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    How does Paytm work?


    How does Paytm work? Ask our technical experts to know about it in detail.

    After the ban of Rs 1000 & Rs 500 notes, everyone is now dependent on online payment processes among which Paytm is one of the major options. Even a small vendor is providing Paytm number to pay the bill. Could anyone help me to understand how they will get money through Paytm? I mean how do they draw the amount from Paytm?
  • #12335

    Well, the E-Wallets work on a simple principle. They act as the intermediaries between you and your bank. The same kind of functionality holds good for PayTM as well. PayTM acts as an intermediary between your bank and cellular or DTH operator. The PayTM portal is integrated with a payment gateway. This payment gateway is associated with different banks like HDFC bank, SBI etc.
    PayTM is a digital payment platform that lets you transfer cash into the integrated wallet using online banking, credit or debit cards, or even cash deposits. This amount can be used for payment for products or services without any need to carry cash. The service supports offline payments at more than 8 lakh merchants all over the country.
    Now coming back to the basic question you have raised, you - as a merchant will need to set up your bank account on your PayTM account. Whenever, you want to transfer money from your PayTM wallet to your bank, you just need to exercise the option for transferring the same on the Mobile app of PayTM.
    Follow the steps mentioned herein -
    • Launch PayTM App on your mobile
    • Go to your Wallet. You will be notified of the PayTM Balance you have in your wallet.
    • Tap on the Passbook icon and choose Send Money to Bank option.
    • In the next screen enter the details like Bank name, Branch, Account number and amount to be transferred.
    • Tap on Send button

    Your amount will be transferred to your bank account instantly.


    Live....and Let Live!

  • #12338
    PayTM is offering two options for the money transfer - E-wallet and Payments Bank. When you open account at paytm, you are eligible for the e-wallet. And if you provide the KYC document then you will be able to hold the money in the payments bank. Payments bank gives interest on the money hold in the account. So it's good practice to open payments bank account by providing KYC once the payment banks option is enabled in account.

    Process of paying through paytm works in this way.

    1. You open account with Paytm.
    2. You add money from your bank to paytm wallet.
    3. You use this money to pay person who has paytm wallet.
    4. Just add the respective amount.
    5. Choose the sender correctly using email or phone number or QR code.
    6. Click send button.

    In future paytm may allow paying to UPI based users through the app. However current paytm update doesn't have that feature.

    You can later withdraw this money to your bank account. There will be some transaction charges that will be applied so you have to accumulate some money before sending it from wallet to bank account.

    Here's how the payTM works after January 2017 onwards. The paytm will be divided into two sets of operation -

    1. E-wallet to E-wallet money transfer.
    2. Bank to Bank money transfer.

    In these two scenarios only the money from your own e-wallet can be withdrawn to your own bank (any bank where you hold the account.

    You can use your E-wallet to pay someone on their own bank account. Bank to e-wallet and vice versa are not allowed in the transaction. The same rule applies to BHIM app or the Phone Pay app as well.

    Business are making use of the QR code feature to help people accurately autofill the data of the business account. And you just have to use that to pay. If you don't want to use QR code then paytm app also allows you to pay through the mobile number attached to the paytm wallet.

  • #12340
    Paytm works in two different ways. One is Paytm wallet and another is Paytm payments bank. Paytm is a digital payment system which allows you to transfer money through credit card, debit card, online banking and banking partners. By keeping money in the Paytm wallet you can pay all bills without spending liquid cash anywhere. This helps you in number of ways, as you make payments digitally like mobile recharge, cab payments, electric bills, gas bills, ticket bookings, movies etc. For this you need to transfer money from your bank account to Paytm wallet. After that you can use this money process. Follow some steps to create Paytm account.

    1. Download and install the Paytm account from Google play store.
    2. Signup the Paytm account using your mobile number or email id.
    3. Transfer some money to Paytm wallet through your banking account.
    4. Once the payment reached to payment wallet, you can use "Pay or Send" option through your app.
    5. Once payment over sign-out your account.

    There is also another suggestion given by the Paytm. Users can transfer money through two options. One is Paytm wallet to another Paytm wallet money transfer and another is Bank to bank money transfer.

    The second option of Paytm is given for Paytm payments bank. This will run as like other banks. The users who have already having Paytm wallet account can migrate with the bank account. Later they can enjoy all the benefits which they had in wallet will also been having in banking. This shows the increase in usability of Paytm in e-payments and e-transactions by the people.


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