What is Paytm business model | how paytm earns money

Hello guys , So today's topic of our discussion is PAYTM . Most of you already know about Paytm that it is a Indian startup company started with a idea of cash less transactions.It was founded by Vijay Shekhar Sharma in year 2010 . Here we will talk about-----

• WHAT IS PAYTM ?
• WHAT IS PAYTM BUSINESS MODEL ?
• HOW PAYTM EARNS MONEY ?
• VARIOUS EARNING METHOD OF PAYTM ?
• HOW PAYTM GIVES CASHBACK?

Paytm means payment through mobile . It is India's largest e-commerce enterprise.
It is started as a online recharge website and then expand its business model to cashback and market place model.

Patym receive funding from many big investors such as Chinese e-commerce giant 'Alibaba', SoftBank, Ant financial , AGH, SAIF Partner , Ratan Tata and Warren buffett's 'Berkshire Hathaway'.

How patym earns money?

 What is paytm business model ?

• Patym wallet

It allows customers to store their money in their mobile, means in digital wallet.
Money in digital wallet of paytm goes into escrow account which generates interest income to patym.

• Payment gateway

It's means it allows many business to receive their payment through patym which becomes payment solutions for many businesses.
For example-- In many gaming apps there is payment gateway such as patym through which you transfer your winning .
For this paytm charge 1-2%commission.

• Recharges And bill payment

For every recharge done , paytm charge 2-3% commission from service provider.
In addition to recharge, it also allows customers to pay their bill such as water bill, electricity bill, phone bills. Paytm also partnered with educational and financial institutions to receive their payment through patym.

• Bookings

Patym also earns commission for booking of plane ticket,bus tickets, train tickets and movie tickets from service providers.

• Paytm mall

It is marketplace platform for vendors to buy their products. For this , it charges commission of 5-20% ,It varies for different products.

Patym may give business consultancy services in future because many businesses do transaction through paytm such as QR code in restaurants , shipping mall, small small business . It means daily millions of transaction are doing through paytm . It implies paytm have large database of which business is profitable and which app is doing more transaction , so they can partnered with that business or apps in future or started their own.

But why ? Paytm is incurring losses for many years.

It's because paytm is spending or burning their cash in marketing of their app or website, so more users will use their app in future.
It also burns cash in data analysis , as will help to expand their business in future.
We can say that they are not incurring losses , they are just delaying their profits.

How and why paytm give cashback ?

As billions of people is using paytm and stores their money in paytm wallet. And paytm also encourage people to deposit their cash in their wallet because paytm transfer this money in escrow account which give interest of 4-5% to paytm. which paytm utilise to give attractive cashback.
It is giving cashback because it want to acquire more and more users and a habit of using paytm .

Conclusion

Paytm today has become a part of our everyday lifes.Paytm tagline patym karo is impactful and it attracts many users.
Many startup can take lessons and inspiration from business model of paytm.

What you think about paytm business model ? Comment ...............!

HERE IS THE END OF OUR TODAY'S TOPIC ABOUT PAYTM BUSINESS MODEL , HOW PAYTM EARN MONEY AND HOW PAYTM GIVES ATTRACTIVE CASHBACK. IF YOU LIKE OUR TOPIC OR HAVE DOUBT REGARDING OUR TOPIC PLEASE COMMENT BELOW AND LET ME KNOW.

GOOD BYE FOR NOW , WE WILL MEET IN THE NEXT ARTICLE.......

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