How Paytm Works?

What is Paytm?
Paytm was founded by Vijay Shekhar Sharma in August 2010. Paytm is owned by One97 Communications Ltd. Paytm is India's largest mobile payments, e-wallet and commerce platform. Though started as a recharge platform in 2010, paytm has subsequently changed his business model to a marketplace and virtual bank model. As of January 2018, paytm is valued at $10 Billion. In August 2015, Reserve Bank of India (RBI) has granted 'in principle' approval for Payments Bank to Paytm. In 2017, the company launched its "Paytm Payments Bank" with a aim to bring banking and financial services access to half a billion unserved and underserved Indian.

How much funding paytm get?
In 2007, paytm's parent One97 Communications Ltd got its first Institutional Investor venture capital firm SAIF Partners.
In March 2015, Paytm received its funding from Chinese e-commerce company Alibaba Group, after Ant Financial Services Group, an Alibaba Group affiliate, took 25% stake in One97 Communications Ltd.
In August 2016, Paytm raised funding from Mountain Capital, one of Taiwan- based Media Tek's investment funds at a valuation of over $60 million.
In May 2017, Paytm get its biggest round of funding by a single investor- Softbank, bringing the company's valuation to an estimated $1.4 billion.

How Paytm Works? (Business Model of Paytm)
Paytm Revenue Model can be divided into following categories:
1. Marketplace
2. Recharges Services
3. Bill Payments
4. Payment Solutions
5. Paytm Wallet
6. Digital Gold
7. Paytm Payments Bank
8. Paytm Mall
In marketplace category, revenue is generated as commissions from the sellers which differ for different category of products. Paytm also generate money by holding promotions for sellers.

In recharge services category, revenue is generated just like other recharge service providers, charge commission from this telecom operators like Airtel, Vodafone, Idea etc.

In bill payments category, customers can even pay their electricity, telephone, water, broadband, gas, DTH bills on paytm. Apart from this, paytm has also partnered with several financial and educational institutions and organisations and act as a portal to accept educational fees and insurance installments. On paytm portal, customers can even exchange foreign currency and recharge their metro smart cards. Customers can even pay their loan EMI, can make donations directly to devotional places, can make payment for property taxes and toll charges. Generally paytm has tie up with all the above organisations and they get their commission on that for the payment through paytm to such organisation.

In payment solutions category, customer can pay for booking movie tickets, concerts, events, bus, trains, flights, hotels, amusement park, purchase of bikes and cars etc. Paytm charges commission from the above partners.

In paytm wallet category, paytm has planned to focus more on the digital currency prospects. All of its core marketing and promotional strategies enforce the use of Paytm Wallet. In this category, paytm offers cash back on different deals which is stored in paytm wallet and which the user can use only in purchasing product or service from paytm.

In digital gold category, customer purchase digital gold which is stored in online gold balance and which you can request for delivery or you can sell online at anytime.

In  paytm payments bank category, paytm can now accept customer deposits upto Rs 1 lakh per customer in a wallet, savings or current account and offer other banking services like Debit Cards, Online Banking and Mobile Banking. Paytm Payments bank are not allowed to lend to customers. Paytm Payments Bank continue to offer Paytm wallet. In addition, current accounts for businesses and interest bearing savings account for individuals will be offered by bank.

In paytm mall category, partners can sell their products without investing in inventory or logistics and the partners can sell a wide variety of products in their stores i.e an apparel store can now sell electronics or groceries and vice-versa. In this category, customer scan the QR code at the Paytm Partner outlet and then lands on device page on paytm mall, orders the product online and accepts hassle free delivery from the nearest authorised dealer means it is not necessary that the partner should display the product which it wants to sell, even the partner can sell the product which he/she was not selling in offline mode. 

Do Follow :-
Facebook - https://www.facebook.com/TaxCreators/
Instagram - https://www.instagram.com/taxcreators/