Paytm, the Face of Digital Payment’s India
Paytm: India’s largest Digital Payment Company, with a transaction volume of 5.5 billion in 2018-19 and gross transaction value (GVT) of $50 billion in 2018-19. The company aims to double the transaction volume to 12 billion by the end of 2019-20. The company’s worth increased from $2 million to $20 billion within a short span.
About Paytm and how does it work.
Paytm was found in 2010 by Vijay Shekhar Sharma, it was initially a service of prepaid mobile recharge later in 2014 Paytm wallet was launched.The wallet made it the largest mobile payment service in India. It acts as a bridge between you and your banking that may be a credit card, debit card, and online banking. It allows you to make payments from any of your banking options. You need not carry any cash or cards when you have a Paytm wallet.
Paytm collects the significant share of its profits through mobile revenue model where it earns through e-wallet services, besides its advertising revenue model. … Another Paytm income source is interest on advance payment for customers. Paytm also makes through commission figure charged from sellers.
If you are visiting India, you better have the Paytm Wallet on your phone.This makes your transactions easy in India. The question will be a better if you ask, “what Paytm is not offering in digital payments ?” than “what Paytm is offering in digital payments?’
Paytm Wallet: Using Paytm Wallet, you can buy any goods and services. The money gets transferred from the bank account to Paytm wallet and then used for transactions you do.
Payments Bank: only India’s mobile bank with zero balance.
Paytm Mall: Its an e-commerce shopping with a wide range of products. It raised $200 million from Alibaba Group and SAIF Partners in March, 2018.
Paytm Business: Allows a business to keep track of previous transactions and helps go paperless. There is not an additional charge for business on accepting payments.
Paytm Money: an Investment and wealth management product.
Paytm Gold: Paytm has partnered with MMTC-PAMP enabling you to buy, sell, and store gold digitally without any additional cost. Helps you to buy as low as the gold of 1 rupee.
Paytm BHIM UPI Address, Metro card Recharge, Game pind, Offline Transaction, KYC are others offerings by Paytm.
Indian demonetization and role of Paytm
India is a country with 85% of the transactions happening in cash. Government of India banned 500 and 1000 notes with immediate effect on Nov 8, 2016, to bring hoarders out. Govt brought new 2000 and 500 notes out for circulation but unfortunately due to some technical issue 500 notes are delayed. Running a small business where every transaction is below 2000 rupees was very difficult because 100 is the only available denomination in the market. There weren’t enough 100’s in circulation which can break down the 2000 notes. Demonetization left Paytm as the only option to do transactions with small businesses. Using this app, people can send and receive money just by scanning a QR code.
The small merchants and street vendors started using the app to accept payments. The number of merchants grew from 1 million at the beginning of 2017 to 7 million by March 2018.Growth with more than 150% transactions. Paytm allows tax payments to be processed and then analyzed.
By Sandeep Pasham.