Paytm will soon be entering the education sector in an attempt to increase its revenue. It has set a target of around Rs. 13,400 crore which it means to achieve by the end of this financial year. Paytm is owned by One97 communications and the company has now decided to enter the education sector under its new strategy.
Paytm is an online payment and e-commerce platform, backed by the Chinese e-commerce major Alibaba, founded by Jack Ma and is competing with Flipkart, Snapdeal and Amazon. The valuation of the education sector in India stands at around $100 billion. Paytm is trying to provide an alternative to all kinds of payments and make them cashless. Paytm will bring an option for online payments to schools, colleges, universities and also some of the premier institutions of the country like that of Indian Institute of Technology and Indian Institute of Management.
According to Paytm, they feel that there is a lot of potential in our education system and hence the worth of $100 billion. The company also claimed that by the end of this year, around 25,000 educational institutions, be it private or government, will have cashless campuses. And, students will be able to make all the payments there, whether it is fees, canteen, tuck shop or any sort of due, all would be made with the help of Paytm. Additionally, students would also be able to buy stationery, books and uniforms with the help of Paytm.
There is a lot of competition in the field of digital wallet and also in the field of e-commerce sector. Each and every player wants to create its own space and is looking to get a market share. As a lot of companies want to get the major share, Paytm is trying to make use of both the strategies – organic and inorganic. Though the company is at profit right now, but the business of e-commerce is not doing well. This decision of theirs would surely help them is making more and more profit.
They have also decided to tie up with coaching institutes. If people are able to adopt this digital wallet earlier, this will help them in creating credible and loyal clients, believes Paytm.