How Paytm cheats it’s customers?

You place order for a tempting product at 50% discount. The order is kept lingering for 7 days and then suddenly cancelled citing unavailability of stocks. You go to the site and are shocked and surprised to see the same item, same colour, same size and by same seller, now at a lower discount still listed on the site. You talk to the customer care, who say that it is an error and the site is not updated with the latest stock situation and they can’t do anything about it. To test that, you go ahead and place an order with a different address and lo – The order is successful! To rub salt on the injury, you receive a mail within 10 hours that the items has been shipped also! Isn’t that some kind of cheating?

As per Paytm, it’s all fair play and nothing wrong with it. Read on a live example…
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Paytm sells products at an inflated price, much over the MRP

Apart from the irregularities in circumventing RBI rules to earn interest (Read: Is Paytm a Scam? Part 1), even while I am writing the series on Is Paytm a Scam?, I’ve come across another instance whereby a new scam appear to be in pipeline.

I was looking for some toys for my little kiddo and it was then that I came through a mini drum set (Adraxx Mini Jazz Drum Set With 5 Drums Cymbal And Stool) on Paytm, priced at Rs. 1799/-. Paytm was running a 70% cashback offer on kids toys that day and so in effect the product would have cost Rs. 540/- Continue reading

Scion of Ikshvaku

Amish Tripathi ( has done it again!

If you have read Shiva Trilogy series by Amish, and were spellbound with the basic premise of the the Gods being normal human beings out of me and you, who came to be known as Gods by virtue of their deeds, you’d understand what I’m talking about. Shiva Trilogy included three books:

  1. The Immortals of Meluha (Shiva Trilogy -1)
  2. The Secret Of The Nagas (Shiva Trilogy -2)
  3. The Oath of the Vayuputras (Shiva Trilogy -3)

And each one of them was equally intriguing and interesting. In fact Amish became a household name just after his first book – The Immortals of Meluha, which went on to become a bestseller and together the three books sold over 2.5 million copies.
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Paytm and it’s sellers indulge in tax evasion

In continuation to my post – Is Paytm a Scam? – Part 2, I’m now citing another two examples how Paytm accumulates money in users wallet with random order cancellation. Further, this entire scenario would also compel to think if some tax theft is involved somewhere.

I was sourcing for LED bulbs for a social cause, and came across 40% cashback for two Philips 9 Watt LED bulbs at Paytm, priced at Rs. 799/-. With 40% cashback of Rs. 320/- the effective price would have been Rs. 479/- for two bulbs which was a good price and so I placed an order on 18th May 2015 vide Order No 973066977.

Just a day later on 19th May 2015, since Paytm was running an offer of 50% cashback on clothing, I placed an order for two dresses for my little daughter vide Order No 973986143.

While one of the dresses was shipped the very next day and delivered on 22nd May, the other one was shipped later – on 21st May. Meanwhile, the bulbs were also shipped on 20th May. Appropriate cashback was credited to my Paytm wallet as usual.

And then the ordeal started..
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How paytm accumulates customer’s money to earn interest?

In my previous post Is Paytm a Scam? – Part 2, I had made the following assertion

All that you pay for purchasing a product or service, Paytm is bound to have it in the escrow account. But, they are not bound to maintain the amounts that come as:

  1. cashbacks
  2. Refunds for returns
  3. Refunds for cancelled orders

You can gauge yourselves – majority of the amount in your wallet comes from cashbacks. However, have you ever wondered why Paytm keeps on cancelling orders arbitrarily? Now you know!! I’ve come across numerous instances (3 for myself and numerous for my friends) where the orders are cancelled arbitrarily, and the amount refunded to your wallet.

Now let’s see how Paytm amasses huge amounts through just 2nd and 3rd option.
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A claim made by Paytm representative today over phone on my Is Paytm a Scam? – Part 1 post – that they don’t earn any interest on the money lying in wallet – has forced me to scourge through the information available on the internet and with RBI, I can safely say that the claim is blatant lie. And to say that they have been insisting on me pulling my previous post from the blog!

First Let’s understand what is e-wallet, what are their types and establish what kind of wallet Paytm is.

In general, as per the RBI, there are three kinds of e-wallets—closed, semi-closed and open
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Paytm (probable acronym for Pay Through Mobile) was launched in 2010 as a mobile bill payment and recharge website and grew up to offer utility bill payment services too.


In early 2014, it launched the Paytm Wallet which was kind of pre-paid online card and then late 2014 it launched it’s own e-commerce platform too. With Ratan Tata and Alibaba coming forward to fund it in March 2015, it has easily caught the fancies of everyone. A rapid growth, with about 25 million user-base in March 2015, it indeed is the biggest Wallet provider in the Indian market.

That’s a successful business by all means! Kudos!!

But then why this article heading about a scam?

Well, there’s a catch which seems to have been overlooked!
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