Paytm Business Model


Paytm is India’s leading FinTech company. Its business model is based on a two-sided ecosystem where it provides financial services to consumers and helps merchants grow their businesses.

For consumers, Paytm’s payment solutions include bill payments, peer-to-peer money transfers, and online payments. It also offers UPI and QR codes.

Mobile Recharge

Whether you have a prepaid or postpaid mobile, it’s always a good idea to keep your phone recharged at all times. People use their phones for various activities like calls, text messages, data, and games.

Hence, it’s essential to keep your phones charged to stay connected with friends and family. To help you with this, Paytm offers a service that lets you set up recharge reminders to ensure your phone is always fully charged.

In addition to recharging your phone, Paytm allows you to do wallet-to-wallet and wallet-to-bank transfers. This makes the app a one-stop shop for all your payment needs.

Digital Gold

Digital Gold is a way of investing in gold without the hassle of storing it physically. It is a new form of investment that allows you to buy 24K gold at global market-linked real-time prices and store it in MMTC-PAMP’s 100% insured lockers at no extra cost.

You can buy small amounts of digital gold through paytm apps such as Google Pay, PhonePe, and Paytm Cash. These platforms have tie-ups with MMTC-PAMP and SafeGold, which help you buy digital gold.

These companies sell digital gold through intermediaries, which charge a nominal fee from customers. Intermediaries are typically banks, fintech companies, and brokerage houses.

Bill Payments

Paytm offers a fast and easy way to recharge your mobile or make payments for various bills. You can do all these things from the comfort of your home or on the go.

Online bill pay is a great way to organize your bills and keep track of due dates. It makes it easier to see where your money is going and can help you avoid late fees.

Like any other payment service, online bill payments use your bank account information to pay bills. These payments are sent electronically and usually reach their recipients within a few days after you schedule them.

Financial Services

A financial service is a type of business that offers money-related services, such as investments and insurance. Banks, credit unions, trust funds, and stockbrokers can provide them.

Paytm is a financial technology company that enables consumers and merchants to make payments. It generates revenue from its products and services through fees, commissions, and subscription fees.

It also earns revenue through its payment solutions, which include mobile recharges, bill payments, and peer-2-peer transfers. These services are offered to consumers through the Paytm app.

Moreover, Paytm disburses loans through its financial institution partners and earns fees for sourcing and collecting these loans. This contributes to its financial service business growth in Q1 2022. Its loan distribution product portfolio consisting of postpaid, personal, and merchant loans generated significant revenue in the quarter.


Paytm’s business model is to partner with banks and NBFCs to offer lending services. These partners provide a platform that provides access to potential borrowers who are otherwise difficult to reach.

The company also collects commissions from these lenders. These fees are based on the amount of loan that is disbursed and managed by the partners.

In its lending business, Paytm has partnered with scheduled commercial banks and NBFCs to offer instant and collateral-free loans to merchants. The loans are pre-approved, and help merchants grow their businesses.

The company’s lending business disbursed 9.2 million loans during the September quarter, up 8% sequentially and 224% YoY. The company has a strong portfolio and expects it to continue growing.