What is Paytm Wallet – Account Opening, Wallet Usage, Cashless Payments and Offers | How to Complete KYC Verification for Paytm?
Demonetization – something big, something unexpected, something good and disastrous at the same time – shook the entire nation. Good because it is intended to kill the disease of black money in India and bad for the hoarders of black money. Post demonetization, we have been hearing a lot about cashless transactions. So, the question is, why should we go cashless? How do we do that?
If you ask, ‘why should we go cashless?’, there are dozens of reasons that can be citied. The most important of all being – money in this economy can be traced to the last penny and the problem of black money can be efficiently taken care of. On top of that, transactions become smooth and fast, cost of printing money is reduced, cost of transporting the printed money and more…
But, that is not what we want to know here. The major concern is, how to go cashless?
Well, there are many options for that like:
- Using debit cards
- Using credit cards
- Using internet banking
- Using mobile banking
There is yet another option – using mobile wallets! Yes, mobile wallets have swept through Indian economy like wild fire and with every passing day, the popularity of this cashless payment method is increasing. There are several mobile wallets out there in market. However, by and large, the most famous of all is the one that has been handcrafted in India. Known by the name Paytm, this mobile wallet has become one of the leading methods of cashless payments. It owes it popularity to a number of factors like:
- Cashback offers.
- Extraordinary offers to win gadgets and other products.
Well, who doesn’t like cashbacks and freebies?
About Paytm Wallet
Paytm wallet is a digital wallet or a mobile wallet, which has been designed to make and receive payments digitally. This wallet has been designed with two basic purposes in mind:
- Getting rid of cash transactions.
- Making / receiving payments on the go.
One of the most interesting features of this wallet is that it allows people to send money to someone else easily. Though the money is not sent in cash, it is transferred digitally and shows up in Paytm wallet account.
However, there is one requirement. In order to make use of Paytm, one needs to load the Paytm account with money. There are different methods than can be used for this. The methods include:
- Internet banking
- Debit card
- Credit card
- Cash deposits through various partners and selected banks
A Brief History of Paytm
Vijay Shekhar Sharma, the owner of One97 Communications Limited started Paytm in 2010. Paytm started off as a mobile recharge website for prepaid connections and from there, it took off to become a leading mobile wallet or digital wallet.
Paytm stands for “Pay Through Mobile”. In September 2015, Alibaba Group of China became 20% stake holder of One97 Communications through an investment of $680 million. This made Alibaba single largest shareholder of One97 Communications Limited.
Paytm is made available for users through different channels which include:
- Direct website.
- iOS app.
- Android app.
- Windows phone app.
Paytm to Go Multilingual
It was announced by Paytm that the mobile app will be made available to Paytm users in multiple languages. Paytm plans on launching the interface in 10 different regional languages which include:
The multilingual interface will first be launched for Android platform. Soon after that, iOS users will have access to multilingual interface.
The reason why Paytm is planning on launching a multilingual interface is that it wants to capture more users.
Talking of users, Paytm claims that its English version currently has 150 million users and this mobile wallet expects to garner a bigger user base in India with the help of regional languages.
It should not be a surprise that this announcement came after demonetization when India is looking forward to cashless transactions. Yes, with multilingual support, Paytm can be easily used by those Indians who are not very comfortable with English. This will definitely help to push India towards becoming a cashless economy in the long run.
Now an important question…
What Can You Do Using Paytm?
There are a number of things that you can do using this digital wallet or mobile wallet. Here is a quick summary for you in a tabular format:
|Recharge||If you want to recharge your data cards, DTH cable, metro cards, prepaid mobile connections, you can do so using Paytm wallet.|
|Bill Payments||If you want to pay bills for your electricity, water, gas, broadband, landline, postpaid mobile connections etc., you can do so using Paytm wallet.|
|Ticket Booking||You can book hotel rooms, movies, flights, train tickets, bus tickets etc. using your Paytm wallet|
|e-Commerce||Paytm has its own e-commerce platform. You can purchase products like electronics, home appliances, fashionwear etc. using the Paytm wallet.|
|Offline Payments||Paytm has partnered with over 8 lakh merchants. You can make offline payments to those merchants against their goods and services using your Paytm wallet.|
|Money Transfer||If you want to send money to someone, you can do so using your Paytm wallet. You can either transfer money to someone’s bank account or you can send money to someone else’s Paytm account directly.|
|Cashless Rides||In case you use Uber to your daily travel needs, you can use your Paytm wallet to pay for your rides and enjoy cashless travels.|
Registering with Paytm and Adding Money to Your Paytm Wallet Account
As we said before, there are two ways you can access Paytm. The easiest way to do so is to use your smartphone. You can download and install the app from Google Play Store or Apple App Store or from Windows App Store. In case you are using Blackberry, you can download the Paytm app from its store as well. Good news for other users who use Nokia phones running on Ovi platform can also download and install this app from Ovi store.
Once you download and install the app, you can register using two methods:
- You can use your phone number.
- You can use your email id.
In case you are not a smartphone user and yet want to use Paytm, you can use the web interface too. All you have to do is visit the website at http://paytm.com/ and sign up. The options for signing up remains the same as in case of your mobile app.
For successful registration, you will have to go through a verification step where a verification code will be sent to your mobile number or to your email id depending on which option you select.
You need to remember that you should be 18 years old in order to be able to use Paytm wallet however, the only time you will have to verify this is when you want to increase your Paytm limit. You will have to provide KYC documents and that’s where your age proof will be required.
Adding Money to Your Paytm Wallet and Monthly Limit
Just registering with Paytm will not be enough. In order to be able to use Paytm, you will have to add money to your Paytm wallet. For this, you will have three options:
- Use your debit card.
- Use your credit card.
- Use your internet banking facility.
You will also have a fourth option where you can deposit cash which will be later reflected into your Paytm wallet account. In case you want to deposit cash, you will have to visit selected banks and selected partners of Paytm where you can deposit cash.
Once you have added money to your Paytm wallet, it will be ready for use.
What about the limit?
Well, Paytm is not a bank. It is just a wallet that you can use for carrying out transactions on a daily basis. Since it is not a bank, there is a limit to the amount of money that you can add to your wallet account. As of today, you can add INR 20,000 in your wallet in a single month. However, you can definitely add more money but for that you will have to submit KYC documents. Once KYC verification is completed, you can add up to INR 1 lakh per month in your Paytm account.
Paytm will go for KYC verification in order to avoid any kind of fraud. This is an RBI mandate and hence everyone needs to follow.
How is RBI Related to Paytm?
This is a very important question. Are you not concerned about the safety of your money when using Paytm? You should be. Luckily for everyone using Paytm, safety should not be a concern because Paytm wallet has been approved and authenticated by Reserve Bank of India (RBI).
Now that we are already on this topic of safety, we need to say that Paytm stores your money in a safe escrow account provided by a reputed bank in India. On top of that, all transactions that take place through Paytm wallet pass through 128-bit encryption technology, which is certified by Verisign. What does this encryption mean? This means that when a transaction goes through, the information is transferred using a secret key. This secret key follows a 128-bit sequence. This sequence is extremely difficult to crack and never reveals anything like content of the password or even the length of the password.
Why is length of the password so important? It is important because there are many software available out there which can use different types of technology for cracking passwords. They will use combinations of letters, numbers and special characters. They basically use some algorithm to find out the password sequence. However, in order to do so, they will need to know the length of the password. Once they know the length, they will start running algorithms which will eventually crack passwords.
Also, you need to know that Paytm has been certified a PCI DSS 2.0 platform. This simply means that the wallet never ever stores any kind of data, either directly or in encrypted fashion.
How to Complete KYC Verification for Paytm?
KYC verification or Know Your Customer verification for Paytm will be required only and only if you want to increase the monthly limit for your wallet. There are two methods of KYC verification, which are mentioned in the table below:
|KYC verification method||What will be done?|
|Manual or Physical verification||In this method, the representatives of Paytm will come to your house and they will carry a blank KYC form. You will have to provide a passport photograph of yourself. Also, you need to provide photo copies of your identity and address proof. These photo copies need to be self-attested.|
|e-KYC or Electronic Know Your Customer||This will be based on your Aadhaar number. In this process, the Paytm representative will reach your house and will carry a biometric scanner. This biometric scanner will be mobile based and you will have to provide your Aadhaar number as well as your fingerprint scans. An e-signature based on your Aadhaar will be recorded.|
Are There Any Alternatives to Paytm App?
Yes, there are several alternatives. However, Paytm remains the most famous of all mobile or digital wallets that are present in market. PayUMoney, Ola Money, MobiKwik, FreeCharge are some of the competitors of Paytm and each one of them come with their very own unique features. These alternatives are also pretty popular but not as much as Paytm.
Are There Different Types of Paytm Accounts?
Yes, there are two different types of Paytm Accounts. These two account types are mentioned in the table below with quick details.
|Account Type||Details of the Account|
|Basic Paytm Account||This account is the one that everyone gets when signing up with Paytm. It asks for basic details like mobile number, email id, name of the customer etc. These basic details are enough to allow making payments as per the guidelines set by Reserve Bank of India.|
|Prime Paytm Account||This is the type of account where you need to provide your KYC documents and they will be verified with the authorities. In this account, the wallet limit is increased to up to 1 lakh rupees a month and it allows payments to all merchants and even person-to-person payments as per the guidelines set by Reserve Bank of India.|
Step-by-Step Guide Sections
In the sections that follow, we will provide step-by-step guides so that you can easily install and register with Paytm and start using the same without any hassles. In this section, we will be talking about the following:
- Opening Paytm account
- Adding money to Paytm account
- Sending money from your Paytm wallet to another Paytm wallet
- Transferring money from Paytm wallet to a bank account
- Recharging your mobile using Paytm wallet
- How to use Paytm wallet for offline payments
- How to Use Paytm Offline and Pay Using OTP
Let us start with one at a time…
Opening Paytm account
Step 1: Download the Paytm app for your mobile or go to http://paytm.com.
Step 2: Tap / click on ‘sign up’ button.
Step 3: Enter your mobile number.
Step 4: Enter you email ID.
Step 5: Enter a password.
Step 6: Tap / click on ‘Continue’.
Step 7: Check for OTP or one time password.
Step 8: Enter the OTP in the given field to confirm your mobile number.
Step 9: Go to profile page and enter your name and any other detail for completing your Paytm profile.
Adding money to your Paytm account
As before, you can use both your mobile app or the Paytm website to add money to your Paytm Wallet account. Here are the steps that you need to follow:
Step 1: Log in to your Paytm wallet account either through the web or through the app. If on the website, look at the top right hand corner of the page. You will see an icon of Paytm Wallet. Click on it. If on mobile app, on the homepage of the app, tap on the icon which reads ‘Add Money’.
Step 2: In either of the two cases, enter the money amount that you want to add. After you enter the figure, tap / click ‘Add Money’ button.
Step 3: On the next page (both on app and website), you will have multiple options to select from as the source of money. You can choose between Debit Card, Credit Card and Net Banking. Select the option that you want and add the necessary details.
Step 4: Complete the payment by following the onscreen instructions. You will be taken to secured payment page depending on the source you are selecting. In case you are using Net Banking, you will have to login to your net banking account. Paytm will actually redirect you to your bank’s net banking portal.
Step 5: Once you confirm and pay, you will have an option of choosing whether you want to save your payment method for future use or not. For instance, if you used your card to pay money to your Paytm wallet, you will be able to save the card details. The next time you want to make a payment, you will have to simply enter your CVV number and proceed with the payment. You will not be required to enter your card number, your name, expiration date of the card etc.
Step 6: Once you complete your payment, that is you complete adding money to your Paytm wallet, you will be redirected to your Paytm account where you can carry out a number of actions like paying bills, recharging your phone, booking tickets and hotels, purchase products and more.
Sending money from your Paytm wallet to another Paytm wallet
At times, you may need to send money to someone. In that case, your basic option will be to hand over cash or a cheque or use internet banking. In either case, it is time consuming. The next best option for you is to send money to the Paytm wallet of the beneficiary through your own Paytm wallet. How will you do this?
Remember: In order to send money from your Paytm wallet to another Paytm wallet, you will have to use the mobile app. This feature is not yet available through the website interface of Paytm.
So, how do you send money?
Here are the steps:
Step 1: Open the Paytm wallet through your mobile app.
Step 2: You will notice a Pay or Send icon. Tap on it.
Step 3: Tap the option for mobile number.
Step 4: Now provide the mobile number of the beneficiary to whom you want to send the money. In case you have the mobile number of the person saved in your contact, Paytm will also give you the option of selecting the number from your contacts list. For this, you need to tap of the icon for address book and then, you will have the option for selecting the contact’s phone number.
Step 5: Once you have entered or select the phone number, you will then have the option of entering the amount you want to transfer.
Step 6: Though optional, kindly enter the details of the payment (for example, gift or payment of tuition fee etc.). The reason why you should be entering the details of the payment is that it will help you to provide accurate details during your Income Tax Return filing.
Step 7: Tap the ‘Send’ button. The money will be sent.
Step 8: What if there is insufficient balance in your Paytm wallet and you did not notice that before sending the money? In that case, Paytm will notify you that you have insufficient balance and will give you the option of adding money to your own Paytm wallet. You can also add more money if you want to. Adding money is easy and has been discussed in the previous step. Once you add the money and there is sufficient balance in your Paytm wallet, Paytm will send the money to the Paytm wallet of the mobile number you entered.
Step 9: Once the money is successfully sent, the beneficiary will receive a SMS notification or an email notification. In case Paytm app is installed on the beneficiary’s mobile, a Push notification will be sent, intimating the beneficiary about the money he or she received from you.
What do we mean when we say, “in case Paytm app is installed…”? What will happen if the Paytm app is not installed on the mobile phone of the beneficiary?
In that case…
Paytm will send an SMS to the beneficiary. The SMS will have a link to the Paytm app. The beneficiary needs to follow the link and download and install the app and register with it in order to receive the money. The beneficiary needs to complete this within 3 days from the date of receiving the money. Failure to do so will mean that Paytm will send the money back to your account. Don’t worry, your money won’t be lost.
Two important things you need to know about this transaction:
- Paytm to Paytm money transfer is totally free. There are no hidden charges at all. The beneficiary of the money will receive the entire amount you send. Not even a single penny will be deducted.
- In a given calendar month, you cannot send any more than INR 25,000. This means that whether you are sending money to another Paytm wallet or to your bank account, you will be restricted to just INR 25,000 in a calendar month.
Transferring money from Paytm wallet to a bank account
Good news, you can also send money from your Paytm wallet to your bank account. As before, you will need the mobile app to carry out this transaction. Here are the steps that are involved in transferring money from your Paytm wallet to your bank account:
Step 1: Open you Paytm app.
Step 2: Tap on the options which reads Pay or Send.
Step 3. On the page that opens, you need to tap on the option which reads, Send to Bank.
Step 4: Enter the amount you want to transfer.
Step 5: Enter the bank details. You will need to provide the bank account number, the IFS code and other necessary details. Check the details again.
Step 6: Tap on the ‘Send’ button and the money will be sent to the mentioned account.
In case you don’t have sufficient money in your Paytm wallet, you need to refill your account and then the money will be sent.
It is easy and simple. However, you need to remember these important points:
- You can carry out multiple transactions for sending money to your bank account.
- In each transaction, you will be able to send a maximum of INR 5,000 only.
- In a given calendar month, you cannot send any more than INR 25,000 from your Paytm wallet to your bank account.
- You need to have a minimum of INR 2000 in your Paytm wallet as balance if you want to send money to a bank account.
- There will be a fee for this transaction. The amount of fee you need to pay is 4% of the total amount you want to send. Remember that this fee will be applicable for each and every transaction.
- The account of the user has to stay registered on Paytm for a minimum period of 45 days.
Only if the aforementioned conditions are satisfied, you will be able to send money to a bank account.
Recharging your mobile using Paytm wallet
One of the commonest uses of Paytm wallet is for mobile recharge. In case you have a prepaid mobile, you can use your wallet to recharge your number. But, how do you do that?
Here are the steps that you need to follow:
Step 1: In the “Recharge or Pay Bills for” section, tap on ‘Mobile Prepaid’ option. In case you are using the website, use this link.
Step 2: Enter the mobile number you want to recharge. In case you are using the Paytm mobile app, you can select the phone number from your contacts list by tapping on the phone book icon.
Step 3: You will then have to select the operator (that is Airtel, Vodafone or Docomo or whatever network you are using).
Step 4: Enter the amount you want to recharge. In case you want to browse through the different plans offered by your network, you will have the option of that as well.
Step 5: If you already have the necessary amount in your Paytm wallet, you can tap / click on the box which reads Fast Forward to instantly pay using your wallet balance. In case you don’t have the necessary balance, you can tap on the large button which reads, ‘Proceed to Recharge’. If you are not using Fast Forward, you will have to add your payment method and then follow on screen instructions to complete the payment.
Step 6: Once the payment is successfully made, you will see a ‘Payment Success’ notification on your screen. Upon successful recharge, you will get an SMS from your TSP or Telecom Service Provider which will confirm the recharge amount. Sometimes, there might be some delays in receiving this SMS. Do not panic. In case the recharge was unsuccessful, Paytm will refund the money to your Paytm wallet.
How to use Paytm wallet for offline payments
You may have noticed a number of merchants here and there who display a small banner which reads ‘Paytm Accepted Here’. You will notice a QR code as well. What is that?
Well, this is the option where you can pay to a merchant or a service provider using your Paytm wallet even if the receiver does not have an internet connection. Yes, all the previous options we discussed till now require an internet connection but for offline payments, you need the QR code. That’s all! Internet is not necessary.
So, how do you do this?
Have you ever tried to pay the local shopkeeper for your daily grocery needs using Paytm? Or have you ever tried to pay for an auto ride using Paytm?
In cases like those, you will see that small placard. Here is what you do:
Step 1: Pull out your mobile and open Paytm app.
Step 2: Tap on the option which reads Pay or Send.
Step 3: The moment you do that, the camera of your phone will open with a scanner option. Point the camera towards the Paytm QR code that has been displayed by the merchant or the service provider.
Step 4: Once your phone’s camera scans the code, you will have to enter the amount you need to pay.
Step 5: Tap on Send or Pay and the payment will go through and the merchant or the service provider will get the money in his or her Paytm account.
Step 6: In case of insufficient funds, you will be asked by Paytm app to add money. You can add money following the steps mentioned above. Once the money is added, the payment will go through.
Step 7: Upon successful completion of the payment, the merchant or the service provider will receive one SMS which will notify him or her about the payment that he or she received.
How to Use Paytm Offline and Pay Using OTP?
What if the merchant you are trying to pay to does not have a QR Code on display? Some merchants actually do prefer to complete a transaction using OTP or one time password instead of a QR Code. As before (as in case of QR code), no internet connectivity is required and even if there is no network coverage, it will work. Here is how you use this option:
Step 1: Open the Paytm app on your mobile phone.
Step 2: Tap the option of Pay or Send.
Step 3: Tap on the option which says ‘Show Code’
Step 4: You will see a 6-digit code showing up on your mobile screen.
Step 5. You can share the code with the merchant, who will then enter the code on his or her Paytm app. The moment the merchant uses the code, the payment will go through from your account to the merchant’s account.
Step 6: Upon successful completion of the payment, you as well as the merchant will receive one SMS each, confirming the payment and receipt of the money respectively.
That’s more or less everything you need to know about using Paytm. There are many other options like Bill Payments, Ticket Booking etc. Covering everything in a single article is not possible. However, we will like to mention that the procedure for all of these remain the same. You just need to select the appropriate options and the proceed with the payments.
Conclusion: Paytm is all set to change how we carry out financial transactions on a daily basis. This app and other competing apps are very much capable of pushing us into a world that is free of cash and black money. That’s what we think. What do you think? Do let us know through the comments section.