RM logo with Name

Paytm Business Model: Simplifying Digital Payments in India

Paytm Business Model Explained by Rahul Malodia

Do you know how many people in India can travel, go out, and shop without carrying cash? Yes, it is all possible because of Vijay Shekhar Sharma, who founded Paytm in 2010.

Paytm full form defines the app usage- Pay Through Mobile. It is not just accessible to all segments of society but also has changed the way people manage and transact their finances. 

Not just this, but because of its user-friendly interface to discount perks, almost every adult in India has this app on their mobile phone.

From banking to booking your flight tickets, paying for shopping, and getting discounts at restaurants, Paytm provides its users with many benefits.

Whether you are just curious about Paytm or want to start a business in the same technical field, know everything about Paytm business model or how you can use Paytm for business in this blog. 

Understand the Paytm business model, how they can cause a loss, strategies they made to overcome hurdles, and other things with us. From Paytm credit card to Paytm kyc, we will learn everything about this app in this blog. 

But before that, are you planning to launch a unicorn like Paytm? If yes, then you need to be aware of the fact that building a unicorn requires expert business coach assistance and guidance.

For those planning to develop a tycoon business idea, why not connect with 5+ years of experience in business coach Rahul Malodia?

Wondering what value they can add to your idea?

क्या आप भी अपने Business में Employee, Sales और Finance से जुड़ी समस्या से परेशान है?

Are Small Business Loans Secured or Unsecured?

Well, Rahul Malodia is rated as one of the best business coaches in India and has helped small and medium enterprises grow and build their businesses, expand their reach to international markets, and update their strategies according to changing market scenarios. 

Connecting with a business coach like Rahul Malodia will help you find the best strategies for your industry type, and expert assistance will also ensure minimal risks. 

Let’s start by understanding the Paytm business model failures and how they overcome the challenges to learn more!  

Everything About Paytm Business Model

In this blog, we will learn how Paytm’s business model made it a tech giant in the digital payment industry. Also, we will learn how Paytm’s business model has driven India’s economy and the people living in the country.

So if you want to know that even by providing so many discounts, services, and other benefits to its users, how Paytm earns profits, read this blog and learn from the viewpoint of an experienced business coach- Rahul Malodia. 

What is Paytm? 

Paytm bsuienss model

Initially, this app was launched in 2010 by Vijay Shekhar Sharma as a mobile recharge platform. Still, Paytm soon expanded its services to bill payments, money transfers, online shopping, and, most importantly, financial transactions.

Today Paytm is available from five Star hotels to a street vendor. Paytm has connected to India. Can you become a leading digital payment and financial services platform?

Paytm is a digital wallet that allows users to store money in transactions with a seamless, user-friendly, and secure payment method.

All you have to do is link your bank account, debit card, or credit card to a Paytm account and then pay or receive money from another person using Paytm too. Paytm allows you to pay for goods and services both online and offline. 

From just a simple app, Paytm has grown its services and features like UPI, wealth management, Paytm credit cards, and Paytm loans with interest rates. You can also book a movie ticket, a train ticket, a flight ticket, an event ticket, hotels, and many more. 

Read Also: How UPI Earn Money: A Deep Dive into UPI’s Revenue Model

The Idea Behind Paytm Business Model

The idea behind the Paytm business model was to make people go cashless and make payments online.

Vijay Shekhar Sharma recognized this huge potential to provide people with a payment method for everything, anywhere, at any point of the day. 

With the increase in the use of technology in India, smartphones, Paytm was an opportunity for people to grow their businesses and get a secure platform for paying and receiving money online.

All you’ve got to do is scan or add a UPI Id, type the amount to be paid, and pay. Plus, you can send the proof by taking a screenshot or simply sharing it with the receiving person.

Because of this, people also call this Paytm ka ATM

With the right strategy, planning, and taking in mind the future need, Paytm just played a turn, and it’s now one of the most used and accessible payment options as compared to Gpay or PhonePe. 

आप भी चाहते हो कि आपका Business भी TATA, BIRLA और AMBANI की तरह बढ़े?

Are Small Business Loans Secured or Unsecured?

Who are Paytm’s Customers?

business model of paytm paytm ka atm

1. Individual Customers

Any user in India who wants to make a payment, receive payment, book a flight, recharge a mobile phone, want to pay a utility bill, shop online or pay an offline bill can use Paytm.

2. Home-grown Businesses or Enterprises 

Many people use Paytm for business as it allows them to receive or pay any customer from various locations.

3. Retailers, Merchants, Store Owners

Paytm can be easily used at any physical store or online platform, creating a wide network of users all over India.

For example, if you are on a trip and must pay for cafes, hotels, taxis, grocery stores, or any other place, you don’t need to carry much cash or write your expenses somewhere.

4. Government Agencies and Organizations

The newest collaboration is Paytm Fastag, all you have to do is add some amount to the Paytm wallet, and the toll will automatically scan the code on your car and deduct the amount from your Paytm. 

5. Banks and Financial Institutions

Many banks and financial institutions have partnered with Paytm to provide services like Paytm credit cards, loans, and insurance. Many have asked about Paytm’s monthly personal loan interest rate, which is 1.66%.

Paytm’s Value Proposition

business model of paytm

1. User-Friendly and Convenient App

Paytm is easy to use and pay, which makes it accessible to a large number of people. With Paytm, you can easily make payments by sitting at home when you need to go out.

2. Wide Network

Paytm is accessible to both online and offline customers. It has made it easy to make payments at cinemas, restaurants, retail stores, online shopping, etc. 

3. Security and Trust

Paytm has built trust with both the payer and the receiver. It protects customer data and advances features like two-factor authentication and encryption, which has built trust and ensured customers that their money is safe.

4. Multiple Services

Apart from digital payments, Paytm allows people to recharge their phones, pay electricity bills, book tickets, shop online, get insurance, and do other things. With these multiple services, Paytm has become a perfect solution for digital finance. 

5. Discount, Rewards, and Cashback

Paytm allows customers to get discounts on their purchases, get cashback, and earn loyalty points. This encourages the customer to pay through the app and creates a win-win position for both. 

How Does Paytm Operate?

  • Install the app on your phone through the play store or App Store. 
  • Open the app and sign up for a new user account. 
  • Enter the details like mobile number, email address, and create a strong password for your Paytm account. If you are an old user, simply login into your Paytm account.
  • Get your KYC done from a nearby location, or you can also do it online by providing details like PAN number, Aadhaar card, details, and other information.
  • Link your bank account to your Paytm and add money to your wallet. 
  • Change the payment method like debit card/credit card, net, banking, UPI, or QR code scanner. 
  • Explore all the services provided by Paytm and select your desired option.
  • It’s time to make payment, so select the service or merchant and add the required details like account number, mobile number, or bill details. 
  • Type the total amount to be paid and click the pay button. 
  • Then you can choose from available payment methods like Paytm, wallet, net banking, cards, etc, and complete the transaction. 
  • Paytm will send you an OTP for authentication and ask for the UPI Pin or biometric support. 
  • Your payment is made, and you will receive a confirmation message in your messages or email, which you can share with the receiver.

Read Also: Business Model of BharatPe

Paytm Market Valuation And Funding

Paytm, the Indian digital payment startup, has seen remarkable growth since its inception in 2010.

It is one of the most valuable startups in India, which has changed India’s payment and financial transaction requirements. The market valuation of Paytm is around $13.6B as on Nov 18, 2021.

Here’s a closer look at Paytm’s revenue and funding:

1. Funding Rounds

Paytm has raised $4.64 billion in funding across 16 rounds.

2. Investors

Paytm’s latest investors are Fable Fintech and Rooter. Other prominent names include HungerBox, Infinity Infoway, Tap Chief, Credit Mate, etc. 

3. Valuation

Overall Paytm’s valuation has shown a mixed graph, but its continuous innovation, approach, and strategies will definitely make it to the top again. 

4. Revenue Model

The primary revenue earned by Paytm is through commissions on each transaction made through Paytm, and financial products sale. Other earnings include advertising Paytm offers through target advertising of brands and services and promotional partnerships. 

5. Growth Potential

There is a continuous increase in digital adoption in India; because of this, Paytm will see an expansion in its usage and new users. Also, with continuous innovation and approach, Paytm will bring new Digital finance and payment systems. 

Paytm Revenue Model

Paytm business model

1. Digital Payments

Paytm earns revenue through digital payments by offering a secure platform to its customers. Every transaction customers make for bills, recharges, online shopping or any service offered by Paytm earns a transaction fee. 

2. Digital Wallet

Paytm operates on a digital wallet that stores money and pays the customer. In this case, Paytm earns a transaction fee when you transfer money from the bank to the wallet or pay the merchant. 

3. Offering Financial Services

Paytm offers services like savings accounts, mutual funds, loans, insurance, etc., on which it earns commissions, interest, and management fees. 

4. Advertising, Marketing, and Promotions 

Paytm offers targeted advertising and services to mini brands to its vast user base and insights. It takes payments from brands to advertise their products or services on the Paytm platform by giving customers discounts and offers.


In conclusion, Paytm has revolutionized how people pay and receive money. Being the app that provides many advantages and services to people on one platform, Paytm has become an almost necessary app on all smartphones.

So no matter wherever you are in India, you can easily pay, shop, eat at a restaurant, or book your movie tickets or any event ticket only with a few clicks. 

If you are considering investing in Paytm or starting the same software like this, you can contact the famous business coach and industry expert, Rahul Malodia, for any business or strategy guide.

His expertise in handling business plans, making strategies, and identifying hurdles has helped many businesses and brands to identify their risk and become successful companies for years. 

Frequently Asked Questions 

You can delete a Paytm account by contacting customer support services and requesting them to assist you in closing the account process.

Contact Paytm customer services and follow their instructions to cancel the postpaid feature on your account.

You can activate your Paytm wallet by registering a new account and activating your wallet in the app.

If you want to earn money or offers through Paytm, you can participate in offers, refer the app to your friends, play winning games, and other features. 

You can get a Paytm IFSC code on the website or app. Or you can also contact your bank to tell you the Paytm IFSC code.

Leave a Comment

Stuck in Your Business? Enroll Now For

Vyapari To CEO


Join 4 Hour Masterclass + QnA session