Freecharge Will Be Looking To Compete With Paytm For Number 1 Spot
The Snapdeal owned online recharge portal, Freecharge, has decided to take on Paytm in a bid to become the number one player in the Indian E-wallet business.
Freecharge’s acquisition happened a year ago when Snapdeal purchased them at around $400 million. Since then, virtual war has gone in a full swing. Currently, Paytm, is having the upper hand in the market but it might not retain its position if Freecharge dislodges with its strategy.
With Freecharge offering new offers and deals, they are likely to bring out a stiff competition. Freecharge also offers a virtual debit card and it mainly focuses on building great mobile platforms for the youth.
The news might seem normal, but lately, it is in a mood to cut their losses and focussing more towards profit-making business. Snapdeal has already begun to close down the loss-making business and has even made changes in the management team.
According to a study by the Information measurement company Nielsen, it specifies that Freecharge has hit the mark of 30% Smartphone users using their mobile app in April 2015 as compared to 17% in October 2014.
The further study also tells that Paytm engages users for the longest time of 56 minutes. However, Freecharge is showing a great improvement in customer engagement. According to an article in The Economic Times, Freecharge is engaging customers greatly and they increased customer engagement to 55 minutes from 28 minutes. As compared to the numbers of Mobikwik that reached to a surprising consumer engagement of 31 minutes from 18 minutes.
This is a sign of Freecharge emerging as the reliable online e-wallet company and eventually, it is going to give a tough competition to Paytm. In a conversation with Freecharge’s CEO Mr Govind Rajan, he said, “The customers look for a good user interface and our focus is simply the same. The Freecharge’s transactions are done within 10 seconds and the rate at which we are succeeding is also high”.
Besides Freecharge there are another player Mobikwik which also is in the race but currently, they seem to have settled for the 3rd spot behind Paytm and Freecharge.