Explained: What is Paytm wallet and how to use it

The trend of online monetary transactions started becoming extremely popular in our country since demonetisation. The popularity was further accelerated the ‘Digital India’ campaign. That is why payment apps like PhonePe, Google Pay and Paytm have become a part of our daily lives, especially those of young adults and millennials.  

Among these apps, Paytm has emerged as the most successful online payment platforms with a current estimated value of USD 2.1 billion. According to some estimates, over 150 million Indians actively use Paytm daily. However, Paytm recently went into trouble due to the failure of its debut IPO (Initial Public Offering) trading and witnessed massive decline in its stock prices. Despite the current debacle, there’s a lot of hope that Paytm will bounce back soon to its former glory and continue to gain new users. If your teenager is about to use Paytm wallet soon, we are here today with information on what it is and ways to use it.  

What is Paytm wallet?

Paytm is an online payment platform owned by One97 Communications that is indigenously made and allows cash transfer via its integrated wallet popularly called Paytm wallet that uses money from debit or credit cards, internet banking and even offline cash deposits. Using Paytm wallet, one can carry out cashless digital transaction to purchase any number of goods and services, from bill payment to online shopping.  

How to set up a Paytm wallet? 

Set up a Paytm account using mobile number and/or email id. 

Transfer cash to the Paytm wallet from your bank account or debit/credit cards or internet banking. You can add up to INR 10,000 per month in the wallet. 

In order to increase the monthly limit, the user needs to activate their KYC (Know Your Customer) processor. Once it’s activated, the user can add up to INR 1 lakh anytime anywhere. 

How to use Paytm wallet? 

Once the Paytm account is set up, and the wallet is ready to be used after the money has been added to it, the user can go to the “Pay or Send” option on the wallet and transfer money to anyone across the country within a few seconds. However, this is only applicable for other Paytm users. 

Alternatively, a user can scan a QR code and make payments to others who may or may not have Paytm wallet option. This money gets directly transferred to the recipient’s bank account. 

One can also use the recipient’s phone number to transfer money instantly using Paytm wallets. 

Paytm wallet can also be used offline (without internet connectivity) if a retailer accepts Paytm as the mode of payment. In this case, all the sender has to do is scan QR or bar codes and use the One Time Password (OTP) sent by the bank to complete the transaction.