I retried an experiment from 2 years ago. Here's what I observed

Around 2 years ago I wrote a post on LinkedIn where I went to 5 shops in my neighborhood and tried to pay for everything by mobile. No cash.

This week I retried that experiment and added a few more shops

Chemist: Earlier I faced the issue of a poor mobile network. Now since covid, he has put up his QR sticker outside the shop. No need to enter the shop. Scanned and paid via Paytm wallet. No pin needed. He has Soundbox so I can just walk away

Milk: Now he uses Paytm Soundbox and also accepts Paytm Postpaid. It's perfect because neither of us needs to stand and wait for txn confirmation. He is always very busy. I scan, turn my back and start walking away, completing the payment while moving. I'm paying by Paytm Postpaid and so I don’t have to enter any pin and I know the txn won’t fail. As I walk 3 steps I hear the Soundbox notification in the background.

He told me that when he started accepting Paytm, the confirmation sms came to his son’s mobile no. and he had to call him to confirm the txn. Soundbox solved this big pain.

Paneer: Now he has started accepting Paytm as he no longer has to pay fees to accept Paytm. I open the scan and pay, his name already shows up in the recent txns list. I pay using wallet. If I have money in my food wallet, that gets debited first. No pin needed.

Bread: Now he has a QR sticker pasted outside. Earlier it was inside. I scan, pay using wallet. Again my food wallet gets preference. No pin needed. I show the payment screen and get an acknowledgment.

Bread seller 2: Earlier he never accepted Paytm. Now since the fee is 0 he has started accepting. I’m pleasantly surprised. More than that I’m shocked to see that he also has a Soundbox. I know he doesn’t like to spend money unnecessarily so I ask him why he bought the Soundbox. He told me that when he started accepting Paytm, the confirmation sms came to his son’s mobile no. and he had to call him to confirm the txn. Soundbox solved this big pain.

Vegetable seller: I asked and to my delight, he now accepts Paytm. No QR code but he tells me his mobile number. I pay by wallet

Chemist 2: This guy doesn’t have a Paytm QR. He has a Bharat Pe QR, which accepts only UPI txn and they require a pin. I’m in the mood to try something new so I use 'Bullet' by Jupiter. Smooth experience. Doesn’t require a pin, works on all UPI QR codes.

He hands me the phone saying “aap kar do” (“you do it”). He sees there is a small MDR but he is willing to bear it. I activate. It’s immediate.

Kirana store: Used to have his QR code tucked away in a corner. Now displays it upfront. I scan. I’m sad to see he doesn’t accept Paytm Postpaid. The shop is empty so I strike up a conversation. I ask if he knows about Paytm Postpaid. He doesn’t but it only takes him a minute to understand the product and its value. I tell him to activate the option on his Paytm business app. He hands me the phone saying “aap kar do” (“you do it”). He sees there is a small MDR but he is willing to bear it. I activate. It’s immediate. I happily pay via Paytm Postpaid. No pin needed

A few more observations and how I manage my payment apps in general:

1. I used all the 3 common payment instruments. Wallet, UPI (via Bullet), and Pay Later (using Paytm Postpaid).
2. In none of these transactions, I entered a PIN. It’s a huge friction point for me. I don’t like to enter my UPI pin in public. I will be ok with fingerprint for payment confirmation but I don’t think it’s supported right now? Maybe Kotak 811 app has it but I don’t recall fully
3. Wherever Paytm Postpaid is accepted, it shows up as the top pay mode. That’s super convenient for me
4. I always have money in my wallet because I have set up auto top-up from my Paytm payments bank account. If my wallet balance is below 1000 Rs, it automatically tops is up from my bank. It’s another game-changer for me. I hate having to top up my wallet manually.
5. Food wallet works not only on big websites like BigBasket but also on small merchants tagged as food retailers. I really like this. Makes it easy to consume the Rs 2000 per month food coupons
6. I have a much better mobile phone now. My mobile when I wrote the previous post used to hang a lot and I despised doing mobile txns in public because of this reason.
7. My mobile now has a fingerprint sensor so I can open my payment apps without entering my lock screen pattern. I just use my fingerprint. I feel much more secure doing that in public instead of entering my unlock pattern.
8. I have a 4G phone now so internet connectivity is better

And so again I firmly stand by the belief that you can't develop a deep insight by sitting in the office. You have to experience it first hand as much as possible.

As the Japanese would say: "Genchi Genbutsu", in other words "Go and See"

Link to my original post from 2 years back if you are curious.

Disclaimer: I work at Paytm in the consumer lending division.

The views expressed here are my own personal views.