• Nivendra Kumaraguru

Just paytm!

Updated: Oct 28, 2020

Just a click- it’s debited! Just another – it’s credited! Digitalization turns out the honour bearing currency papers into just numbers. Nowadays people do not need to touch the overvalued crumbled papers of money with their hands, but can earn and spend a lot. It’s all under the control of our fingers. When technology started its walk across the world, people yearned for comfort and convenience in their daily chores. From the advent of the brick sized mobile phones till the sleekest and coziest mobiles of the contemporary world, every technological development was done to bring the world within the grasp. It’s the same way of bringing banks into mobiles where transactions, verifications and enterprise were in the verge of turning handy. People don’t need to rush out for banks and Atm machines or dug out from the core of their pockets when they need money. All they need is to play the magic with their fingers. Jee-bhoom-bhaaa! WHAT’S THE MAGIC? And this magic is all about mobile banking. Mobile banking can be literally put into terms as the act of making financial transactions and all other banking processes through a mobile phone or a tablet etc… Initially it started with SMS update from the concerned banks but later brought in the entire banking tasks which includes monitoring account balances, payment of bills, locating the nearest ATMs, transaction of funds and so on. Paul McAdam, senior director of banking services at J.D.Power, says that, “The mobile app features these days are so comprehensive. We can deposit checks. We can transfer money within our bank. Not in all cases, but in many cases, we can transfer money to another financial institution. We can pay bills. We can do person-to-person transfers. From the standpoint of monitoring and moving money, it’s so easy”. Mobile banking applications initially had features such as mobile check deposit which were considered trailblazing. But today’s consumers expect more varieties on their plate and threw “this trailblazing” out of fashion! Since the demonetisation in India, several mobile wallets including Paytm relished stupendous growth. Waiting in the queue and empty pockets turned common men towards smartphones and mobile banking. To satisfy the craving customers, several online platforms emerged and one of the successful and unstoppable firms among them was Paytm. PAYTM Paytm being an Indian owned fin-tech Company and e-commerce payment system was found in August 2010 by Vijay Shekhar Sharma in Noida. It was initially a prepaid mobile and DTH recharge platform which was later modified with additional features like data card, post-paid and landline bill payments. Later in the year 2014, they launched the Paytm Wallet which was added as a payment option in Indian Railways and Uber. And it was also launched into e-commerce with bus ticketing features and online deals. And the very next year it revealed its additional applications such as educational fees, electricity, water, gas bill payments. In the year 2016, Paytm instigated flight ticket bookings, Paytm QR, as well as movies, theme parks ticketing, gift cards and railway bookings. Paytm’s travel enterprise was boosted with 2 million ticket bookings per month and its GMV run rate reached 500 million dollars annually. Its registered user base grew from 11.8 million to 104 million in just a year. WHAT’S NEXT! The very next year Paytm became the nation’s first payment app to traverse hundred million application downloads. And the very next breakthrough was the launch of Paytm Gold which granted the customers to buy as little as Rs.1 of pure gold via online in the same year 2017. And it also introduced Paytm Payments bank and a messaging platform with payment features tagged as ‘Inbox’. By 2018, merchants were allowed to access Paytm and UPI payments promptly into their bank accounts at no charges. ‘Business with Paytm App’ which was called as ‘Paytm for Business’ during its launch, allowed traders and dealers to track their day-to-day settlements and payments online. This in turn led to its progress in merchant base growth to seven million in the same year 2018. Paytm Gold Gifting and Paytm Gold Savings Plan were the next wealth management products brought in to ease long- term savings. GAMEPIND was the next avatar of Paytm , a mobile gaming venue along with AGTech Holdings of the Alibaba Group. In the next couple of years, Paytm left its footprint consistently in the world of technology with the advent of Paytm Money, Paytm First and its First Credit card.

As a responsible move in the pandemic situation of COVID-19, they joined their hands with Tata Starbucks and provided access to customers for online food orders. What is Paytm Wallet? Paytm Wallet is a digital payment tool used for transferring money from the bank account or credit card for transactions via online. The transferred amount from the bank account can be refunded again to the account. In the Paytm app home screen, select the ‘Passbook’ icon and select ‘Send money to Bank’. During the transaction, the amount, account number, Ifsc code must be entered and then ‘Send’ option should be pressed. This Wallet can be accessed through mobile application and is also available in the website. How to use? Initially a Paytm account must be created using mobile number and email ID. Using net banking, debit card or credit card, add some money to the Paytm Wallet. For transaction processes, select the ‘Pay or Send’ option. Payments can also be made by scanning QR code. Alternative way is to transfer money to another Paytm user through their mobile number.


When the whole country is facing demonetisation and poor internet connectivity, online transactions must facilitate features accessible even offline. Paytm made this possible through Paytm Wallet by using QR/ bar code features. Once the code is scanned, a One-Time Password (OTP) would be sent to the mobile number. And as soon as the OTP is entered, the payment would be done offline.


Paytm being an RBI approved wallet says that the money we deposit is safeguarded under Escrow account along with a reputed bank. And the secret key used in transfer of money is a sequence of 128 bits and is highly safe. It does not store data in unencrypted form and also was certified by PCI DSS 2.0


It’s spontaneous and safe.

No complications in usage and all enclosed in a single application.

Easy transaction processes to the same and other bank accounts.

Less documentation and no paper work procedures.

Undoubted refund of money for product cancellation at partner’s store.

Transfer through UPI like PhonePe, BHIM and Google Pay are also available on Paytm for free.


Every rose has its thorn. Similarly this too has few loopholes including security concerns and its risk factors. Impressive apps catch people’s attention but before using that app, they should ensure that the established network connection is secure as they might risk their personal information.

As the world of trade is an ever- proliferating one, it’s sure that consumer appetite will propel its future. Without touching the currency notes, without daring the life- taking germs, and within the protective layer of sanitizers, these apps challenge the pandemic. Hopefully when everything turns up, this “new normal” would also include Paytm as it is the safest and easiest way of dealing with money.

There is less of a likelihood of making a mistake, (like) an overdraft or paying a bill late when we have this information so accessible.

-Paul McAdam

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