Paytm Money Becomes Stock Broker! Users Can Now Buy, Sell Stocks (Is Zerodha Worried?)
In a big development, Paytm Money has now become a stock broker, officially.
Is this a worrisome trend for Zerodha and other leading online stock brokerage firms?
Paytm Money Rolls Out Stock Broking Service
Paytm Money has announced via Twitter that their stockbroking service is now live. In a tweet, they stated, “Now, Stocks for Everyone??
Introducing – The all-in-one Paytm Money App for Mutual Funds, NPS & Stocks.”
As per Entrackr, not every user of Paytm Money is able to trade in stocks via Paytm Money, as the stockbroking service has only been rolled out for some selected users as of now.
In a few weeks of time, stockbroking services will be rolled out for all the users of Paytm Money.
In April last year, Securities & Exchange Board of India or SEBI approved Paytm Money to start their stock broking service via their app, and this was a major move for Paytm.
Infact, Paytm will soon roll out NPS from the Pension Fund Regulatory and Development Authority (PFRDA).
Should Zerodha Be Worried?
By launching their stock broking service via app, Paytm Money is now directly competing against Zerodha, which is right now India’s biggest online stock broker with 15% market share and 15 lakh users.
Other leading online stock brokers are ET Money, IndMoney and India Infoline, Groww, Cube Wealth, among others.
Paytm Money, in 2018, claimed to have over Rs 5000 crore of assets, and right now a leading platform for buying fintech products such as mutual funds.
The entry of Paytm Money into stock broking should worry Zerodha, since Paytm is one of the biggest wallets in India, and a lot of users have transitioned themselves into Paytm Money for their easy platform to buy fintech products.
Even before their launch in 2018, Paytm Money had garnered 5 lakh buyers of mutual funds, and at that time, they had reported 10,000 users transacting daily on their platform.
Can Paytm Money disrupt $2.1 trillion stock market?
We will keep you updated, as more details come in.