How Does PAYTM Company Work and What Are Their Revenue/Business Model

Have you ever thought that how these startup companies generate money? Here in this article, I will give you the detailed description of one such start-up company that has created a benchmark in the field of start-up industries and that is none other than PayTM. How after offering so much of offers to the public it can generate revenue and this question alone creates curiosity in the mind of the people to know about it. PayTM has given boost to Make in India scheme put forward by the Indian Prime Minister Shri Narendra Modi.

how does patym makes money

After lots and research and interviews we got to know about its way of earning and the knowing process was really interesting. An Indian E-Commerce company initially started with the mobile recharge service reaching the heights of success is remarkable.


PayTM(pay through mobile) is an Indian e-commerce company that provides a variety of services to the user. It was launched in August 2010, by One97 communications as a mobile recharge website and now it has multipurpose facilities. Till now it has achieved many achievements and in 2015 it became the first Indian company to receive funding from Alibaba which is a Chinese e-commerce company. By introducing payTM wallet in 2013, it created a benchmark for other start-up industries by allowing the user to book air and rail tickets, pay electricity and water bills and even booking of films tickets. Currently, payTM wallet is India’s largest mobile payment service platform enabling these features.

vijay shekhar sharma


PayTM, founded by Vijay Shekhar now has a value of $3 billion in the market which is enough to say about its importance and popularity. The man who once struggle to save Rs 10 now owns the company which has so much of value in the market. Vijay Shekhar was born on 7th June in Aligarh to a middle-class family where the father was a school teacher and the mother was a housewife. He was one among the 6 children. He went to a Hindi Medium School and from the childhood only he was a bright student, passed his higher secondary school at the age of fourteen and was the topper of the class. He was not allowed to give DCE entrance exam as he was under-age and so he has to take permission from the VC of the Delhi University to appear in the examination. As he was from a Hindi Medium School he faced many difficulties there. He was not able to speak English and therefore attend special classes there in order to have a better control over the language. He read magazines and books and from there he got to know about Silicon Valley and dreamt of becoming a man like Sabeer Bhatia.

He started a start-up company while in the third year of his college along with one of his batchmate Harinder Pal Singh. In 2001 he founded One 97 communications Pvt. Ltd along with one of his former colleague, Rajiv Shukla but the company went into the loss. His colleague left him and again he was alone. His family members forced him to do a job and therefore he joined Startec Global communications as a consultant but the thought of doing something new forced him to borrow Rs 8 lakhs from his father and sister. While waiting for a break he got to know about Bharti Airtel Ltd which was interested in creating live astrology and therefore Vijay hired seven astrologers and started making out money through this. This dial- in model for phone system fascinated him the most and from there he came up with the idea of entering into payment ecosystem. He launched PayTM on August 10, initially providing the service of prepaid mobile recharge. Then later on introducing PayTM wallet it becomes the largest mobile payment service. Vijay Shekhar Sharma received an honorary doctorate degree from Amity University Gurgaon.

about paytm company

Learn more about paytm company.


PayTM is a digital platform that allows you to buy a number of goods without going for cash. With the transfer of money in the PayTM wallet through online banking, debit cards, and credit cards you can enjoy many services sitting at home. If you want to recharge your mobile then you can easily do it through your paytm wallet. Actually PayTM acts as an intermediary between you and your bank. As you transfer your money in your PayTM wallet you can enjoy the services offered by it sitting at home.

It is very interesting to know that how PayTM generates money. A company founded by the hard works, firm determination and providing the largest mobile payment service in the world creates curiosity in the mind of the people to know about its source of income.

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PayTM offers are mostly in the form of cash backs which attracts the user most. As the customer is attracted towards this offer it continues to go on and the cycle repeats and more it will be used by the user, more the business will be done by PayTM.

  1. THE RECHARGE BUSINESS: – It is very interesting to know that how a company started, initially providing the service of mobile recharge becomes the largest mobile payment platform in the world? This question is the minds of every people and so I am here with the answer. When we go to a shop in order to recharge our Sim the dealer earns a commission of 2-3% per recharge. The same is with PayTM. When we recharge our mobile phones through PayTM, it earns a commission of 2-3% per recharge and though the company has 30% share in the recharge market, this makes them earn a handsome sum of money. The money they earn is due to the traffic on the website and without it, the business will be stopped.


2. BUSINESS THROUGH E- COMMERCE: – E- Commerce or electronic commerce means the transaction of buying or selling online. E-Commerce includes shopping websites, business websites and with the e-commerce facilities, these companies generate money. Not only the website’s e-commerce employs the launching of new products and services to its customers. E-Commerce is a great platform in earning the profit on the sold items and PayTM does the same. They went into the e-commerce platform and promoted their names to the existing users. It can be better understand through our daily life. Today normally in every shop we can see the writings “PayTM  ACCEPTED”, this is what e-commerce. They promote their names to their existing users and when we pay through PayTM the company gets a profit of 2-3% on every payment and from there they earn a handsome sum of money.

paytm offers

3. MONEY THROUGH PAYTM WALLET: – In 2013 it revolutionized its own service by introducing PayTM wallet and through it, we can do many things such as booking of rail and air tickets, payment of electricity and water bills, purchase of electronic products and much more. PayTM wallet is a semi-closed wallet approved by RBI which is used to buy goods and services. How does the PayTM generate money through PayTM wallet is very interesting. The money transferred to the PayTM wallet is deposited by PayTM in an Escrow Account with a certain bank. This connection with the bank allows PayTM to fetch interest as per the contract between the bank and the PayTM. The more we use the PayTM wallet, more the money PayTM earns.

paytm coupons

4. MONEY THROUGH TRAVEL: – While booking rail or air tickets through PayTM we often see that for booking a particular ticket we will get cash back on our PayTM wallet. As the user gets the cash back the company earns the profit and a handsome sum of money is fed into the hands of the company.


Before demonetization PayTM was in the loss of 1500 crore and its status in the market was continuously going down. But after demonetization, it suddenly makes the profit and goes up in the market. According to an interview, Vijay Shekhar said that the PayTM had earned a profit of 120 crores in a single day and its next aim is to achieve a target of $5 billion a day.

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Day by day PayTM is trying to add new features in the app so that it can be more useful to the user. Now the PayTM has increased the amount to be transferred in the PayTM wallet to 50000 which was previously 20000. A user can set their fingerprint as PayTM password which is 100% secure. One more additional feature is that now user can easily buy apps in the play store through VIP grade. This can be easily done by adding money to the PayTM wallet and then pay the money for the app. These all new features can be accessed by submitting our Aadhar number and then signing into the new PayTM services.

paytm login


Now without using internet connection one can easily use the payment option in PayTM. It is one of the new feature added in the app. For using this we have to open the payTM app and then click on pay or send option and then choose between QR codes or barcodes. Scan it and use the OTP to complete the payment process. This feature of PayTM is very useful as the internet connectivity is still poor to complete the transaction process.

how paytm works



It is RBI approved so in the case of any unusual activity it can support you.


When looking for a particular product that particular app offers many offers like on purchasing a particular product you will get Rs 100 cashback and so you will be spending more time in the app. Further, you talk to your friends about the cashback which increases traffic on that particular app.


The world without computers and internet can hardly be imagined. Today it has become a need of our life and our whole day work would be hampered without these things. They are need of the are. The world is developing day by day with the increment of modern technologies which are useful to the mankind. Day by day developers are developing apps which can be user-friendly and must satisfy the needs of the people. The apps are developed for specific purposes such as if one wants to order food then there are apps such as Swiggy, Zomato and much more. Similarly, for other requirements, there are many apps. They are basically known as start-ups.

Start-up basically means an entrepreneurial venture that is a newly emerged fast growing business that aims to produce the attractive and innovative products to serve the society. All the companies such as Paytm, Flipkart, Amazon are start-up companies which offer a variety of innovative products to the public. Start-up begins by developing a minimum viable product, then the product is marketed to increase its demands in the society. As the traffic on that particular product increases the start-up companies put forward their new ideas and schemes to expand their business. Investors also invest their money in those companies where there is a strong team of members and who promises that their company would be one of the leading companies in the market. All these things attract the investor most. Start-ups have several options for fundings. Venture firms and angel investor support these companies by providing finance with the expectation that the company would generate money and can make its name in the market.