Paytm Money enables stockbroking for all; targets 1 mn investors in FY21
Digital payments company Paytm on Monday announced that it's wholly-owned subsidiary Paytm Money has opened stockbroking access for everyone in the country. The company is targeting a million investors with focus on first-time users from small cities and towns.
The company in a statement said, "the efforts are aligned to drive higher penetration in investing with an easy to use the product, low pricing (zero brokerage on delivery orders, Rs.10 for intraday) and digital KYC with paperless account opening.
The company has already registered 220,000 investors, of which, 65 per cent are in the age group of 18 to 30 years. "We aim to democratise wealth management services that contribute to the growth of Atmanirbhar Bharat. We believe it's an opportunity for us to enable millennials and new investors to build their wealth portfolio. Our technology-enabled solutions help make stock investing simple and easy," Varun Sridhar, CEO - Paytm Money said in a statement.
Paytm Money will charge Rs 15 per trade, against Rs 20 per trade charged by others. Investors will have to bear Rs 250 annual charges plus goods and services tax (GST) annually, against Rs 500 charged by other brokers. The one-time account opening fees would be Rs 150+GST, against Rs 300+GST, which is the industry practice. Market participants say this could trigger further consolidation in the industry.
Along with simplified investing in stocks, the platform offers ample opportunities to the user to research the markets, explore market movers, create customisable watchlists, and set price alerts for as many as 50 stocks. The platform witnessed higher adoption from Tier 1 cities such as Mumbai, Bangalore, Hyderabad, Jaipur, and Ahmedabad.
The company is providing the service on iOS, Android, and web platforms along with the Paytm Money app that offers an interface to set price alerts & SIPs to invest, trade, and research on stocks.
Paytm Money is a wholly-owned subsidiary of One97 Communications that owns India's homegrown financial services platform Paytm. "Paytm Money aims to become a full-stack investment and wealth management platform and bring wealth creation opportunities to millions of Indians," the company said.