Paytm
Paytm
Paytm
1 Introduction
The development and the ascent of versatile innovation all through the
world among individuals has extended to a great extent in light of the
prepaid model. Because of this all classes of society approach the
budgetary administrations and have turned out to be exceptionally
comfortable with the versatile cash framework. For the Banks a newer
possibility has been opened for the middle class and the poor people using
the new innovation. With the presentation of advanced wallets in mid-90's
spearheaded by Sam Pitroda with the vision, fundamental the necessities
of the clients a simple to utilize interface, capacity to safely execute in the
virtual and certifiable, in came application-based wallets, for example,
Paytm. The buyer brand of India's driving portable web organization, for
example, One 97 Communications. One 97 speculator incorporate Ant
Financial (Ali Pay), SAIF Partners, Mediatek, Sapphire Venture and
Silicon Valley Bank. Paytm comprehended the significance of a
contrasting option to the current money exchanges and presented an
exceptionally basic versatile Mobile application based secure medium of
advanced method of exchange which is the place where the future
untruths. A commercial center model and a Revenue based show which
gives clients an opportunity to save money choice, energizes, charge
installments, Cashbacks when things are acquired, installment
arrangements, Digital Gold, Paytm Bank and e-wallet. With a helpful
commercial center for dealers and Paytm is the first organization in India
who took the reception of a Mobile Wallet currently having 120 million
purchasers and 2 million every day exchanges. For adjusted class of items
Revenue from this subcategory is produced as expenses and commissions
from the dealers. Paytm has focused more on Digital currency thus it can
increase its brand preference through the better distribution, promotional
and better marketing strategies. Wallet which can be utilized to store
money in computerized shape and consequently can be utilized to
purchase merchandise and ventures from shops or foundations which have
a particular contract with the organization to acknowledge these
installment instruments. Paytm wallet doesn't allow money withdrawal.
Clients deposits cash in the Paytm Wallet is saved by Paytm in an Escrow
account, based on the RBI rules and Paytm gets premium and this is
considered as an agreement between bank and Paytm. Accepts Deposits
and gives out loans for the money deposited. Paytm cannot give loans.
Here QR codes are used for payment which is nowadays available in each
shop both in Rural and Urban areas. Debit cards are also available for
Paytm. Online Payments are accepted and the option for payment comes
with no maintenance charge but there is a commission cut on each
transaction. Initially Paytm had only Recharge services and mindset of the
people been that Paytm was only for Recharge, but now things have
changed using Paytm we can even pay educational fees and bills. For both
buyers and sellers Paytm is still serving as alternative means of cash
transaction and offers a convenient, International safer and secure use on
mobile applications for both consumers and marketers. Achievement of
an innovation is the point at which a customer acknowledges an item and
administration over a market depends on another heap of advantage traded
at a price or a value. Paytm gained attention, importance in day to day life.
Sample design: -.
The study is done by using Convenience sampling method with 95%
confidence and 5% margin of error. A sample of 50 employees have been
taken across India. The data gathered was analyzed using Percentage
Analysis, Correlation Test and Chi-square Test.
Data Collection:
In view of this questionnaires were sent to 50 respondents and the
inquiries were asked where their responses are noted. Respondents are
mainly college students, employed and non-employed youths, middle
aged people both employed and non-employed and the merchants.
Data Analysis Tool:
Microsoft Excel program.
Among other sources of funding, in 2015, Paytm became the first Indian
company to receive funding from Chinese eCommerce company Alibaba,
after it raised over $625 million at a valuation of $1.5 billion. The Alibaba
Group was the biggest stakeholder in Paytm parent company One97
Communications.
3.3 Services:
The Company launched Paytm Wallet in 2014, India’s largest mobile
payment service platform with over 20 million wallets. The service
became the preferred mode of payment not only across leading consumer
Internet companies such as Uber, Bookmy show, MakeMyTrip, etc but
also many offline retailers and service providers like IRCTC, AIACA,
Mahindra Two Wheelers, CCD, Domino’s etc.
Paytm was valued at $250 million in 2011. With the funding of $625
million by Chinese e-commerce company Alibaba and existing investor
SAIF Partners together, the value of the company increased and is
currently $1.5 Billion. With this funding there has been a vast change in
the shareholding in the company. SAIF Partners will continue to be the
single largest equity holder in Paytm. The remaining equity is with
minority shareholders, including Reliance Capital, Silicon Valley Bank
and employees.
Exhibit 1: The change in company’s Stake before and after the
funding.
Companies Stake (%) Before Stake (%) After
Alibaba & Alipay Nil 40%
CEO 35% 22%
SAIF 50% 33%
Other Investors 15% 5%
3.4 Funding:
Paytm got a major boost in ecommerce when Indian Industrialist Ratan
Tata made personal investment in the firm in March 2015. In the same
month, the company received a $575 Million investment from Chinese e-
commerce company Alibaba Group, after Ant Financial Service Group-
An Alibaba Group affiliate, took 25% stake in One97 as part of a strategic
agreement.
Milestones of Paytm
Paytm Gets registered as a subsidiary of One97 Communication.
In 2009
Paytm launches as an online recharge portal.
In 2010 Grows to more than 50k recharges in a day.
Grows to become India's biggest recharge portal.
In 2011
Paytm App has been featured as “Best of 2014 app” by Apple AppStore.
Launches the first mobile only Marketplace for shopping.
22 million customers get registered.
12 million App users
In 2014
More than 15,000 merchants start using Paytm Wallet outside of Paytm.
Reaches 800,000 orders per day.
Launches Semi Closed Wallet.
3. Public & Private Banks like SBI, ICICI, HDFC have launched their m-
wallet known as SBI Buddy, Bank Pocket and PayZapp respectively as
their mobile wallet app recently. These apps are similar to saving bank
accounts that can be accessed through mobile phones. A number of banks,
are planning to launch their m-wallets as they sense that this model of
business will gain acceptance among youth and affluent who prefer online
shopping with their smartphones.
3.8 Segmentation
1. Mobile recharge
2. DTH
3. Data
4. Landline bill payment
5. Data card bill payment
6. Broadband bill payment
7. Electricity bill payment
8. Mobile bill payment
9. Gas bill payment
10. Water bill payment
11. Metro card recharge
12. Insurance Premium payment
13. Amusement park Ticket
14. Book Hotel Ticket
15. Book Movie Ticket
16. Book Bus Ticket
17. Book flight Ticket
18. Online Shopping
19. Transfer money
3.11 Positioning
Paytm has positioned itself in such a way where in anyone and everyone
who own smart phones can use it as an alternative for cash in daily needs
at every step.
College students/ youth.
Working mothers.
Paytm has provided the ease of paying all your bills, booking tickets
and lot more at your fingertips to all the working people who don’t
have the time to go out specially to just do such petty jobs which
are very important too.
Also, for the youth the ease of not handling cash, threat of losing
cash and paying effective change to stores and recharge vendors
receiving pocket money from parents.
Paytm has positioned itself among businesses like
Rickshaw-wala.
Ola, Uber cabs.
General Stores.
Roadside tapri and gaadas.
Exclusive showrooms.
Restraunts.
Corporates.
After Alibaba financially backed the company, it expanded and led the
market with a market share of 68% while its rivals having small amount
of market share (Bhattacharyya, 2018). The Government decision of
Demonetisation enabled the company to expand and capture the market
share by showcasing how Paytm will help its users during the cash crunch.
The company promoted its services and offerings aggressively in the
market leading to capturing the market share and leading the E-wallet
industry. This move completely pole axed India’s cash transaction
economy and forced people and small merchants to adopt alternatives.
The Paytm wallet was the simplest answer and people flocked it. The
number of mobile wallet users has drastically grown since then (Hetavkar,
2018).
4.1 Here Is Swot Analysis
In addition to the portal the company also owns the Paytm payment
gateway and the Paytm Wallet. Paytm achieved a major landmark by
securing funding from the Chinese e-commerce kingpin Alibaba after it
raised over $625 million at a valuation of $1.5 billion. Currently, Alibaba
Group holde the highest stakes the owner company of in Paytm, One97
Communications.
Strengths are defined as what each business does best in its gamut of
operations which can give it an upper hand over its competitors. The
following are the strengths of Paytm:
V. Offers:
Paytm has been able to grab and hold the attention of customers
primarily because of the never-ending offer stream it has been
announcing. These are custom designed with the Indian mindset in the
frame and thus works like magic for zooming sales.
Weaknesses are used to refer to areas where the business or the brand
needs improvement. Some of the key weaknesses of Paytm are:
Most users are unaware of what Paytm can do for them and confused
about how the app needs to be used. The level of awareness of technology
tools and the inherent fear of making erroneous transactions is making
things worse.
Most Indians are used to transacting on cahs and are yet to get used to
being used to cashless transactions. However, with digitization and
demonetization, things are expected to pick up and this will help online
wallet services.
One criticism leveled against Paytm is its poor customer service. The app
and the portal cater to a wide variety of customers whose concerns may
be minor. It is alleged that the call centre executives are often rude and
unable to handle many of the queries,
II. Demonetisation:
One of the services that benefitted heavily from the Indian government’s
demonetization drive was online payment services and Paytm was one of
the biggest beneficiaries. In a move to digitize the country, such services
will have more opportunities coming their way.
I. Competition:
Marketing Mix
4.2.1 Product
4.2.2 Price
4.2.3 Place:
Paytm like other websites and apps, can be accessed through smartphones
and on its website with active internet connection. The company is
headquartered in Delhi, India. The company has spread its services such
as online payment and shopping throughout the country in a short span of
time. These days, Paytm is accepted across various divisions starting from
buying of vegetables to buying of electronic items. The service is accepted
by most of the restaurants, hotels and grocery stores as a mode of
payment. Various companies use Paytm as a platform to promote their
services and offerings. Consumers prefer booking tickets through the
services provided as they find it convenient. The company has recently
launched their services in Canada. This shows the extensiveness of the
reach of its service and its wide acceptance among buyers and sellers.
4.2.4 Promotion:
Paytm has captured the E-wallet market with its aggressive promotional
activities. The company has promoted its services by launching ad
campaigns and showcasing them on different platforms such as
Billboards, Newspapers, TV Commercials etc. The company was able to
create itself as a household name with campaigns having catchy phrases
such as “Paytm Karo”. Besides the campaigns, the company has involved
itself in sponsoring events and competitions, which has further helped in
enhancing its brand recognition. The vendors of several stores that accept
Paytm have placards and wall hangings which serve as a way of
recognition for the company.
4.2.5 People:
Paytm is a service brand, and they believe people are their most important
asset, be it their customers or their employees. The company provides
employment to more than 13,000 people, besides its employees it has
about 3 million suppliers accepting the mode of payment offered by
Paytm. The company has over 150 million subscribers that use Paytm
services for their daily transactions. The internal workforce of the
company is also provided with several health benefits.
4.2.6 Process:
Paytm provides its users with a user-friendly interface, making it easy and
convenient to use. The application is supported by JavaScript on both
Client side and Server-side programming, which is lightweight and can
be used on various platforms. Its overall technology score is 59.
Reminder Emails
Google Adverts
In order to keep the parent company afloat, the founder of Paytm was
struggling for cash flow. The strategy behind Paytm earning even after
providing its users with 50% to 100% cashback.
The company has converted itself into one of the India companies dealing
in mobile payments, marketplace, bill payments etc. which serves more
than 100 million users.
In the year 2017, the company was valued at $7 billion, which included a
huge stake of a global E-commerce giant, Alibaba.
The company was the first ever to come up with a mobile only
marketplace, with over 120 million buyers and 2 million daily transactions
that are mostly prepaid. Revenue is generated through commissions and
fees through sellers, which according to the category of the product
(Feedough, 2018).
1) Which one do you want to use for self between Jio Money, Paytm,
Mobikwick, Amazon Pay?
Preference 2 11 2 5
5
2
2
J IO M ON E Y PAY T M M OBIQUICK A M OZON PAY
Interpretation:
Most number of people that is 11 people say that they want use
paytm that is 55% of my survey
2) Which one give more financial help between amazon pay and paytm?
Preference 0 20
Percentage 0% 100%
Amozon Pay Paytm
Interpretation:
Preference 16 4
Paytm
Amazon Pay
80%
Interpretation:
Out of 20 people 16 people prefer for Paytm that is 80% people say
that Paytm is more suitable for fund transfer.
Out of 20 people 4 people prefer for Amazon Pay that is 20% people
say that Amazon Pay is more suitable for fund transfer.
5.1 Findings
The Paytm user’s satisfaction level the best in bill payment is 1st rank and
other transactions was 8th rank.
the satisfaction level on Paytm facilities five free transactions per day is
1st rank and mini statement was 5th rank.
5.2 Suggestion
From the researcher suggested that the respondents are satisfied by Paytm
service. But level of satisfaction is low in the following areas shopping,
ticket booking, transaction speed, grievance handling methods, service
charges, mini statement and minimum of Rs 20,000 per day. The
researcher would like to request the Paytm to probe in to the suggestions
mentioned and take actions, if necessary, for the benefit of Paytm services.
5.3 Conclusion
Websites:
www.wikipedia.com
www.paytm.com
www.scribed.com
www.quora.com
News paper:
Times Of India
Economics Times
Business Today