Paytm is an Indian e-commerce and financial technology company, which is used for digital payments. Vijay Shekhar Sharma was founded Paytm in 2010(August) with an investment of around $2 million. One97 communication (38%), Alibaba group (42%), soft bank (20%) are the parent companies of Paytm. Headquarter of Paytm is situated in Noida, Uttar Pradesh, India. Paytm provides India’s biggest, safest, and leading payment method service and also offer exclusive payment utilities for Paytm merchants and customers. It’s provided mobile payment to over 8 million merchants and enables customers to make faultless payments from their bank accounts, cards, digital credits. Paytm is the leader of QR based mobile payment in India. Paytm is widely used in India and it has more than 360 million users.
EVOLUTION OF PAYTM
Paytm is one of the most profitable and rapidly Growth Company in India. In 2010 Paytm was launched as a website for online mobile recharge. Paytm had to serve their facilities through both websites as well as a mobile app. Paytm app is available for android and IOS and windows operating systems.
Paytm wallet service was launched in 2014 by Paytm. As per the records, till 2016 November before demonetization in India Paytm was not so popular and was underrated payment service. But after the demonetization in 2016 November, more than 75 million android-based applications were downloaded and more than 150 million Paytm wallets were downloaded in their respective operating system. And this made Paytm India’s biggest mobile online payment service. This growth was actually because of the demonetization of 1000 rupee notes and 500 rupee notes currency.
This lead Paytm a huge success which attracted many investors as well as industrialists. India’s most renowned industrialist also invested his amount in Paytm company in March 2015. In the same month, the largest online group of the world Alibaba also invested an amount of $575 million and Ant financial services group made funding of 25% in one97.
HOW TO USE PAYTM
Using the Paytm app and website is very simple and easy. It has the safest transaction facilities over the digital sector. To able to use Paytm follow the steps given below:
-Download the app from google play store or visit the website www.paytm.com.
-Sign Up with your Phone number or Email to create a Paytm account.- Login with mobile number or email id with your Paytm password.
-for transferring money click or select pay or send option.- Add some money by card or net banking for using Paytm wallet.
Paytm basically provides online services such as any kind of money transfer, online shopping, booking online tickets for movies, flight, train, bus, etc. It’s free of charges on Paytm for making any Paytm there are no hidden charges included. While making payment there are cashback offers available for the users.
Paytm delivers smoothly and easiest bank transactions to users all over India for other banking services as well. That’s why RBI (Reserve bank of India) has permitted a license to Paytm to initiate India’s first payments banks bank. This service includes online banking, transfers, saving accounts, debit cards, credit cards, etc.
RECENT STATUS OF PAYTM
Recently Paytm’s loss 16.5% financially in the last year while revenue increased marginally, at a time when the digital payments leader faces increased competition from Google Pay and PhonePe. One97 Communications posted Rs 3,959.6 crore in net losses for the year ending March 31, 2019, against Rs1,490 crore for the same period in the previous year, according to details were shared with the Stakeholder by the company. Compared with the Rs 3,229 crore in 2017-18, the company’s independent revenue was Rs 3,319 crore. On a consolidated basis, which includes businesses like Paytm Money for mutual fund investments, Paytm Financial Services, Paytm Entertainment Services, and others, the company reported a net loss of Rs 4,217 crore.
This has ballooned 16.2% from Rs 1,604 crore in the last year. Paytm reported a net loss of Rs 36.8 crore in FY 2019, according to details around its subsidiaries listed out by the company. For the last two years, we have been investing around $1 billion each year to expand the digital payments ecosystem in our country. We will further invest about $3 billion in the next two years to scale the same, said by Paytm spokesperson.
Paytm, which has moved away from pushing the cash greedily motive for peer to peer
payments business, said it wants to push more Paytm merchant’s transactions on its platform
rather than one person-to-another person payments. Further, the company wants to monetize the
base by offering financial services to consumers and Paytm merchants based on the data it generates.
Paytm has reported 1,2 billion Paytm commercial transactions, across 14 million retail outlets, in the first three months of 2019, according to the latest statistics released by Paytm. The Softbank and Alibaba backed Payments Company which last raised $300 million from Berkshire Hathaway in 2018.