Whether you’re looking for secure payments or book favourite movie tickets, Paytm is the all-in-one application for you. Many people choose Paytm as the preferred payment method to transfer their funds. Within a few simple clicks, users are paying their bills and booking travel tickets.
Let’s discuss, what is Paytm and its features? How does Paytm make money?
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What is Paytm?
Paytm is the largest mobile payments and e-commerce platform available online. Paytm has been a popular fintech platform for more than a decade. According to a recent analysis, Paytm has more than 39 million active users around the world. The application is preferred by more than 15,00,000 merchants. Paytm ensures your account is safe and secure. Also, provide you with an excellent experience whenever you shop or pay via Paytm.
Users don’t need to pay a single penny to download the Paytm application on play store or App Store. Paytm acts as the “virtual wallet”. Users can easily store their money online without any hassles. The virtual wallet acts just like a debit or credit card. Transferring funds through Paytm is simple and easy.
The virtual wallet Paytm is amazing for the people who cannot go out or find it difficult to pay DTH bills or pay at merchants. The popular brands available on Paytm are Uber, BookMyShow, Amazon and MakeMyTrip. Users can purchase FASTag through Paytm.
Let’s discuss Paytm features which users use frequently
- Merchant payment
- Mobile recharge
- Bill payment
- Movie and travel tickets
- Financial investment
- Play games
- Fund transfer
Paytm business model
Paytm was launched in 2010 as the largest e-commerce payment and e-wallet destination. The business model revolves across various services that are related to mobile payments, online shopping, utility payments and more. The popular services available on Paytm are Paytm Money, Gamepad, Paytm Mall, Paytm Payment Banks and more.
Let’s dive into the topic!!!
How does Paytm make money?
The ultimate virtual wallet Paytm was introduced with the primary idea of “cashless transaction”. The application is available in 11 regional languages. The application is available for both desktop and mobile. Paytm has earned more than $10 billion in 2020.
The Paytm business model works in a straightforward way. Paytm indicated “Pay through Mobile”. The wallet is encouraging users to make cashless transactions without any difficulties. At initial times, Paytm has served as the recharge website. And later Paytm has opened new doors as a virtual bank. Simply put, Paytm works on “Cashback Business Model”.
Let’s discuss!!! Paytm works as a payment bank model and marketplace. The platform is a one-stop destination to buy fashion products, groceries, book tickets etc. On the other hand, users can easily make payments through Paytm QR code at pharmacies, restaurants, grocery stores, etc.
Paytm Marketplace
If you’re a shopaholic then you might purchase items at least a couple of times at Paytm Mall. Paytm is earning good profits, more than 120 million users have purchased at Paytm mall. There are over 2 million transactions that will be processed every day. It’s no surprise that Paytm is the best marketplace for customers and sellers. The revenue is generated whenever a customer places an order at Paytm Mall. The commission may vary from category to product or service.
Recharge services
During initial days, Paytm business model consists of mobile recharge and utility payments. With time, Paytm has introduced various services to increase profits. The services are DTH, metro, data-card and more. These services available at Paytm will charge commission fees for service providers.
Bill payment
Apart from recharge service, users can flexibly pay their utility bills such as telephone, electricity, broadband, gas, water bill, etc through Paytm wallet. Sounds amazing right!!! Also, Paytm has partnered with educational and financial companies. Users can pay their education fee or insurance instalments without hassles. Similar to recharge services, Paytm charges a commission from these service providers as well.
Payment solutions
Great news for small and large businesses. Paytm is offering excellent and smart payment solutions for these online businesses. There are multiple payment solutions are available at Paytm such as
- Payment link for WhatsApp or SMS
- Pay with Paytm button for website
- Deep integration
The payments are accepted in a safe and secure way. No installation or maintenance charges are required. Paytm charges 1.99% as commission fee on each transaction.
Paytm wallet
Paytm is offering 50 to 100% cashback on every transaction. You would have wondered how Paytm is earning money? Let’s discuss the secret now!!!
Paytm is earning good profits on every cashback. Because cashback are often credited to Paytm wallets. This could be a new marketing strategy introduced by Paytm to focus on digital currency. When the cashback is credited to Paytm wallet, the users will pay frequently through Paytm. This will increase their brand reputation and increase trust among users.
Digital gold
Paytm wallet is extending its functionalities through “Digital Gold”. The application has partnered with one of the leading gold refiner “MMTC-PAMP” and launched “Digital Gold”. Paytm users can easily buy, sell or store gold digitally, No additional charges are applicable. Paytm users can purchase gold and get it delivered at the doorstep with minimum delivery charges.
Paytm Mall
Paytm mall was launched in 2016. The parent company for Paytm Mall is One97 Communications. Paytm Mall is a popular shopping application that offers a quick and trouble-free shopping experience for Paytm users. Similar to Amazon and Flipkart, Paytm Mall is the one-stop destination to shop multiple categories that are ranging from mobile phones to pet supplies. So Paytm makes revenue through Paytm Mall.
Paytm Mall is a business to customer platform. Millions of sellers are listing their products or services under one roof. Whenever a user purchases the product or book a service, Paytm will earn commission on every referred sale. Paytm will charge upto 12% commission on every sale. Keep a note, the commission rate may depend according to the product category.
Payments bank
Payment bank is one of the best services introduced by Paytm. It works in a different way, here the payments are accepted and deposited effectively. It provides interest to the users but doesn’t carry any lending charges. The best part of Paytm bank is it will let users to create a zero balance saving account. Paytm will provide 4% interest on the amount deposited in the savings account. But, you might be thinking how does Paytm earn money through Paytm bank, let’s discuss them,
Cross-Selling: Paytm is the e-commerce marketplace that will let sellers sell their products and services. Paytm charges upto 20% commission on each transaction.
Internet arbitrage: Many users trust Paytm and deposit their amount. The money deposited by Paytm customers is transferred to other banks. These banks are providing higher interest rates. This way Paytm is making good income.
Conclusion
Paytm is a popular e-commerce company that has carved out the best app within a short period of time. At initial stages, Paytm offers a few services such as mobile recharges and paying utility bills. But now, Paytm offers a complete marketplace to customers on its mobile application. The popularity of Paytm is increasing due to Paytm coupons, Paytm cash and easy payments. Paytm is earning a good income from various services such as Paytm marketplace, recharge services, bill payments, Paytm wallet, digital gold, Paytm Mall and more.
