Is Paytm Money likely to be the latest stock broking player in the Indian markets?

Paytm Money could be the latest challenger in the competitive broking industry in India. Backed by Alibaba’s Ant Financial, Paytm Money, is part of Vijay Shekhar Sharma’s Paytm franchise. Paytm Money is targeting preventing burn in a market downturn.

Paytm Money just started off its zero-fee stock trading model and there are millions queuing to sign up. Paytm money will also put algorithms to work so India’s young, and upwardly mobile millennials can play a more significant role in the markets.

The big trend is that fleet-footed and technology-focused online brokers are racing ahead of the old fogeys in broking. Nearly 75% of the smaller brokers without the muscle have been shutting shop against the onslaught of technology and this could now worsen with Paytm Money also jumping into the bandwagon.

Paytm has timed its entry to perfection. Indians find the stock markets magnetic and close to 45 lakh traders opened trading accounts till end of July this year. Credit Suisse has projected the personal finance space to grow to $1 trillion by 2023, purely going to Fintechs.

Paytm has an inbred advantage in that it has a read user base of about 8 crore for its payment services. Even if they can draw 10% of these into the stock markets, the potential is limitless. Paytm wants to be in the top-3 in the next 5 years with at least 10% market share.