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Paytm Manages To Give You The Promised Cashback Even After Such High Losses, Here’s The Reason – How?

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The famous online wallet company Paytm really does a wonderful work. Even after so many losses and no-profit and no-gain moments, the company always remains successful in providing it’s customers the promised cashback but has anyone ever thought that how it enables to do that?

If no, then we will be very much pleased to tell you the reason behind that.

How Paytm Manages To Give The Promised Cashback?

Paytm provides wonderful services to it’s each and every user like shopping from e-commerce sites like Facebook, Amazon, Snapdeal and Paytm itself and paying the electricity and water bills from mobile itself. On each and every transaction made through the website, Paytm offers its customers some cashback of specific percentage of the transaction and sometimes those cashback are that huge the company knows it will be going in the loss if it approves that cashback but still it does. Here’s the reason – how?

Cashback On Mobile Recharges:

Paytm mobile recharge
Source: paytm

Remember the classic way of recharging mobile phones? Walking to the market in the hot afternoon and asking the ‘Recharge -Wale-Bhaiyas‘. Well, they used to get some commission per recharge they used to do for you, it was not for free.

E-wallet sites like Freecharge and Paytm also get some commission on each and every recharge they do. The commission they earn from the telecom companies ranges from 2% – 5% of the recharge done. Again the factors like recharge from indirect recharge platforms like Oxigen and Euronet affects their commission a lot and the company then pays the gateway payment charge of 1.8 – 2.0%.

This means that the revenue which the website per recharge makes is around 0.5-1%.

Sponsored Websites:

Paytm gets more than 100 million users monthly, which is a very good reason for the sponsors to invest on its website. Just take a look at the image below.

paytm website screenshot
Source: paytm

From insurance branch to the educational branch, almost each and every field of business is attached to this website. These branches offer coupons to the Paytm users because on each and every redemption of their coupon, the branch gets the commission from the coupon’s original brand. Therefore, Paytm get’s a huge benefit from the investment of these companies.

Prepaid Wallets:

Now here comes the secret behind the biggest source of income of websites like Paytm and Freecharge, that is, their E-wallet sites but let’s take a look at this infographic first:

Source: rajnikantvscid

Well, this information only shows the huge amount of losses which these companies have then how are these companies really making the profit?

When you have a sponsor like Jack Ma, who is the founder of Ali Baba, the Chinese e-commerce giant who funds your website with a whopping $200 Million and then another $500 Million. Then why would you count the remains instead of eating the mangoes?

Well, these were the three sources by means of which Paytm makes profits and stands firm on its each and every promised cashback.

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