The Paytm Money Competition intensifies and they started getting heat from other players. Paytm Founded in 2010 as a digital wallet in India. Paytm has been a company that has risen leaps and bounds within this decade. Valued at $ 16 Billion at the most recent funding that they received from SoftBank of $ 1 Billion.
It was once the market leader in the digital payment sector. The Paytm popularity added vegetable vendors to grocery shops as their customers. They started using the App to make and receive payments across India. Now that popularity has been declining at a steady pace with the rise of apps like Google Pay and Phone Pe.
After initial success Paytm Money they secured many rounds of funding from big investors
Due to its initial success and monopoly Paytm received funding for growth and expansion. Chinese based Venture Capitalists like SoftBank and Ant Financial. Even US-based Berkshire Hathaway has made a minuscule investment too.
But with the introduction of the payment platforms like Google and Flipkart. It becomes difficult for Paytm to maintain a market leader position. The payment method is being currently dominated by Google Pay. This follows Phone Pe trailing by a huge margin and then Paytm too.
Paytm Competition intensifies and they lose monopoly to rivals like Google and Phone pe
Unlike Paytm as payment wallet, Google Pay and Phone Pe are UPI based applications. They allow you to make payments from your own Bank Accounts. There is no need to maintain a separate wallet to do the same. Even though Paytm too offers UPI based payments interface.
The feature is not as popular with the Indian Consumer as Google Pay which is the current market leader. A fact that Paytm does not acknowledge. Facebook too is gearing up for this race with an Integrated payment platform. They are planning to launch on its most popular messaging platform WhatsApp.
SoftBank is bleeding in India over the past years like OYO WeWork etc is struggling to survive. Now it looks likes the ace of SoftBank too will see a bleak future. As a competitor to Paytm other payment gateways has very deep pockets. Let me tell you that the mammoths do not need huge funding.
They need out of the box innovations that make them stand out from the competition. If the current trend continues the IPO planned for 2022 will fail to take off. Recovery of current investments too will fail to provide adequate returns. For now it is a wait and watch game to see what is in store for Paytm.
