PAYTM Business Model: Introducer of Cashless Transactions in India


Paytm Business Model rotates around various administrations associated with Payment System, Digital Wallets, Online Shopping, and Mobile Payments alongside various items. For example, Paytm Money, Paytm Mall, Paytm Smart Retail, Paytm Payment Banks, and Gamepad.

Vijay Shekhar Sharma’s main aim was to introduce cashless transactions in India through Paytm.

Paytm represents Pay through Mobile. At first, it began as an online recharge site and cashback business model. However, later this model changed into a virtual bank and commercial centre model.

  • Utility invoice payments
  • Mobile recharge
  • Bookings for hotels, travel, occasions, and movies
  • In-store installments at markets, vegetable, and organic products shops, eateries, tolls, stopping, drug stores, and educational bodies that have Paytm QR code
  • These are some things that Vijay Shekhar Sharma dreamt to take online before developing PayTM.

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business model of paytm

PayTM founded by Vijay Shekhar Sharma is India’s biggest E-commerce, E-wallet, and installments platform ‘Paytm’ in 2010. Paytm has stayed at the cutting edge of advancement and giving first-rate bill payment and online recharge administrations to its customers. Normally, the business model of PayTM was collect huge interest.

1. Customers

The motivation behind Paytm is to serve its Indians client base especially the cell phone clients. Numerous Indian clients saw the advanced world giving a simple opportunity to open a financial account.

Notwithstanding, it didn’t end up being the situation. Accessing simple online payments missed the mark, and clients wound up with only helpless experience. Paytm offered itself as a superior option in such a manner.

2. Value Proposition

A portion of Paytm’s more noticeable suggestions was its recharging business which was the organization’s underlying assistance recommendation.

At that point, it proceeded to expand and progress to create fresher administrations from any semblance of Paytm Wallet, E-trade vertical to Digital Gold.

These have earned it the Chinese monster Alibaba’s endowments who gave immense amounts of investment to the association, subsequently expanding its investment potential. Paytm used cricket and TV promotion to reach out to more clients.

3. Customer Relationships

Paytm has a 24*7 client care focus to associate with its clients. Simultaneously, the greater part of the Paytm administrations are self serve in nature and are open through their foundation straightforwardly.

4. Channel: Business Model Of PayTm

Paytm utilizes numerous channels to draw in clients. Aside from its own site which drives clicks, it has shaped organizations with numerous customer and merchant locales that support its venture.

Demonetization in India permitted the organization to flourish altogether and arrive at new clients also.

5. Key Resources

The RBI (Reserve Bank of India) permit fills in as Paytm’s fundamental asset. It should be explicit to Paytm. Different assets are the plan/programming society that makes it simpler for lower-pay Indians to utilize.

6. Key Activities

Paytm, being an innovation stage, chances threats, for example, security and extortion which is the reason it needs to take measures in ensuring its customer’s cash by upgrading its security.

7. Key Partners

Paytm corroborates with the banks that offer instalment excursions into the financial framework just as escrow administrations.

It teams up with a heap of associations that accumulate bills and installments from its purchasers for its administrations.

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PayTM Competitors

Paytm’s top competitors comprises of

  • Ant Financial
  • MobiKwik 
  • FreeCharge
  • Rupay
  • Amazon Pay 
  • PayPal
  • Razorpay.

PayTM Funding

business model of paytm

Paytm raises money by various funding and investments.

  • In One97 Communications Ltd Paytm raised $10 million from Sapphire Ventures (fka SAP Ventures).
  • In March 2015, Paytm got its tremendous stake from Chinese internet business organization Alibaba Group, after Ant Financial Services Group, an Alibaba Group offshoot, put 40% confidence in Paytm as a feature of a key understanding.
  • It also got funding from Ratan Tata, the MD of Tata Sons.
  • In August 2016, Paytm raised subsidizing from Mountain Capital, one of Taiwan-based MediaTek’s speculation assets at a valuation of over $5 billion.
  • In May 2017, Paytm got its greatest round of stake by a solitary financial specialist – SoftBank, consequently carrying the organization’s valuation to an expected $10 billion.
  • In August 2018, Berkshire Hathaway contributed $356 million for a 3%-4% stake in Paytm.
  • PayTM had an estimated valuation of $10 billion before the end of January 2018.
  • On 25 November 2019, Paytm brought $1 billion up in a subsidizing round drove by US resource chief T Rowe Price alongside existing speculators Ant Financial and SoftBank Vision Fund.

Visit: PayTM