Paytm: Indian Digital Payment System and Financial Technology Company Based in Noida
Paytm is a partial abbreviation for cellular charge. Noida-primarily based totally Paytm is an Indian virtual charge gadget and economic era company. It is presently an enterprise that gives on-line use instances including cellular recharges, invoice payments, travel, movies and event reservations, as well as in-store payments at grocery stores, fruit and vegetable stores, restaurants, parking lots, toll booths. As of January 2018, Paytm has multiplied its value to $10 billion.
According to the company, more than 20 million merchants across India are using QR code payment systems. The company derives a number of its sales from classified ads and paid promotional content.
1 Billion Dollar Investment
Paytm, one of the most important players in the mobile payment market in India, increased its valuation up to 16 billion dollars with an investment of 1 billion dollars in the G series investment tour led by T Rowe Price. In addition to T Rowe Price, Ant Financials, SoftBank Vision Fund and Discovery Capital also participated in the investment round.
Ant Financials participated in the 1 billion dollar investment round with 400 million dollars and SoftBank Vision Fund with 200 million dollars. Paytm mobile wallet allows users to transfer money and make payments very easily. One97 Communications, the parent company of Paytm, has increased its total investment to date to 3.3 billion dollars with the investment of 1 billion dollars.
Paytm founder and CEO Vijay Shekhar Sharma shared that the investment will be used to strengthen the company’s presence among small and medium-sized businesses, adding that they will offer financial offers such as loans and insurance in the future.
India is a very important center for mobile payment technologies. Major companies like Google, Walmart, and Facebook offer mobile payment solutions in India. According to the information shared by Credit Suisse, the digital payment market in India will reach a value of 1 trillion dollars in the next 4 years. The current value of the market is 200 billion dollars.
200 Million Users
In India, where cash still has the most important place in the market, a platform that offers money transfer over the internet gains 700 thousand new users every day. Vijay Shekhar Sharma, CEO of the fintech startup Paytm, announced on Monday that the total number of users of the application has exceeded 200 million. With the achievement of this target, Sharma stated that the new target planned to be reached by 2020 is 500 million users.
Although the six-year-old digital wallet application has been very popular in the city centers of India, its impact was limited to these regions until last year. Millions of Indians flocked to digital wallet apps after a significant portion of the country’s banknotes were withdrawn from circulation in November. The most popular of these applications was Paytm.
80% of Indians still prefer cash to other shopping methods. However, at the point where there was a shortage of cash, fintech applications such as Paytm, Freecharge and MobiKwik seemed like a medicine for the people of India. After the Prime Minister announced that cash money would be out of circulation, there was a 435 percent increase in the use of Paytm. App download numbers also increased by 200 percent. In less than two weeks, Paytm started processing 7 million daily cash transfers. This figure is more than all credit and debit cards in the country.
Paytm has now become a form of payment that can be accessed anywhere in the country. In addition to about half of the services that provide services over the Internet; Payments are now accepted with Paytm at many points, including small shopkeepers, roadside and behind-the-scenes sellers.
Every investment carries a risk, however small, so every investor should always be careful in every move. However, what you should not forget in investment is that not investing is a much riskier move than investing.