The Paytm payment bank system could revolutionize the commercial sector in India. Already millions of traders have joined after the government's decision to withdraw 24 billion banknotes from circulation in November 2016 to reduce cash payments, which until then in India counted for 90% of transactions.
In 2001, One97 Communication launched, offering different content, news stories, sports, but also jokes and phone ringtones. But it boomed when it decides to launch Paytm, an online payment platform. The customer growth and international exposure obtained in different newspapers, attracted the interest of big investors, such as Jack Ma, the founder of the ecommerce giant Alibaba.
One97 is now focused on services such as travel and sale of movie tickets and events, Paytm Commerce, the payment and the bank platform of the group, the Paytm Payment Bank.
The senior vice president of Paytm, Deepak Abbot said, we allow people to open their wallets with Paytm, which can be loaded through debit cards, credit cards or other banking solutions and can be used across the network, which counts 3.5 million merchants, he explained. Paytm also offer other direct services such as recharging mobile phones, paying bills, online purchases, purchase of movie tickets.
To join the network users must identify themselves by means of identity and fingerprint card. The Paytm stamp is then pasted outside the store. The idea is also to educate traders and new users, especially in small towns and rural areas. Our aim is to become the largest payment network in India to satisfy small businesses, that although they would like cannot acquire the POS for payments by debit or credit cards.
Not bad for a market that remains among the world's most interesting. This is demonstrated by the fierce competition, especially in eCommerce with players like Flipkart and Snapdeal, which have international investors Accel Partners and SoftBank. Analyst forecasts see a burgeoning growth of the Indian e-commerce market by 2020 that could reach 25 billion euro mainly due to purchases via smartphone.