Mobile Internet

Paytm Leads the Japanese Cashless Transactions Market

Paytm India

The world is moving ahead in regards to the use of technology in the financial realm. The internet itself has had a huge impact on the way that people do transaction by bringing a large chunk of the transactions online and making it happen with the click of one button on one’s smartphone.
India has emerged as one of the leaders of the digital revolution in the financial sector with the Indian government’s efforts into making the economy as much cashless as possible. Currently, the Indian market has players such as Paytm, PhonePe, GooglePe and so on for online payments.
Paytm is not only the largest player in India in terms of digital payments apps but it is also the largest unicorn with a valuation of over $8 billion. The company is backed by tech giants such as Alibaba and Softbank making it a huge success since the mid of 2016. In an attempt to go global, the company has started operations in Japan, a country that is technologically one of the most advanced in the world. However, the digitalization of common people’s financial transactions never really took off there.
One97 Communications, the parent company of Paytm India has collaborated with its investor Softbank and Yahoo Japan to launch PayPay in Japan. The app is quite similar to Paytm with the same design and purpose in mind but a different name. PayPay was launched in late 2018. Although, the number of monthly transaction in January 2019 was a mere 2 million, grew to a massive 42 million in September this year. Moreover, the growth doubled with the numbers reaching 85 million by the end of October according to a Financial Express report citing Softbank data.
One needs to understand that, despite the technological advancements seen in Japan, the mass still prefer physical money over the digital one. However, this is rapidly changing at the moment. Out of the 20% transaction on personal spending in Japan, the majority was through cards. With the advent of Paytm, people are starting to use digital money instead of cards as it is more convenient to directly pay via one’s phone and internet.
Apart from just being an online payments application, Paytm or rather PayPay is aiming to become a super app in true sense. It helps the users to order food and pharmacy online, pay bills and taxes, travel booking from tickets to hotels and so much more via this one app. The whole concept of a multi-functioning app brings a lot more to the table than just a mode of online payment. This increases the usability of the app and creates an amazing experience for the users, especially for those who are coming straight from an environment of cash transactions market.

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