Paytm Business Model 2022 | How does Paytm makes money?

Curious to know about the Paytm Business Model 2022 but not getting any appropriate info about the Paytm Business Model, Don't worry, here I am going to share all the business models of Paytm in this post. 

Check out the full post to know about the Paytm Business Model in 2022.

Paytm ( Payment Through Mobile ) is one of the most successful startups in India. Paytm was founded by Vijay Shekhar Sharma as an Online Mobile Recharging platform. Where you could store the money in your Paytm wallet for doing recharges. 

Paytm was founded in 2010 by Vijay Shekhar Sharma. Today its revenue is more than  ₹3186.8 crore for the fiscal year 2020 -2021.

Also, read the Business Model of Phonepe.

Paytm is the child company of One97 Communications. Today Paytm has extended its business to the next level and does diversified businesses. The company which started as a recharge company today offers various types of other services also, as you can do recharge of almost everything today there. 

Today you can pay your Loan EMI, Insurance Premiums, Education Fees, Paytm also offers Loan EMI, Insurance Premiums, Education Fee, Book Travel like bus or trains ticket booking, and upcoming movies tickets, and invest in stocks. 

Paytm has more than 450 million registered users as of July 2021. In February 2021, Paytm got more than 1.2 billion monthly transactions.

Paytm Revenue Streams

There are basically two main revenue streams ( Commissions for offering services and Escrow Accounts ) of Paytm in 2021.

1. Commissions for offering services

Paytm takes some amount if you use its services.

2. Escrow Accounts 

Escrow accounts are a financial instrument in which an asset or escrow money is held by a third party on behalf of 2 other parties that are in the process of completing a transaction. Escrow accounts can hold money, securities, funds, and other assets

Paytm Business Model | How Does Paytm Makes Money?

There are various ways which Paytm use to earn or make money in 2021, like Paytm Wallet, Paytm Recharge Services, Digital Gold, Marketplace, or eCommerce.

1. Paytm Wallet

If anybody uses a Paytm wallet for transferring money from wallet to bank account the Paytm charges some percentage for every transaction. Paytm Wallet can be used for various serves of Paytm like Recharging, Transferring money, paying any type of bill, ticket bookings, and so on.

Second Paytm earn money from the amount that you store in your wallet. Paytm is a registered and authorized semi-closed wallet from RBI and has an interest in the money that users store in their wallets. 

2. Paytm Recharging Services

It is the first service that Paytm started in 2010, Today you can recharge almost anything from Paytm. Paytm is the biggest online recharging company today in India. You can recharge your mobile, Metro Card, Postpaid bills, electricity bills, EMI, Insurance, and much more. 

There will hardly be something that Paytm doesn't offer today. 

But the main thing is not to recharge here, the main thing is how does Paytm earn or make money from these recharges?

Whenever someone recharges for anything from Paytm, Paytm receives a particular amount as a commission from third-party companies. Imagine if someone recharge for their Prepaid number of Airtel or Jio, then Airtel and Jio will pay some percentage of commission to the Paytm.

The same is true for other recharging services.

3. Paytm Digital Gold

Paytm Digital Gold is also one of the most popular services today, today you can purchase gold from Paytm, and Paytm has a partnership with MMTC-PAMP for gold.

4. E-commerce or Marketplace

Today Paytm has its own eCommerce platform ( PaytmMall ) where you can list your product to sell or buy something from the Paytm Website or App. If you purchase anything from Paytm Mall or Paytm.com then Paytm will get some commission on per sell that land over their platform.

5. Paytm Stock Services

You can create a Demat account or Paytm Trading Account on Paytmmoney.com and can invest in stock from Paytm, If you invest in stocks then Paytm will charge the users about 20 Rs. or More.

You can invest in Mutual funds, stock market, or NPS Retirement Funds there.

6. Paytm Payment Gateway

Paytm has its own Payment Gateway. Which any eCommerce company can use to to take payments from the customers for placing order by user end. If someone use or implements Paytm Payment Gatway in their App or Website and any transaction happen, then Paytm charge from the owner for that transaction.

These are some of the ways which Paytm use to make money from its business model in 2021-22.

There are many other things which Paytm use to make money if you want a details post over it then let me know I will share a complete detailed post about Paytm Business Model and it ways to earn money.

Conclusion:

Paytm is one of the most successful Indian startups and listed as a Unicorn company, Paytm is a billion-dollar company today. In the future Paytm may offer more products and services too.

Here I tried to cover maximum to cover all the main business models of Paytm, if you think something missing from this business post and should be the part of this post then let me know I will add that to this post.