Professional Documents
Culture Documents
PROJECT REPORT ON
SUBMITTED TO:
SUBMITTED BY:
Dr. SUSHIL CHABRA SHWETU
KUMAR
DEAN (M.B.A) VIJAY
YADAV
PERIYAR MANAGEMENT ATIQU-UR-
RAHMAN
AND COMPUTER COLLEGE ADITI
BANSAL
1
FARUKH
MBA-2ND SEMESTER
2014 16
DECLARATION
We also declare that the facts mentioned are true to date and best of my
knowledge; any discrepancies have been avoided for the same.
SHWETU KUMAR
VIJAY YADAV
ATIQU-UR-RAHMAN
ADITI BANSAL
2
FARUK
ACKNOWLEDGEMENT
Behind every study there stands a myriad of people whose help and
contribution make it successful. Since such a list will be prohibitively long, We
may be excused for important omissions.
We would like to express my heart-felt gratitude to our dean respected
We would also like to record our sincere gratitude to all those who have
helped us directly or indirectly in the fulfillment of this study.
SHWETU KUMAR
VIJAY YADAV
ATIQU-UR-RAHMAN
ADITI BANSAL
FARUK
3
TABLE OF CONTENTS
Chapter-1 pageno#
INTRODUCTION....................................................................6
1.1 About Paytm..6
1.2 Achievements.....8
1.3 Technical Architecture Of Paytm...9
Chapter-2
WORKING AND TECHNOLOGIES OF PAYTM.............10
2.1 Supply Chain Management Of Paytm10
2.2 Web Technologies Of Paytm.11
2.3 Web Based Tool Of Paytm....13
Chapter- 3
REVENUE MODEL OF PAYTM..................15
3.1 Registration Process For Merchants In Paytm..17
3.2 Overview: How Merchants Sell Their Product ...19
3.3 Subscription Charges From The Merchants....20
4
3.4 Revenue Model Adopted By Paytm...22
3.5 Why People Attract Towards Paytm.26
Chapter- 4
E-COMMERCE SECURITY AND PAYTTM.....................30
4.1 What is E-Commerce Security.....30
4.2 E-Commerce Threats..31
4.3 Procedure That Recognizes, Reduces, Eliminates Threat..34
4.4 Security Infrastructure...35
4.5 Porters Five Forces43
4.6 Security, Awareness, Policies.46
4.7 Techniques Used For Security..48
Chapter- 5
ELECTRONIC PAYMENT SYSTEM......50
5.1 How To Do Recharge On Paytm......53
Chapter- 6
BIBLIOGRAPHY....................................................................57
5
CHAPTER-1
INTRODUCTION
In 2014 Paytm has started the business same like as the facilities are getting from the other E-
Commerce company such as Flipkart, Amazon, and Snapdeal. Today, it is India's most popular
online destination for prepaid mobile & DTH recharges and shopping, and its Android and iOS
apps have been ranked among the most popular apps. In only 3 years since the founding, the
company created a user base of 25 million wallet users and 10 million app downloads.
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SERVICE: In 2014, the company launched Paytm Wallet, India's largest mobile payment
service platform with over 40 million wallets. The service became the preferred mode of
payment across leading consumer internet companies such as Uber, Bookmyshow, Makemytrip.
PARTNER: Paytm works with all mobile operators in all states in India for prepaid mobile,
DTH and Data card recharges and postpaid mobile, landline and Data card bill payments. Its
partners with the multiple national banks, for credit card, debit card and net banking payments.
Pay tm also works with various billers for utility bill payments.
7
Fig 1#: Screen shot introduction to paytm
8
1.2 ACHIVEMENTS:
2014 Paytm is Gold Winner at the MMA Smarties in the
mCommerce category
2014 Paytm wins the Best Mobile Money product at the
Program Award.
2013 Paytm wins a special mention in m Billionth
Commerce.
2012 Paytm is recognized as the Most Innovative Startup
Franchise India.
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Figure 2#: A high-level architecture for electronic commerce.
There are three components to this architecture: the Internet, a firewall, and your organization.
The Internet is where you will interact electronically with your customers, your firewall will
provide you with reasonable protection against people who wish you harm, and your
organizations systems will process the business transactions generated on the WWW by your
customers.
CHAPTER-2
JAVASCRIPT
11
CLIENT SIDE PROGRAMMING LANGUAGE
JAVASCRIPT
MARKUP LANGUAGE
HTML
CHARACTER ENCODING
EXTERNAL CSS
External Cascading Style Sheets define style rules in a separate CSS file.
EMBEDDED CSS
Embedded Cascading Style Sheets define a set of style rules in a <style> element within a
web page.
INLINE CSS
Inline Cascading Style Sheets define style rules directly within an (X)HTML element
using the style attribute.
SESSION COOKIES
Session cookies are temporary cookies, which are deleted when the user closes the
browser.
EXTERNAL CSS
External Cascading Style Sheets define style rules in a separate CSS file.
EMBEDDED CSS
Embedded Cascading Style Sheets define a set of style rules in a <style> element within a
web page.
INLINE CSS
Inline Cascading Style Sheets define style rules directly within an (X)HTML element
using the style attribute.
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SESSION COOKIES
Session cookies are temporary cookies, which are deleted when the user closes the
browser
HTTPONLY COOKIES
Http Only cookies are used only in the HTTP protocol and not in client side scripts,
which may increase security.
NON-HTTPONLY COOKIES
Non-Http Only cookies are used in the HTTP protocol and also in client side scripts,
which may be a security threat.
SECURE COOKIES
Secure cookies are used only via an encrypted connections, which may increase security.
HTTP Strict Transport Security (HSTS) defines a mechanism enabling web sites to
declare themselves
WEB SERVER
NGINX - Nginx (pronounced as "engine X") is a lightweight open source web server.
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The basic requirement for a merchant to have a Web presence or have an electronic commerce
site, is
a connection to the Internet, and
a Web server in the company network.
The two main ingredients in a Web server are its hardware and software.
Operating system of the network. UNIX operating system is found to be more rugged
than that of Windows, but UNIX is more complex to manage than Windows.
Hardware requirement of the Web server software. A PC with a midrange CPU, small
hard drive, and 32 megabytes of memory will perform poorly when compared with a
high-end workstation or a powerful UNIX-based computer.
Expected traffic or the number of transaction per unit time. Running a large, enterprise-
class application server (such as an ERP system) on a personal computer is not feasible.
Other software running on the same computer. For example, running a Web server and a
database server can significantly slow down the performance of a computer.
Scalability of the hardware -- meaning upgrade of components such memory, disk space,
disk mirroring, or even connect additional Web servers if necessary.
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A benchmark test considers several factors such as:
The computer hardware
The Web server software
Network connection: A Web server on a T3 connection can deliver Web pages to clients
much faster than it could on a T1 connection.
Throughput: It is the number of HTTP requests that a particular hardware and software
combination can process in a unit of time.
Response Time: It is the amount of time that a server requires to process one request.
Type of Web page: A server that delivers mostly static Web pages will perform better than
the same server that delivers dynamic Web pages. A dynamic page is a Web page whose
content is shaped by a program in response to user request (such as a database query),
versus a static page, which is just a plain HTML page.
CORE CAPABILITIES:
IP-Sharing or Virtual Server
Logical file
Security
FTP
Site Analysis
Searching
SITE MANAGEMENT:
A Web server provides tools to manage multiple Web sites, file security, virtual file, and
log file analysis.
Administration of a Web server can be performed from a remote computer in the
network.
15
APPLICATION DEVELOPMENT:
Application development includes Web editors and extensions to produce Web pages either
static or dynamic. These include HTML editors such as FrontPage for static Web pages. For
dynamic Web pages, there are protocols such as Common Gateway Interface (CGI) and
Application programming Interface (API) that are used by programs such as Java and C++ to
develop dynamic Web pages.
ELECTRONIC COMMERCE:
Some Web servers provide advanced services that support online selling and buying (such as
shopping cart and catalog services). An electronic commerce software can provide templates
and other tools to quickly develop an e-commerce site. This might include templates for product
browsing, shopping carts, and credit card processing.
CHAPTER-3
Paytm earn their revenue through the market place model. They work on market place model and
they belive in the market place model for their revenue, they give to opportunity to vendors to
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sell or listed their products on paytm webside, so the buyer are comes and buy the products. In
this activity paytm charge commission from the seller so this is a some part how they generate
their revenue. They do also some more activity to generate their revenue.
Paytm knows that Revenue model is framework of revenue.it is a description How a business
generate income, profit,or an average earning in a business.and they fully concentration their
revenue model.
Thats belive also purely marketing strategy, they get earnings from sponsored advertisers, showing
ads, they give coupons (from sponsors), so inorder to gain some popularity and to bare the
competition they are giving the cashback. So they attract more visitors as well as get more
sponsors, ultimately making them profitable. its a most profitable strategy of paytm.
Fig#4 : Screen shot of paytm market place : they give the opportunity to sell their product on
paytm web site.
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Paytm provide market place for merchants .this is a registration process for merchants to register
themselves in paytm website. They provide simple registration for merchants to sign up in the
site, the mandatory fill up are show red star(*) they must fill up by merchants. The form process
is very simple you fill up are some neccerary things like: name ,email-id, mobile number, city
,business name, category(business), business address. And all completion you press the submit
botton and after you can business in the paytm website . this a activity of paytm to earn their
revenue through the merchants,
Fig 5#
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After completion this process paytm offer to merchants choose the subscription
plan this is the way paytm earn the revenue from the merchants.through the
subscription model. This is the part of subscription model of paytm.
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Fig 6# : This is the activity the paytm earn revenue from the seller as a commission when seller
products are sold in this site. This is the best strategy for paytm to earn their revenue part.
Silver plan
Gold plan
Platinum plan
Budget (zero setup plan)
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This plan have own their benefits ,highest plan is platinum plan give more benefits to
seller to sell their product in site. In other hand silver plan give less benefits as
comparative to platinum or gold plan. This all the plan are charge by the seller one time
in the annually
Fig 7#
The paytm charge also additional charges through the seller like: annual maintenance
charge (AMD) that is 2500 annually, and 12.38% charges if its applicable. Its a part of
paytm subscription model to generate their revenue. In this strategy paytm give the more
opportunity(plan) to its merchant and give the diffrent benefits to the seller .
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This all are merchants with paytm wallet, this merchants are contribute revenue for paytm to
provide paytm wallet facility to buyer. This is also the way the paytm earn the revenue from the
buyers. All this are big e-business site they are done huze transeaction daily. This merchants
avail the facility paytm wallet which is provided by paytm. The famous merchants in the
paytm are: dominos, jabong.com, book my show, ebay, uber, and haldiram.
Fig 8#
22
Fig 9#
23
In this model paytym allow to merchants shows their advertisement on paytm websites and
charges some amount for this advertisement.this is the way the paytm used to generate their
revenue. This method for generate revenue are covered under the advertising revenue model.
This model is more beneficial for paytm to generate their revenue.the charges are charger by
them they advertised their product on paytm site.
The yippee noodles show their advertisment on the paytm site and thet paid some money to
paytm . this is a way paytm generate the revenue from the advertisment revenue model.
Fig 10# : Its a screen shot shows how yippee noodles show their advertisment on paytm site
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Paytm also use the subscription model. They charge the subscription amount from the seller
annually and generate their revenue. they categorized their subscription into four categories all
are mention and discuss early in this project. They charge annually maintenance charges also as a
commission that is RS 2500. This whole process is comes under the subscription model of
paytm through them they generate their revenue. The subscription model is most beneficial for
paytm because all the seller who are register themselves into paytm all are paid subscription
charges to run their business in paytm site. Basically the paytm adopt the paid circulation
subscription revenue model to generate the revenue in their business.this is the most beneficial
model as comparative to others model to generate the revenue.
paytm also charge their revenue through the buyer as well as seller transactions. Through this
model paytm charge some amount from buyer and seller when they transact in the paytm site
and avail the paytm facility. This screen shot shows that what charges paytm charges when
the buyer are transact through paytm wallet.
If you loading your money into the wallet, paytm charges nothing amount in this transeaction,
If you purchase any product at merchant site the paytm also charge nothingin this transeaction.
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If you transfer the money into one wallet to other person wallet, on this transaction paytm also
not charge any amount. but if you transfer the money from paytm wallet to bank paytm
charge 4% of the amount that you are transfer into bank . this is the transeaction revenue
model of paytm .
In this model paytm received the interest on the payment of customer until they are not transfer
the money into seller account. When the paytm received amount from the customer they are not
instantly transfer on seller account. They hold the amount and gain the interest on this amount.
Through this process paytm generate their revenue from the advance payment revenue model.
This model is very beneficial for paytm to generate the revenue this all process is also called
escrow account process.
IN this model paytm charge commission from the seller for their listed product in paytm
websites. And they charge commission on every sale on the site of paytm from the seller. This
commission is totally based on the sell of the product if buyer buy the product from the paytm
site so paytm charge the commission from the seller for each sell in their website. Through this
process paytm generate their revenue. The commission based model are also beneficial for
generate the revenue .the commison based model are also trend in ever e-business site, paytm
also adopt this revenue model to generate their revenue.
3.4.6 They Are Some Other Activity The Paytm Earn The Revenue:
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Paytm escrow: through escrow account paytm received intrest,when buyer payment
to their purchase that amount hold by paytm untill customer not confirm it.if customer
not confirm in next 7 days paytm expect buyer satisfied with the product and they
transfer the money seller account.
Patym charges annual subscription fees to the sellers who list their products on website
Introducing Paytm Wallet, a secure digital wallet where you can store money and use it
to make quick recharges, pay bills, do shopping on Paytm. You can also send money to
friends & pay for various services like Uber, MakeMyTrip, BookMyShow & many more.
Easy Accessible:
The paytm side easy to accessible they are much easy as compare to other site people are
like them for their easy accessible specialty .paytm also available on the mobile, tablets,
laptops , and for paytm the high speed data connection is not required .it is easily work on
mobile without any problem.
Chat Facility:
Paytm provide chat facility to their buyer so they can bargain the product price from the
seller..through very easy steps they can avail the facilty of paytam chat facility. This screen
shot define how a customer bargain to the seller:
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Fig 11#
Mobile Friendly:
paytm service is also available in mobile so you can easily download and use this application
in your mobile anywhere. On other hand we can say that its a mobile friendly application.
They are available on many store:
Fig 12#
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Safe And Secure Payment:
paytm uses many trusted software for their security purpose they used many security
application they provided best security when any transaction are done, they uses 256 bit of
encryption for their security purpose.
Fig 13# This are the application/ software paytm use for their security purpose
Their digital wallet are approver by the reserve bank of India(RBI). So people are trusted
on their paytm wallet service. That means They follow all the rules and regulation they are
required to work e-wallet.
They provide 45+ banks for net banking.(one of the largest Payment Gateways in India.)
You canalso Rs 1 lakh plus money transfer (follow the KYC(know your customer ) rule
and regulation) otherwise its RS 10000 .
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Fig 14# : A consumer can also sell or do business with the help of paytm
Fig 15#
CHAPTER-4
E-COMMERCE SECURITY & PAYTM
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4.1 WHAT IS E-COMMERCE SECURITY:
Computer security refers to the technological and managerial procedures applied to computer systems to
ensure the availability, integrity, and confidentiality of information managed by the computer system
against unauthorised access, modification, or destruction. It deals with the transmission of data in a
secured environment to the people sitting thousand miles away from each other. Intruders penetrate into
the computer using different ways; they make use of malicious programs to cause destruction and breach
privacy. Security experts make use of firewall and cryptography techniques to prevent suspicious data
from reaching to the host computer and use algorithms to encrypt the data while sending it across the
network. Computer security refers to the protection given to computers and the information contained in
them from unauthorised access. It involves the measures and controls that ensure confidentiality, integrity,
and availability of the information, processed and stored by a computer. These three aspects are
responsible for effective computer security.
With an increasing amount of people getting connected to networks, the security threats that cause
massive harm are increasing also. Network security is a major part of a network that needs to be
maintained because information is being passed between computers etc and is very vulnerable to attack.
Over the past five years people that manage network security have seen a massive increase of hackers and
criminals creating malicious threats that have been pumped into networks across the world
E-commerce security is the protection of e-commerce assets from unauthorized access, use, alteration, or
destruction of data. More than $388 billion globally per year attributed to cyber crime and a large
portion of that is related to e-commerce.
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4.2 E-COMMERCE THREATS:
32
Spoofing Legitimate Web Sites: Misrepresenting oneself by using fake e-mail
addresses or masquerading as someone else Spoofing a Web site is called pharming,
redirecting a Web link to another IP address different from the real one Threatens
integrity (steal business from true site, or alter orders and send to true site), and
authenticity (difficult to distinguish between true and fake Web address) Carried out by
hacking local DNS servers.
Denial-of-service (DOS) Attack : Hackers flood Web site with useless traffic to
inundate and overwhelm network. Use of bot networks built from hundreds of
compromised workstations.
Fig 16#
Server Threats:
Hacking : Hackers are those Individual who intends to gain unauthorized
access to computer systems. Where as Crackers are those Hacker with criminal intent. Types of
hackers:
White hats hired by corporate to find weaknesses in the firms computer system
Black hats hackers with intention of causing harm
Grey hats hackers breaking in and revealing system flaws without disrupting site or attempting to profit
from their finds.
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Data Breach : When organizations lose control over corporate information to
outsiders.
Credit Card Fraud: Fear of stolen credit card information deters online
purchases.
USs federal law limits liability of individuals to $50 for a stolen credit card.
Hackers target credit card files and other customer information files on
merchant servers; use stolen data to establish credit under false identity.
Online companies at higher risk than offline due to difficulty of
guarenteeing true identity of customers.
E-Sign law giving digital signatures same authority as hand-written ones
applies only to large corporations, but not to B2C e-commerce.
34
Social Network Security : Social engineering attacks tempting visitors to FB
pages to click on bad-behavior links.
Mobile Platform Threats : Same risks as any Internet device Malware, botnets,
vishing/smishing.
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Fig 17#
The security infrastructure is the implementation of the security policy. The security
infrastructure is the technology which is chosen to secure the e-business and the rules by
which it operates. Some examples of this include
Enforcing password aging and expiration.
Enforcing the complexity of passwords.
Blocking prohibited outbound connections from the firewall.
Requiring digital certificates to authenticate.
Remote access connections to an organizations network
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Fig 18#
Browser Protection :
Browser security is the application of Internet security to web browsers in order
to protect networked data and computer systems from breaches of privacy
or malware. Security exploits of browsers often use JavaScript - sometimes
with cross-site scripting (XSS)] - sometimes with a secondary payload
using Adobe Flash. Security exploits can also take advantage
of vulnerabilities (security holes) that are commonly exploited in
all browsers (including Mozilla Firefox, Google Chrome, Opera, Microsoft
Internet Explorer, and Safari).
Anti-virus software:
It is the Easiest and least expensive way to prevent threats to system integrity.
Encryption :
Transforms plain text data into cipher text readable only by sender and receiver. Their
purpose is to Secures stored information and information transmission .
It Provides 4 of 6 key dimensions of e-commerce security:
37
Message integrity assurance that message hasnt been altered.
Nonrepudiation prevents user from denying sending the message.
Authentication verification of identity of person (computer) sending the msg.
Confidentiality assurance that msg. was not read by.
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Fig 19#
Secure Sockets Layer (SSL): Establishes a secure, negotiated client-server
session in which URL of requested document, along with contents, is encrypted
Designed to establish a secure connection between two computers.
Virtual Private Network (VPN): Allows remote users to securely access
internal network via the Internet, using Point-to-Point.
39
Fig 20#
40
Secure Hypertext Transfer Protocol (S-Http) :
41
Digital Signature :
Digital signature refers to the Wigitized images of paper signature used to verify the
authenticity of electronic document. In other words, digital signatures play the role of
physical signatures in verifying electronic documents. A signature is not part of the
substance of a transaction, but is a representation.
Fig 21#
Firewall
It is a network security system that controls the incoming and outgoing network traffic
based on an applied rule set. A firewall establishes a barrier between a trusted, secure
internal network and another network (e.g., the Internet) that is assumed not to be secure
and trusted. Firewalls exist both as software to run on general purpose hardware and as a
hardware appliance. Many hardware-based firewalls also offer other functionality to the
internal network they protect, such as acting as a DHCP server for that network.
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Fig 22#
Fig 23#
4.5 PORTERS FIVE FORCES :
43
Porter five forces analysis is a framework to analyze level of competition within an industry
and business strategy development. It draws upon industrial organization (IO) economics to
derive five forces that determine the competitive intensity and therefore attractiveness of an
Industry. Named after Michael E. porter, this model identifies analyzes 5 competitive forces that
shape every industries, and help determine an industrys weaknesses and strengths .
44
purchasing products through online stores, companies cannot afford to lose this channel.
So in this industry the supplier power is low.
45
When we compare relative quality, relative price of product a person buys online
with physical stores, both are almost same and in some cases, online retail stores
offers mores discounts and this attracts the customer to purchase products online.
With the new entrants like Jabong, Snapdeal, Flipkart, Shopclues etc rapidly racing
towards the top position, Paytm needs to devise new strategies to avoid this threat from new
entrants.
46
organisations technology and information assets. The main purpose of security policy is to
inform users, staff, and managers of their obligatory requirements for protecting technology
and information assets. To retain the value and genuineness of the policy, it must include
these components: computer technology purchasing guidelines, privacy policy, access policy,
accountability policy, authentication policy, information technology system and network
maintenance policy and violations reporting policies.
risk analysis identifying the site's assets, the threats existing against those assets,
and the costs of asset loss
guidelines for reacting to a site compromise (e.g., whether to trace the intruder or
shutdown and rebuild the system) .
Security-Related Procedure:
Procedures address such topics as connecting to the site's system from home or while
traveling, retrieving programs from the network, using encryption, authentication for
issuing accounts, configuration, and monitoring.
47
Security Practices:
Implement a one-time password system. Ensure that all accounts have a password and
these passwords are difficult to guess.
Audit systems and networks, and regularly check logs for detecting an intrusion.
4.6.2 HOW TO
MINIMIZE SECURITY THREATS:
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Fig 25# : The whole security goes within for e-commerce site like to paytm
CHAPTER-5
50
Fig 26#
INTERNET BANKING:
Banking thorugh bank official websites. User ID & Passward is must with
register mobile number for OTP.
51
DEBIT/CREDIT CARDS :
Online transaction on PAYTM is secure with the highest levels of
transaction security currently available on the Internet. PAYTM uses 256-bit
encryption technology to protect your card information while securely
transmitting it to the respective banks for payment processing.
E-VOUCHERS(eGV):
The e-Gift Vouchers (EGV) can be redeemed online against Sellers listed on
www.PAYTM.com only. EGVs can be redeemed by selecting the payment
mode as e-Gift Voucher.
What is MMID?
MMID (mobile money identifier) is 7-digit number issued by bank to
customer for IMPS transactions.
What is OTP?
OTP is one-time password issued by bank to customer for payment
transaction through IMPS.
52
ItzCash is now the leading cash card provider and a holistic payments solution
company.
Features of ItzGift Cash Card:
ItzCash cash cards have a good number of features that make them a good
option for cashless transactions. Some of them include:
Secured transactions: Cash cards involve secure procedures that make the
transactions reliable and heavily secured. It is hard to make a transaction
without the card.
Quick processing: Cash cards function similar to an ATM machine that can
transact money with a single swipe on the machine.
Added discounts: Many brands tie up with cash card companies to come
up with exclusive limited offers on products. These apply to only cash card
users and no one else.
Convenient and hassle free gift option: A corporate cash card can be
used as a gifting option for employees during gifting occasions. ItzGift cards
from ItzCash carry the flag for a cashless gift card.
Fig 27#
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Fig 28#
55
Step 3: Select Proceed to recharge.
Fig 29#
56
Step 4 : Select the payment option.
Fig 30#
Recharge is done.
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CHAPTER-6
BIBLIOGRAPHY
WWW.WIKIPEDIA.COM
WWW.PAYTM.COM
WWW.SLIDESHARE.NET
PAYTM------COMPANY IN NOIDA
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