The Revolutionary Success story of Paytm
PayTM is an Indian eCommerce mobile payment system and E-wallet. The company was founded by Mr. Vijay Shekhar Sharma and was established in Noida in August 2010. It started as a platform for just doing prepaid mobile and DTH recharges. Over the years, this portal has expanded its scope and has brought about anything and everything under the area of its operations. Paytm now enables its users to make almost every kind of transaction on a click of a button. In just a span of 8 years, Paytm has over 250 million registered users and counting.
In 2013, it added a debit card, postpaid mobile, and landline payments in their app. In Jan 2014, the company launched the Paytm wallet. Later it also ventured into eCommerce offering great online deals. In 2015, it introduced more services like education fees, metro recharges electricity, gas and water bill payments. In May 2017, Paytm launched its own Payment Bank and is now expanding the physical presence of the Payment Banks. Paytm is ever-expanding with the addition of e-retail and m-commerce stores.
Paytm offers online services like mobile recharges, utility bill payments, travel, movies, and events bookings as well as in-store payments at grocery stores, fruits and vegetable shops, restaurants, parking, tolls, pharmacies, and education institutions. As of January 2018, Paytm is valued at $10 billion. Paytm’s user base has skyrocketed from 11 million users in 2014 to more than 100 million users in August 2015. By 2018, it started allowing merchants to accept Paytm, UPI, and Card payment directly to their bank accounts. It launched Paytm business app which will allow merchants to track their payments.
Paytm has some major investors that include Alipay, Alibaba groups, SAIF partners, Silicon Valley Bank, and Sapphire venture. Revenue sources of Paytm include interest from the Escrow account, ads on the website, commission from utility bill payments and fund transfers from e-wallets to bank accounts.
The security feature and easy user interface make Paytm the most favored digital payment platform in India. Paytm is an RBI-approved e-wallet using Verisign-certified SSL 128-bit encryption technology. This ensures the online security of the user’s information. Paytm has also the capacity of around 5000 transactions per second which is possible because of the simple interface and safe payment method. This combination of secure transaction and high capacity has made Paytm the most favored payment application.
In 2016, due to the government’s decision of demonetization, paytm popularity grew tremendously. As the people were short of cash they shifted towards digital payment methods. One of the unique features of Paytm success is that it is not only popular in cities but also popular in small towns and villages. Paytm has become the most favored mode of payment among masses. It has surpassed its competitors like Mobikwik, Freecharge, and other mobile payment apps.
Paytm has always been determined to improve its products and services and enhance the customer experience. Paytm is also planning to give WhatsApp a run for their money by launching a chat app with more sophisticated features. Paytm acquired Shifu and Near.in to improve and strengthen its offline and online platform and enhance the customer experience. The Paytm keeps adding small and yet effective features that have ensured that it stays as the preferred digital payment platform. Paytm meteoric rise in popularity has inspired others to follow suit.