It’s not just banks, automakers and e-commerce websites that are locking horns to get a big sized bite from Diwali offerings. Fintechs and digital payment companies have also been wooing customers as they look to make the most of the festive season – a period that records the highest transaction levels in India.
With employee bonuses coming in, Diwali is that time of the year when the average Indian household has more spending capability. This makes it the right time for companies to roll out offers. Following a mega sale from e-commerce giants Flipkart and Amazon, mobile wallet company Paytm announced a three-day pre-Diwali sale, claiming that over 10,000 merchants across India will contribute over R100 crore in cashback.
The company expects over 70% orders to come from tier II and tier III cities and has already witnessed about 3.5 million transactions on the first day of the sale. Paytm grossed about R300 crore in a similar sale last year. Smaller rival Mobikwik, which saw a five time increase in transactions during its recent Dusherra sale, is set to announce another offer for Diwali soon.
Apart from high levels of transactions and payments, according to BankBazaar.com, an online financial marketplace, this particular quarter also sees a near 36% increase in the number of loan applications compared to previous quarters. The number of approvals are also correspondingly higher.
BankBazaar has tied up with 18 merchants who will offer deals on home loans, personal loans, car loans and credit cards. “Compared to last year, we are looking at almost 60% more visitors this time, and this percentage is set to rise even further towards the end of the month,” Navin Chandani, chief business development officer, BankBazaar.com, told FE. Currently, the platform, which gets an average of 7,000,000 visitors per month, is experiencing 10% more traffic.
Employers have also become key customers for many fintechs. Digital payments company, ItzCash and employee benefits start-up Zeta are seeing rising sales this month thanks to their digital gift cards. “Digital gifts are the flavour of the season,” said Bhavik Vasa, chief growth officer, ItzCash.
“Until now employers, would go for physical gifts, and mithai, but they too have realised the digital cards not only eliminate logistic issues but also give the employee the freedom to choose what he or she wants to buy,” he said.
ItzCash is looking at a plus 100 % growth with its digital gift card offerings this festive season.