How Paytm Makes Money?

Paytm is a digital payment system and financial technology company. It is both a B2C and a B2B activity. Expand services such as mobile charging, payment of electricity bills, booking of trips, movies, and events, as well as payments in stores in supermarkets, greengrocers, parking lots, restaurants, pharmacies, and educational institutions with Paytm QR code.

Very soon, reports One97, Paytm’s parent company is ready to raise target capital of more than $ 2.3 billion through a listed offering that will value the company between $ 24 and $ 25 billion.

Paytm Business Model

It currently operates in six main areas from which Paytm generates revenue:

1. Paytm Wallet

This is a secure digital wallet that allows you to manage your money at the touch of a button, pay your bills, send money to friends and family and pay for purchases from various brands, stores or even general shopping services such as Uber, Makemytrip, Bookmyshow. and much more. It allows you to store money securely and conveniently and keep your credit or debit card for fast and secure transactions. Paytm invests this money in cash overnight. The company does not repay these investments to its customers. It also charges a commission from both the merchant and the customer.

2. Paytm Shopping Center

Paytmmall is an online shopping platform launched by Paytm. It offers a wide range of products, from electronic devices, clothing, fashion products to furniture, etc. It tries to become a competitor to Amazon because it is supported by Alibaba, a Chinese multinational technology company specializing in e-commerce, retail, internet, and technology, which owns almost 25% of the owner’s communication capital. Paytm One97, making it an Alibaba agent to participate in an Indian e-commerce scenario.

3. Loading

Paytm is India’s leading charging platform for airtel, jio, Idea, Vodafone, BSNL, MTNL, etc. It provides a lot of conveniences as you just need to enter your mobile number and your carrier and your circle will be picked up automatically. You can browse the wide range of the latest charging packages and save even more money by using scratch cards and getting cashback offers. Charge a commission from a telecommunications company for these recharges.

4. Payment Solution

Paytm offers many payment solutions for merchants who are not able to accept payments via UPI. For the use of these services, the seller must pay a commission to Paytm.

5. Paytm Digital Gold

You can buy, sell, offer and receive 24-carat gold in a very transparent and simple way. Paytm partners with MMTC-PAMP, which owns the largest BIS-licensed and internationally accredited gold refinery in the country to provide the highest quality gold to its customers. When a consumer buys gold on Paytm, MMTC-PAMP stores the same amount of 24k 99.99% pure gold in 100% secured safes in safe places. You can access your locker balance via the Paytm app and sell, offer or receive your gold anytime, anywhere. To take advantage of these services, you charge a commission from your customers.

6. Cross-selling

Paytm is active in the banking, finance, and insurance industries. Offers cross-selling of banking products, securities brokerage products, and insurance products. It has also collaborated with various banks and insurance companies to establish a strong position in this market.

Charge a commission for the banking services offered through this application. Paytm has joined a variety of companies. Even if it is a company that generates losses, it incurs very high costs to acquire customers and companies. Sales do not increase, they decrease. Future strategy Paytm understands very well that its business model is complex and tries to simplify it.

Paytm tries to have a foothold in every niche, which becomes a reason not to have a core competency. You are reducing your costs in the marketing and marketing, advertising segment, but you have increased your staff costs by hiring more and more employees, as the company has constantly recorded losses since the start. It will be released later this year, so of course, you want to streamline costs. 2. Paytm shifts focus from the B2C segment to the B2B segment, from customer acquisition to company acquisition So if you think about the two points above, keep costs low and focus on hiring more labor as you can go out and get more and more traders who offer many amenities. The Fintech giant has made it clear in its strategy that it wants to acquire more companies than customers.

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