In the year 2010, Indian telecom infrastructure was evolving in a revolutionary way, but Vijay Shekhar Sharma’s investors were not very much relying on the idea that mobile-first consumer service is going to rule the masses later. He did not earn any funding over this idea and made investments himself to prove this to the people. Rest things were historic on its own.
Ever since Paytm has started, it has brought a paradigm shift in the retail industry by completely transforming the payment methodology. During its initial years, this online wallet cum e-commerce website was used to make payments for limited utilities such as mobile and DTH recharge and shopping bills. Over the years, this portal has expanded its scope and has brought about anything and everything under the ambit of its operations.
Paytm customers are free to recharge metro cards, pay bills for utilities such as electricity and water, book flight, train/ bus tickets, transfer funds to other bank accounts, make hotel reservations, etc. Now, the recent Paytm success story is expanding with the entrance of e-retail and m-commerce stores. It enriches the small vendors to enlist their products on the needed website and allow expansion of the customers-base.
Years of Foundation
The inception of Paytm was done in the year 2010 by a visionary alumnus of Delhi College of Engineering (now DTU) Mr. Vijay Shekhar Sharma. Long before the inception of Paytm, in the very first year of this millennium, Mr. Sharma has laid the foundation stone of Paytm’s Parent company One97 communications. Initiated as an online mobile recharge and bill payment platform, Paytm now enables its users to make almost every kind of transaction on the click of a button. In just 8 years, Paytm has over 250 million registered users and counting. Paytm’s major investors include Alipay, Alibaba groups, SAIF partners, Silicon Valley Bank, and Sapphire venture.
Paytm gained abrupt prominence after the startling decision of demonetization by the honorable Prime Minister Mr.Narendra Modi. It became the prime source to run the economy. Since there was a lack of flow of cash, people were lured to use Paytm.
During demonetization and thereafter, it became the lifeline for millions of lower-middle-class and middle-class working population. Not only this, but it also became the torch-bearer of the cashless economy (or say less-cash economy). Though the company was doing extremely well ever since its establishment, it was mainly focused on catering to the young millennial. The youth more or less now choose to be technically driven which was the idea that Paytm was working on.
The demonetization phase opened a new door of success to the company. It helped the company spread its base among the not-so-educated and digitally aware people like hawkers and street vendors. Many people ridiculed and mocked the idea of Mr. Sharma. But those people themselves became laughing stocks when they started seeing the flyers of “Paytm Accepted here” in the remote areas of the country. This out-of-the-box thinking has helped it gain 100 million registered users.
Surveys were depicting that Paytm has surpassed similar payment applications such as Mobikwik, Freecharge, and other eCommerce app developers in the number of users and the revenue generated.
Why Users Should Trust Paytm
Paytm users can trust the company purely for the reason that it is a Reserve Bank of India (RBI)-approved e-wallet, i.e., the user’s money is secured under the Escrow account with a nationalized bank. Paytm has emerged to become the most favored digital payment platform in India simply because of the security feature it provides and an easy to use interface. Paytm uses Verisign-certified SSL (Secure Sockets Layer) 128-bit encryption technology. This has ensured that the online information of the user, i.e., the password and other financial details, is safe, thus providing greater protection to users.
The Paytm online payment system is not only secure but also robust. It can handle around 5000 transactions per second which are simply incredible. Such a huge capacity of transactions has been made possible by the implementation of a very simple yet effective and safe payment method. Users can simply pay by either scanning a QR code of the shop or by entering the mobile number of the recipient. Paytm wallet also render options where a user can either safely park his or her money in the application and make the payment from money in the wallet or pay directly from the bank via the application. An increasing number of people are now utilizing Paytm to pay for their daily utilities and other expenses.
Prospects for Business Expansion