Taobao hatched Alipay in the same year, and the same plot is being staged in India.

Photo source @ Visual China

Photo source @ Visual China


Paytm, India's largest mobile payment platform, is an ambitious man, but he has met a strong local rival, who is now in the hands of Americans.

Paytm is the first in the Indian market in the number of users, the number of deals, and the market share, and its catch-up has been bit tight.

Duopoly embryonic form

KalaGato, a local data monitoring agency, presented data images of nine e-wallets in the Indian mobile payment market for data from 1.2 million respondents (data as of March this year). The installed proportion of these apps in Indian smartphones is 53.03% for the first Paytm, 41.41% for the second PhonePe, and 6% for the third FreeCharge. In terms of market share, Paytm is close to 50% and PhonePe is less than 40%. It shows that a duopoly is forming.

Indian mobile payment app installed ratio

India mobile payment market share

But in the month of the month, Paytm made up more than 72%, and the Phonepe was 12.31%, down from 23.72% in October last year. Paytm shows a very clear micro-high-frequency feature that Indians like to use when they buy things online, but more tend to use apps such as PayZapp (bank background), Mobikwik, and so on in large deals. The average single transaction amount for PhonePe is nearly two times that of Paytm, two of which are three and four in "passenger's unit price". It is significantly lower than PayZapp and Mobikwik.

India Mobile payment App transaction frequency

In terms of the number of users, Paytm currently has 350 million registered users, while PhonePe has about 150 million registered users.

In terms of valuation, One97 Communications, the parent company of Paytm, was valued at $160 to $18 billion in this year's new round of financing. Paytm was valued at $100 to $12 billion when Buffett's company Berkshire Hathaway bought a $300m stake in Paytm last year and is now above that level. PhonePe is currently valued at $14 billion because it has just started financing independently, and some institutions expect PhonePe to be valued at $14 billion in the medium term (around 2020), referring to the multiplier relationship between Paypal's market value and its trading amount.

The Indian mobile payment market is now a mess, with both local Internet startups and local banking backgrounds, as well as outsiders such as Amazon Pay,Google Pay, but Amazon and Google still have a small share of payments. The local policy as a whole benefits the development of mobile payment.

The basic market structure is like this. So, who is PhonePe?

PhonePe's parent company is India's local e-commerce Flipkart. Last year, US retail giant Wal-Mart acquired a 77% stake in Flipkart for $16.6 billion (in addition to Tencent's Flipkart stake), and PhonePe was also acquired and became Wal-Mart's assets. According to Bloomberg's latest news, Flipkart's board of directors has agreed to split the PhonePe program submitted in March this year in order to allow PhonePe to externally finance as an independent entity. Paytm is also actively financing to consolidate its leading position.

From the valuation and growth momentum of PhonePe, Walmart can be said to be "cheap." Wal-Mart, referring to PhonePe experience, has also launched a mobile payment Cashi, in Mexico for supermarket cashier scenarios. By contrast, the acquisition of e-commerce entity Flipkart has not brought much amazing performance to Walmart and has been held back by Amazon India.

Development path discussion

Alipay was started as a guaranteed trading tool on Taobao platform, and then split up and raised independently. With Ant Financial Services Group, it took the path of ecommerce first, then payment, and then offline. The natural advantage of this path is that ecommerce provides a scene for payment, which is the most important environmental basis for the development of payment business. From e-commerce to later mobile phone charge, water and electricity payment and offline shopping, it is always the scene first.

PhonePe's path is like Alipay, but it's not exactly the same. Phonepe was created by Flipkart after 2015 and immediately bought by Flipkart, a bit like eBay's early acquisition of PayPal and the inclusion of payment tools into the e-commerce system. But they all belong to the prior e-commerce, and then developed and paid. The original Lazada's payment instrument, HelloPay, has been merged with Alipay and is also the path of development.

In addition, several taxi platforms in Southeast Asia have launched online payment tools, which are naturally generated by the high-frequency scene of taxis. It is also the scene first.

The Paytm path is the opposite. First, it is a payment tool. At that time, there were only a few online functions such as transfer and payment, and there was no natural scene. After being bought by Ali, it was supported by the Alipay technical team. It improved the overall framework from risk control to business. The main attack line, and later e-commerce business in the App, and independent by Paytm Mall. However, this e-commerce sector faces fierce competition and its market share still lags behind that of local and foreign competitors. According to reports, Paytm Mall is talking to eBay about mergers and acquisitions.

Then expand the scope to the social field. Before the birth of the WeChat red envelope, WeChat paid no natural trading scene, and the market share was naturally low. The occasional social scene of the red envelope changed the situation and the share quickly increased. Japan's Line Pay is similar to South Korea's Kakao Pay. The product design idea is to encourage users to tie cards first. You can use these social apps to purchase cards. They are the first to play pure channel roles.

One of the more special routes is Singapore E-commerce Shopee, whose parent company SEA Group is the first game business, and then the online payment tool AirPay is naturally derived from the demand for recharge in the game scene, followed by the second year of e-commerce. Platform Shopee. It adds a layer of gameplay to Paytm.

In fact, different paths are not good or bad, are the natural expansion of their own business extension. I think there are three factors that determine the market expansion of mobile payment App. First advantage; 2. Scene resources; 3. technology barrier。

The first-mover advantage means a large amount of user education investment in the early stage, but the dividend that can enjoy the user's usage habits can generally get the license first; the scene resources determine the early user base and the subsequent market expansion speed; and the technology determines that you can go How far is it, Alipay can go out to sea to cultivate local e-wallets, mainly relying on technology accumulation.

Back in the Indian market, the rapid development of PhonePe benefited from Flipkart's construction of online and offline trading scenarios, but PhonePe has lost its first-mover advantage and is still catching up technically. In any case, Paytm can create a competitor to check and balance, which is a good thing for the evolution of the local market.

[Titanium Media Author: 12,000 words (word1200), talk about Internet logic and company finance in the most concise text]

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