Effect Of Demonetization On

Marketing Strategies Of e-wallets

Group 3
Siddhartha G001
Kamlesh G009
Vikram G013
Anshul G020
Navnita G035
Anand G055
 DEMONETIZATION
On 8 November 2016, the Government of India announced the
demonetization of all 500 and 1,000 banknotes.

The government claimed that the action would curtail the shadow
economy and the use of illicit cash to fund illegal activity and
terrorism.

The sudden nature of the announcementand the prolonged

cash shortages in the weeks that followedcreated significant
disruption throughout the economy, threatening economic output.

People had to wait in long queues outside ATMs and that caused
a lot of problem. 86% of the currency suddenly vanished from the
economy.
 Demonetization gave a huge fillip to the digi-wallet industry and their players have
been extremely aggressive in their consumer acquisition strategies.

From running full-page ads in newspaper to making their presence felt on TV and
digital, Paytm, FreeCharge and Mobikwik were concentrating on educating the
consumers, expanding their user base and promoting cashless transactions.

Paytm and mobile payments were now an obligation, and not just a choice.

More and more people started using these e-wallets and hence their customer
base increased many folds.
 Major Focus Areas

Pre-Demonetization
Marketing Strategies
Heavy Cashbacks Full marketplace to
consumers
Getting into movie
tickets as a category
Tie Ups
Low transaction
Bargain and Shop
charges(1 %)
Selective
Coupons
advertisements
Targeted niche
customer segment

Low digital presence

Post- Shift In Focus

Demonetization
 The Shift
Heavy investment in advertisements through national dailies, TV, Digital and
radio

All merchants can now accept payments at 0 transaction fee.

Paytm Leveraged Payment bank infrastructure 5 months ahead of schedule to

cope up with the crisis

Mobile wallet player MobiKwik increased its marketing budget a whopping 10

times: from Rs 3 crore to Rs 30 crore for November and December.
New Communication Strategy
Laud PMs initiative& educate consumers:

Full page advertisements in major publications

across the country

Pledged support to the policy

Educated consumers about the ease of cashless

transactions

Taglines used by various wallets:

Ab ATM nahin, #Paytm Karo

Khatam Karo ATM Shaytm. Switch to MobiKwik
wallet
Cash is not feeling accepted anymore- freecharge
New Communication Strategy
Tap non-internet user base:

Also invested heavily to come up with new features

to reduce the hassles of the consumers during this
time

MobiKwik immediately sensed an opportunity and

launched their new feature MobiKwik Lite for
consumers who dont have access to proper
internet connection

Within few days, Paytm even got back with a toll-

free number to enable consumers and merchants to
pay and receive money and even recharge mobile
phone without internet.
Digital village initiative
Tap non-internet user base:

Paytm is helping Manguli village, on the outskirts of

Cuttack, to move to cashless transactions

Educated local community to go cashless

Received a great support from local merchant

community and administration in Odisha

Plan to launch such initiatives in many more

districts.

Following suit, other wallets are planning to tap into

rural market
New Communication Strategy

Urged people not to panic:

These e-wallet majors took charge of the situation and
urged people not to panic and go cashless through
their witty posts on social media
 RESULTS
Paytm:
The mobile wallet is now four months ahead of its target and crossed $5
billion GMV sales

Within 12 days of demonetisation, Paytm witnessed over 7 million

transactions worth Rs 120 crores a day

From 3,000-4,000 sign-ups a day (before the announcement) to signing up

25,000 merchants a day, with the highest number of merchants in tier-II
towns, not so many in tier-I towns

The average transaction value has increased by 200%

The number of mobile app downloads went up by 300%.

 RESULTS
Mobikwik :
Since November 8, MobiKwik has added 1.5 lakh merchants, seen over
7,000% jump in peer to peer and bank transfers
Noticed 100x increase in overall traffic
Witnessed a 200% jump in app downloads.
18x surge in overall transactions
2000% spike in money added to the wallet
Up to 5 times rise in transaction value of offline payments.

We have seen unprecedented growth, says Bipin Preet Singh, co-founder of

MobiKwik. Earlier mobile wallet was an option, now its a necessity.
THANKYOU!