1.

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.

1.2 Research Methodology

 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.

1.3 Research Objectives

 To study the acceptance level of Paytm in India as an alternative to the

cash transactions
 To study the flexible services offered by the Paytm
 To study the opinion among people in adopting Paytm as a solution to
the Indian Demonetization.
 To examine the importance of Paytm in day to day life.  To study the
role played by Paytm in making India Digital.

1.4 Limitation of The Study:

 In attempt to make this project authentic and reliable, every possible

aspect of the topic was kept in mind. Nevertheless, despite of fact
constraints was at play during the formulation of this project. The main
limitations are as follows:
 Cannot obtain sufficient data
 Can generate too many ideas but not help you choose which one is best
 Can produce a lot of information, but not all of it is useful
 Does not consider the product weight
 Does not provide urgent issues that the firm is presently facing
 Problems may be created at ground level for the planning made on the
basis of strength/threats

1.5 Scope of The Study:

When you are conducting a SWOT analysis, you should keep in mind that
it is only one stage of the business planning process. For complex issues,
you will usually need to conduct more in-depth research and analysis to
make decisions. Keep in mind that a SWOT analysis only covers issues
that can definitely be considered a strength, weakness, opportunity or
threat. Because of this, it's difficult to address uncertain or two-sided
factors, such as factors that could either be a strength or a weakness or
both, with a SWOT analysis (e.g. you might have a prominent location,
but the lease may be expensive).

 Straightforward and only costs time to do.

 Produces new ideas to help take advantage of an organization’s

strengths and defends against threats.

 Awareness of political and environmental threats allows an

organization to have response plans prepared.
 Myerson (1969) stated that the vast majority of the innovation are
essentially advertise driven and is acquainted as an answer with the
particular needs of the customer. Lynn (1966) states that more
development is presented in Consumer Market when contrasted with
mechanical markets. Galbraith (1970).
 Madur Deora, CFO and senior VP of Paytm, expressed that an installment
bank offers an essential store connection with the clients at first and also
Paytm is building this relationship utilizing the cash by spending, sparing
and acquiring. To him the installments bank permit isa colossal
obligation.
 Dr. Poonam Painuly, Shalu Rathi in their paper “Mobile Wallet: An
upcoming mode of business transactions” (May 2016) clearly explains
about the mobile wallet, it’s types and latest trends. At that point examined
about Role of portable wallet in different divisions like Banks, Retail and
Hospitality. The paper clarifies the significance of versatile wallet for
Banks, Customers and Companies. In future extension it also discusses on
the versatile wallets turning into a trend of advertising channel in not so
distant future. Also, contributing exceedingly in a consistent shopping
knowledge for the clients that expansion their inclination for regular and
more repurchases with delightful encounters. They additionally talk on
the significance and development of portable cash in business, social and
monetary planned. The nearness of versatile wallet spreading from urban
 to country territories on a huge scale. Henceforth, wallet cash sees a high
splendid future in close time
 Rajesh Krishna Balan, Narayan Ramasubbu, Giri Kumar Tayi studied in
their paper “Digital Wallet: Requirements and Challenges” (2006) that the
prerequisites and difficulties of sending money across the country using
computerized wallet arrangement in Singapore. Advance, they examined
why Singapore is prepared for a computerized wallet and recognize the
key difficulties in building and sending a computerized wallet and at that
point the exchange was on the difficulties confronted when utilized with
Digital Wallet framework in real money exchange and more detail and
end the paper with their proposed arrangement.
 Prof Trilok Nath Shukla in his paper “Mobile Wallet: Present and the
Future” (June 2016) has discussed about mobile wallet, working, types
and its advantages and disadvantages. His investigation included
impression of customers and retailers about portable wallets. He reasoned
that portable wallets will be utilized to draw in with the client by the
advertisers and advanced organizations. Independent of the market status
of these versatile wallets, advertisers should exploit the developing
openings.
 FE Bureau (2017) states that According to the RBI: Demonetization has
increased the growth of Paytm & Mobikwik which is known as the Digital
payment companies. “ANewspaper Article in Financial Express”.
 Shwetu Kumar, Vijay Yadav, Atiqu-Ur-Rahman, Aditi Bansal (2014), did
a study on “Paytm”. They examined on Paytm achievements, particular in
designing, working and developments of Paytm which consolidated an
examination on organizing a store, web progression, online gadget and
also depicted about electronic portion system.
 Brawn et al., (1999) stated that the ads do support a typical experience.
The promotion through Paytm guarantees that that it is a cordial and a
fast-well-ordered process which is secured toward the finish of buyers and
advertisers. The utilization of Paytm application conveyed the guarantee
in this manner Paytm increased better selection in contrast with other
portable wallets.
 Haugtvedt et al., (1994). Paytm featured that brand reposition is based on
aligned belief. Here customers where helping the administration to battle
dark cash. The shoppers needed to be a dynamic help to this preface along
these lines they starred utilizing computerized installment modes.
3.1 COMPANY PROFILE
Paytm is an acronym for “Pay Through Mobile.” Paytm was founded
and incubated by One97 Communications in 2010 as a prepaid mobile
recharge website. The company is headquartered in Noida, India. It
gradually started providing recharging and bill payment facility of various
portals including electricity bills as well as telephone bills. Today, Paytm
is India’s largest mobile commerce platform offering a full marketplace
to consumers on its mobile apps. There are over 25 million registered
users. In a very short span of time, Paytm’s mobile wallet is being used
by more than 20 million users to pay for various services. Paytm is the
consumer brand of India’s leading mobile Internet Company One97
Communications. One97 investors include SAIF Partners, SAP Ventures
and Intel Capital.

Paytm is an Indian electronic payment and e-commerce brand based out

of Delhi NCR, India. Launched in August 2010,[4] it is the consumer brand
of parent One97 Communications. The name is an acronym for "Payment
Through Mobile. The company employs over 13,000 employees as of
January 2017 and has 3 million offline merchants across India. It also
operates the Paytm payment gateway and the Paytm Wallet.

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.

3.2 Introduction to SWOT:

Due to strong competition and a continuous market change, most

companies engage in strategic planning today to become or stay
competitive in the long run. Strategy is all-embracing. Strategy has to
capture internal and external aspects, that means to comprise
competencies and market opportunities. Strategy has to keep in view the
own company, the customers and the competitors. The SWOT analysis is
a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities and Threats of a company. It provides information that is
helpful in matching the company’s resources and capabilities to the
competitive environment in which it operates. The resulting SWOT
matrix contrasts the results of the internal analysis (strengths and
weakness) and the external analysis (opportunities and threats) to define
strategic fields of action. That application of a SWOT analysis is therefore
instrumental in strategy formulation and selection.

SWOT is an acronym for Strengths, Weaknesses, Opportunities and

Threats. By definition, Strengths (S) and Weaknesses (W) are considered
to be internal factors over which you have some measure of control. Also,
by definition, Opportunities (O) and Threats (T) are considered to be
external factors over which you have essentially no control. SWOT
Analysis is the most renowned tool for audit and analysis of the overall
strategic position of the business and its environment. Its key purpose is
to identify the strategies that will create a firm specific business model
that will best align an organization’s resources and capabilities to the
requirements of the environment

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%

With these funding, growth in the operational and promotional activities

will have a rising graph in the organization.

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

Postpaid bill payment launched.

Utility payment (Electricity, Gas, DTH introduced).
In 2012 1 million users crossed.
Customer Care goes 24x7.
Introduction of premium offer coupons.

Gets the RBI license for Semi Closed Wallet.

Crosses 300,000 orders a day.
In 2013
Adopts IMPS as a new payment method.

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.

3.5 Indian E-commerce Market

India has an Internet user base of about 243.2 million as of January 2014.
Despite being third largest user base in world,
the penetration of Internet is low compared to markets like the United
States, United Kingdom or France but is growing much faster, adding
around 6 million new entrants every month. The Indian E-commerce,
uncovering innovation study reveals that the digital commerce market in
India has grown progressively from 4.4 billion in 2010 to 13.6 billion in
 2014 and is likely to touch 16 billion by the end of 2015 on the back of
growing internet population and increased online shoppers.

3.6 Payments bank

In 2015 Paytm received a license from Reserve Bank of India to start one
of India's first payments banks, called "Paytm Payments Bank
Limited". At the time, the bank intended to use Paytm’s existing user base
for offering new services, including debit cards, savings accounts, online
banking and transfers, to enable a cashless economy. The payments bank
would be a separate entity in which the founder Vijay Shekhar Sharma
will hold 51%, One97 Communications will hold 39% and 10% will be
held by a subsidiary of One97 and Sharma.

Paytm Payments Bank launched operations on May 23, 2017, initially

with invite only system. From August 31, 2017, the services of the bank
were open to everyone through Paytm Android and iOS app.

3.7 Existing Rivals for Paytm

1. Freecharge, which was recently acquired by Snapdeal for an estimate
$400 million, making it one of the largest deals in the consumer internet
space in India. Freecharge is famous to get discount coupons while
recharging mobile. Bill payments or DTH connection. Users get to choose
 coupons of many stores to name a few Amazon, Jabong, eBay, Dominos,
CCD etc.

2. Mobikwik is also another recharge platform which also offers cashback

coupons i.e. add money in your account and then redeem promo code. The
added cashback can be used to recharge and buying stuffs on other
shopping sites using Mobikwik 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

Paytm has segmented the market into two

i. People owning smart phones

ii. People not owning smart phones
Their segment chosen for business is “People with smart phones looking
for cashless payment transactions”.
3.9 Transactions like

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

3.10 Target Market

Paytm has further gone and targeted
 General Public with smart phones.
 Young and Middle-aged people.
 Businesses.
 Urban tier1 tier2 cities.
  Paytm has targeted the entire set of people owning smart phones
majorly young and middle-aged people who form 70% of India’s
population.
 Secondly paytm has targeted businesses to avail their service and
give the benefit to both the public and business by ways of easy
hassle-free payments solving issues of perfect change and carrying
cash in large denominations or small denominations for change.
 Lastly, they have targeted tier1 and 2 cities primarily as population
using smart phones is maximum concentrated and can avail the
services from businesses at a better scale.

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.

3.12 Market share

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

Paytm is an electronic payment and e-commerce portal that operates from

India. They are headquartered in Delhi NCR, India. The company has
been in operation for seven years since August 2010, it is owned by the
company One97 Communications. Paytm stands for Payment through
Mobile and as the name indicates the money can be transacted online. The
company currently has more than 13,000 employees and also transacts
with 3 million offline merchants across India.

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.

4.1.1 Strengths in the SWOT analysis of Paytm:

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:

I. First mover advantage:

Paytm was the first online payment company to set up operations in

India. Their timing was perfect since they started operations at around
 the same time when smartphones started becoming popular.

II. Convenience options:

Paytm is an epitome of convenience since it is operational round the

clock and facilitates easy payment or transfer of funds anytime,
anywhere. This makes it increasingly accepted by an urban population
who rely on online shopping for even daily use items.

III. Tie-ups with merchants:

Paytm can be used to transact with more than 3 million merchants

across India and the number is said to be growing every day. This
makes Paytm an easy shopping option for most customers irrespective
of their economic background or education.

IV. Bucket of services:

Most of what one desires to do online can be done through Paytm. In

addition to the Paytm Wallet, today the brand has online reservation
facilities, online retail, and online recharge and there is also no need to
go through payment gateways of you are using 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.

4.1.2 Weaknesses in the SWOT analysis of Paytm:

Weaknesses are used to refer to areas where the business or the brand
needs improvement. Some of the key weaknesses of Paytm are:

I. Need for IT infrastructure:

If Paytm functions have to be robust there has to be good bandwidth and

speed. This may be there in most cities in India but may not the case in
remote locations or even tier 2 towns.

II. Lack of awareness amongst users:

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.

III. Fear of going cashless:

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.

IV. Poor customer care:

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,

4.1.3 Opportunities in the SWOT analysis of Paytm:

Opportunities refer to those avenues in the environment that surrounds the

business on which it can capitalize to increase its returns. Some of the
opportunities include:

I. Growing demand for aggregators:

Aggregators and middlemen are in demand everywhere today. With

growing technology usage people prefer to make most payments from the
convenience of their homes. This has increased the role of payment
aggregators in India.

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.

III. The surge in the number of working professionals:

The number of working professionals is increasing profusely. This means

that for most couple’s time is scarce making them rely more on home
delivery services for their sustenance. When the demand for online
shopping increases there will be a corresponding increase in the payment
portals as well.

4.1.4 Threats in the SWOT analysis of Paytm:

Threats are those factors in the environment which can be detrimental to

the growth of the business. Some of the threats include:

I. Competition:

With lowered barriers to entry, every new entrepreneur is looking at

aggregating services. There are a lot of online portals like pay charge,
mobikwik etc and even telecom service providers like Airtel and
Vodafone are providing online payment gateways.

II. Growing concerns about safety:

Today there is negative imagery of information security and tracking of

shopping habits. There is also growing concerns about how safe the
information submitted to payment portals are and the level to which such
portals or payments made through them are monitored.

4.2 Critical Evaluation of Marketing Strategies Adopted by

Paytm

Paytm follows the undifferentiated targeting since the beginning. The

target the entire audience irrespective of income, gender, age or status. By
following this strategy, the company was able to capture the E-wallet
market of India. With the recent decision of demonetization taken by the
government of India, Paytm served as an alternative for hard cash and
helped the citizen to get away with the phase of demonetization.

Marketing Mix

4.2.1 Product

Paytm is the largest online payment portal in India, it provides its

customers with various services such as online shopping, E-wallet
services etc. As the name suggests “Pay through mobile”, it is accessible
on smartphones and on computers in order to avail services such as
making bill payments, mobile recharges, pay at the restaurant, book air
tickets etc. the company has positioned itself as an alternative for hard
cash in the economy. Paytm also enables its users with banking services,
which allow its users to have saving account and access to a debit card.

4.2.2 Price

Hard to believe, but Paytm provides free service to its customers, as it

serves as a medium to make payments to avail other services or to
purchase other products. The company was founded due to huge amount
of investments it received by various companies. The company received
an investment of $575 million from the leading E-commerce giant
Alibaba and many others. The company is able to give huge discounts and
offers on its services due to the huge investments. They also give discount
on their E-commerce portal, to keep their customers on board. This
provides an over view of its pricing strategy. Paytm has various other
competitors in the industry, but no other E-wallet company has been able
to capture a market share equivalent to or higher than Paytm. Paytm
charges a minimum transaction fee on transfer of money to the bank
account. They have their earnings from the transactional fee and
commission charged on the transactions, money that is stored in the wallet
of the users Paytm creates income through interest.

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:

“The main objective of the company was to initiate hassle-free

transactions with a user-friendly interface. A person needs to login to
paytm and load money into their wallet through their credit/debit card,
and later make use of that money for various services by entering the
mobile number or by scanning the QR code.”

4.2.7 Physical Evidence

“Paytm presence and awareness among merchants and customers are a

solid proof of their physical evidence. The presence of paytm app on
millions of smartphones and wide acceptability of the service in the
market is the most rock-solid proof of physical evidence. Besides Paytm’s
wide acceptance, the brand makes its presence felt in the market by
aggressive television commercials, placing hoardings and thorough the
placards that hang on numerous shops which accept Paytm as a mode of
payment”.

4.3 Critical Analysis of the IMC Campaign: Paytm Karo

Paytm’s famous campaign had an investment of more than 50 crores, the

main purpose behind the campaign was to encourage people to use its app
and give rise to a cashless economy. The ad campaign showcased how the
application was user-friendly in nature and could be a convenient way for
daily transactions. Paytm advertised on various platforms in order to reach
its target audience. Besides advertising on television and social media, the
company used Twitter as a platform to market its services aggressively,
by using “paytmkaro”, which was ranked as one of the most used hashtags
on Twitter (Viswavarapu, 2018). The advertisement was created by one
of the marketing giant McCann, Paytm has come up with several
advertisements that emphasize upon the features the application provides
and how it allows its users to transfer money on a click. This particular
advertisement was one of the most famous ones, which was showcased
on almost all platforms such as YouTube, Twitter and Facebook Paytm
partnered with several brands to provide the users with cashbacks which
will help in motivating its customers to adopt Paytm as a mode of payment
for purchases, electricity payments etc. Paytm’s Cross Promotional
Strategy enabled the company to successfully generate brand engagement
and become a major leader in the E-wallet market.

4.4 Critical Evaluation of IT Strategies adopted by Paytm

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.

Paytm’s App Malfunctions

Due to millions of transactions happening in a short span of time, the

application faced sudden time out for a few users. The company found a
bug in the Apple users’ application, i.e. in the iOs version of the
application, due to which some people were unable to make transactions
thereby leading to the system being logged out. The company ensured no
 sudden time outs take place in future by updating the app on iOs. The
company also ensures that the users’ data and money is secure and safe.

Paytm’s Digital Marketing Components

 Reminder Emails

 SEO- Search Engine Optimization

 Google Adverts

 Social Media Marketing

 Continuous information related to offers over SMS

4.5 Critical Evaluation of the Financial Strategy adopted by

Paytm

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.

4.5.1 How Paytm earns profit?

In the year 2017, the company was valued at $7 billion, which included a
huge stake of a global E-commerce giant, Alibaba.

The revenue model of Paytm, can be categorized as:

1. Bill Payments
2. Recharge Services
3. Payment Solutions
4. Wallet Services etc.

4.5.2 Paytm Mall (Paytm Marketplace)

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).

4.5.3 Paytm Wallet

“The money deposited by users in Paytm wallet is deposited by Paytm in

an Escrow Account, as per RBI Guidelines, with a partner bank. This
escrow account deposit fetch Paytm certain interest which is decided as
per the contract between the bank and Paytm.”

4.5.4 Recharge and Bill Payments

Company charges commission from the mobile operators/ and other

service providers.

4.5.5 Payment Solutions

Online businesses have an edge as Payments solutions allow them to

 accept several payments through paytm. The setup comes with no fee, on
the other hand the Company charges about 1.99% commission on each
transaction.

4.5.6 Acquisitions, Sponsorships and Other Expenditures

Paytm made an investment of $5million in Jugnoo, which is an auto

rikshaw aggregator and a hyperlocal delivery company. The company
acquired a consumer behaviour prediction organization called Shifu for
$8 million and a services start-up known as Near.in for about $2 million.
Paytm spends a huge amount on marketing and branding activities in
order to maintain and grow its market share.

4.6 Data Analysis

DURING MY STUDY I make a survey between 20 people including my

friends, relatives and my family members on paytm for different factors

1) Which one do you want to use for self between Jio Money, Paytm,
Mobikwick, Amazon Pay?

Wallet name Jio money Paytm Mobikwik Amazon pay

Preference 2 11 2 5

Percentage 10% 55% 10% 25%

 11

5
2

2
J IO M ON E Y PAY T M M OBIQUICK A M OZON PAY

Interpretation:

 Out of 20people minimum people that is 2 people prefer for jio

money that is 10% people want to use jio money

 Most number of people that is 11 people say that they want use
paytm that is 55% of my survey

 Another 25% people that is 5 people want to use amazon pay

2) Which one give more financial help between amazon pay and paytm?

Name Amazon Pay Paytm

Preference 0 20

Percentage 0% 100%
 Amozon Pay Paytm

Interpretation:

 Out of 20people minimum people that is 20 people prefer for Paytm

that is 100% people say that Paytm provide more financial help.

 No body want to prefer Amazon pay.

3)Which is more suitable for fund transfer between Paytm, Amazon

Pay?

Name Paytm Amazon Pay

Preference 16 4

Percentage 80% 20%

 20%

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 services the best in convenience is 1st

rank and Grievance handling method is 9th 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

“E-commerce has been a major game-changer in the Indian economy and

its evolution seems infinite as newer technologies sprout. Due to this,
various basic elements of business have evolved over the years and Paytm
seems to be the one, which has an authentic blend of the conventional
business values with modern techniques. Paytm has been leading the torch
of innovation by introducing new methods and functions for payment and
shopping in this advancing Indian economy. The motive of the company
was to serve as an alternative during cash crunch in the economy.” The
analysis conducted in this report indicates that the company treats its
employee’s like family because of which people at Paytm work selflessly
because they feel it’s their organization. “Besides the company’s strategic
moves and innovative HR policies, Paytm is also a wonderful marketer
their marketing strategies are innovative, creative and have captured the
highest market share in the E-wallet segment.” Paytm has played an
instrumental role, while the economy was facing issues with hard crunch
and has successfully created its stand in the market. “Today the makers of
India’s biggest e-commerce player continue to innovate and provide an
enriching experience to its users. Paytm brought with itself a revolution a
“start-up revolution” and now it continues its journey towards going
global.”
 Reference/Bibliography
Journals and Articles:
 Ghuman, D. (2016). “Recharging: the Right Way??” A case study on e-payment
giants: Freecharge & Paytm. IOSR Journal of Business and Management, 01(01),
pp.87-92.

 Gupta, O. and Singh, A. (2017). Impact of Relationship Management on Customer

Loyalty of e-Wallet Users: A Study of Paytm Enterprise. SMS Journal of
Enterpreneurship and Innovation, 3(02).

 Lee, S. and Kim, B. (2015). Mobile Wallet Service Development to Vitalize

Smartphone Banking - Focusing on Hana Bank’ N Wallet. Korea Business Review,
19(1), p.157.

 Mahapatra, D. and Patra, S. (2017). Plight of Digital Disruption: A Study of Paytm

Payment Bank in India. Siddhant- A Journal of Decision Making, 17(4), p.323.

Websites:
 www.wikipedia.com
 www.paytm.com
 www.scribed.com
 www.quora.com

News paper:
 Times Of India
 Economics Times
 Business Today