Paytm and e-commerce player Flipkart can form a team to allow buyers to access the e-retail platform through the mobile wallet.
Paytm and e-commerce player Flipkart can form a team to allow buyers to access the e-retail platform through the mobile wallet. Paytm senior executive said that if the alliance was formalized, customers can conduct transactions more quickly and easily at Flipkart. Deloitte estimates Paytm, with nearly 20 million users, is a leading provider of virtual wallet; Paytm claims to have 80 million users. Flipkart is the largest e-retailer in India with close to $11 billion valuation and gross merchandise value of about $8 billion.
Barclays estimates that payments in India are made primarily in the cash-on-delivery (COD) representing 55% of total payments, credit and debit followed, accounting for 30%. In China, by contrast, payments are made either by e-wallets like Alipay, which has a 27%, or credit and debit cards, accounting for 44%. However, COD is dominant in countries like Russia. One reason for this, market watchers say, is that customers are concerned about sharing information online.
But since the percentage of income is higher when customers pay in cash, e-retailers are offering buyers the ease of debit cards in the delivery; Amazon is a store that offers customers this option. About 50% of the deals Flipkart is understood to be through COD and e-retailer is looking likely to reduce this percentage through the Paytm alliance.