In today’s scenario, when entire India is struggling to get a hand on some hard cash to cater to day-to-day needs post demonetisation, Paytm is a unique solution to go cashless. Paytm is a huge step towards digital India.
Paytm is nothing but an acronym for ‘Pay Through Mobile’. Paytm was founded in 2010 by Vijay Shekhar Sharma, the present CEO of Paytm. Paytm is an Indian e-commerce website that enables its user to pay online using mobile number for services like mobile recharge, book airline tickets, pay broadband or electricity bill, etc.
Background and Funding
Paytm was originally launched in 2010 as prepaid online mobile recharge website. It can be accessed from a browser or the Paytm app is available on mobiles compatible with Android, Windows and iOS operating systems.
Paytm wallet was launched in 2014. As of November 2016, over 150 million wallets and 75 million Android-based apps were downloaded of Paytm wallet, making it Indian’s largest mobile payment service platform. The credit for the surge in its usage obviously goes to demonetization of the 1000 and 500 currency notes.
The huge success of Paytm attracted many investors as well. Renowned Indian Industrialist, Ratan Tata, made the personal investment in March 2015. Apart from this, Alibaba Group of China made an investment of $575 million while Ant Financial Services Group funded 25% in One97 in the same month. In March 2016, Paytm borrowed 300 Cr from ICICI Bank as working capital.
The current service that can be availed using Paytm is any kind of online shoppings, money transfers, payments for services, etc. The transactions done using Paytm are absolutely free and have no hidden charges. Users can even save in the form of cashback offers when making payments using Paytm.
Paytm is owned by One97 Communications and is headquartered at Noida, Uttar Pradesh, India. Paytm has its service providing regions only in India.
The smooth and easy transactions using Paytm can well be used for other banking services as well. Probably, that’s the reason, Paytm was granted a license from Reserve Bank of India to initiate India’s first payments banks. The motive is to use existing users of Paytm as the first database for offering new services which include savings account, debit cards, online banking and transfers, and other such facilities.
It has been agreed upon that payments bank will be a separate entity with 51% stake remaining with founder Vijay Shekhar Sharma while One97 Communications will hold 39%. The subsidiary of One97 and Sharma will hold the remaining 10%.
How to Use Paytm
It’s quite simple to use Paytm for digital transactions. Just follow below mentioned simple steps:
- Download Paytm app on your smartphone and set up Paytm account using your phone number and email id.
- Add money to Paytm wallet as and when you want to use. Money can be added using a debit card, credit card or net banking.
- To pay for the services or products, select option ‘pay’. Key in the seller’s registered mobile number and you are done.