What is the Difference between Paytm and Jio Financial Services? Updates and Details you need to know
Recently a report by Macquire suggests that Paytm might face a new competitor in the financial service scenario.
When India's second richest man, Mukesh Ambani attempted to demerge the financial services business from Reliance Industries into a new company called Jio Financial Services (JFS), a lot of eyebrows were raised as according to the reports it could emerge as the fifth largest financial services company in terms of net worth.
The demerger updates show that Reliance Industries will transfer 6.1% of its shares to JFS.
While Paytm shares ,on the other hand hit a new 52-week low during intraday trading on Wednesday.
Paytm saw a decline of over 5.62% to ₹450 and marked a decline of 79% from its issue price of ₹2,150.
Find out what are the differences between these Financial Services, Paytm, and Jio Financial Services here!
- India's largest financial service provider, Paytm provides a huge range of online payments & financial solutions to its customers, online retailers, and service partners.
In the year 2010, The owner of Paytm, One97 Communications Limited, was founded by Vijay Shekhar Sharma.
- Paytm is the most popular payment app in India, as It enables you to pay at merchant locations using a phone number or QR Code.
- In 2014, Paytm Wallet was introduced as an option and now its the most widely used payment app in the country.
- It was none other than the Paytm Wallet that opened the Indian economy to digital banking.
The Paytm wallet enables users to load money to their wallet through Netbanking, credit card, or debit card and use it to make any form of payment all around the country.
- Paytm Wallet revolutionized the digital banking landscape when customers were allowed to transfer money from person to person using just a mobile phone number.
Reliance, Jio Financial Services
- The Jio Payments Bank was launched in 2018 to offer payment services using UPI linked with your Jio account.
- It can be accessed by the My Jio App on your smartphone.
The JFS allows you to make bill payments, mobile recharge, online shopping, and banking transactions.
- JFS is directly linked to your bank account and allows you to pay for your purchases directly from your bank account.
- It works with any operator including 2G, 3G, or 4G networks.
- As per Jefferies's report.
"JFS will differ from most other fintechs, as it will have access to huge amounts of data, gathered from non-financial relationships; it can process and analyze this data in real-time, to offer financial services, similar to Alibaba, Amazon, Apple, Facebook, and Google," added the
- He further added that RIL's ambition for growth can "pose a significant growth and market-share risk for players like Bajaj Finance and Paytm with whom it could be competing head-on."
Hence, though both Paytm and JFS are magnificent financial services, their desire to break the glass ceiling and their growth status will define their difference and success.