How Does Paytm Earn Money ? paytm business model

How Does Paytm Earn Money? | Business Model & Case Study Of Paytm

How Does Paytm Earn Money? | Business Model & Case Study Of Paytm

In this blog, I will tell you how does Paytm earn money. Today I will tell you how Paytm was so successful and I will tell you in detail about the business model of Paytm so let’s start.

Paytm is India’s largest e-commerce and mobile wallet platform launched by Vijay Shekhar Sharma in 2010.
The full form of Paytm is to pay through mobile. Paytm has over 30 crore users.
There are more than 16 million transactions daily through Paytm.
Paytm has over 7 million merchants that accept payments through Paytm.

Paytm has received funding of Rs 2.2 billion so far.

Also See: How OYO Rooms Earn Money?

Paytm has a 68% market share and his competitor free charge has a market share of just 11%.
According to Wikipedia, the total Revenue of Paytm is 814 crores INR (US$120 million).

But the biggest question is how does Paytm make money even after giving 50% to 100% cashback.
Before answering this question, let me tell you the business model of Paytm.

how does Paytm earn money?

I have divided the revenue model of Paytm into 8 categories:-

Also, see – How PhonePe Earn Money .

1. Paytm mall

2. Mobile Recharge Services

3. Bill Payments and Ticket Bookings

4. Payment Gateway Solutions

5. Paytm Wallet

6. Digital Gold

7. Paytm Payment Bank

8. Paytm Money

1. PAYTM MALL – Paytm Mall is also the platform of Paytm.Paytm Mall is an e-commerce platform.
So finally let me tell you how Paytm earn money from Paytm Mall.

Paytm Mall is a B2C platform. The seller first lists his product at Paytm Mall.
If a customer buys a product, then whoever is the seller of that product
has to pay commission to Paytm.

Paytm charges up to 12% commission from its sellers,
commission depends on product categories.

Also see – How Google Pay Earns Money.


As per the data of Paytm Mall, sales of 20 lakh are generated every day.
Also, 90% of payments are prepaid.

2. Mobile Recharge Services – Whenever a user recharges mobile on Paytm,
Paytm gets commission on every recharge from the operator on which the user recharged.

Paytm has settled with all the operators.

The main revenue model of its competitor phonepe is also a mobile recharge services .

3. Bill Payments and Ticket Bookings – If you use Paytm then you will know that you can also do bill payment and ticket booking from Paytm.paytm offers electricity bill payment, Dth bill payment,
school/college fees payment and bus/flight/train ticket booking, etc.

But the biggest question is, how does Paytm earn money through bill payment and ticket booking?

The answer is very easy if the user pays the bill of any company or booking a bus/train/ flight ticket of any company.
Paytm takes commission from those companies.

4. Payment Gateway Solutions – Paytm also has its payment gateway. Some big brands like
Zomato, Uber, Swiggy, food panda, dominos, Oyo rooms use Paytm payment gateway to take payment from the customer.

However, the Gateway option setup is free but the company charges a commission of 1.99% on every transaction.

5. Paytm Wallet – Paytm wallet has been approved by RBI(Reserve Bank of India). Paytm wallet is used for transfer
from one wallet to another wallet and prepaid payment.

So how does Paytm make money from Paytm Wallet?
The answer is simple, even if you transfer money from Paytm wallet to the bank,
Paytm takes a small commission.

6. Digital Gold – Paytm launched Digital gold services in April 2017 in partnership with MMTC-PAMP.
Paytm allows users to buy gold for as low as Rs 1.

How do they earn?

If the user buys Digital Gold then Paytm takes commission from them.

7. Paytm Payment Bank – Paytm started Paytm Payment Bank in 2018, Paytm Payment Bank is like a normal bank. if you do FD in the Paytm payment bank it will give up to 7.09% interest per annum to you.

Paytm payment bank is earned from commissions, exchanges, and brokerage.

8. Paytm Money –Paytm Money App is also Paytm’s own which was launched in 2018.

Paytm Money is a mutual fund investment app.

how does Paytm money app earn

Whenever someone invests in a mutual fund through the Paytm money app, then that mutual fund company gives the commission of that investment to Paytm.

 how is Paytm making money even after giving cashback of 50% to 100% ?

Paytm is focusing on making more and more of its customers, that’s why it is giving upto 100% cashback.But overall Paytm is profitable and it is said by Vijay Shekhar Sharma [ founder of Paytm] .

Thanks for reading this blog.


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