So have you ever wondered how paytm earns money after giving too much discount and cashback? How does he benefit. What is paytm's business model
Today I will tell you the success story of paytm in full detail, from where it works for how much money it covers everything. And along with this, I will also tell 4 unique business aspects of paytm. So, friends we will know paytm's business model and revenue model.
Along with 4 unique business aspects this, I will also tell you a bonus point which makes paytm so special the rest from his competitor.
Example:- amazon,google,flipkart,etc.
You will get everything in detail on this post and you will be able to know about paytm in full detail.
Paytm Revenue Model
1. Paytm Wallet
First of all, now we will know that paytm's product which we use the most.
That's the wallet! Yes friend you are right, you must have used paytm wallet at some point or the other. Here I will tell you why paytm wants us to deposit cash on paytm wallet.
Paytm does not pay you even ₹1 interest when you put a case on paytm wallet. But if you put it on paytm payment bank then you will get an interest of 4 to 5 percent.
But you don't get interest by putting money in paytm wallet.
Whatever money you put on your paytm wallet paytm create a escrow account. Where paytm keeps that money and from that money it gets interest of 4 to 5% which interest you should get.
That's how paytm earns money from your money. So you can imagine from this how many crore people would have put money on paytm wallet and this comapany make money.
You can see what a good flute it is. Earn interest from others' money where someone will have rs.1000, rs.1 lakh, etc. This is paytm's first revenue model.
Similarly, paytm does encourage to you and wants to keep as many cases as possible on your paytm wallet so that paytm earn more interest through your money.
In addition to this, paytm gives its customers a lot of coupon vouchers and a lot of cashback when they put cash on paytm wallet.
And you will say here that if he gives so much voucher, coupons then how does paytm give this much offer.
The answer is Cash Equal To Cash!
You can understand by reading the above paragraph why paytm gives you more vouchers and coupons.
If you still do not understand, then let me tell you here how whenever you put on your wallet, which brings paytm to earn interest, while paytm gives you some percentage of his earning to vouchers and coupons.
In the form of voucher and coupon.
2. Payment Gateway
Our second number comes paytm payment gateway.
Payment gateway means if you buy something from a website and if you use credit card/debit card at the same time, what you pay is called payment gateway.
Usually payment gateway companies charge one to two percent fee.
So you can do imaging. Today there are many such e-commerce websites in india where transactions happen every day.
If you also buy some courses from online, then the payment gateway works there as well.
If we see the competitor in the field of payment gateway, then here I have come across a few indian companies.
Example:- razorpay , instamojo, etc.
Now you must have understood what is a payment gateway. Earns 2% commission from not only one, along with this, if there is any transaction, then paytm also handles the commission up to 10%.
Among the most common causes of shop desertion happens when a consumer cannot locate their desired payment method.
As a result, paytm pg accepts practically all payment methods, including debit, credit cards, netbanking through 50plus lenders, upi, digital wallets, bnpl, fast emis, and many others.
"Paytm has assisted us in giving all kinds of payment choices for wallet with credit and debit cards accepting all cards from rupay to amex," says suhas a r, marketing director, career launcher. This has really aided the growth of our web business."
3. Commission Model
Our paytm's third revenue model is commission. Now let's see how it earn. You must have seen at some time that this ads runs in paytm that you recharge and earn lots of cashback.
Basically this is a way for paytm to get more commission. Here, if you pay your mobile recharge or gas bill through paytm, then you will get a small no. Of cashback.
And in other hand paytm will get 2 to 5% commission per transaction.Not only mobile bill and gas bill.
Paytm wants maximum time and maximum transact in their app.
Even you have gold sip, movie ticket, fastag and there are many ways where you can pay through paytm app.
Or friends also has such a feature where you can book hotels as well as you can book flight tickets as well.
So this is also a paytm method where he gets some percentage of money through this commission ecosystem.
4. Data Analytics
Just imagine here, if paytm puts its payment gateway in thousands of sites, then it knows which website is selling more goods.
Which company's product works, which product doesn't?
Now see the second example here
If you go to a restaurant and the qr code of paytm is installed there and you get a bill of around rs.5000, then you will decide to pay through paytm qr code.
But, but!
Right now paytm puts its game here if you pay through paytm app. Paytm will get all the details of shopkeeper as well as your.
Paytm will know how much amount and when the transaction took place. Due to this paytm can run more ads of that shop on its app itself. Not only ads
Therefore, paytm can also fund that shop to expand their business. This was only one example, there are thousands of examples through which paytm earns even more money by using its data analytics.
In which season flights are booked more, which place people are waiting more and more, which hotel is getting more discount and showing what type of ads to earn more.
All this data is already with paytm. And paytm knows in full detail here which website sells more product.
Because of this, later on paytm will know that typing with which company will make their business even more. Where we will do our more transactions. Or in which new business we have to enter.
Because of all these, today has expanded its business from recharge to data analytics. And it's capturing the market very fast.
Where paytm is completing amazon and flipkart through paytm mall. Where he is giving a lot of financial service through paytm money. Where paytm is completing in today's date even with well-known booking site bookmyshow.
So, for this data he is expanding his business even more. For this reason, all those who have upgraded from the traditional method have now entered the online market.
Bonus Point
If you see, paytm is also tie up with a small tea shop or grocery store. Amazon and flipkart may not have a presence here. So, paytm have ground level data. Here amazon does not know which product is selling more in the traditional shop on the ground level.
Paytm knows everything because of its qr is installed there not only qr with pos device is also installed.
Along with this, paytm also knows when and how many tea cup are soldper day by a chaiwala. Paytm has data from top to bottom level.
And this type of data will hardly be with other company. This is a great advantage for paytm. Paytm will know the economy of india so well only such a company. Only paytm understands no other startup like this.
And secondly, if you do not have cash at one time then you used debit card and credit card, and the same shopkeeper also had to put in another machine where he could accept the payment. Along with this, the credit card company also used to charge you some percentage.
Paytm removed the need to keep the card on the wallet as the need for the shopkeeper to have a machine.
But, today's date you can just scan the qr and transfer money through upi and that made easy by paytm.
Where if you swipe up the credit card, then some percent of the credit card company like visa and mastercard takes it from you.
Just like this paytm also started and some percent were charged at many places.
But later on this did not happen but still it seems that at some places paytm must be doing this.
Later on paytm will do this also it seems because we also have a shop where the qr code of paytm is installed and charges per months around ₹20 to ₹30 on his services.
You must be thinking here that upi is free, how is paytm charging here.
Here now look upi is a software which paytm uses but here paytm also has its application which is called paytm business which helps merchant to receive cash and transfer money to his bank account. Through their paytm business application he can charge a fee.
You have seen here how paytm wants to reach everywhere and is taking some percentage from the merchant for fee.
So, friends is the revenue model of paytm from which it earns a lot of money but if you still see then paytm is a loss making company.
Paytm is in loss because it is still encourage the user to stay in its application. Also they needs user to make maximum payment through paytm wallet.
And with this, company is also not charging anything from the merchant so that more and more paytm stickers are installed in his shop.
F&Qs
What Is Paytm Pg?
This essentially serves like a middleman between consumer, the company, and the bank. A payment gateway, sometimes known as a payment processor, is a contemporary technology that enables internet businesses to take payments from their clients.
It may also be thought of it as programming that links a business's bank account to an internet portal - website or app. Customers' payments for buying online were thus sent to the corresponding company bank account.
So, friend if you haven't seen this post yet, then you can see it by clicking here.
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Paytm Revenue Model - How Does Paytm Makes Money
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