Really making money online is purely based on the business model that we are following. Paytm was started in August 2010 with $2 Million as initial capital. Initially, it launched as a Mobile and DTH recharge portal and later they added more services. PayTM really making money online with the below business models.
- Paytm Mall
- Paytm Wallet
- Paytm banking
- Recharges and Bill payments
- Ticket booking(Bus/Flight)
- Payment gateway
Paytm Mall is one of the largest online e-commerce portals in India. It has all the variety of things to be available to purchase. Also, Paytm allowed to sell the goods of the authorized sellers. For this service, it charges some percentage of the amount as a commission.
Paytm Mall has around 100 million buyers and 2 million transactions on a daily basis. Paytm also offers the affiliate program to the affiliates to get a chance to get the commission on their referrals.
Most of us have the biggest question will be, even Paytm offer 50% cashback, how will they get a profit on it. And, why they credit the cashback as a Paytm wallet balance.
Paytm Wallet is a semi-closed wallet approved by RBI. Paytm guesses the future and focuses on digital currency and tried to make the brand on it. So it encourages users to use their wallet to purchase the goods from online and offline markets and transfer the balance from one wallet to another.
Paytm really made the better place against its competitors like freecharge and ola money. As per the RBI guidelines, this wallet balance will be deposited in the Escrow Account of the partner bank. It has a certain percentage of interest that will be provided by the bank as per their agreement.
In recent, Paytm has launched the banking system that can be integrated with the other banks also. It has a UPI option to make the transaction easier and safer. Paytm also offers the ATM cards to make the payments done by the QR code scanning.
Paytm also offers the loan for the eligible users who have passed the full KYC. Also, it considers the general eligibility criteria which followed by the other bankers.
Recharges and Bill payments
Paytm earns the maximum revenue through the Recharges and bill payments. The service providers offer different percentages of commissions to Paytm while making the payment through it.
This is the recent business model added by the Paytm. Paytm has booking facility to the below services,
Paytm earns significantly from this model. But, this models have heavy competition and have the unique identified competitors in the market. I hope Paytm will make this better than the competitor to stand on the market.
For the fast forward checkouts Paytm offers the Payment gateway and most of the online stores and portals using the Paytm as one of the payment gateways. Most of the users using the Paytm during train ticket booking for faster checkouts.
Paytm really charges the 1-3% for each transaction as a service charge, but it doesn’t charge this amount from the users since they moved to some other gateway.
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