Paytm is one of the leading Indian e-commerce payment systems and financial technology-based company. Now, the Paytm Money has entered in stockbroking, mainly targeting on people who are new to the field, in a challenge to the established rivals such as Zerodha and startups like Groww and Upstox.
The Paytm Money is a subsidiary of One97 Communications Ltd, and they have been planning to enter the stockbroking business from its inception in October 2018. In April 2019, they got permission from the Securities and Exchange Board of India (SEBI).
Paytm Money always tries to build products for users who are new to trading. They expected to introduce a full-scale launch in September to reach 100,000 daily trades within six months and achieve 250,000 customers in the first year.
Mr. Varun Sridhar, the Chief Executive Officer of Paytm Money mentioned in an interview that currently the have 90,000 users who are on a waitlist for the stockbroking, with this almost half of Paytm Money’s total user base wanting to try it and added that around 60 percent of Paytm Money’s user base has never invested in public markets till now.
When we compare Paytm With a bank and other financial offerings, they are currently aiming in financial inclusion, and owing to the demographic targets of the company, then it is an easy platform to get access to a new set of users that have never traded before. So, the cost is definitely in a USP (unique selling proposition) manner for stockbroking. One of the important points is that only 25 percent of the Indian population is currently trading in the public market. By the entry of Paytm Money’s with the scale that they provide, can expand the size of the market.
They plan to bring new products and features for educating the customer and focus on alternative investment features to help reduce investor’s risk in the next 6-8 months. And also plans to enter the derivatives segment as well as provide options around futures trading with new features for high-frequency traders. This platform will also allow users to automate their stock investing by setting buy orders on a weekly or monthly basis, and the investor can discover the transaction charges and know the exact break-even price to sell stocks profitably.
