Paytm Business Model – How Paytm Makes Money?

9 thoughts on “Paytm Business Model – How Paytm Makes Money?”

  1. Sahil says:

    Hey Aashish ! Loved your content and the research you’ve put in is indeed worthy of praise. You work as a marketing/branding consultant or you are full time with this? Anyway about the PayTM business model, any idea how much is their commissions on bill payments of hotels etc?

    1. Aashish
      Aashish says:

      Hi Sahil!
      Paytm, just like Airbnb, provide listing service to the hotels. Unlike oyo rooms, Paytm do charge commissions for every customer who books a hotel room through their portal. However we don’t have the information about the exact percentage of commission charged. Commission charged by Paytm from the hosts must be ~10% as Airbnb charges 10%.

      I do freelance marketing and branding consultancy services. You can contact me at [email protected] for more details.

  2. Matt Hogan says:

    Hii.. Thank you for sharing useful information. As today world has become online everywhere and depending upon mobile wallets, it is very important for many people to learn how these mobile wallet works.

  3. Srinath Narasimha says:

    “The money deposited by users in Paytm wallet, as per RBI Guidelines, is deposited by Paytm in an Escrow Account with a certain bank. This escrow account deposit fetch Paytm certain interest which is decided as per the contract between the bank and Paytm.”

    This of course means that customers lose interest on the money they transfer to paytm wallet from their bank accounts. This is a case against using paytm, especially when there is the alternative of BHIM app, where you don’t have this problem.

    1. Aashish
      Aashish says:

      Hi Srinath

      Every aspect has its opportunity cost. BHIM app, though beneficial to the customers doesn’t have an extensive marketing and distribution reach like Paytm. It’ll gain popularity soon.

  4. Akhil Sharma says:

    Hello Aashish,

    the work you did on this page and the matter, analysis and everything is superbly well executed! the manner in which you have presented the whole case is also very well presented!! Keep up the good work!!

    1. Aashish
      Aashish says:

      Thank you Akhil.
      Do subscribe to get all the updates. 🙂

  5. Manu says:

    paytm does allow cash to be transferred to banks, withdrawal is possible.

    1. Aashish
      Aashish says:

      Hi Manu,
      Bank transfer and cash withdrawal are two different things. Unlike commercial banks, you can’t withdraw money out of your paytm wallets on any ATM or other outlets. However you’ll be able to do it soon as paytm launches its payments bank.

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