InvestorQ : What do you see the impact of Paytm getting into stock broking and other financial services?
Moii Chavate made post

What do you see the impact of Paytm getting into stock broking and other financial services?

Answer
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Sam Eswaran answered.
1 year ago


In a way, Paytm is already into financial services because it already sells Direct Mutual Fund plans on its Paytm platform. In fact, Paytm claims to have 1 million active clients and a large share of the Direct Mutual Funds that are sold. (Direct Funds are those plans that have a lower expense ratio as they don’t pay sales commissions). So, in a way Paytm is already into financial services.

In the last few years, since discount broking has come into India in a big way, a lot of players have started creating this kind of a no-frills platform. This has no entry barriers as they don’t give research support to clients. However, since someone like Paytm already has a payment interface, they can use that to move funds for trading in equities. I can tell you one thing that Indian broker have still only scratched the surface of the broking potential in India and there is a huge market left to be tapped. So, it is good that more players are entering the market.