Post-demonetisation digital payment platforms have generally seen a huge spike with consumers trying to conserve cash while using such platforms to pay for utilities. According to Freecharge CEO Govind Rajan, the digital wallet, which earlier used to witness recharges worth around R2,000 every month has seen the value jumping to R5,000 so far this month. The demonetisation came into effect from midnight of November 8.
Another interesting change shared by Rajan was that though the loading of the wallet has increased the average order value has decreased. This is because consumers while earlier purchased a consumer product are now utilising it for even very normal, day-to-day purchase.
“If earlier on a regular day a consumer placed an order worth R500-700, post demonetisation, that has reduced to about R200-400. At present, consumers are using the wallet for all kinds of transaction ranging from paying the fare of an auto rickshaw vegetables from modern retail outlets,” he said.
The platform, according to him has also seen a huge surge of new subscribers though he did not disclose the numbers.
Meanwhile, in its effort to bring more merchants on to the platform, Freecharge has waived off 1-2% cost on transferring money to the bank. The company claims that now it is signing up a merchant every 30 seconds.
“Around 60% of new merchants are witnessing the first payment happen within the first one hour coming on board. Merchants even from small town like Sikar in Rajasthan, Prakasam in Andhra Pradesh, Narnual in Haryana have signed up,” Rajan said.
While consumers are using the wallet to book cabs such as Mumbai Kaali Peeli, Uber, Meru, apart from grocery stores and chemists, currently food delivery payments including Swiggy, Foodpanda and local neighbourhood joints currently accounts for 50% of merchant transactions.
Last April, e-tailer Snadpeal acquired Freecharge for an estimated $400 million (R2,400 crore).