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  • 17 Mar 2022

  • 17 Mar 2022

Business Model of Paytm

PayTM is an Indian Multinational technology, that shows its attribute in being a leading financial services company that offers payments transactions & financial solutions and online platforms. The full form describes it as - Pay Through Mobile.

Vijay Shekhar Sharma, the founder, and CEO of the company has made it one of the leading online payment methods, which is convenient to use by people across the country. Most of the people in India use their QR code payment system for accepting payments directly into their bank accounts and Paytm wallets.


In the initial phase, the company served its customers mainly with pre-paid mobiles and DTH services. Then gradually, it came up with some new features associated with it, which included a data card, postpaid mobile, and landline bill payments.

The company came up with its Paytm Wallet by January 2014, and also provided payment services from metro recharges, electricity, gas to water bill payments. It also started receiving support from the TATA group.

Vision and Mission

The company marks its main vision in escalating digital excellence, increasing earning growth, and also cross the selling opportunities. It also wants to bring half a billion Indians into the mainstream economy through payments, commerce, banking, investments, and financial services.

Name, Tagline, and Logo

The company highlights its logo in two shades of Blue color - Navy Blue and Sky Blue, associated with the brand name - Paytm. It has a simple and memorable logo that marks its attribute in catching the interest of the people with its worth services. Paytm indicates - Pay Through Mobile, and its tagline says - Paytm Karo

Business Model

Business, model, Paytm

Its user needs to download the app and Sign Up to create an account. After this process of creating an account, we get a digital wallet in which we can add, send or receive as much amount of money as we want.

One has to note that they can receive money in your Paytm wallet only from another wallet user. To complete this process, both the person should be its users with a complete KYC verification status. It acts as a one-stop solution that provides ways to receive payments through various ways.

It is a secure payment method that provides protection and also allows us to keep a tab on our credited amounts and pending transactions. It also provides access to the wallet transaction history, wallet balance, bank balance and also requests a mini statement of the wallet. It works directly with the QR code system, which allows the scanning and also uses various advertisements and paid promotional content to generate revenue.

Target Audience

Target, audience, Paytm

Focusing on the benefits of clients, it is mandatory to review the competitors in the market, like how they are positioning themselves. It also includes asking for their feedback and listening to what they are saying about the services and products.

These reports can give access to objective data and expert industry analysis. From real-world case studies to consumer buying behavior to company profiles, research can give proper information about what people need. This helps the firm to stay ahead of the competition and accurately satisfy the needs of the clients in the market.

The company targets young individuals that transact on food, cabs, and services to families purchasing clothes, furniture, and more. It has taken huge advantage of the pandemic where the majority cashless moreover contactless transfer of amount to avoid contact from the outside world. Digital payments are used to purchase food, clothing, services, and any possible thing which makes all the consumers potential customers for Paytm.

Digital Marketing Strategies

To promote the application and attract the interest of more people, the company places ads on social media platforms to communicate with a wide range of audiences. It makes its website communicate with the target audience. It builds up the trust within the market that traipse the attention of the maximum number of people.

The application builds its roots in understanding the interest of the customers that establishes a bond with them. The trust between the business and its clients makes the deals more convenient and helpful. It engages more customers with the brand.

Revenue Model

Revenue, model, Paytm

The business model of the company marks its importance in including the marketplace and payments bank business model. Its revenue sources walk on several categories, such as Marketplace (Paytm Mall), Recharge Services, Bill Payments, Payment Solutions, Wallet, Bank, and Digital Gold for digital gold investment.

It deals with the mobile operators on the basis of commission for getting revenue through recharge services. It is used in all digital transactions to fill the wallet. The company has also come up with Wealth Basket, which shows its importance in working like wealth and advisory marketplace on the money platform. Wealth Basket marks its use in being designed to offer curated advisory products and services for retail investors.

Paytm Mall

This provides a convenient way to the customers, where they move forward and scan the QR code, and ultimately browse the inventory on the mall and place an order. The order gets conveniently delivered to the nearest brand-authorized local retailer. The transactions get securely processed and one assures that the money is in safe hands.

Coupon Codes/ Voucher Cards

These promotional codes encourage the customers to purchase, and also offer discounts for their purchase, that keep them engaged with the application.


The gift voucher marks its importance in providing digital gifts to people. These are used to make mobile, data card recharge, bus & flight tickets, bill payment of DTH, electricity, water, gas or booking train, online or offline shopping or payment at local vendors, cabs, petrol pumps, restaurants and many more.

Bill Payment

App serves the customers by also providing the bill payment option. It is considered as the best platform that offers the easiest option for mobile phones, by allowing them to pay the postpaid bill from anywhere and anytime. For example, we can pay the Electricity, Gas, and Credit Card Bills.

Paytm Wallet

This marks its importance in being the most effective service that forms a link between the bank and the retailers. It conveniently provides to pay our bills, pay for the tickets. The wallet apart from its earnings also saves money in another bank from which it will earn interest at some point. It also has the benefit of receiving interest in a consumer store.

Recharge Business

The company also marks its attribute in providing the customers with online mobile recharge services. Its services are easy to use and bring comfort to the users. It marks around 2-3% commission per recharge. These services enable the company to form its base and ultimately bring productivity to the company. Once the customer is satisfied by the service or product, he makes a return to the same enterprise thereby maintaining its customer retention and generating more traffic as a result. It has utilized this strategy to its advantage and continues to make a profit.

Ticket Bookings

It is become easy to book tickets conveniently with the help of the application. One can simply check out the departure along with the arrival time between two particular destinations, and also the PNR status of the train on the Paytm. It brings convenient services and rewards us with the booking experience. It helps to find fares, schedules, availability of seats, and the reservations for the trains. It also provides information on various trains of major cities and stations.

Digital Gold

The company also serves its customers with Digital Gold, which provides a way to sell, buy or store gold on a digital platform. Here the users need to pay at a minimum rate, for getting their gold delivered to their households. This helps in growing the company high, ultimately bringing more prosperity.

Value Proposition

The initial service proposition of the company was the recharging business, which acts as the most prominent proposition. It also moved forward to bring more productivity to the company and started producing newer services, that are the Paytm Wallet, E-commerce vertical, Digital Gold, and more.

It also adds companies by aligning them with the digital payment methods, and also includes the transitions with the Debit and Credit cards. The company also marks its importance in working with new innovations like QR-codes, email links, text messages, and many more.
It is really useful for people who do not want to carry money and are interested to do digital payments.

[The images are being taken from the registered companies and belong to their respective owners only.]