PAYTM - India's 1st Internet Conglomerate: Mobile Wallet

PAYTM - India`s 1st Internet Conglomerate
Paytm has constantly tried to evolve in order to achieve its goal of

becoming a internet conglomerate of India and always attempted to
provide something new to the users over the last few years since its
inception in 2009.
Some the majors markets it has ventured in are :
1) Mobile Wallets
2) Seller Marketplace
3) Online Recharges
4) Banking sector
5) Travel sector
Mobile Wallet
At the onset of 2014, Paytm launched mobile wallet in Jan 2014. Today,
after almost two years it is a market leader for mobile wallets in India with
almost 80% marketshare. It has crossed the magical figures of 100 million
users and has 50k sellers , with the company claiming to process 75
million trasactions from recharge and marketplace monthly. These
transactions are also facilitated by Paytm because they don`t offer COD
for a majority of transaction.
Paytm with mobile wallets has taken the right foot forward by launching
the mobile wallets facility beforehand a majority of its competitors and
this has helped it mobilize customer base. As the customers move from
age old Rupee notes to delivery peron, mobile wallets is the next thing in.
This has helped in solving a real pain point as cash availability is not
always feasible for a person.
The safety of Paytm mobile wallet is guaranteed by the following points :1) It has been approved by the Reserve Bank Of India (RBI)
2) A customer base of million users itself is a testimony to trust it in very
sense
3) Many of the facilities like utility bills , bus tickets and , cinema tickets
and other important payments are facilitated by Paytm and one can use it
for payments on other apps only.
However, the are some cons of Paytm mobile wallets which need to be
addressed :1) No quick response for wrong orders placed and lack of proper customer
support in such cases.
2) There is a delay in delivery of products with some even delivered after
15 days.
3) User interface for Paytm mobile wallet caused several issues on the
App version, as per some reviews.
Paytm has a tie-up with Bank of Maharashtra and is planning to have more
with other banks for facilities related to banks. This will also include the
facility to recharge their Paytm wallets through any of the banks ATMs.
The mobile wallet market is expected to reach USD billion by 2020 as per
the Mobile Wallet Market Forecast and Opportunities, 2020.
Seller Marketplace
Paytm is aiming to cross a GMV of $3-4 billion by the end of March next
year. It already has around 40000 seller on it marketplace platform. The
no. of products on its marketplace is 10 million and is increasing by 2-3
million every month. Big daddies like Flipkart and Snapdeal ask for a
commision from its sellers but Paytm is on a zero commission concept. It
is expecting to reach to a lakh merchants on its network by December
2015. It is expecting to earn revenues of $2 billion by December , as of

now it is earning around $500 million revenue.
Paytm marketplace is different in the following ways :
1) They follow an all together different model as compared to other
marketplaces and they are hoping to concentrate on SMEs in future.
2) They have taken special care of facilitating every help to their sellers
by launching a different seller app also and zero commission fees.
3) They are concentrating on unstructured categories while its
competitors are focused on branded and structured categories such as
electronics and books
Online recharges/payments
In India, Paytm is most widely known for this market has is also the market
leader in this segment, The name Paytm is synonymous with online
mobile recharging . The mobile recharging landscape has transformed
from recharging in retail stores to online recharging with Paytm taking the
advantage at the correct time. When it comes to payments , Paytm has
also facilitated DTH subscribers payments for almost all the big players in
this industry , again taking due advantage of the insurgence of Direct to
Home set top boxes, which is the 2nd most recharged product category
after mobile recharging in India.
Paytm gets over 1.5 lakh trasactions daily through its recharging platform.
Mobile recharging is bigger than shopping and gets them a huge traction.
Thye have 13mn registered users who pay through recharges by further
helps get people to their marketplace by giving o=them alternate offering

on their marketplace. They have 6 million app installs and active base of
4.5 mn.
Some other online payments on Paytm.com are :a)
b)
c)
d)
e)
Electricity payments (20 private boards)

Gas Payments ( 10 private and govt. boards)
School fees and new registartion (over 100 schools)
Datacard & Landline bills
Event and Movie tickets
and many more...
Banking
Paytm has partnered with insurance companies to facilitate payments of

premiums on a cashless basis and is targetting to get premium collections
of Rs. 1000 crore this fiscal year.
Paytm was granted a payment bank license and thus has taken several
initiatives in this direction. It tied up with ICICI bank , which added
Paytm`s 115 million registered users with countyry`s largest private bank.
ICICI which has 4000 branches across the country is trying to make a firm
foothold with India`s growing digital population.
Transportation
Paytm tied up with IRCTC, to allow the passengers to order food on train
using Paytm`s service. This was not the 1st service for which Paytm and
IRCTC came together as earlier this year, they started a service to allow
passengers to book tickets through IRCTC website using Paytm`s service.
Paytm partnered with Uber to offer Indian customers with a 1st free ride if
they pay through Paytm`s digital wallet . This way they rope them in for
all future rides by paying through the Paytm`s wallet.
Timeline (Major Developments)

November 2009 : Paytm was founded and incubated by ONE97
Communicationns and was initially focussed on Recharging ( Mobile and
DTH)
November 2011 : Having established itself , it was awarded the most
Innovative Startup at Annual Entrepreneurship India event
April 2014 : Paytm Becomes the largest Digital Commerce Company In
India. It reported 350% growth in 2013 over 2012.
November 2014 : Uber partners with Paytm for integration of digital
wallet into its payment system
January 2015 : Jack Ma`s Alibaba backed Ant Financial services group
buys 25% stake in Paytm
February 2015 : Paytm partners with IRCTC for ticket bookings for
passengers using Paytm`s wallet
September 2015 :
a) Paytm wallet launches payments for school fees, cafeteria and
more.
b) Ties up with Bookmyshow and other ticket booking portals to launch
itself into event ticketing marketplace.
c) Invests $10Mn in LogiNext solutions

October 2015 :
a) Tie up with major banks like ICICI for insurance and premium
services after registering itself as a RBI recognized online payment bank.
b) Paytm pumps in $10 mn into auto aggregator Jugnoo
December 2015 :
a) Enters into partnership with travel companies like Goibibo etc. for
bus ticketing
b) Partners with ICICI abcnk to launch virtual prepaid cards
c) Acquires Near.in to boost onlne to offline business(O2O)
d) Joins hands with IRCTC again for food services to passengers on
train.

PAYTM - India's 1st Internet Conglomerate: Mobile Wallet

Uploaded by

Copyright:

Available Formats

PAYTM - India's 1st Internet Conglomerate: Mobile Wallet

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PAYTM - India's 1st Internet Conglomerate: Mobile Wallet

Uploaded by

Copyright:

Available Formats

PAYTM - India`s 1st Internet Conglomerate

Paytm has constantly tried to evolve in order to achieve its goal of

2015. It is expecting to earn revenues of $2 billion by December , as of

helps get people to their marketplace by giving o=them alternate offering

Electricity payments (20 private boards)

Paytm has partnered with insurance companies to facilitate payments of

Timeline (Major Developments)

c) Invests $10Mn in LogiNext solutions

You might also like