While PhonePe has earmarked Rs 800 crore for marketing, Paytm plans to spend Rs 1,200 crore.
BENGALURU: Homegrown digital payment companies PhonePe and Paytm plan to spend a combined Rs 2,000 crore on marketing this year, top executives at both firms said, as they look to increase awareness, and credibility and promote products to a wider consumer audience
While PhonePe has earmarked Rs 800 crore for marketing, Paytm plans to spend Rs 1,200 crore. The spending by both will be across platforms, including ATL marketing, which means widespread brand-building and advertising, and BTL marketing, a form of highly targeted direct marketing focused on conversions as well as Digital Marketing. “For us, a strong brand recall on trust, integrity and innovation is important as our focus is to get at least 150 million new users through the year,” PhonePe CEO Sameer Nigam said.
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Nigam said the company plans to double the active user base this year. PhonePe is the official co-presenting sponsor for the TV broadcast of the Indian Premier League this year.
The move also signals a larger trend brewing in the financial services sector, where companies — whose focus is on tapping new users including merchants from small towns and villages — are looking at multiple ways to establish credibility. A large portion of users in small towns and villages may be making their first digital transactions via these payment platforms.
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Article credit: Economic Times
Q1) Why did Paytm Line Up Rs 2,000 Crore for Marketing?
There are a few reasons why Paytm is investing so heavily in marketing. Firstly, the competition is getting tougher and Paytm needs to catch up. Secondly, the company understands that its marketing investment will eventually make it more money by attracting more customers.
Q2) How do PhonePe and Paytm differ in terms of their products?
PhonePe and Paytm are two mobile wallets in India, though both are growing and working to serve more customers. PhonePe offers balance enquiries, recharges, and online payments for electricity & gas. Paytm provides a digital payments platform which includes the provision of e-commerce facilities.
Q3) Which is bigger PhonePe or Google Pay?
According to some reports, PhonePe is the second largest player in India’s digital payments market with a user base of 150 million and a transaction volume of more than $2 billion. They are also the only player in the country that has been consistently profitable.