Paytm Success Story – Sucess | Rewards – Case Study

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Today PayTm is valued at $8 billion. But nine years ago, nobody had even heard the company’s name.

PayTm enforced a paradigm shift in the Indian retail industry. Not only did this application transformed that payment methodology for Indian users, but it strategically transitioned into one of the most popular e-commerce websites developed by an Indian developer. Initially, the e-wallet website was used for making payments for the utilities like DTH recharge, mobile bills, and shopping bills.

What became a revolutionary moment for PayTm was Demonetization. Two words that came to every one’s mind while making payments after the demonetization announcement was, “PayTm karo.

PayTM launch story

This ecommerce website was launched by One97 communication in the year 2010. Company founder, Vijay Shekhar Sharma, when decided to launch the app, had the vision of establishing a secured platform for online mobile recharge and utilities payment. He did hope to achieve success with the unique business model, but had no expectation that they will be able to establish it into a platform that could be used for almost all kinds of transaction with a flick of a finger. Within a span of seven years, PayTm was boasting of having 250 million regular users.

paytm Success Story

As the company started tasting success, investors started showering their trust. Major investors in PayTm included Alibaba groups, Alipay, Silicon Valley Bank, SAIF partners, and Sapphire venture. Several revenue sources of the company included interest from the Escrow account which was maintained in a nationalized bank, commission from the utility bills, recharges, and advertisements on their official website. 

Paytm Business Model  

The PayTM business model is a payment bank cum marketplace which also deals in bill payments and recharges and provides the users with reservation options and e-wallet. The revenue model of Paytm can be divided into the following categories:

  1. PayTM mall
  2. Bill payments
  3. Payment Solutions
  4. Digital Gold
  5. PayTM bank
  6. PayTM Wallet
  7. Recharge Service

PayTM market strategy

PayTM has had the track record of availing opportunities really well. Like in the Demonetization era, PayTM did massive TV and social media marketing to grab the attention of people who were worried about cashless transactions. Now PayTM is rolling out a new strategy where the focus is on the digital currency again. All of their promotional strategies and marketing enforce the use of payTM wallet. Through such ads, Paytm has been creating brand recognition all over India. It will get the first mover benefit and will increase its brand preference to carry out their future plans.

Digital Gold

Paytm partnered with MMTC-PAMP for launching Paytm Gold that allows users to buy, store, and sell gold digitally without any extra cost. Users can get the gold delivered to their doorstep easily. Since Gold is the safest investment, the company has bigger plans. This has worked out really well for Paytm and the company is now planning to connect the users with jewelers so they get their gold converted into finished jewelry, meanwhile Paytm will make money as an affiliate.

Paytm Bank

Paytm is a lot more than the e-wallet. Now it’s a bank that allows users to open digital accounts and offers banking services like fixed deposits and easy transactions.

Cross-Selling

PayTm has also partnered with banks and financial institutions to sell their products and services like investments, loans, and insurance along with its own. That way, it earns more money in form of commission.

PayTm growth and revolution

Now Paytm is an RBI approved electronic wallet, which means that user’s money is secured. The easy interface and great security features are one of the reasons why PayTm is considered as one of the favorite payment platforms. The company uses SSL 128-bit encryption technology to make sure all the user data and information is protected. No financial data has ever leaked from PayTm.

The app can handle over 5000 transactions per second, and that’s the reason it is one of the highly used payment apps. This high capacity of payment has been made possible through the implementation of a very effective and safe payment gateway. The combination of encrypted transaction and high capacity of transactions are the reason why great number of people are using Paytm for utility payments and other expenses.

What worked in PayTm favor was government’s decision of demonetization in the year 2016. It was demonetization that forced Indians to switch from paper to digital money. That period helped PayTm gain country-wide recognition. 

Conclusion

Right now, Paytm is enjoying great success, even though it now has competitors like MobiKwik and Phone pay. The company is determined to enhance user experience through improved services. Not only do they work tirelessly to improve every single feature available on their application and web, they regularly endeavor to add incremental and effective features that helps the application retain its position of preferred payment platform.

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