Paytm

Institute of Business Management & Research
Subject : Business Communication

Topic : Paytm Business Model
Department : MBA
Semester : 1st
Section : G
Guided By : Presented By :
Dr.Anita Ahuja Gaurav Bhurrak
Jinu P Joy
Priyanshi Dongre
Saloni Nema
Sukanya Saxena
Contents
• Introduction
• Revolution
• Investors
• How Paytm Earns
• Paytm Revenue Model
• Recharge Service
• Market Place
• Bill Payments
• Paytm Solutions
• Paytm Wallet
• Digital Gold
• Payment Bank
• Revenues
» Full form - Payment Through Mobile
» Tag line - Paytm karo
» Type of site - E-commerce
» Founded - 2010
» Parent - One97 Communications Ltd
» Headquarters - Noida, Rajkot, India
» Area served - India, Canada
» Founder - Vijay Shekhar Sharma(CEO)
» Industry - Internet , Mobile Application
» Products - Paytm Mall
- Paytm Payments Bank
- Paytm Money
- Paytm Game pind
» Services - Online shopping, payment systems, digital wallets
» Revenue - ₹814 crore (US$110 million) (FY2017)
» Website - paytm.com
Revolution
2010 2013 2014

Data card.
Prepaid mobile Postpaid Paytm wallet
mobile
Indian railways
Landline bill added paytm
Dth recharge
payments as payment
option
Revolution
2015 2016
movies, events &
education fees amusement parks
ticketing
Rail bookings
metro recharges
Flight bookings
electricity, gas, & water Paytm QR
bill payment Gift cards
Revolution
2017 2018
Paytm gold Paytm cash, UPI and Card
payments directly into bank
accounts
Paytm payments bank
Paytm for business

Paytm Mall
Investors
2007 2016
2015 2017
2015 2018
How Paytm makes money even after
providing 50% to 100% cashback?
• The revenue model of Paytm is responsible for

generating revenue through its different activities.
• Paytm don’t charge their users directly, which gives

the birth to a big question of how Paytm earns.
Paytm Revenue Model
Paytm Revenue Model can be divided into following

categories –
• Recharge Services
• Marketplace (Paytm Mall)
• Bill Payments
• Payment Solutions
• Paytm Wallet
• Digital Gold
• Payment Bank
Recharge Services
• Paytm started with mobile recharge and dth recharge.
• Online recharge services for mobile subscriptions, dth

subscriptions, data-card, & metro card, etc have been
added.
• The company, just like other recharge services

providers, charge commissions from these operators.
Market Place (Paytm Mall)
• Paytm was the first company who took the step of

being a mobile-only marketplace in India.
• 2 million daily transactions & 90% prepaid offers,
• Revenue from this subcategory is generated

as fees & commissions from the sellers, which
differ for different category of products.
Market Place (Paytm Mall)
Bill Payments
• Customers can even pay their electricity, telephone,

water, mobile, broadband, gas, etc. bills.
• Also partnered with several education & financial

organizations & act as a portal to accept education
fees & insurance installments.
• Revenue, just like recharge services, is generated by

charging commissions from these providers.
Payment Solutions
Paytm offers smart payment solutions for online

businesses. The payment solutions allow them to accept
online payments through Paytm.
The payment option comes with no setup fee and

maintenance charges. However, the company charges a
commission of 1.99% on every transaction.
Paytm Wallet
• Paytm wallet is a semi-closed wallet (approved by

RBI) used to store currency in digital form which can
be used to buy goods & services at identified merchant
locations or establishments which have a specific
contract with the company to accept these payment
instruments.
• As per the RBI guidelines, the money deposited by

users in Paytm wallet is deposited by Paytm in
an Escrow Account with a partner bank. This escrow
account deposit fetches Paytm certain interest which is
decided as per the contract between the bank & Paytm.
Paytm Wallet
• Paytm wallet can be used to pay for almost anything,

everywhere.
• Money can be transferred between the Paytm wallets
of two users with just a few taps on the phone.
• Banks and payment gateways charge a fee equivalent
to 1-3% of the money deposited for using their
services. Fees cant be charged on customers, which is
an expense to Paytm.
• The interest generated through the escrow account
deposits is usually more than the expenses incurred
which results in profits to the company.
Digital Gold
• Paytm has partnered with gold refiner MMTC-PAMP

to launch ‘Digital Gold’ that will allow its users to
buy, sell, and store gold digitally without any
additional cost.
• The company wants its users to have something
which they call a Gold Bank account, which will
allow users not only to buy gold, and store it in digital
form, but also to use the gold to buy other services on
Paytm.
• Paytm also has plans to connect the customers with
the jewellers at a later stage.
Payment Bank
• A payments bank is a digital bank which can accept

deposits and give out interests on the deposits but
can’t offer loans to its customers.
• Paytm also issues debit cards with QR codes which
can be scanned at various points.
• The bank lets you open zero deposit digital current
and savings bank accounts and offers a 4% p.a.
interest on saving bank accounts and overdraft facility
on your current bank accounts.
• Any balance deposited over ₹1 lakh is moved to a
fixed deposit with a partner bank (which provides 7%
interest p.a. to you).
Payment Bank
How does Paytm Bank make money when it can’t carry

out lending activities?
• Cross-Selling
• Interest Arbitrage
Payment Bank
• Cross selling
Paytm has partnered with other financial institutions
and banks to sell their products and services (like
insurance, investments, loans etc.) along with its own.
It earns money in the form of commissions or other
forms as per the contract between the parties.
• Interest Arbitrage
Paytm bank makes money by depositing the money
with some other bank and/or government deposits
which provides interest rates greater than that is
provided by Paytm bank.
Revenues
• FY18 reported a 69 per cent increase in its losses at

Rs 1,490 crore.
• One97’s total revenues more than quadrupled at Rs
3,314 crore as against Rs 780 crore in FY17.
• Total expenses during FY18 has doubled at Rs 4,718
crore on back of increased employee and finance
costs.
• It paid salaries worth Rs 540 crore during the fiscal
compared to Rs 325 crore in FY 17.
• Vijay Shekhar Sharma, founder, took home a pay
package of Rs 3 crore during FY18.
Batue ko tum gul karo, masti ki tanki full karo.
Paytm Karo.

Paytm

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Institute of Business Management & Research

Subject : Business Communication

2010 2013 2014

Paytm payments bank

Paytm for business

• The revenue model of Paytm is responsible for

• Paytm don’t charge their users directly, which gives

Paytm Revenue Model can be divided into following

• Paytm started with mobile recharge and dth recharge.

• Online recharge services for mobile subscriptions, dth

• The company, just like other recharge services

• Paytm was the first company who took the step of

• 2 million daily transactions & 90% prepaid offers,

• Revenue from this subcategory is generated

• Customers can even pay their electricity, telephone,

• Also partnered with several education & financial

• Revenue, just like recharge services, is generated by

Paytm offers smart payment solutions for online

The payment option comes with no setup fee and

• Paytm wallet is a semi-closed wallet (approved by

• As per the RBI guidelines, the money deposited by

• Paytm wallet can be used to pay for almost anything,

• Paytm has partnered with gold refiner MMTC-PAMP

• A payments bank is a digital bank which can accept

How does Paytm Bank make money when it can’t carry

• FY18 reported a 69 per cent increase in its losses at

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