its all about the business model of paytm you can get the complete knowledge of business model of paytm

2. INTRODUCTION
• Paytm is an Indian payment and commerce company
based out of Delhi NCR, India. Launched in August
2010, it is the consumer brand of parent One97
Communications. The name is an acronym for "Pay
Through Mobile."
• In 2015, Paytm became the first Indian company to
receive funding from Chinese ecommerce company
Alibaba, after it raised over $625 million at a valuation
of $1.5 billion. The Alibaba Group was the biggest
stakeholder in Paytm parent company One97
Communications.

3. • The company employs over 13,000 employees as of
January, 2017 and has 3 million offline merchants across
India. It also operates the Paytm payment gateway and
the Paytm Wallet.
• Paytm launched bill payments services in Canada, its
first overseas market, on 16 March 2017. The new app
allows Canadians to pay their utility bills.

4. ABOUT FOUNDER
Vijay Shekhar Sharma is an Indian
entrepreneur and founder of Paytm.
He was born in Aligarh, Uttar Pradesh.
He started college at the age of 15. In 1997
while in college he started the website
indiasite.net and sold it for $1 million.
In 2005 he started one97 communication which
offered mobile contents like news, cricket
scores, ringtones, jokes, an exam results. One
97 is the parent company of Paytm.

5. PAYTM
BUSINESS
MODEL
OF

6. Business Model of Paytm
Paytm Business Model is a marketplace model which
also deals in recharge & bill payments and provide
users with the e-wallet and banking option. Paytm,
though started as a recharge service provider in 2010,
has changed its business model to ‘a marketplace
and a virtual bank’ model. It is also one of the
pioneers of cashback business model.

7. How Paytm Makes Money?
As of January 2017, Paytm has a valuation of $5
Billion which includes a stake of one of the global
leaders of marketplace, Alibaba. One97, the parent
company of PayTM, has placed its ace while
planning its revenue model.
Paytm Revenue Model can be divided into following
categories.

8. Recharge Services
There was a time when Paytm Business
Model consist of just mobile recharge
and bill payment services. Online
recharge service for mobile
subscriptions, TV channels
subscriptions, data-card, and metro
card, etc are provided on Paytm.
The company, just like other recharge
services providers, charge commissions
from these operators.

9. Bill Payment
In addition to the recharge
facilities, the customers can
even pay their electricity,
telephone, water, mobile,
broadband, gas, etc. bills on
Paytm. Apart from these,
Paytm has also partnered
with several education and
financial organizations and
act as a portal to accept
education fees and
insurance installments.

10. Paytm Marketplace
• Paytm was the first company who took the step of being
a mobile only marketplace in India. Today, with over 120
million buyers and 2 million daily transactions (and 90%
prepaid offers), Paytm is the love of sellers. Revenue from
this subcategory is generated as commissions from the
sellers, which differ for different category of products.
• Paytm love sellers. Being a marketplace, more sellers will
result in more product categories and more competition,
which eventually will result in less prices on Paytm.
Hence, more customers.
• Paytm also generates money by holding promotions for
sellers. It offers various properties (locations and spots on
app and website) which may be utilized by sellers for
promoting their brand and product.

11. Buy and Sell
Paytm is everywhere and has everything.
From bikes and cars to concert tickets,
bus, trains, flights, hotel rooms,
amusement park tickets, everything is
sold over Paytm.

12. Paytm Wallet
Paytm wallet is a semi closed wallet (approved by RBI) used to
store currency in digital form which can be used to buy goods
and services( including financial services) at identified
merchant locations or establishments (like petrol pumps, a
supermarket, your barber’s shop, movie hall, etc.) which have a
specific contract with the company to accept these payment
instruments.
Paytm wallet doesn’t permit cash withdrawal.

13. How does Paytm earns
through Paytm wallet?
The money deposited by users in Paytm wallet,
as per RBI Guidelines, is deposited by Paytm in
an Escrow Account with a certain bank. This
escrow account deposit fetch Paytm certain
interest which is decided as per the contract
between the bank and Paytm.
• The more you use Paytm wallet, more Paytm
earns from it.

14. Paytm Bank
Paytm wallet will no more be a semi closed wallet.
Paytm will soon come out with its unique Paytm
Bank. It’ll will be a fully fledged payments bank (just
like SBI, ICICI, etc.) but with a twist.
Paytm Bank Business Model will entirely be
dependent on the mobile app. It’ll be a digital bank.
Just like the Paytm wallet, users will pay to the seller
by scanning a QR code. For those who don’t have a
smart phone, Paytm will issue debit cards with QR
codes, which can be scanned at various points.