Paytm Comes to Canada… But Why?
I think it's supposed to rhyme with "ATM". And honestly, that's about the only thing about this story that makes any sense.
reported yesterday that Paytm
, the largest mobile payments company in India, was coming to Canada. In fact, it's technically already here—they've apparently been renting office space in Toronto since 2014.
How does it work? I found these instructions from Gadgets360
, an Indian tech site:
1. Set up a Paytm account using your mobile number and email;
2. Add money to your Paytm Wallet from your bank, debit or credit card;
3. Select 'Pay or Send' to transfer money to someone else;
4. Make a payment by scanning a QR code, or...
5. Send money to another Paytm user via their phone number.
So the business model here is fairly obvious; at any given time Paytm is making interest off of whatever cash their 150 million users have deposited in their mobile wallets. And while I can certainly appreciate the value of a mobile wallet in a country where maybe not everyone has a credit card, I don't think that's so much the case in Canada. Furthermore, there are existing solutions already offering some or all of Paytm's features—SmoothPay
, and ZenBanx
are similar apps that I've previously covered here.
If you're a Canadian with business and/or family in India (or vice versa) then the arrival of Paytm in this country is probably great news. But I'm struggling to see any value in it for anyone else.
, Mobile Syrup