What’s in a name?
BHIM’s growth trajectory is the stuff of dreams. The Government of India, through the National Payments Corporation of India (NPCI) launched the BHIM (Bharat Interface for Money) app on the 30th of December in New Delhi. The amount of trust Indians customers repose in the government is evident in its rapid adoption.
In a short time they managed to grab an enviable 12.5% of India’s digital payments market. But even the government has to engage with its audience — a lesson politicians and entrepreneurs know all too well but NPCI is learning now. BHIM’s losing ground; so now Prime Minister Modi is offering monetary incentives to retain and on board users. Sound familiar?
Post Demonetization, a number of Wallets & Payment Apps entered the market. Many of them offered by big name banks — both private and PSUs. When it comes to banking; customers are inherently more comfortable with the products that come with the backing and blessing of traditional players.
PayTM has raised a massive $760 Mn from investors with much of that going towards, user acquisition, cash backs and brand building. Ditto for Mobikwik ($127 Mn) and FreeCharge ($117 Mn).
Teaching an old dog new tricks might be difficult but traditional players will eventually start understanding digital (they have no choice). At that point it’s entirely possible that the benefits of customer education will accrue to the well known names in banking who are entering the market now.
Thanks for your time,
Ashish
- Team KG
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You can reach me on ashish@kalagato.com
