42% Indian Kiranas Have Started To Use Other Payment Apps A recent announcement by the Reserve Bank of India (RBI) directing Paytm Payments Bank to halt services by February end, has led local kirana store owners to start using other payment apps for business.

By Entrepreneur Staff

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A recent announcement by the Reserve Bank of India (RBI) directing Paytm Payments Bank to halt services by February end, has led local kirana store owners to start using other payment apps for business.

A recent survey indicates that 69% of respondents use Paytm QR code for daily transactions in stores. It has only been a week since RBI announced the ban, and it is surprising to note that 42% of Indian kirana stores have already started using other payment apps.

The survey revealed another stark finding about the trust among local retailers regarding Paytm. It indicates that trust in Paytm has decreased among 68% Indian kiranas after RBI restrictions.

While 42% kiranas have already started using other payment apps, another 20% respondents indicated their intent to use other payment apps in the near future. Of the retailers who have started to use or are planning to use other payment apps, a majority of 50% retailers chose PhonePe, 30% are inclined towards Google Pay and 10% towards BharatPe.

Kirana Club Founder and CEO Anshul Gupta said, "Covid-19 pandemic has led the neighbourhood kirana stores to increasingly adopt digital payments. Over time, they have also realized the convenience of accepting digital payments as they do not have to go through the hassle of giving change to customers and money gets transferred to their bank accounts immediately. While the ban imposed by the regulatory authority might lead to disruption at kirana stores, they are not much worried because there are alternate payment options available. Our recent survey also indicates that kiranas across states have already started using or plan to use other payment apps to ensure smooth business operations."

The growth in cashless transactions at grocery and local kirana stores is also indicated in the survey which shows that around 71% retailers in both, Uttar Pradesh and Jharkhand use Paytm QR code to accept payments from customers. A similar trend is seen among retailers in Rajasthan, Bihar, Madhya Pradesh, and Haryana with 70% kiranas using the payment mode for business. The number of retailers using Paytm QR codes is slightly low in Maharashtra (57%) and Chhattisgarh (65%) as compared to other states.

The survey was conducted by Kirana Club, an app-based platform where kirana owners participate, connect and influence each other. The app has onboarded more than 18 lakh kirana owners till date, spanning across 10 states.

Entrepreneur Staff

Entrepreneur Staff


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