PayTM - The Online ATM

Posted in Operations & IT Articles, Total Reads: 878 , Published on 10 September 2015
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PayTm stands for 'Pay through Mobile'. It is founded by Vijay Shekhar Sharma in 2010 under the company name One97 communication. Initially it was focussed on mobile and DTH recharging. It is headquartered in Noida and in 2014 it entered ecommerce market, providing products and facilities similar to Flipkart and Amazon. In 2015 it entered into bus booking. Recently Alibaba has bought 25% stake in One97 communication.




Image: logo, flickr.com/photos/125207874@N04/14636542602


Different product Line at Paytm –

1) Online Recharge –

You can recharge online your mobile, DTH, Data card, landline, electricity, Income tax Gas, metro, financial services etc. Paytm within in a short period of time has made all sort of billing within few clicks and has saved lot of time for the customers.


2) Online retail product –

Paytm is now selling almost everything from electronics to daily use, from fashion to home accessories it covers all.


3) Paytm wallet-

It is the most important reason for the success of Paytm. Paytm wallet is approved by RBI and now has been the largest wallet in India. It can be used to make payments across all the products on website and can be used to make payments at different website for e.g. PayTm has partnered with Uber, IRCTC through which payment can be done through the Paytm wallet so need to remember your debit card number refill your wallet once and use anywhere.


Reason for Paytm success –

1) Quick and Easy –

Online recharge has become quite easy has now you don’t have to go to any vendor, you can straight away right at your home within secs can recharge almost anything.


2) Safe and secure –

PayTm has invested a lot in making the website safe and secure for users to do transaction on the website and it is also PCI DSS certified.


3) Attractive deals and cashback –

If any website should be given credit for the start of cashback trend online it should be Paytm. It was a uniques idea instead of giving discounts they give cashback in the form of wallet money because of which the money remains with them only as customer has to do some transaction on website again in order to use that.


4) Effective promotional ads –

Paytm has invested a lot in promotion of its products with tagline paytm kro and also doing effective promotion on all social mediums with hashtag #paytmkro.


5) Newer deals-

Flipkart started cash on delivery, yebhi started try and buy, myntra started exchange on return similarly paytm started bargain and buy in which you can directly bargain with seller ask for a price and if the seller is ready you can buy at that price.


Some stats regarding Paytm-

• It is the India’s biggest transacting website (after IRCTC).

• It is the India’s fastest growing consumer internet brand

• It has 100 million users and has around gross 100 crore wallet money more than various functioning banks.

• Ranked no.1 in shopping on google play store and no.2 in utility on apple sore.

• Alibaba has around 25% stake in One97 Communication.

• 90% repeat users.

• 15+ million visits per month.

• 10+ million unique users.


Investors –

1) Alibaba Group

2) Ratan Tata, Chairman emeritus of $100 billion Tata Sons

3) SAIF Partner

4) Intel Capital

5) Sillicon Valley Bank


Paytm future plans –

1) To give credit score based on previous transaction to give credit without the use of credit card. Now the customer can get product on EMI without the use of credit card based on the level of their previous transaction on which they will be provided with score and based on that score credit will be provided.

2) To collaborate with bigger brands in order to increase its reach across potential customers. For e.g. it has signed 200 crore sponsorship deal with BCCI till 2019.

3) It has collaborated with InMobi, one of the largest online platform to increase market place reach to 12 million users.

4) PayTm is ready to invest 15-50 million dollar each in 5 potential start-ups to acquire around 25-40 % stake in them.

5) Alibaba is planning to increase its stake from 25 to 40% with investment of around 600 million dollars i.e. around 3800 crores in Indian rupee.

6) To double its users base by 2020.


This article has been authored by Ashish Gandhi from IIM Kashipur



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