Indian online payment firm Paytm says it has added 8 million new users in the two weeks since the government announced the replacement of the country’s highest-denomination bank notes.
In a bid to root out corruption, counterfeit money and tax evasion, Prime Minister Narendra Modi on Nov. 8 announced the replacement of notes worth 500 rupees ($7.30) and 1,000 rupees ($14.60). That move has resulted in a cash shortage, with scores of people lining up outside ATMs and banks to deposit their cash, exchange old notes or withdraw new bills.
The inconvenience has also pushed people to sign up for digital wallets.
“This is the golden age of investment in digital payments in India,” Vijay Shekhar Sharma, chief executive of Paytm parent company One97 Communications, said at a news conference in New Delhi on Wednesday.
Patym, which is backed by Chinese e-commerce giant Alibaba Group Holding Ltd., makes a popular mobile app that can be used to pay for everything from auto-rickshaw rides to groceries.
The Noida, India-based firm is adding about 500,000 new users daily following Mr. Modi’s announcement, according to Mr. Sharma. It added 100,000 a day last month.
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