One of India’s largest mobile wallet service provider Paytm — when set its first shop on its platform, we right knew that it’s ploy to tap into the e-commerce segment isn’t small. And the proposition indeed solidifies today, with Paytm hiving off it mainstream mobile wallet business into a separate app.
Why so? Paytm has decided to give itself a full throttle push into the e-commerce segment and is soon going to transfigure its existing mobile application into an e-commerce shopping app, just like that of Flipkart and Snapdeal.
Perhaps, it is a bold move provided that the mobile wallet business is the Paytm’s mainstream business on the basis of which it garnered all the fundings and managed to conceive e-commerce business on the sidelines.
A great many deals and offers did help Paytm to bring shoppers and sellers aboard, which was then followed by a heavy investment from Chinese firm Alibaba. And now a switch over to a fully fledged e- commerce platform reflects the perfect strategy Paytm used to place itself among India’s most elevated brands.
Paytm will prompt users to download the independent app for wallet use. However, the company will continue to offer wallet option for some time on the current app.
It has partnered with relatively large amount of businesses for its digital payments which include auto rickshaw aggregator and hyperlocal delivery startup Jugnoo, cab hailing service Uber, QSR chains like CCD, Vaango and others, college and institutions and more.
Besides, the company has also forayed in hotel booking business,bus ticketing and hyperlocal business. With such a heavy demand and a large userbase, the firm believes that people will eventually download the new app as a necessity. We have already seen such a move been played by Facebook with its messenger app, Flipkart with its grocery service, ola with its food delivery service and the latest one by Oxigen services.
Founder Vijay Shekhar Sharma said –
Paytm is the default payments app for many and its use case needs to be simplified even as we as a company expand our horizon by adding commerce. By this method, we can make both users happy.
In the words of Paytm, the existing application has become heavier and complex, with mobile wallet and e-commerce both existing at the same platform. The company felt a need of splitting the two, and turn the mobile wallet application back to a lighter version. It felt that many rural customers will be put off by a heavier app and it makes sense to give them a simple light app for payments.
Paytm, presently claims to have has more than 100 Mn registered customers on its platform. Paytm’s investor Alibaba, which has pumped more than $600 Mn into Paytm, follows a similar model with Alipay app for payments and Tmall app for commerce business.