PayTM

PAYTM

Paytm is an Indian payment and commerce company based out of Delhi NCR, India. Launched in August 2010, it is the consumer brand of parent One97 Communications. The name is an acronym for "Pay Through Mobile."

In 2015, Paytm became the first Indian company to receive funding from Chinese eCommerce company Alibaba, after it raised over $625 million at a valuation of $1.5 billion. The Alibaba Group was the biggest stakeholder in Paytm parent company One97 Communications. In August 2016, Paytm received an investment from Mountain Capital, one of Taiwan-based MediaTek’s investment funds, which valued Paytm at of over USD$5 billion.

The company employs over 13,000 employees as of January, 2017 and has 3 million offline merchants across India. It also operates the Paytm payment gateway and the Paytm Wallet.

Paytm Wallet is the digital payment instrument where you can transfer money from your bank account or credit card to use for transactions on the platform. You need to set up an account using your mobile phone number and email ID to setup a Paytm account and transfer cash to the wallet. You can add up to Rs. 10,000 in a month in the Wallet; if you want to increase the monthly limit, then you can get the KYC (Know Your Customer) processor done. With this, you can have up to Rs. 1 lakh in the Paytm Wallet at any point of time.

In order to use the Paytm Wallet and transact cash-free, follow the steps below:

1. Set up a Paytm account using your mobile number and email ID
2. Add some money to your Paytm Wallet using netbanking, debit card, or credit card
3. To transfer money to someone else, select the 'Pay or Send' option
4. You can make payments to others or to bank accounts on Paytm by scanning a QR code
5. Alternatively, you can send money to another Paytm user via their phone number.

 

Paytm security -

Paytm uses Verisign-certified 128-bit encryption technology, which means that the secret key used in transactions is a sequence of 128 bits and does not reveal anything about the password length or contents. The platform is PCI DSS 2.0 certified, which means it does not store credit card data in unencrypted form.

Payments bank - In 2015 Paytm received a license from Reserve Bank of India to start one of India's first payments banks. At the time, the bank intended to use Paytm’s existing user base for offering new services, including debit cards, savings accounts, online banking and transfers, to enable a cashless economy. The payments bank would be a separate entity in which the founder Vijay Shekhar Sharma will hold 51%, One97 Communications will hold 39% and 10% will be held by a subsidiary of One97 and Sharma.

Paytm is also approved as an operating unit for integrated bill payment system Bharat Bill Payment System, allowing multiple payment modes for consumers.

Paytm Payment Gateway flow and how it work -

How Paytm SDK Work -

The Paytm Payments SDK for iOS and Android enables merchants to integrate payments into their mobile app. The following diagram describes how a typical payment transaction works. The components involved in completing a payment transaction are as follows:

• User Placing the Order: The end user who wants to initiate a payment transaction.
• Merchant Application: The Application of the merchant where the Paytm Wallet needs to be integrated. This may be an Android or iOS application.
• Paytm SDK: The SDK provided by Paytm to make all the API calls to Payment Gateway and Merchant’s Web server (which is explained in the next point).
• Merchant’s Web server: The merchant needs to setup this web server at their end. The logic to generate and verify CheckSum needs to be setup on this server. Checksum helps ensure the integrity of transactions i.e. it helps ensure that the transaction requests have not been intercepted and tampered with. Checksum utilities are provided by Paytm for different development platforms.
• Payment Gateway: The Payment Gateway of Paytm. It will communicate with the Paytm SDK and Merchant’s Web server. In case, the payment is made via credit cards/debit cards/net banking, the Payment Gateway will interact with the Banks as well.