By: Talat Mohsin
The top 4 payment apps include Paytm, PhonePay, Amazon Pay and Google pay have reportedly incurred expenses of one billion dollars to lure customers and earn more profits.
The data, compiled by Bloomberg Quint shows that the four giants have spent almost $995 million in marketing, promotional and advertising expenses in the last year. The information had been retrieved from the annual fillings of the companies.
The expenditure on such activities has doubled from the fiscal year 2018. Promotional strategies like cashback and other related schemes have ensured the rise of expenses from ₹3400 crores in FY18 to ₹7050 crores in FY19.
According to experts, the rise in these activities is due to the fact that the transaction apps are keen to acquire new customers. Not only this, but they also want to increase transactions per customer. Giving discounts and cashback are the quickest ways to accomplish both these objectives quickly.
In India, the business of payment apps has seen tremendous growth. From 2015, it has grown fivefold and stands firmly at 22.4 transactions per person in fiscal year 18.