Paytm claims that its gifting service has already registered half a million transactions.
Paytm launched its digital gifting product, Postcard, on Raksha Bandhan earlier this month and has now rebranded it as Lifafa (envelope in Hindi). This comes soon after India Post — government-operated postal system — sent a notice to the digital wallet provider that it had the sole right to use the word ‘postcard’ under the IPO Act. “The usage of the word Postcard is an infringement of the terms and conditions of the provisions of rules and guidelines,” the India Post notice stated. Adhering to the laws, Paytm has now decided to call it Lifafa.
“Paytm Lifafa offering has gained a lot of traction within a short period of time. We are rebranding it to ‘Lifafa’, a native word that holds a strong emotional connect and social relevance across generations. This will help in further establishing our payments offering as the go-to platform to send money instantly,” Deepak Abbot, Senior Vice President – Paytm, said in a statement. Paytm claims that the product has already registered over half a million transactions. ALSO READ: Payments Bank: Here’s what Paytm and others have set out to accomplish
Paytm Lifafa is modeled on Chinese internet giant Tencent‘s ‘red packets’ that are available on popular messaging app WeChat. It follows the Chinese tradition of gifting money in red envelopes (hongbao). Now, even Alibaba which is Tencent’s rival in China is testing digital gifting products. Alibaba is Paytm’s primary investor. The Noida-headquartered company seeks to replace traditional shagun with digital gifting solutions. Indians are known to exchange monetary gifts on festive occasions. Paytm’s move is well-timed given the festive quarter is round the corner. ALSO READ: Paytm Gold now available with free locker facilities
Paytm has made significant strides in India’s e-commerce market. It is the leading mobile wallet in the country with 225 million users. Besides introducing innovative mobile-first products like Lifafa and Digital Gold, the company’s biggest bet has been to spin off its e-commerce operations into a separate business entity — Paytm Mall. Flush with $1.4 billion in funds from Japan’s SoftBank, Paytm now seeks to emerge as a third alternative to the Flipkart-Amazon combine in the domestic e-commerce industry.