According to Bloomberg Quint, the top four payment services and e-wallet providers — Paytm, PhonePe, Google Pay and Amazon Pay — spent around $995 million or Rs 7,050 crore on advertising, marketing, and promotional expenses in the last fiscal year.
With double financial transaction volumes, spends in the advertising, marketing, and promotional expenses categories doubled from Rs 3,400 crore in FY18 to Rs 7,050 crore in FY19.
Paytm spent the most in absolute terms with a whopping Rs 3,451 crore on advertising and promotional expenses.
PhonePe – Rs 1,296 crore or 60 percent of total expenses on advertising and promotions.
Amazon Pay – 64 percent or Rs 1,277 crore on ‘advertising and sales promotion’ expenses. Google Pay – Rs 1,028.6 crore.
With the processing of 5.4 billion transactions in FY18, the amount worth Rs 8.76 lakh crore were processed on the UPI network. It was the result of heavy promotions that the apps, along with revenues, the apps also incurred heavy losses.
These four payment apps earned Rs 5,150 crore in revenues in FY19 compared to Rs 3,850 crore in FY18. Losses for the four payments firms more than doubled to Rs 7,028 crore or about $989 million in the financial year ended March 2019.