How Does Paytm Make Money?

How does paytm make money

Paytm you must have heard about this payment app at least a dozen times. The majority of you must also be using this app to make payments for your day-to-day life. 

To pay a merchant for the products you purchased or to pay a friend who is in need. To make recharges or pay off your bills these payment apps have made our life ten times easier than ever before. 

By making our life smooth and easy these apps have become a significant part of our life. 

However, has this thought ever slid in your head that how these payment apps make money? Do they charge us or any other entity? Are we being charged by Paytm without our knowledge?

Making money and earning profits is the sole common motto of all businesses. Similar to the other companies and businesses these payment apps also work for profits.

Paytm is the first-ever platform that introduces an online marketplace in India. With its smooth payment app and other features Paytm also has its marketplace on which millions of users buy products easily. May it be about paying your gas bills or paying for the products purchased online Paytm can help you make fast transactions easily.  

Paytm renders various services to its users and earns a fixed amount percentage from them. The sources from which the Paytm payment app earns its profits are as follows: 

  1. Paytm online marketplace
  2. Mobile Recharge Services
  3. Utility Payments
  4. Payments
  5. Digital Gold
  6. Promotions for other brands 
  7. Wallet features
  8. Paytm Bank

Paytm app earns its revenue from various sources. Paytm takes a fixed amount of commissions and fees for the above-mentioned services. 

  • For instance, for all the payment transactions Paytm charges a percentage of commission from the telecom companies. 
  • Moreover in the case of Paytm online marketplace Paytm has more than 120 million buyers as its users. 
  • Paytm also earns a huge percentage of the amount from its investment and insurance business. 
  • Paytm lets various renowned brands sell and render their services on its online platform and charges fees in exchange. Paytm sells various products directly to its million users. 
  • Paytm also earns money through promotions of various products for numerous brands on its own website. 
  • Paytm has also launched a Paytm bank recently via which it earns a fixed percentage of revenue from the interest of its loan services. 
  • It also earns its profits from the other companies for every transaction made for the utility bills such as electricity bill, water bill, gas bill, and much more. 

Due to its diverse revenue generation sources in the year 2020, Paytm’s total revenue was somewhere around $16 billion. 


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