RBI's Measures Haven't Dented Merchants' Trust in Paytm, Survey Finds

A recent survey by Gurugram-based Datum Intelligence suggests that the recent strict actions imposed by the Reserve Bank of India (RBI) on Paytm Payments Bank (PPBL) haven’t significantly shaken merchants’ confidence in the platform. The survey, covering 2,000 merchants across 12 cities, reveals that 59% of them continue to rely on Paytm, despite the government’s crackdown not showing an immediate impact.

Conducted from February 7 to 15, the survey indicates that 21% of merchants are waiting for more information, while only 13% are considering switching to other payment apps. Despite regulatory hurdles, 76% of merchants still use Paytm for payments, followed by 41% for PhonePe, 33% for Google Pay, and 18% for BharatPe.

Among the surveyed merchants, 58% prefer Paytm, 23% favor PhonePe, 12% opt for Google Pay, and 3% choose BharatPe. Notably, merchants’ confidence in Paytm seems to be maintained by proactive efforts from Paytm representatives post the RBI’s decision.

The survey highlights that 71% of merchants felt reassured to continue using Paytm after interactions with Paytm representatives. Only 11% expressed reduced confidence, while 14% are still seeking more information. Overall, the impact on merchant business seems limited, with Paytm actively engaging with merchants to minimize damage. Many merchants are adopting a wait-and-see approach before exploring other options.

The RBI’s clampdown, announced on January 31, directed PPBL to halt accepting new deposits in its accounts and digital wallets. Initially set for February 29, the compliance deadline was extended to March 15, allowing customers and merchants more time to transition their accounts from the affected payments bank.