Paytm has set its eyes on the flourishing Education sector of India to counter Google Pay and PhonePe.
Since its inception in 2010, Vijay Shekhar Sharma’s Paytm went off from being a DTH recharge platform to adding postpaid landline and mobile bills in 2013. The year 2015 saw the company securing Paytm Payments Bank approval, which was launched in 2017 to provide financial service access to the underserved side of India.
Paytm logged in 800-900 million transactions a month this year. The household name in digital payment platforms in India looks to secure $2-3 billion in Gross Merchandising Value (GMV) from the Education sector offerings in the next 18 months. So far, Paytm has recorded $1 billion in GMV from the payment services related to the Education sector.
Paytm has planned to upgrade and evolve its education services to include the likes of co-branded debit cards, tuition fee loan payment, test-taking platforms, career counselling and job hunting resources. Last year Paytm logged a billion dollars in education fee payment.
Senior vice-president Vineet Kaul stated that Paytm is building effective education products to list on the platform. In a year from now, with the test-taking platform ready, users will be able to buy education products and take tests on the platform.
The Thriving India Education Sector
One of the prime reasons behind Paytm’s move to target Education sector of India is the enormous opportunity that remained untapped for a long time. The estimated opportunity size in the Education sector of India is $180 billion by 2020 – nearly double the $96 billion in 2016.
Put this figure with the number of young generation in India and the picture is clear almost immediately. India is the home for the maximum number of young people, aged between 9 and 17, in the world and Education is going to attract a lion’s share of the investment this generation would make in the next few years. Put simply, it’s just mind-boggling for any company.
The rise of E-Learning platforms, likes of Byju’s, that have been targeting the same generation in the last few years is a clear indication of the digital education revolution India is going through. Hence, offering a tailored made payment solution designed specifically for the Education sector of India is a well-calculated move made by Paytm.
Paytm is also in talks with many chains of schools across the country to empower them with the digital mode of payment collection mechanism.
Paytm Growth: Challenges Ahead
The intensifying competition in the online payment sector is making Paytm to diversify its portfolio and offer custom-made payment solutions to industries, large institutions and companies. The rising popularity and adoption of UPI payments by users and vendors across the country are affecting the growth of mobile wallets. However, Payment, the leader in the mobile wallet sector, is finding it tough to compete with rivals. The company recorded 140 million UPI transactions through its platforms in July 2019, as compared to over 300 million transactions, recorded by its rivals Google Pay and Phone Pay, together.
By offering tailored made payment solutions for various sectors, i.e. Education, Paytm is trying to strengthen its market presence further. How much these payment solutions will help Paytm in increasing its GMV and transactions, only time will tell.