Is Paytm Money Safe for Long Term Investing?

Is paytm money safe

Paytm money is a subsidiary of Paytm and Paytm’s Parent company is One97 Communications. One97 Communications operates Paytm and its subsidiaries across India and other countries. If you don’t know, the owner of Paytm is Vijay Shekhar Sharma who started Paytm in early 2010 in Noida. 

Paytm has just boomed up when demonetization took place in India it just acquired lakhs of new customers by giving attractive offers and cashback which other companies are not giving.

You can also see Paytm is meant for its cashback, offers, vouchers, and coupons codes that motivate customers to do multiple transactions and at the same time Paytm does make good sales and revenue in the form of commission.

With the help of Paytm money, we can do stock trading and can easily invest in Mutual Funds, IPO, bonds, digital gold, etc. Along with this if we save money in Paytm money wallet we will get monthly interest. This is a small intro about Paytm money and we hope you are clear till now.

What is the Market Value of Paytm?

Paytm is a huge cash-burning company and it is a loss-making company because Paytm offers huge coupons and discounts to its customers. So according to the 2021 July valuation the value of Paytm is around 16 billion dollars after raising funds. If we convert 16 billion dollars into Rupees then it will be around 1.2 trillion+ rupees so this is the market value of Paytm and its subsidiaries.

What are Paytm’s Customer Base and Monthly Active Users?

Because Paytm is giving huge cashback and offers to its customers and due to its initial entry into the digital payments market in India when demonetization took place, Paytm is among the top players in allowing Indians to do digital transactions. Paytm has 150 million monthly active users with 1.2 billion monthly transactions. After Paytm PhonePe is followed in the second and Google Pay in the third.

By giving one tap seamless transactions experience to its customers Paytm can build a good brand value in India and also they were able to acquire valuable customer databases and monthly active users very quickly.

Also Read: Top 5 Stock Market Trading Apps in India

Who are Paytm’s Investors and Owners?

  1. Vijay Shekhar Sharma  14.67%
  2. Ant Group                      29.71%
  3. SoftBank Vision Fund   19.63%
  4. SAIF Partners               18.56%

The first owner of Paytm Money is Vijay Shekar Sharma, a well-known Indian entrepreneur and the founder of Paytm. Also, there is an investment in Paytm Money from Jack Ma, CEO of the Alibaba Group. Other investors include Softbank (Japan), SAIF Partners (Hong Kong), etc. 

How Paytm Money Better and Safe than Others

  • Parent Company 

Paytm Money is founded by One97 Communications, the largest mobile marketing company in India. They have been in the business for more than 20 years, and it is one of the leading companies in India providing mobile payment and e-commerce services. 

  • Zero Margin Funding 

Paytm does not have margin funding, which is risky and puts a company’s future at risk. 

  • Millions of Customers 

There has been a constantly increasing customer base for Paytm, and since its inception, it has had more than 6 million active customers. A healthy and growing customer base reflects the confidence and efficiency of the company. 

  • Low Complaints 

As of 2021, there have been no complaints against Paytm at the Bombay Stock Exchange (BSE). The complaint ratio at the National Stock Exchange (NSE) is in the range of 0.01%

  • Zero Proprietary Trading 

The company does not use the funds of the customers for its own trading. So, your money is safe with Paytm. 

  • Pricing is Easy and Simple 

Paytm has reduced its operational risk and complexity, by keeping a single brokerage charge for all customers. This is easy for even new investors to understand. 

  • Safety and Security 

Paytm has bank-level security that protects all essential customer data from unauthorized access. The platform ensures further security with two-factor authentication. 

Also Read: USA Stock Market Timings in India

Paytm Money Memberships and Registrations 

The Paytm Money app is registered with the Securities and Exchange Board of India (SEBI), and it is legally a stockbroker, depository participant, and investment advisory. The company is also one of the most active members of the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Here are some of the details of the registrations: 

Paytm Money SEBI Registration Number: INZ000240532

Paytm Money Investment Advisory SEBI Registration Number: INA100009859

Paytm Money CDSL (Depository Participant) SEBI Registration Number: IN-DP-416-2019

Paytm Money PFNDA Registration Number: 269042019

Is Paytm Money Safe?

Yes! Paytm money is very much safe to do regular transactions related to stock markets because it follows the guidelines of the securities exchanges board of India and other organizations.

Apart from all these, we use Paytm in our day-to-day life and we know how Paytm serves us.

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