Case Study Paytm – How They Created “Seal of Trust”



The world is getting digitalized and so are our lives becoming more governed by binaries of 0’s and 1’s.In this age it was natural to get the idea to make our payments also go in 0’s and 1’s.Vijay shekhar sharma, founder and CEO of PayTM and One97Communications executed this idea of payment in an existing business model, but introduction of small creative elements made the difference along the way. The business model clearly depicts that Payment along with Marketing creates a marketplace of digital goods. Many other players already had a pilot phase for the idea but the most salient thing here comes to the reliability of the payments which is ensured from time to time by Paytm.

There are various angles to look at this startup which keeps the idea of “Mobile” first. Keep your wallets on mobile was the ice-breaker service from Paytm.When the recharge goes down, your money is with you deposited in your wallet. This idea itself gives the seal of trust that it ensures with your money. has got almost all Operators across all circles in India. One can get a top-up or a validity recharge using variety of payment options like Net banking, Credit card, Debit card, Done Card etc. and it is done at a fast pace with very high success rates. If something goes wrong then they have a 24X7 customer care. There is also an option given to refund our money back to our preferred bank account. The crucial business here is establishing the trust with the customers that their money is safe and customers prefers to be intimated when something goes wrong which automatically builds the sense of care for their money and even people like someone taking responsibility for their money.

There are 650 million-mobile phone subscribers and 280 million people with individual bank accounts. These numbers are enough to think how automating your payments for mobile phones, dongles and recharge based services will monetize your profitability. PayTM gradually tipped the scales in favour of bus ticketing and releasing coupon based advertisements. This simulates the notion of two targets with one dart business. The business cash in from coupon advertisements and also for providing the services for transactions. E-wallets will have lesser use of money cases instead of debiting from ATM’s and this behavior of consumer helps them to keep their money in wallets. Banks will have longer understanding with e-commerce websites and govt regulations on number of times of chargeless withdrawal from ATM’s will drive this business ahead. Paytm has started selling things online and has clubbed the segment of shopping along with the recharge services.


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