Paytm aims to gain market share through wallet insurance

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Indian mobile wallet application Paytm has introduced Wallet Insurance, a new insurance coverage for its users to further encourage cashless and digital transactions in the country. PayNXT360 believes this initiative will boost growth of mobile payments.

The mobile wallet market in India in terms of transaction volume is projected to reach 1,43,840 million in 2021 from 7,432 million in 2017; recording a CAGR of 109.7%. The transaction volume increased from 1,133 million in 2015 to 2,715 million in 2016, posting a growth rate of 139.6%.

Under the new level of security system, the company provides insurance coverage for wallet money in the event of theft, illegal access and loss of mobile phone, without additional charges. However, personal negligence issues such as the mobile phone being stolen, shared or misplaced, entering a wrong number to recharge account, and misuse of debit/credit card/bank account information are not covered under the insurance plan. All the existing Paytm users using the upgraded app version will be covered under the new insurance.

Paytm will provide an insurance coverage of up to INR20,000 or the maximum wallet balance, whichever is less, for its more than 200 million users in the event of loss of wallet balance due to theft or loss of mobile phone. However, users can claim the insurance only once in a year. Users claiming insurance should first contact the company’s customer care division within 12 hours of the incident to block the wallet.

To know more and gain deeper understanding of mobile payment industry in India, click here.