dia's booming digital cash industry is under threat. Last year's cash crunch panic credited millions of new eWallet customers virtually overnight. As the country scrambled to find ways to pay for things without bank notes. The largest provider paytm boast 200 million users. But new state backed rivals have quickly moved in forcing private firms to diversify.
Reuters Sankalp Phartiyal explains how they're aiming to stay ahead of the curve.>> India's eWallets are evolving into full time payment solutions. This means that the countries biggest wallet paytm, which now has a payments bank license, will be able to offer debit cards and almost all banking services except offering a loan.
Smaller rival MobiKwik is partnering with banks and offering financial services to its users through its app.>> eWallet firms hope that getting in on the action first will keep them ahead. But they're up against tough opponents including one built on the countries UPI mobile payment system with the backing of India's leader and strong early signs of success.
>> Prime minister Narendra Modi launched a UPI app called BHIM in December last year. This app has been downloaded more then 70 million times, which means users are growing warmer to the possibility of using UPI. Another service called India QR, which essentially uses a QR code for making payments and transfers has set a target for two million users by the end of September.
>> For the private providers success hinges partly on keeping their services free, but in doing so even the biggest brands are burning through funding. In the past financial year, paytm spent roughly a third of the $700 million it raised through Chinese tech giant Alibaba covering costs, and with competition heating up experts say the many of the smaller names won't survive.