Paytm offers a powerful feature that goes beyond automatic transaction categorization: creating your own payment tags. This feature allows you to personalize how your payments are organized, track unique expenses, and gain a clearer picture of your spending.
Whether you’re managing personal finances, business transactions, or savings goals, creating custom tags ensures your transactions are accurately categorized according to your needs.
What Are Payment Tags in Paytm?
Payment tags are custom labels or categories that you can create and assign to your transactions in Paytm. Think of them as digital sticky notes or folder labels for your payments. Just like you might organize files on your computer into folders named “Work,” “Personal,” or “Photos,” payment tags let you organize your financial transactions into categories that make sense for your lifestyle and spending habits.
When you create a payment tag, you’re essentially creating a custom category that you can attach to specific transactions. This makes it incredibly easy to:
- Track where your money is going
- Identify spending patterns
- Find specific transactions quickly
- Create informal budgets
- Generate spending reports
- Manage business and personal expenses separately
For example, you might create tags like “Groceries,” “Entertainment,” “Work Expenses,” “Healthcare,” or “Gifts.” Then, every time you make a relevant payment, you can tag it accordingly. Later, you can view all transactions under a specific tag to see exactly how much you’ve spent in that category.
Why Should You Use Payment Tags?
Before diving into the how-to, let’s understand the reasons why payment tags can transform your financial management:
Better Financial Awareness
Payment tags give you instant visibility into your spending patterns. Instead of scrolling through a long list of transactions trying to remember what each payment was for, you can simply filter by tag and see all related expenses grouped together.
Simplified Budget Tracking
While Paytm payment tags don’t create formal budgets, they effectively help you track spending by category. If you want to limit your dining out expenses to ₹5,000 per month, you can create a “Dining Out” tag and easily monitor how much you’ve spent in that category.
Easy Expense Reports
For freelancers, small business owners, or anyone who needs to track business expenses, payment tags are invaluable. Create a “Business Expense” tag, and at tax time or when submitting expense reports, you can quickly pull up all relevant transactions.
Better Money Management
When you can see exactly where your money goes each month, you’re empowered to make better financial decisions. You might discover you’re spending more on subscriptions than you realized, or that your coffee runs are adding up quickly.
Personal Financial Goals
Whether you’re saving for a vacation, trying to reduce unnecessary expenses, or working on specific financial goals, payment tags help you measure progress and stay accountable.
Household Budget Management
Families can use tags to track shared expenses like groceries, utilities, children’s activities, or household maintenance, making it easier to manage family finances together.
How to Create Your Own Payment Tag in Paytm?
Creating a custom tag is simple and can be done in just a few taps. Follow these steps:
Step 1: Open Your Transaction History
Open the Paytm app on your mobile device. Tap on Balance & History from the home screen to view all your recent transactions.
Step 2: Select a Transaction
Scroll through your transaction list and choose the payment you want to categorize with a custom tag. Tap on it to open the transaction details.
Step 3: Check the Category Options
On the transaction details screen, check the automatically assigned category. If it doesn’t match your needs, tap on Edit.
Step 4: Choose “Create Your Own Tag”
Now, select Create Your Own Tag. This option allows you to add a new category tailored to your spending.
Step 5: Name Your Custom Tag
Type the name of your tag in the text field. Use a clear and descriptive name, such as “Home Renovation,” “Freelance Income,” or “Vacation Savings.”
Step 6: Save Your Tag
Once you’ve named your tag, tap Add or Done to save it. The transaction will now appear under your newly created tag, and you can use the same tag for future transactions.
Understanding the Difference Between Paytm’s Tagging Features
Many users get confused between “Tag Your Payment” and “Create Your Own Payment Tag”. Here’s a simple breakdown:
Feature | What It Does | Use Case | Customization |
---|---|---|---|
Tag Your Payment | Allows you to categorize transactions using predefined categories like Food, Travel, Entertainment, Shopping, etc. | Useful for quick, general expense tracking. | Limited to categories already provided by Paytm. |
Create Your Own Payment Tag | Lets you create your own custom category for any transaction that doesn’t fit the default options. | Ideal for tracking unique expenses, personal goals, or business payments. | Fully customizable; you choose the name and purpose of the tag. |
Example:
Suppose you made a payment for grocery shopping. The Paytm app will automatically assign a tag based on the transaction, such as Food. You can choose to change this to another existing category within the app that better matches your expense. This process is called Tag Your Payment. It allows you to organize your transactions into broader, predefined categories.
Now, suppose the app does not have a category that fits your specific need. For example, you want to track grocery spending separately under Organic Groceries or categorize a payment for a pet store under Pet Care. In such cases, you can create your own payment tag. This lets you tag the payment exactly according to your personal requirement.
Tips for Using Custom Payment Tags Effectively
- Regularly Review Tags – Periodically check that transactions are correctly tagged and adjust or merge tags if necessary.
- Be Descriptive – Use clear, specific names for your tags so that you can identify them easily in reports.
- Use Consistently – Apply the same custom tag for similar transactions to maintain accurate records.
- Don’t Overcomplicate – Avoid creating too many tags; focus on meaningful categories that are useful for tracking your spending.
- Link to Financial Goals – Create tags for savings or investment goals, such as “Emergency Fund” or “Travel 2025,” to monitor your progress.