Paytm announced to expand its business by Paytm Money, the digital financial service arm for stock trading on its platform. Currently available in beta phase, Paytm Money will enable cash delivery trades for free and intraday trades charges at Rs.10.
One97 Communications Ltd. operates Paytm and a subsidiary Paytm Money, it is planning to expand by entering into stockbroking business from 2018, October. But, finally got permission in April 2019 from Securities and Exchange Board of India (Sebi).
Since two years Paytm Money was only allowing mutual fund investments and now, had decided to provide stock trading services. Paytm expanding it’s services has come in competition with established players such as HDFC Securities and ICICI Securities and existing players including Zerodha and startups such as Groww and Upstox. It is expected to be fully launched in September and expects to reach up to 1,00,000 daily trades within the next six months of launching and to achieve about 2,50,000 customers in the first year.
Varun Sridhar, CEO of Paytm Money said in an interview that the platform has currently 90,000 users on a waiting list for stockbroking and nearly about half of the total Paytm Money’s users are willing to try it. Paytm Money is also planning to bring new products and features for educating their users and will be focusing on alternative investment features for reducing investor’s risk. “The key to investing is not to make money, but to avoid losing it, and that’s the product philosophy,” Sridhar added.