PayTM Competitive Analysis
PayTM Competitive Analysis
PayTM Competitive Analysis
Overview
Competitive Analysis
Employees - In 2018, PayTM had over 16,000 employees. By 2022, the number of employees had
grown to 25,000.
Overview
OverView Industries - PayTM operates in various industries including digital payments, e-commerce, banking,
financial services, and technology.
Geography coverage - While PayTM primarily operates in India, it has expanded its services to other
countries including Canada and Japan.
Banking Systems
• Link Your Bank Accounts All In One.(UPI) • New Account with PayTM Bank
• Scan And Pay
• Credit Cards
• Transfer To Mobile Number
• Transfer To Bank Accounts (Others or Self A/C) Using • Loans
UPI. • All features of a Normal Bank
UPI System
UPI System
Registration: Users need to download a UPI-enabled app from their bank or a third-party provider like Key features and advantages of UPI:
Paytm. Upon installation, they need to register by linking their bank account(s) to the UPI app. • Instantaneous Transactions: UPI enables
Unique UPI ID Creation: Once registered, users create a unique identifier called a UPI ID, typically in the real-time fund transfers, allowing users to
format of yourphonenumber@bankname (e.g., 1234567890@bankname). This UPI ID acts as a virtual send and receive money instantly, 24/7,
payment address. including weekends and holidays.
Authorization: To make a payment or transfer funds, users initiate a transaction by selecting the recipient's • Simplified Payments: With UPI, users can
make payments using only their UPI ID,
UPI ID or scanning a QR code linked to the receiver's UPI ID.
eliminating the need to remember and
Verification: Users enter the amount they wish to transfer and confirm the transaction using a PIN or share bank account details such as account
biometric authentication (fingerprint or iris scan). number and IFSC code.
Transaction Initiation: The UPI app sends a request to the payer's bank, which verifies the transaction • Interoperability: UPI is interoperable across
details and the availability of funds in the payer's account. different banks and payment service
providers, enabling seamless transactions
Routing: After verification, the transaction request is routed to the NPCI's UPI platform, which acts as an between accounts held in different banks.
intermediary between banks.
• Security: UPI transactions are secured
Interbank Settlement: The NPCI processes the transaction in real-time, debiting the payer's account and through multi-factor authentication,
crediting the recipient's account instantly. including PINs and biometric
Notification: Both the payer and the recipient receive instant notifications on their UPI apps confirming authentication, ensuring the safety of
users' financial information.
the successful completion of the transaction.
• Utility Bill Payments and Merchant
Overall, UPI has revolutionized the digital payments landscape in India, offering a Transactions: Apart from peer-to-peer
(P2P) transfers, UPI can be used for various
convenient, secure, and efficient way for individuals and businesses to transact transactions such as utility bill payments,
electronically. merchant payments both online and
UPI System
UPI System
Services/Banking Systems
• Apart from integrating any other bank to the app, PayTM also
established its own bank in 28 November 2017.
• PayTM Payments Bank Limited.(PPBL) allows its users all the
banking features that other bank provides .
Namely
• Savings Account
• Fixed Deposits
• Loans
• Credit Cards
• Debit cards
PayTM Payments Bank Limited.
Banking Systems
Services/Banking Systems
TimeLine And News Paytm Payments Bank (PPBL) was barred from accepting deposits,
Established:- 28 November 2017. top-ups, and other services after March 15, 2024. The Reserve
Closing:- 15 March 2024. Bank of India (RBI) cited non-compliance and supervisory
concerns as the reason for the decision. The RBI also noted that
thousands of accounts were opened without proper identification,
In line with the Reserve which raised concerns about potential involvement in illegal
Bank of India's directives, activities such as money laundering. Other issues included multiple
Paytm Payments Bank accounts associated with the same identification proof,
(PPBL) will shut down transactions involving substantial amounts, and an abnormally high
services such as deposits, count of dormant accounts.
credit transactions, and
FASTag recharges
from March 15 onwards. The Reserve Bank of India (RBI) has restricted Paytm Payments
Bank accounts and wallets from accepting new deposits or allowing
credit transactions after March 15, 2024.
Banking Systems
Services/Banking Systems
PayTM Wallet
Note :- PayTM wallet will not work after 15th March 2024
Paytm Wallet, provided by Paytm Payments Bank Limited and regulated by the Reserve
Bank of India, requires users to complete a Know Your Customer (KYC) process. There are
two types of KYC: Minimum and Full.
Minimum KYC grants partial access to the wallet for 24 months. Users can make
payments to merchants, pay online, and maintain a balance of up to Rs. 10,000 per
month. However, they can't send money to other users or bank accounts, and the wallet
balance is limited to Rs. 1,00,000.
Full KYC unlocks all features. Users can transact with merchants, both online and offline,
keep up to Rs. 1,00,000 in their wallet, send money to other users, and even open a
Paytm Payments Bank savings account.
• User Don’t get any intrest on the money stored in PayTM wallet.
• PayTM generates intrest from these funds in the users wallets.
BillAnd
Services/Bill And Recharges
Recharges
Bill And Utility
Recharge Services :-
• Mobile Recharges: Prepaid+Postpaid
• DTH
• FastTag
• CableTV
• Metro
Bill Payments :-
• Electricity
• Education Fee
• Gas Cylinder
• Broadband/Landline
• Apartment
• Water
• LOAN/EMI Payments
• Credit Card Payments
• Tax Payments
• Insaurance Payments
• OTT Subscriptions
• PayTM Gold
Services/Insurance Options
Insurance Options
• Bike Insurance
• Car Insurance
• Accidental Insurance
• Shop Insurance
• Health Insurance
• Auto Insurance
• Taxi Insurance
• Cancer Care
Services/Ticket Booking
Ticket Booking
• Flight
• Bus
• Train
• Movie
• Events
• Hotels
Services/PayTM First Games
Paytm generates revenue through payment processing fees, financial services such as lending and insurance,
commissions from its online marketplace, advertising and promotional partnerships, subscription fees for
premium services, and licensing agreements. This diversified revenue model allows Paytm to earn income from
various sources within its ecosystem, including transactions, financial products, e-commerce sales, advertising,
subscriptions, and partnerships.
• Logistics Charges:-
Revenue Model
b>>In-Store Solutions
Pay securely & easily at Stores, favourite Restaurants,
Shopping Malls or a even Local Street Vendors in a flash.
More than 20 Million merchants across India have
upgraded their business to accept payments from over
300 million, using Paytm All-in-One QR, POS & Devices.
5:-PayTM Wallet
How does Paytm earn through Paytm wallet?
Paytm wallet can be used to pay for almost anything, everywhere. It has
created a new market for digital currency users because of its ease of PayTM users don’t get interest on
use. Money can be transferred between the Paytm wallets of two users
with just a few taps on the phone. the money kept in wallet .
As per the RBI guidelines, the money deposited by users in Paytm wallet
PayTM collects the interest on all
is deposited by Paytm in an Escrow Account with a partner bank. This the money kept by users in their
escrow account deposit fetches Paytm certain interest which is decided
as per the contract between the bank and Paytm. wallets.
Note:- All transactions of wallet
The interest from the escrow account is decided on the basis of the
average of the deposited amount in a certain period of time (58 weeks). will cease to exist from 15th
But operating a prepaid wallet comes with an expense. Banks and
March 2024
payment gateways charge a fee equivalent to 1-3% of the money
deposited for using their services. This fee can’t be charged to the
customers as it’ll make them choose alternatives like UPI, IMPS, etc.
However, the interest generated through the escrow account deposits is
usually more than the expenses incurred which results in profits to the
company.
The more you use Paytm wallet, the more Paytm earns from it.
6:-Cross Selling Promotion and Advertisement Revenue Model
Promoted I Some
nsuarance Examples
and brands Of Ads
Mechanism
PayTM app :-Frontend,Backend and database
management
Front-End Back-End Daatabase
Site Elements: - External CSS, Server-side Languages - Javascript & Paytm stores customer payment
Embedded CSS, Inline CSS, HTTP/2, PHP instrument details in its secure cloud,
HTTP Strict Transport Security Web Servers - Nginx & Node.js which is audited by standard authorities
like NPCI and PCI-DSS from time to
Web Hosting - Amazon time. Paytm says it only stores and
Markup Languages: - HTML5 SSL Certificate Authorities - DigiCert processes user data in India, in accordance
Traffic Analysis Tools - Google with RBI circulars in respect of the Storage
Image File Formats: - PNG, SVG, analytics of Payment System Data dated 6th April
JPEG, GIF, WebP Advertising Networks - Google Ads 2018. This data includes the full end-to-
end transaction details, information
collected or carried or processed as part
of the message or payment instruction.
Business Model
PayTM Business
Model:- Driving
Revenue Growth
Through High
Engagement Payments
Business and Cross-
Selling Financial
Services
Business Model
Components:-
Our Business Model: We offer a comprehensive suite of payments services to acquire consumers and merchants, as well as leverage our
two-sided, consumer and merchant ecosystem and rich insights from our platform to cross-sell high-margin financial services and merchant
services (commerce and cloud). UPI has emerged as one of the key low CAC customers and merchant acquisition channels for us.
• Empowering Consumers With the Widest Range of Payments Services: We provide a wide selection of payment instruments, both third
party like cards, net banking as well as Paytm Payment Instruments like Wallet, Paytm Postpaid (BNPL), UPI, Fastag to make online
payments for Mobile Recharge, Utility Bills, Rent, Tolls, Education, Wallet top-ups and money transfers using the Paytm app. Consumers
can also make online payments on third party apps and in-store payments through QR codes and devices.
• Leveraging Platform Engagement to Enable Merchant Partners’ Growth: Consumers come to our platform for a variety of payment use
cases as well as the comprehensiveness of available payment instruments. High consumer adoption encourages merchants to join our
platform, and also use our commerce offerings to leverage our consumer traffic to grow their business. This creates a self-reinforcing
loop, which demonstrates high frequency, high repeat rates, and leads to powerful consumer stickiness and retention.
Similarly, leveraging Paytm’s consumer traffic, we enable our merchant partners to grow their business by offering services l ike ability to
sell tickets, advertising, loyalty solutions like deals and gift vouchers. We also provide software and cloud services to ent erprises, telecom
companies, and digital and fintech platforms to track and enhance customer engagement, build payment systems, and unlock cust omer
insights. Our commerce offerings provide a lifestyle destination for consumers to avail services such as travel and entertainment ticketing,
gaming and more. Easy access to such services within the Paytm App environment plays an important role in user engagement and
retention.
Business Model
• Driving Subscription-led Ecosystem for Merchants: On the merchant side of our platform, we enable our partners with
tech solutions that allow them to accept payments through a wide variety of instruments and by deploying subscription -based
devices that help with reconciliations. Entry level merchants can use a free Mobile QR to accept payments, typically using Paytm
Payment Instruments or UPI. Small retailers can upgrade to Soundbox devices which allow real time voice verification and better
reconciliation for merchants, hence enhancing their trust in digital payments, and generating subscription revenues for us. Our
mid-sized and large retailers also use our POS devices which enables them to accept mobile and card payments, thus generating
both subscription revenues as well as MDR for us. For Online and Omni channel merchants we offer a robust payment gateway
product allowing merchants to reliably accept payments across all channels, thus generating MDR revenue and platform fees. As of
March 2022, our merchant base has grown to 26.7 million, with deployed payment devices increasing to 2.9 million from 0.8
million in FY 2021, thus accelerating our subscription revenues.
• Using Our Two-sided Ecosystem and Insights to Upsell High-margin Financial Services: Our large distribution, and insights from
our payment and commerce services, enables us to upsell high margin and low customer acquisition cost (CAC) financial services
to our consumers and merchants. We have pioneered in distribution of innovative small ticket lending products which were not
existent earlier, thus creating new markets which are possible only digitally. For consumers and merchants, we offer various
lending products, with our financial institution partners, such as Paytm Postpaid (BNPL), Personal Loans and Merchant Loans. Our
lending business continues to scale providing attractive upsell revenues. Our lending partners disbursed over 15.2 million loans
through our platform in FY2022, a 478% growth over FY2021. The value of loans grew 441% to Rs. 7,623 cr in FY2022, from Rs.
1,409 cr in FY2021.
Business Model
Business Model
1. Facebook Live!
Data Protection is a primary concern for everyone with the evolution of digitalization, hackers are growing as well. Making the people understand that their account is
safe and secure was a big challenge for PayTM as well. So they came up with an interesting approach where they went live to their Facebook and explain the
Process and measures towards their security.
4. Mumbai Dabbawallas
They collaborated with the Mumbai dabbawalas and requested them to please use Paytm cash as an exchange of money.
5. MBA Contest
Organizing such contests where the general public takes part often gets successful. In this campaign, a team of 4 was asked to create a video about how Paytm can be
used, and the video that would get maximum likes would win.
This went viral and gave much more user retention to Paytm but this was Priorly for first-year MBA students only.
Business Model
1. Facebook
Having around 30 lakh plus likes on their Facebook handle they generally post the same content for Instagram as well. Also share creative
videos to enhance the use of Paytm daily.
2. Instagram
They have a huge follower base on Instagram with several 4 million followers.
They post creative memes based on the present trends and giving it a slight wordplay to add a flavour of humour. Also by posting Reels to
persuade people for booking vaccinations slots.
3. Linkedin
Having the popularity of 7 lakh followers on LinkedIn they focus to create a sense of responsibility among their audience. Also playing the role
of a change maker.
4. YouTube
Undoubtedly, their Advt campaigns are the best in spreading awareness among society towards digital payment. They post their advertisement
on YouTube and have a great subscriber base of 316K.
Business Model
1. Strengths of Paytm
Collaboration with merchants – Paytm is currently attached to more than 3 million merchants across India and the number is still growing.
Multiple services- Everything which we wish for can be easily done on the Paytm app.
Offers- Paytm is capable to grab and hold the attention of customers because of the never-ending offer stream.
2. Weaknesses of Paytm
Lack of awareness among users- in India people still fear making an enormous transaction online which is making things worse.
Need for its development- still remote and rural areas cant access Paytm.The overloaded site and slow servers.
Poor customer service- it happens sometimes when people face very minor issues but when they contact the customer services of Paytm
they get complaints like rude behaviour and are unable to handle many of the queries.
3. Opportunities of Paytm
Growing demand- Today many corporates are adapting to the practice of online payment this has increased the role of digital payment
platforms to a great extent.
Demonetisation- one of the services that benefited heavily from the Indian government demonetization drive was online payment services
and Paytm was one of the biggest beneficiaries.
Online shopping- with the exponential growth in online shopping, people are more adapted to online payment platforms.
4. Threats of Paytm
Competition – with the increasing number of entries, the competition is growing aggressively. Nowadays payment platforms like MobiKwik,
freecharge, and many others are expanding their businesses Plus Airtel and Vodafone are also providing online payment gateways.
Connectivity issue- most of the rural areas are still under the problem of connectivity.
Safety concern- with the news of online digital scams the concern about one’s data safety is very common, people still fear to transact a
great amount online.
Investors
Investors:-
Valuation:-Market cap: $2.98 Billion
Management
of PayTM
Board Of Directors
Oard Of One97
Communications