Paytm is an e-payment, ecommerce application that lets user do multiple activities that include transactions through multiple mediums.

It was a major transformational challenge of bringing a cash-based economy to online payments. This is where paytm showcased its innovative side of implementing a strong marketing campaign. Sponsoring various sports events like cricket and rigorous advertising in Television ads that demonstrated Paytm use cases. These initiatives turned out to be a huge success. There was significant elevation in the usage after releasing these campaigns since it created significant awareness in the millennial industry.

Initially, paytm was a simple P2P digital wallet, it later expanded its business of e-payments that its users make on a day to day basis. This included booking air tickets, movie tickets, bus tickets as well as payments for utilities including electricity, d2h, mobile recharges and broadband. In 2015, Paytm received its license to start a payment bank which was an unprecedented achievement for the firm.

Later, it overcame several regulatory hurdles and received a payment bank status that allowed Paytm to gain more flexibility in the use of “Paytm cash”, spectacularly in the activity of money transfer back into users’ other bank accounts. This flexibility allowed several different modes of payment for transaction using Paytm application.

The main highlight for paytm was the effects of demonetization. On 8 November 2016, the Government of India announced the ban of all Rs 500 and Rs 1000 notes which changed the entire scenario of curbing black money from the country. These notes represented 86% of the value which was in circulation. Within a period of time the balance notes available with the citizens of the nation had to be deposited at the nearest banks which they possess a savings account and exchanged for new notes. However, due to its poor implementation, it was weeks and sometimes months before bank branches and ATMs came up with new notes available. Paytm took advantage of this situated in the best way possible. It used this opportunity to push physical stores, ranging from small roadside general stores to large supermarkets to download Paytm and use it as a form of payment. The entire nation started transacting on Paytm. By December 20 2016, Paytm had over 20 million new users. In the first two week after demonization, Paytm witnessed over 7 million transactions per day.

Now we will talk about the innovations that Paytm brought in the fin-tech world.

 

1.      Paytm’s entry in educational sector: Now, Paytm is set to expand its business in education sector also. It is doing so by building an ecosystem to address the never-ending requirements of students and government job aspirants. The firm which is backed by Softbank and Alibaba is partnering with multiple institutions to offer a full range of services right from providing details on around 25,000 colleges, courses, exams to coaching, scholarships, test preparation, admission forms etc. Their bouquet of services will also include - in-app payments and in educational centres and financial services like student insurance, educational loans, banking.

2.      Highest number of transactions: Recently Paytm registered over 70 crore transactions in the month of June 2019, more than the total transactions done by all UPI-based payment applications which includes apps such as Amazon Pay, Google Pay, Whatsapp Pay and Phonepe. This has achieved with its flexibility that it offers to its large customer base in selecting their preferred payment methods such as wallet, UPI, cards and net-banking, compared to the above players.

3.      Allegations put forth by other players on Paytm: Many players in the market accused the digital wallet Paytm to charge additional charges on transactions for which Paytm refused from the fact that it is going to charge users extra amount for transactions on Paytm.  They clarified that Paytm app/payment gateway owned by One97 Communications Limited does not charge any sorts of convenience or transactional fee from their customers on using any of the mentioned payment methods which includes cards, UPI, net-banking and wallet. 
The officials said that their customers will continue using all the services available on the platform absolutely free" There have been few merchants like educational institutes or utility service providers who do not absorb credit card charges and expect customers to pay the same. 
In such cases, we recommend our users to pay through their debit cards and UPI to avoid these charges.

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