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. 

• 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.

ABOUT FOUNDERVijay 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.

PAYTM BUSINESS

MODELOF

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.

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.

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.

Bill PaymentIn 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.Revenue , just like recharge services, is generated by charging commissions from these providers.

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.

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.

Paytm WalletPaytm 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.

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.

Paytm BankPaytm 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.