Skip to content

What Is Paytm?How Does Paytm Wallet Work?

what is paytm

Paytm is India’s largest financial services firm providing an entire range of online payments & financial solutions to customers, online retailers and service partners. The company works towards a vision of introducing at least half a billion Indians into the mainstream economy through payments, trade, finance, recruitment, and financial services. One97 Communications Limited, which owns the Paytm brand, was founded by Vijay Shekhar Sharma in the year 2010. It is headquartered in Noida, Uttar Pradesh. Its primary investors include Softbank, Ant Financial, AGH Holdings, SAIF Partners, Berkshire Hathaway, T Rowe Price and Discovery Capital.

Vijay Shekhar Sharma, founder & CEO of Paytm, and One97 Communications Limited, together owns Paytm Payments Bank, the country’s largest digital bank with more than 58 million account holders.

Vijay Shekhar Sharma is a billionaire businessman in India. He graduated from Delhi College of Engineering with a Bachelor’s degree in Electronics & Communication Engineering. In the year 1997, while still in college, he designed and launched a website, which he later sold for $1 million in the next two years. One97 Communications, his brainchild was founded in the year 2000. Initially, it was majorly into providing mobile content, like news, cricket scores, ringtones, jokes and examination results. Later, in 2010, Paytm was born.

In 2017, Sharma emerged on Forbes’ World Billionaires List, the youngest Indian on the list with a net valuation of $2.1 billion. The founder of Alibaba, Jack Ma, and Masayoshi Son of Softbank, are his inspirations. He was even on the list of the 100 Most Influential Individuals of Time Magazine in 2017.

Products & Services offered by Paytm

The primary business of Paytm is digital payments. Paytm serves as a payment gateway to customers and merchants to make seamless payments from cards, bank accounts and other e-wallets. Paytm also provides a range of payment facilities, such as mobile recharges, bill payments, movie tickets, taxi, train and flight tickets, loan payments, insurance, forex, etc. Consumers can directly link their bank accounts and credit cards to their Paytm account to make seamless payments on different retail and online ecommerce sites.

It has since grown multi-fold and now has the following subsidiaries:

  • Paytm Money.
  • Paytm Mall.
  • Paytm Labs.
  • Paytm Entertainment.

Payments & Money Transfers

With over 350 million downloads, Paytm is the most commonly used payment app in India. It allows you to pay at merchant locations using phone number or QR Code. Since its introduction in 2014, Paytm Wallet is the most widely used payment app in the country. Paytm Wallet opened the Indian economy to digital banking. It allows users to load money to their wallet through Netbanking, credit card or debit card and use it to make a plethora of payments around the country.

Paytm Wallet was such a massive movement that street vendors saw a huge boom in their business. Paytm Wallet became the preferred method of payment for college students and working youngsters, since it removed the hassle of carrying their wallet wherever they went.

Paytm Wallet also allowed money transfer from person to person using just the mobile phone number. Indians were not new to NEFT or IMPS, but instant money transfer to another bank account kind of revolutionized the entire digital banking landscape.

Paytm continues to retain millions of loyal customers from its initial days owing to its user friendly interface and exciting offers and discounts from time to time.

How to use Paytm Wallet

  • Login to your Paytm App using your ‘Mobile Number’ and ‘Password’.
  • On the screen, choose ‘Add Money’.
  • It will take you to a screen where you can enter the amount you want to add to your Paytm Wallet and click ‘Proceed’.
  • On the next screen, you can choose Netbanking, credit card or debit card to add the money.
  • Upon choosing the relevant option, you will be taken to the respective bank’s portal to complete the payment.
  • Upon successful authentication and transfer, the amount is added to your Paytm Wallet.

How to check balance in my Paytm Wallet

  • Login to your Paytm App using your ‘Mobile Number’ and ‘Password’.
  • On the screen, choose ‘Passbook’.
  • It will take you to a screen which will show you your Paytm Wallet balance.

How to use Paytm for Recharges & Bill Payments

It is very easy to make your bill payments or recharge your mobile phone on Paytm.

  1. Login to your Paytm App using your ‘Mobile Number’ and ‘Password’.
  2. On the screen, choose ‘Recharges & Pay Bills’
  3. It will display the various options available to conduct your transactions
  4. Choose the relevant option
  5. You will be required to enter the merchant or biller information
  6. You can choose to pay through your Paytm Wallet or by credit card, debit card or NetBanking
  7. These are the various ‘Recharges & Pay Bills’ options available on Paytm:
  8. Prepaid Mobile Recharge.
  9. Post-paid Mobile Bill Payments.
  10. DTH Recharge.
  11. Electricity Bill Payments.
  12. Credit Card Bill Payments.
  13. Piped Gas Bill.
  14. Water Bill.
  15. Apartments / Residential Associations Monthly Maintenance Payments.
  16. Broadband Bill Payments.
  17. Loan EMI Payments.
  18. Insurance Premium Payments.
  19. Data Card – Prepaid / Postpaid Bill Payments.
  20. Cable TV Bill Payments.
  21. Municipal Payments.
  22. Toll Operator Payments – BETPL (Bangalore Elevated Tollway Pvt. Ltd.), MEP (Mumbai Entry / Exit Points), NICE e-Pay.
  23. Traffic Penalty Challan Payments.

Paytm Bank

  • Paytm Bank is a digital bank that comes with ‘Zero Balance’ requirement.
  • Offers 2.75% interest annual interest on your deposits.
  • Comes with ‘Automatic Fixed Deposit’ when your balance threshold crosses Rs.1 lakh. This FD comes with 7% interest rate per annum.
  • Offers you unlimited, free transfer between banks to make instant money transfer.
  • Get a free digital debit card that can be used for all your online shopping.
  • Opt for Rupay Platinum Debit/ATM card with attractive benefits and offers.
  • Open your Paytm Savings Bank account with a single click on the Paytm App.

Paytm Postpaid

  • Paytm Postpaid is a feature that acts like a credit card.
  • Paytm Postpaid offers instant credit limit of up to Rs.1 lakh.
  • You can use the credit limit for various purchases and bill payments and repay Paytm on a later date.
  • Paytm Postpaid is accepted in more than 5 lakhs+ shops, apps and websites.
  • You can pay the bill in one shot or opt for EMI payments.
  • Apply for Paytm Postpaid with a single click on the Paytm App.

Paytm FASTag

  • FASTags have been made mandatory for National Toll Booth payments across India.
  • You can get your FASTag from Paytm through the app in a few clicks.
  • Enter the vehicle registration number.
  • Upload a photograph of front and back of the vehicle RC.
  • Your Paytm FASTag will be linked to your Paytm Wallet.
  • Toll charges will be automatically deducted from the linked wallet.

Online Shopping – Paytm Mall

  1. Paytm Mall was launched in 2016 as a competitor to major e-commerce sites like Flipkart and Amazon.
  2. Paytm Mall offers lakhs of products in different categories with the best discount and offers.
  3. Offers additional discounts for payments through Paytm Bank, Paytm Postpaid or Paytm Wallet.
  4. Here are some categories available to shop on Paytm Mall.
  5. Electronics
  6. Mobile Devices
  7. Grocery
  8. TV & Home Appliances
  9. Men’s Fashion
  10. Women’s Fashion
  11. Home & Kitchen
  12. Computers & Laptops
  13. Bike & Automotive
  14. Toys & Kids
  15. Health & Wellness
  16. Personal Care & Grooming
  17. eBay Store
  18. Bags & Luggage
  19. Sports & Fitness
  20. Branch Vouchers


  • Paytm allows you to book tickets for your travels.
  • Book tickets for flight, bus and train.
  • Also search and book hotel rooms.
  • Get great discounts on cab rides with Ola and Rapido.
  • But Travel Pass for frequent travels and get assured cashbacks on every booking.
  • Also get exciting offers on partner brands.
  • Get discounts for recharging your Metro card using Paytm.

How to open an account on Paytm

  • Paytm App is available on Google Play Store and Apple App Store.
  • Register with your mobile number or email id.
  • Start enjoying the various offers and benefits of Paytm.
  • You need to complete the KYC procedure to use features like money transfer, Paytm Bank or Paytm Postpaid.

Paytm KYC Process

RBI guidelines require all prepaid wallet providers, including Paytm, to link their Aadhaar to their e-wallet account. Linking Aadhaar to your Paytm wallet prevents misuse of your wallet. It helps the government to identify the users of money transfers and control black money laundering.

Here is the process to complete your KYC for Paytm:

Aadhaar based KYC at your Nearby KYC Point: You can find Nearby KYC points on your smartphone Paytm App or visiting Paytm page on your browser. You may also tap on the Nearby icon on the blue strip at the top of Paytm App Home page. You need to carry your Aadhaar and PAN for verification. You will need to verify your Aadhaar biometrically.

Aadhaar based KYC at your Doorstep: This is in pilot phase and has been rolled out to limited users in select locations. In case you are part of the pilot exercise, you will find this option on your App home page. Charges for KYC at your doorstep will be applicable. Else, you may visit the KYC point nearest to your location.

Video KYC: To deal with the current pandemic, Paytm has introduced Video KYC. You can show your original KYC documents for verification by our authorized representative, through a video call. You first enter your Aadhaar Number and the name on your Aadhaar card in the fields given. Then you proceed for a video call, where you will be required to produce your original KYC documents. This method is currently being promoted vigorously to avoid Corona infection.

Points to remember about Paytm KYC:

  • Without completing KYC, you can only hold up to Rs. 10,000 in your Paytm Wallet.
  • Once you have upgraded your KYC, you can hold up to Rs. 1 lakh in your Paytm Wallet.
  • No restrictions on the upper limit for spending from your wallet.
  • Allows you to transfer money to another wallet or bank account.
  • Makes you eligible to opt for Paytm Payments Savings Bank Account.
  • Besides Aadhaar & PAN, Paytm representatives will also click your picture from the approved KYC Android app. Additional information on the identity, profession and income of the parent and spouse are also needed as part of the CERSAI and RBI guidelines.
  • Currently, KYC can only be done for Indian nationals, Indian residents and tax residents of India and no other country.

Leave a Reply

Your email address will not be published. Required fields are marked *