Paytm Money has entered stockbroking, primarily targeting those that are new the sector , during a challenge to established rivals like Zerodha, and startups like Groww and Upstox.
Paytm Money, a subsidiary of One97 Communications Ltd, which operates Paytm, has been getting to enter the stockbroking business from its inception in October 2018. It got permission from the Securities and Exchange Board of India (Sebi) in April 2019.
Paytm Money will build products for users who are new trading.
With a full-scale launch expected in September, Paytm Money expects to succeed in 100,000 daily trades within six months and achieve 250,000 customers within the first year.
Paytm Money chief military officer Varun Sridhar said in an interview that it currently has 90,000 users who are on a wait list for stockbroking, with almost half Paytm Money’s total user base eager to try it.
Sridhar said that nearly 60% of Paytm Money’s user base has never invested publicly markets till now.
Paytm Money claims to possess quite 6 million users. In its stockbroking service, cash delivery trades are free and intraday trade commissions are around ₹10.
“With a bank, and other financial offerings, Paytm’s aim currently is financial inclusion, and due to the demographic the corporate targets, it’s very easy for the platform to urge access to a replacement set of users that has never traded before. Hence, cost is certainly a USP (unique selling proposition) for us for stock broking. Also, only 25% of Indian population currently trades within the public market. With Paytm Money’s entry and therefore the scale we offer , we will definitely expand the dimensions of the market,” said Sridhar.