QR code system in an offline space, using which a consumer of any app can make a payment to a PhonePe merchant using his app. On the consumer front, there’s the ‘super’ app which lets you do everything from booking cabs to placing an order for a meal or groceries. On the banking front, PhonePe is among the first UPI based platforms to be integrated with other wallets like JioMoney or Airtel Money.
Numbers game
PhonePe, which had raised $300 mn the last year, currently has 150 mn registered users with 50 mn active monthly users and 1 bn app openings a month. About 275 mn transactions are conducted every month on the platform, that has close to 4 mn merchants spread across 150 plus cities. Annually, we process $80 bn in terms of payment value.
While the first phase of growth post demonetisation took place in Tier 1 cities (about 10) among the digitally savvy population, the last 12 months has witnessed significant growth coming from non-metro cities.
What we have also seen is service professionals like delivery staff and cab drivers investing in gold coins on PhonePe, which has a very low entry barrier. These individuals invest any surplus amount on gold.
Tamil Nadu specifics
Tamil Nadu has about 1.5 lakh merchants who are associated with the app, of which one lakh are based in Chennai itself. We are envisaging a 3x growth in the next few months with respect to the merchant network, and for this, we have increased our sales staff on ground who will help new merchants be onboarded. The state has as many as 5 mn users who conduct 100 mn transactions a month.
Expansion plans
Our focus areas are going to be in ensuring that every offline merchant, especially in TN, is associated with the app. So offline is a space where we will make significant investments. Also, in the financial services, apart from gold and mutual funds, our focus will be directed towards getting into insurance this year too. And there will also be partnerships to increase the number of apps that are being hosted on the platform.
Collectively, platforms such as ours have gotten the first 100-200 mn digitally savvy Indians to use e-payments. Over the next 3-5 years, we must to get the next 300 mn Indians, who may not necessarily be digitally savvy onboard.