If you’re planning to start an online wallet startup, this is not the best time to do so. PM Narendra Modi’s demonetization creates battlefield for all these startups. Read Disadvantage of Demonetization.
First the battlefield was created in the eCommerce sector when Amazon entered Indian market, then it was the cab aggregators industry where Ola and Uber are fighting. Now a new battlefield will be formed by all the online wallet startups. PayTM and CitrusPay have seen a hike in their customer transactions since 8th November and this trend will rise in the future. This means investors will be willing to invest in these startups.
Like discounts in eCommerce, low cost rides by taxi aggregators, these startups will provide cash backs to attract more customers. The cash back option is currently there for first time use, but with investments coming in, they might extend it to 2nd 3rd time and further. To get more market share the online wallet startups will use cash back program to capture customers. They could also get into a rewards program like how Payback and few other banks are doing to attract customers. Read more news on Narendra Modi.
Definitely new startups can benefit from this Demonetization effect, but they would need solid backing to overtake current market leaders. Bottom line this industry will be spoilt very soon like eCommerce and taxi thanks to demonetization effect. Read more Indian News.