Despite the crypto crash, sliding share prices and global economic downturn, financial experts are rooting for new-age Indian tech companies to ride out the storm based on their robust business models and positive investor sentiment. Though leading companies like Nykaa, Zomato and Paytm have witnessed a slide of more than 50 per cent in their share value from the peak price, it’s only a matter of time before they are frontrunners in the market again. Against this backdrop, Paytm’s model has carved a niche for itself in the consumer market and is continuing to win trust for its open and transparent functioning style. Its robust business model and novel monetization method offer a comprehensive ecosystem of payments and financial services. It is the only company that caters to a two-sided ecosystem of consumers and merchants. The figures speak for themselves. In March 2022, Paytm’s merchant base has grown to 26.7 million, with deployed payment devices increasing to 2.9 million from 0.8 million in FY 2021, thus accelerating its subscription revenues. Here are some key factors that have shaped the Paytm success story: • Diverse payment services for consumers: Consumers can choose payment instruments-both third parties like cards and net banking as well as Paytm Payment Instruments like Wallet, Paytm Postpaid (BNPL), UPI, Fastag to make online payments for mobile recharge, education, utility bills, money transfers & other services using the Paytm app. Consumers can also make online payments on third-party apps and in-store payments through QR codes and devices. • Platform Engagement to Enable Merchant Partners’ Growth: High consumer adoption encourages merchants to join Paytm and commerce offerings to leverage our consumer traffic to grow their business. This creates a self-reinforcing loop, which demonstrates high frequency and repeat rates and leads to powerful consumer stickiness and retention. • Catalyzing subscription-led Ecosystem for Merchants: Paytm enables its partners with tech solutions allowing them to accept payments through various instruments and deploying subscription-based devices that help with reconciliations. Entry-level merchants can use a free Mobile QR to accept payments, typically using Paytm Payment Instruments or UPI. Small retailers can upgrade to Soundbox devices that allow real-time voice verification and better reconciliation for merchants, enhancing their trust in digital payments and generating revenue for the company. • Using Two-sided Ecosystem and Insights to Upsell High-margin Financial Services: Paytm’s extensive outreach and insights from our payment and commerce services enable Paytm to upsell high-margin and low customer acquisition cost (CAC) financial services to their consumers and merchants. Paytm has also pioneered the distribution of innovative small ticket lending products that were nonexistent earlier, thus creating new markets that are possible only digitally. The company offers various lending products to consumers and merchants with their financial institution partners.
