what is paytm

Scott Belsky, the founder of Behance, states in one of his most well-known quotes, “It’s not about ideas; it’s about making ideas happen.” Mr. Belsky’s comments must have had an impact on Vijay Shekar Sharma when he created PAYTM in 2010 with the goal of revolutionizing the way Indian cellular consumers recharge their phones and DTH balances. If you are here to know everything about Paytm, you have come to the right place. Here you shall be able to to learn:

  • What is Paytm?
  • How does Paytm recharge work?
  • What is the Paytm wallet?
  • How does the Paytm wallet work? 

Let’s answer all four questions one by one. All we request you to do is to be patient and read with full attention. 

What is Paytm?

what is paytm

PAYTM, a clipped or short form of { Pay Through Mobile } is one of the fastest-growing Indian online marketplaces in the business to customer retail space. Paytm originally kicked off as a platform to allow Indian cellular and DTH users to avail of online recharge services. But in 2014, Paytm decided to become diverse and sell consumer goods as well in addition to the recharge facility. 

What is Paytm Wallet?


PAYTM wallet is your digital or electronic account. It is automatically created while you create an account on the PAYTM portal. PAYTM wallet allows you to store your money in digital form and later use it for purchases. It is a safe, secure, and even legally accepted form of account.

Just the way you visit your bank to deposit or withdraw your money in or from your account, similarly, the PAYTM wallet makes you able to store your money but in digital form and later utilize it when you need to make a purchase. 

Sometimes when you try to recharge your phone balance, your payment might fail to process due to a technical error or some other reason. If your amount is deducted from your credit card, debit card, or net banking payment modes, it goes nowhere rather than your PAYTM wallet. 

How does Paytm wallet work?


The money available in your PAYTM wallet has a real value. You can use it to shop for anything you want anywhere. You can buy goods of your choice from not only Paytm itself but also from offline stores. All you need to do when you transfer your money is to open your PAYTM application and scan a QR code. Your money will be transferred in seconds to the recipient’s PAYTM account. 

It is possible that sometimes, although it happens rarely, you might counter an unsuccessful recharge or purchase for some technical fault. You won’t have to worry since you will get a refund back to your PAYTM wallet in case money is deducted from your account. The refund process is automatic. You can also get your money back from your Paytm wallet to your bank account. 

How Paytm recharge works?


It is very easy, even for a person with a little knowledge, to understand the working mechanism of Paytm recharge. However, technically it is a bit complex. 

In order to understand how does Paytm recharge works, you must learn about the components that reinforce and make possible our cellphone and DTH recharge on PAYTM. The three components that take part in the recharge process are explained below: 

1. Cellular companies

Cellular companies such as Airtel, Jio Reliance, Idea, BSNL, etc make one of the important components of Paytm’s recharge mechanism. You know that these companies help us avail range of services including voice, data packs, etc for a certain amount of money. 

When we maintain sufficient balance in our cellular accounts, we are able to make calls to our friends, family, etc and surf the internet, use social media, watch YouTube, etc. In simple words, we are able to enjoy calling and web browsing when we recharge our mobile numbers. You also know that prepaid users can not use such services once their balances get exhausted. 

2. Banks

Banks are financial institutions that give us the power to create an account and save and use it for saving our hard-earned money. We are given cheques, debit cards, credit cards, mobile applications to use our stored money for purchases. 

These cards are nothing more than a ticket for shopping whether online or offline and recharge our mobile balance. When you make a particular online purchase, you require to provide your card details. It is followed by the code messages you receive on your phone from banks to confirm your purchase. 


PAYTM is actually an intermediary or simply a broker that bridges the connection between cellular companies and banks. The PAYTM portal has an internal integration with a payment gateway that in turn is connected with payment gateways of several banks such as ICICI, HDFC, SBI, etc. 

Your recharge is made possible when you visit the PAYTM application or website, enter your mobile number, and amount to be recharged. You are automatically routed to the payment gateway interface where you enter your card data, receive one-time-password {OTP} from your bank to confirm the transaction. 

After confirmation, your desired amount gets deducted from your bank account and transferred to the account of cellular services providers by the intermediary PAYTM and as a result, your recharge is initiated. PAYTM at the end of the transaction makes a commission like a real estate broker who earns commission while making a purchase of properties possible between the buyer and seller. 

Alexandra Reay

Alexandra Reay is an editor and regular contributor to the BrillAssignment project. She teaches on self-improvement, technology innovations, global education development, etc.