PayTM Business Model Case Study How PayTm Earns PayTM 6 Business Model in detail Hindi

 and today we'll talk about Business model of Paytm 

Everybody knows about Paytm, you may have done recharge from there or online order or bill payment. So how do they do earn? We'll discuss this today First of all let's talk about it's history that Paytm is a 

PayTM Business Model

brand Which is a part of one 97 communication Started in 2010 And so far has received funding of 1500 crore In 3 rounds and they have acquired 3 companies, we won't dive deep in the 

history They started their business with mobile recharge You can add money in wallet. and recharge your phone And gave a lot of cashback in the beginning 100 cashback on recharge of 500 These 

cashbacks were a way of making paytm a habit Now what happens, you normally used to do recharge You used to get a coupon( it used to have a code) Then with time, we gave our number to service 

providers for recharge But today, most of 

the people Who know how to use internet We prefer paytm and we can get 5% cashback 10rs, 20rs cashback And we prefer paytm because of their service and 

cashback And today they are earning on the behalf of cashbacks they have given in the initial phase If we divide their business model It's a combination of 7 Business model. First Business model is market 

place. What does it mean? If you haven't seen my ecommerce video You can check in the i button Because everyone wanted me to make a video on Myntra, flipkart And i've already made a video on this Their model is 

a commission based When a seller list a product on their website when  a particular product is sold, they get a commission that's it There are some hidden cost inside it too Suppose there's a product worth 100rs on 

paytm So the product sold is of 100rs and 

on this product Seller have to give 2.8% transition tax of the amount paid by the consumer to the paytm Logistics charges are on paytm and commission Basically 

paytm earns via 3 medium and if they try to do some fraudulence Then paytm charges big penalty on them then they'll pay for the penalty as well. According to paytm, They have daily sale of 20 lakh products They get

 transaction fees, commission and most important thing, 90% of payment is Prepaid means from the wallet. So Whenever a order is prepaid, chances of return request are low Normally if mode of payment is 

cash on delivery then chances of cancelling the order are high SO the transportation cost is the loss So here majority is prepaid So chances of cancellation are high their next business is of recharge   Normally 

shop service provider used to keep coupons 

with them and in return they used to margin 5-6% Here they are getting orders in bulk And no inventory cost No need of paper   They can directly pay from paytm 

So from here Inventory cost is cut and commission is there So they do give cashbacks because they want to make you habitual A time will come when You'll get used to paytm and their next business 

model They are tied up with MTNL BSNL and with power supply with airtel with broadband   Same game whenever a person recharges from a particular service provider   There, they get a commission 

They first give the customer some refund If you pay from Paytm, you get 50% off If a person once paid the electricity bill via Paytm. Chances are high, you'll pay the bill from then only Now what people do If they have 

10 sim They first get discounts from those 

10 sims   And change from one wallet to another wallet. You can do this But normally People are getting positive towards Paytm next business is of Payment 

gateway Mean if I am running my website Suppose I am selling my nutrition supplements and I want to add a payment gateway So that you can pay via card SO they provide this solution called payment 

gateway and they get some commission Now their architecture cost All the cost in the making of payment gateway It's a one time cost After this More the payment, more the commission So there are many 

companies Who are earning only by providing payment gateway   Paytm has only one subsidiary( means their payment gateway is handled by some other company) Next business model is of bank 

I've already made a video on this How do 

they earn they invest and reinvest your money and take some interest out of it You can check that video You'll get a clear image   Next is Digital wallet that you can 

send/receive money in wallet   Okay Suppose I added 10k but those 10k When I will add them in my account I have to give some commission They'll earn from this too We do not understand this. But they do 

earn from this mode Now the new thing Gold currency that you can buy gold in 10rs 20rs gold Everyone knows about this business   Your money will be used If prices of gold increase, you'll get the increase and 

they'll cut their commission and if prices of gold declines, still they take commission So basically They are earning a lot just via commission   So you tell me whether this business model is profitable or not or you 

have any suggestions, Okay friends, ends 

here I hope you understand it If any doubts, do ask me in the comments Like and share and do tell me in the comments below whether this business model is