It seems like the big daddy of payment services is coming out with its wealth management business and its going to start selling direct mutual funds first and then get into broking and wealth management business. This is probably going to start next month.
Hmmm…depends on whst they create and offer I guess. Paytm is mostly a platform unanimously known for only transferring money. Would be interesting see their business model and product for wealth management business.
If it’s going to open direct mutual fund, then I’d let that big daddy to do it.
I know there will be lot of competitors when this different industry try to come out wealth business, but good thing about this phase is that best offers or processes of MFs will be available for us.
How’s that so? Take an example of Airtel.
Like Airtel who used to offer expensive net pack, but if there are competitors, especially Jio, Airtel is trying to retain us with lot of offers which is advantage for us.
I think what may be useful for customers is the idle surplus money lying in our paytm wallet can be auto-invested in a liquid fund that auto-redeems when payment has to be done.
Something like this could help users fetch some returns for their idle money in the wallet. Let’s see.
Try calling Paytm support. In fact, for evaluating a product or service, try calling customer care. I found it next to impossible to contact them for a failed payment to another merchant, though my account was debited. Though it was rectified later, my purchase got delayed and added uncertainty as to whether I should purchase again or not, pay again or not, etc.,
We all know that if you had to call a call centre for support, our day is ruined. Zerodha was the first call centre that gave me a pleasant surprise when I called them for support. They clarified my complex queries quickly with their excellent knowledge of their products, making me change my view of support!
I am not sure if we can get that kind of support with Paytm.
I think it is too early to say anything. I have seen many companies falter that look to succeed. Paytm is an excellent and innovative way of transferring money. I hope that they become successful in this venture and keep on serving the mass public with their services.
@nithin, I read an interesting article of how Jack Ma’s financial startup is shaking the Chinese banking system. Giving more interest than bank a/c for keeping money in the wallet by investing in liquid/ money market funds, and using wallet balance as a pool to disperse loan to users and making money there as well. Many more interesting strategies in the article.
Is Paytm going to repeat the same as Alibaba holds 40% in Paytm?
One more thing, I don’t think they will stop at Mutual Funds. I think Mutual Funds is just the stepping stone. They may enter the brokerage business also to eat the whole pie of wealth management.
It means there would be stiff competition ahead and ultimately a customer will benefit out of it.
I think in the long run they are trying to build a Yue Bao type of money market fund that is run by Alibaba’s MF arm. Make banking and investing more direct through the Paytm network of financial apps and earn money on it. The implications of such a move could be huge.
First get users, next to get more people to invest and finally start a MF ( either directly or through some partnership). And they have the financial muscle to do it.
Bottomline - more competition = better UI and better quality of service.
I have a question. Why do you use coin or paytm money when you can open directly in AMC website. Why don’t you just save your email and mobile number? Any thoughts?
Are we attracted to portfolio design or user interface or?