How does Paytm, who promotes 50%-100% cash rebate, make a profit?

Paytm is the largest mobile payment and business platform in India.

Paytm’s business covers areas such as mobile payments, banking services, e-commerce platforms, digital gold, online recharge and billing payments. Paytm the transition from an initial online phone recharge platform to an e-commerce platform and a virtual bank. It has also pioneered the introduction of a cash rebate model.

So how do Paytm, who 50%-100% cash rebate, make a profit? What exactly is the business model of Paytm?




Industry insider Analysis Paytm profit model mainly includes the following:

1.Paytm Mall e-commerce platform

Paytm Mall is the first mobile e-commerce platform in India. With more than 120 million buyers and 2 million daily transactions, Paytm Mall is a good choice for e-commerce sellers. Paytm Mall achieves revenue by charging sellers a commission fee.

2.Online top-up service

Paytm online top-up service involves mobile phone users, TV users, data CARDS and traffic CARDS, etc. Part of the service fee is charged by Paytm platform.

3.Payment service




In addition to online top-up, consumers can also pay electricity, phone, water, broadband and gas bills through Paytm. In addition, Paytm also works with a number of educational and financial institutions to collect tuition fees and insurance premiums. The Paytm platform then charges a handling fee from it.

4.Payment plan

Paytm provides convenient payment solutions for e-commerce enterprises. There is no charge for opening these payment schemes, but the Paytm platform takes a 1.99 per cent commission on each transaction.

5.Paytm Wallet

To cater to the digital currency trend, PAYTM launched the mobile digital wallet APP “Paytm Wallet”, which is quick and easy to transfer. As a third-party hosting platform, Paytm Wallet regulates transaction payments in the course of transactions between the parties. The large amount of interest generated by these amounts is vested in the Paytm platform.

6.Digital Gold



Gold is considered one of the safest investments in India. To this end, Paytm has launched a Digital Gold finance business, “Digital Gold”, which allows users to buy and sell stored Gold online. The platform encourages users to open “” gold bank” “accounts, which, in addition to investment, can also be consumed on Paytm Mall’s shopping platform.

7.Paytm Bank

As a digital Bank, Paytm Bank allows users to deposit money and earn interest. So how does it make money?

• Cross-selling: work with other financial institutions and banks to sell platform products and services (such as insurance, investments, loans, etc.), and then make a profit on the basis of commission fees.
• Paytm bank deposits the platform funds to other Banks or government savings accounts, and obtains a higher deposit rate than the platform itself, thus making profits.