Paytm Enters Stock Brokerage Sector

Paytm, India’s leading online transaction and payment platform, has now jumped into stock brokerage.

Founded in 2018, back then the company started selling mutual funds to the customers without any meddling of third parties. The company has now started stock brokerage from the funding of its parent company, One97 Communications. They have invested 40 Crores on this initiative.

Paytm charges Rs 15 per trade whereas other platforms charge Rs 20 per trade. The customers will be charged Rs 150 annually where the competitive companies collect an annual charge of Rs 250. The one-time account opening fee would be Rs 150 exclusive of GST which is 50% lesser when compared to the price at other companies.

The individual wealth is growing in our country and will soon account for 764 Crores in India and there has been a great increase in the number of stock brokerage firms in India. Apart from Paytm, Cube Wealth, Upstox, INDWealth, Groww, Kuveram Wealthy, Angel Broking, and so on.

“The ecosystem isn’t growing. Until we find an ecosystem, it’s not a big industry; it is dominated by offline-driven business,” says Nitin Kamath, Cofounder of Zerodha, a digital brokerage. He also said that in the stock world they have to work twice as hard to sustain a customer and keep them happy in the process.

Experts in the field believe that this entry of Paytm into the stock market at such times will be a huge threat to some of the competitive companies.