Paytm, which is currently known as one of the leading e-commerce company for payment, has established itself as a flourishing business in India. It owes its success to the policies and approaches it has been adopting since its inception. A consumer brand of One97 Communications, the name Paytm stands for “Pay Through Mobile”.
Here I am sharing a infographics created by Couponchaska.com, coupons and deal website based in India.
Like any other company, Paytm too has had its shares of ups and downs. Launched in August in the year 2010, it took about 3 years for the company to rise to prominence. Initially, it started its operation with a website, which provided prepaid mobile recharge service. A year later, it also started providing data card recharge and DTH recharge services. In view of the success, which it achieved in the first couple of years, the top officials of the company took the initiative to provide a mobile wallet for its recharge services.
The year 2013 witnessed the company providing the facility to make online payments. Following this, it came up with the idea to launch an online payment wallet to facilitate digital transactions and launched Paytm wallet in the same year. This turned out to be a game changer as the move was responded by its users with more than 150 million subscriptions. Along with it, its Android app also witnessed a surge in terms of downloads.
In 2013, it came up with the idea to introduce the feature to let its users book their bus tickets online. As an extension to the services offered by Paytm, this move was seen as a game changer as many believed that it would only encourage the company to further expand the scope of its operations down the line. In addition, Paytm marketplace was also launched. These crucial events set up the stage for its further growth and increase in popularity in coming years.
Another important phase came when Ratan Tata, one of the prominent figure among industrialists in India, personally invested in the firm in 2015. Next, came an investment of $575 million from China’s Alibaba Group. By virtue of this, it acquired a 40% stake in One97 Communications, the parent company of Paytm.
The Reserve Bank of India also cleared its proposal to start a payments banks for making payments for a wide range of services like hotel bookings, cafeteria, school fees and dues and more. Even petrol pumps and insurance premium companies started accepting Paytm cash. These crucial events solidified the position of the company in the market and provided the wherewithals to it for its emergence as a leading company in the Indian market.
Drawing inspiration from its $60 million fundraiser in 2016, the company started online flight bookings. The last couple of months in 2016 marked a new beginning for the company. After the declaration of the demonetization move by the Prime Minister of India, Mr.Narendra Modi, on November 8, 2016, digital transactions or online transactions took precedence over cash transactions. The pulling out of 500 and 1,000 rupee notes from circulation was the primary cause behind this. If it were not for Paytm, people would have had much more difficulty in going about their business and carrying out their transactions.
With a great success in 2016, Paytm looks committed to extending its plans to expand its operations further to gain a foothold in the Indian market. A $5 million gross merchandise value, coupled with 160 million wallet users speak volumes for its achievements so far. The popularity of its Android app can be adjudged from a staggering 75 million app downloads. Furthermore, it boasts about 7 million transactions on a daily basis, amounting to Rs 120 crore.
Such is the popularity of the e-commerce company at present that people have virtually made it a habit of doing Paytm rather than paying in cash. When used for transactions, it provides two kinds of benefits – discounts and cashback offers. Cashback has emerged as a unique way of making savings. The cashback resulting from an online payment via Paytm wallet can be used carry out subsequent transactions in future.
As far as its customer base is concerned, it is not only popular among online merchants but also among offline merchants. Over 10 lakh merchants accept payments made through Paytm offline involving payments to grocery shops, taxis, auto, restaurants, petrol pumps, multiplexes, coffee shops, parking lots, etc. These figures reflect the bright future prospects of the company, which promises to stay right at the top spot among e-commerce companies for making payments.