Project Report

(Submitted for the Degree of B.Com Honours in Accounting and Finance under
the University of Calcutta)

Unboxing: The One Stop

Digitization
Submitted by
Name of the Candidate: Kaustav Lall Seal
CU Registration No: 126-1121-1202-16
CU Roll No:
University Roll No: 230
Name of the College: Umeschandra College Salt Lake
Campus
(FC BLOCK,SALT LAKE,
SECTOR-III,KOLKATA)

Supervised by
Name of the Supervisor: Mr. Rana Ghosh
Name of the College:

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 Annexure – IA
Supervisor’s Certificate

This is to certify that Mr. Kaustav Lall Seal student of B.Com.

Honours in Accounting & Finance of Umeschandra College under
the University Of Calcutta has worked under my supervision and
guidance for his project work and prepared a project report with the
title “Paytm – Unboxing : The One Stop Digitalization ”. The
project report, which he is submitting, is his genuine and original
work to the best of my knowledge.

Place: Kolkata Signature:

Date: Name: Mr. Rana Ghosh

Designation:

Name of the College:

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 Annexure – IB
Student’s Declaration

I hereby declare that the project work with the “Paytm – Unboxing:
The One Stop Digitalization” by me for the partial fulfilment of the
degree of B.Com Honours in Accounting & Finance under the
University of Calcutta is my original work and has not been
submitted earlier to any other University/Institution for the fulfilment
of the requirement for any course of study. I also declare that no
chapter of this manuscript in whole or in part has been incorporated in
this report from any earlier work done by others or by me. However
extracts of any literature which has been used for this report has been
duly acknowledged providing details of such literature in this
references.
Place: Kolkata Name:

Date: Signature:

Name of the College: UmesChandra College

(FC BLOCK,SALT LAKE,

SECTOR-III,KOLKATA)

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 Acknowledgement

I take this opportunity to express my profound gratitude and deep

regards to my guide Professor Rana Ghosh for his exemplary
guidance, monitoring and constant encouragement throughout the
course of this Project. The support, help and guidance given by him
time to time shall carry me a long way in the journey of life on which
I am about to embark.
I also take this opportunity to express a deep sense of gratitude to Dr.
Arnab Dey Narayan Roy, Officer-in-Charge, Umeschandra College
for his cordial support, valuable information and guidance, which
helped me in completing this task through various stages.

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Table of Contents

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 Chapter 1
Introduction
1.1 E-Commerce

Ecommerce, also known as electronic commerce or internet commerce,

refers to the buying and selling of goods or services using the internet, and the

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transfer of money and data to execute these transactions. Ecommerce is often
used to refer to the sale of physical products online, but it can also describe any
kind of commercial transaction that is facilitated through the internet.

Whereas e-business refers to all aspects of operating an online business,

ecommerce refers specifically to the transaction of goods and services.

The history of ecommerce begins with the first ever online sale: on the August
11, 1994 a man sold a CD by the band Sting to his friend through his website
NetMarket, an American retail platform. This is the first example of a consumer
purchasing a product from a business through the World Wide Web—or
“ecommerce” as we commonly know it today.

Since then, ecommerce has evolved to make products easier to discover and
purchase through online retailers and marketplaces. Independent freelancers,
small businesses, and large corporations have all benefited from ecommerce,
which enables them to sell their goods and services at a scale that was not
possible with traditional offline retail.

Global retail ecommerce sales are projected to reach $27 trillion by 2020.1

1.2 Evolution of E-Commerce

1
https://www.shopify.com/encyclopedia/what-is-ecommerce

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One of the best beauties of the internet is instant access. The world wide web
has changed the way we work, the way we socialize, and the explosion of
eCommerce has changed the way we shop (forever).

Over the past decade, the evolution of both tech hardware and the internet
has had a direct correlation with eCommerce. Just as the internet has grown
into the desired medium for marketing, advertising, and purchasing of
products, goods, and services; eCommerce has grown to rival traditional
shopping in many ways.

Preceded by tech giants like Amazon, who joined the space in 1995, and
later Google and Paypal who launched their eCommerce initiatives in 1998.
The overall journey of online shopping is far from finished but it has
undoubtedly accelerated in the last decade.

The most impactful changes that have taken place in the eCommerce realm
in the last 10 years, however, include:
● The rise of online marketplaces.
● The seamless shift to using mobile devices for online shopping.
● The tremendous growth of online and digital marketing and
advertising
● .The practice using of digital modifications or enhancements to reality
in sales and mainstream consumer shopping.

Online Marketplaces
In the past ten years, online marketplaces have become a very popular
place for product vendors to sell, marketers to advertise, and consumers
to shop.

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 While many popular retail stores and brands have online shopping
available, the growth of online marketplaces such as Amazon have
changed how people consume with added layers of convenience and
confidence.

Amazon led the way by launching their mobile commerce site as early as
2001 and they continue to lead innovation in the eCommerce market now
with drone delivery among other initiatives.

By accessing an online marketplace, consumers can find a range of

product offerings that fit their search. They can compare prices, brands,
read customer reviews, and often purchase products for prices below
retail. At the same time, Google released Google Checkout in 2006 to
help ease the payment process for eCommerce shoppers as they begin to
shop online through multiple retailers.

Another major player, Magento, is an eCommerce content management

system that first started development in 2007 and was later acquired by
eBay in 2011. According to the top 1 million Alexa rankings Magento
still stands tall as the most popular eCommerce platform with a 26.1%
market representation.2

1.3 Digital Wallet

An electronic wallet is an e-money payment instrument. It is a smart card

with a microprocessor whose memory is credited with purchasing power

2
https://www.augment.com/blog/evolution-ecommerce-last-decade/

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 stored in a float account that has previously been deposited in a specialized
company (bank or e-money issuing company). This float account is debited
at each purchase with no involvement from the issuer. The e-wallet offers
many advantages: transactions are secure, it is adapted to make micro
payments, it is easy to use, universal (there no link with the bank account
during the payment process), and it has a wide range of uses. It can be used
for point of sale payments and for other applications (social security card,
loyalty card, an e-key for building access…), as well as for Internet
payments. The e-wallet is similar to the ‘Télécarte’ smart card issued by
France Télécom. Both systems use pre-payment, the difference being that the
e-wallet is credited with a purchasing power shown in euros, whilst the
Télécarte converts the top-up into telephone units. This example and the
smart card’s wide range of potential uses show that by combining services
offered (travel pass plus e-wallet, phone-card plus e-wallet…) the
opportunities for penetrating the market increase3

A digital wallet refers to an electronic device or online service that allows an

individual to make electronic transactions. This can include purchasing items
on-line with a computer or using a smartphone to purchase something at a
store. An individual's bank account can also be linked to the digital wallet.
They might also have their driver's license, health card, loyalty card(s) and
other ID documents stored on the phone. The credentials can be passed to a
merchant's terminal wirelessly via near field communication (NFC).
Increasingly, digital wallets are being made not just for basic financial
transactions but to also authenticate the holder's credentials. For example, a
digital wallet could verify the age of the buyer to the store while purchasing
alcohol. The system has already gained popularity in Japan, where digital

3
3 Prakash, Ashu
Indian Institute of Technology Kanpur

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wallets are known as "wallet mobiles". A cryptocurrency wallet is a digital
wallet where private keys are stored for cryptocurrencies like bitcoin.

A digital wallet has both a software and information component. The

software provides security and encryption for the personal information and
for the actual transaction. Typically, digital wallets are stored on the client
side and are easily self-maintained and fully compatible with most e-
commerce Web sites. A server-side digital wallet, also known as a thin
wallet, is one that an organization creates for and about you and maintains on
its servers. Server-side digital wallets are gaining popularity among major
retailers due to the security, efficiency, and added utility it provides to the
end-user, which increases their satisfaction of their overall purchase[citation
needed]. The information component is basically a database of user-input
information. This information consists of your shipping address, billing
address, payment methods (including credit card numbers, expiry dates, and
security numbers), and other information.

Digital wallets are composed of both digital wallet devices and digital wallet
systems. There are dedicated digital wallet devices such as the biometric
wallet by Dunhill,[2] a physical device that holds cash and cards along with
a Bluetooth mobile connection. Presently there are further explorations for
smartphones with NFC digital wallet capabilities, such as the Samsung
Galaxy series and the Google Nexus smartphones utilizing Google's Android
operating system and Apple's iPhone 6 and iPhone 6 Plus utilizing Apple
Pay.

Digital wallet systems enable the widespread use of digital wallet

transactions among various retail vendors in the form of mobile payments
systems and digital wallet applications. The M-PESA mobile payments
system and microfinancing service has widespread use in Kenya and

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 Tanzania, while the MasterCard PayPass application has been adopted by a
number of vendors in the U.S. and worldwide.

Digital wallets are being used more and more in Asian countries as well. One
in five consumers in Asia are now using a digital wallet, representing
twofold increase from two years ago. A recent survey by MasterCard's
mobile shopping survey shows on 8500 adults aged 18–64 across 14 markets
showed, 45% users in China, 36.7% users in India and 23.3% users in
Singapore are the biggest adopters of digital wallet. The survey was
conducted on between October and December 2015. Also analysis showed
(48.5%) consumers in these regions made purchase using smartphones.
Indian consumers are leading the way with 76.4% using a smartphone to
make purchase which is a drastic increase of 29.3% from previous year. This
has made companies like Reliance and Amazon India to come out with its
own digital wallet.4

Digital wallets are designed to be accurate when transferring data to retail

checkout forms; however, if a particular e-commerce site has a peculiar
checkout system, the digital wallet may fail to properly recognize the form's
fields. This problem has been eliminated by sites and wallet software that
use Electronic Commerce Modeling Language (ECML) technology.
Electronic Commerce Modeling Language is a protocol that dictates how
online retailers structure and set up their checkout forms.

4
https://en.wikipedia.org/wiki/Digital_wallet

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 1.4 Advantages and Disadvantages

1.4.1 Advantages:
❖ Lower Costs: Employing the use of digital wallets removes the need for
intermediaries, in a variety of forms. Purchases in-store may no longer
require a cashier because the purchasing process becomes as simple as a tap
or scan of a mobile device. Applications like Square can replace expensive
POS (point of sale) systems that will reduce transaction costs for the
business.
❖ Competitive Advantage: Digital wallet applications provide a more
convenient transaction processing method for customers, giving businesses
that employ this technology a competitive edge in the market. It redefines
the user experience of paying and incorporates a novelty aspect to each
purchase.
❖ Modern: Traditional cash-only businesses, such as craft fairs and flea
markets, can now accept debit and credit cards. This opens up an entirely
new aspect to payment methods in large markets, introducing many business
opportunities and greater potential revenue.
❖ Convenience: Users are able to get through a purchase in mere seconds with
a simple tap or scan of their mobile device. The experience of purchasing
items becomes quicker and easier - leading to a greater sense of satisfaction.
Furthermore, with faster transactions, checkout lines within stores become
much shorter.

1.4.2 Disadvantages:
❖ Investment: The initial monetary investment for building a functional digital
wallet application is quite large. It requires the initial development of the
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 software as well as the continual maintenance, updates and fixes associated
with it. Upon acquiring software, the business would also need to install the
corresponding hardware in their stores, which leads to a further increase in
costs.
❖ Support Technology: There are few supporting technologies to choose from
at the moment, with NFC terminals and phone readers being the most
prevalent. In the case of digital wallets, they can only function with a
corresponding hardware device for each application. NFC terminals and
specialize scanners are the only devices created at the moment that will
support the processing of digital wallet payments; thus, it is very limited
because the technology is still new.
❖ System Outages: Information for digital wallets are stored on the cloud of
business servers; therefore, the risk of a system malfunction or shut down is
always present. As a result, businesses will not be able to process payments
or they will become increasingly slow due to high traffic in the servers.
❖ Security: Companies must ensure that their customers' information is
encrypted and well protected. One of the biggest concerns of adopting a
digital wallet application is "will my information be safe"? This is the hurdle
that companies must face and as a result, must develop security systems that
are as safe and full proof as possible to avoid potential security issues.5

5
http://digitalwallet.weebly.com/advantages--disadvantages.html

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 1.5 Objectives of study

➢ To study the evolution of Digital Transaction in India and to understand

financing of such sector focusing mainly on Digital Wallets.
➢ To do an in-depth study of the structure and financing of the largest Digital
Wallet in India i.e. Paytm with future prospects.
➢ To encourage discourse about Paytm in the Current Market and suggest steps
for improving its potential

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 1.6 Literature Review

As quoted by Harichandan Arakali in an article titled “Paytm: the

Wonder Wallet” in Forbes India on Nov 16, 2018

Widespread adoption of digital finance, or Smartphone-based payments and

financial services, could increase the GDPs of all emerging economies by 6
percent, or a total of $3.7 trillion, by 2025, says consulting major McKinsey
& Co in a September 2016 report. This is the equivalent of adding an
economy the size of Germany to the world, and could create up to 95 million
new jobs across all sectors, the report points out. Lower-income India could
add as much as 10 to 12 percent. And “Paytm Karo” must become the easiest
option to get through a typical day for any urban Indian, from the moment
they wake up to the time they hit the sack, says Renu Satti, 35, vice president
of One97, and one of Sharma’s long-time colleagues.

As Quoted by Payal Ganguly in an article titled “Paytm's story now a case

study at Harvard” in The Economic Times on 1st February, 2017

The journey of digital wallet Paytm from being a recharge platform to a

payments bank is the topic of a case study published by India Research
Centre (IRC) of Harvard Business School (HBS). The study titled 'Paytm:
Building a Payments Network' will be available for teaching purposes within
and outside Harvard.

"Paytm is revolutionizing payments in India and it is a shining example

of India's digital future," said Professor Sunil Gupta, one of the authors of
the study and Edward W. Carter Professor of Business Administration and
Chair of the General Management Program at HBS.

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As Quoted by Karan Choudhury in an article titled “Paytm to raise $300
million, valuation pegged at $5 billion” in The Business Standard on
August 29, 2017,

Vijay Shekhar Sharma-led mobile wallet major Paytm is in advanced talks to

raise $300 million in fresh funds. According to multiple sources, other than
existing investors such as Chinese e-commerce giant Alibaba and SAIF
Partners, the new round of fundraising will see participation from
Singapore’s Temasek Holdings, Taiwanese chipmaker MediaTek and Wall
Street major Goldman Sachs. When contacted, Paytm refused to comment on
the matter.

Sources said the deal with all these investors would likely close within the
next 10 days. The One97 Communications-owned mobile wallet, which has
a current valuation of $2.9 billion, could jump to $5 billion after the deal is
sealed.

As quoted by Bhuma Shrivastava in the Mint titled “Paytm says it has

enough funds for five years” on May 18, 2017,

One97 Communications Ltd., the owner of an Indian online payment

processor backed by Alibaba Group Holding Ltd.’s finance arm, said funds
at its disposal were enough to last five years, enabling it to build a business
model that’s “predictable. ” We have enough money in the bank to last 21
quarters if we keep spending at the same rate as last year,” Vijay Shekhar
Sharma, chief executive officer (CEO) of One97 that owns Paytm, said in an
interview to Bloomberg TV in Hong Kong. “The last term sheet I signed was
in 2014. We haven’t raised money since. “Many Indian startups are running
out of cash, while others including Flipkart Online Services Pvt., India’s
biggest e-commerce company, have had their valuation marked down.
One97, which was founded in 2000 by Sharma, doesn’t plan to sell shares in

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an initial public offering for at least three years, Sharma said. The company
has received funding from Intel Capital, private-equity firm SAIF Partners
and Fitbit Inc.-backer Sapphire Ventures LLC.

As quoted by Priyanka Pani in an article titled “Paytm’s next big bet —

online-to-offline model” in The Business Line on February 9th, 2017,

One of the key strategies that Paytm is trying to replicate from its Chinese
parent Alibaba is to involve the local merchants in the e-commerce and boost
their sales through what is widely known as O2O (Online-to-Offline)
marketplace, a business model that the Chinese e-commerce giant has been
focusing since the last few months. With this model, Paytm, in which
Alibaba has a little over 25 per cent stake, plans to take on bigger rivals such
as Flipkart and Snapdeal in terms of both GMV (total amount of
transactions) and profitability. While Alibaba in China is currently targeting
the $150-billion O2O services, anything from food to home services, back in
India Paytm is eyeing the multi-billion dollar offline electronics, home
appliances and merchandise segment. No other e-commerce player in India
has entered this segment so far. Paytm entered into the O2O model early this
year and sold goods worth Rs 500 crore in just 20 days.

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 1.7LIMITATIONS OF PAYTM TILL DEMONETISATION
The following problems were noted in the study, which clearly indicates the
limitation of the sector

● Lack of awareness among people: Paytm, although so popular is still a very

grey area when it comes to awareness among people. The common masses
are merely aware about the external appearance which the company poses.
Also, any distinction about the companies in the same sector is always made
only on the basis of discount or offers given by them.
● Lack of public information: Paytm being a part of One97 Communication
Pvt ltd, does not have a lot of information made public. For example, we do
not have the financial statements of Paytm available in order to make any
quantitative comments. Apart from this, it has also been stated that Paytm
maintains an Escrow account with a 3rd Party bank, however, the name of
the bank is not available.
● No return available: Until the Paytm payments bank start operation, the
amount in the Paytm wallet does not grow. No interest is provided by Paytm
on the money in the wallet.
● High competition: Paytm may be the leader in the Digital wallet market
section, but make no mistake, the stiff competition that Paytm receives is
enormous. As such, a war of discounts has started between top players in this
sector.
● The popularity of cash: Paytm might have become a very popular mode of
payment. However, people are still inclined to accept payment in cash.
Shopkeepers still want money to be paid to them in cash. Partly because cash
is the most liquid asset and partly because people are still not aware that
money in Paytm wallet can be transferred to bank account without any
additional charges.

Chapter 2
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 Conceptual Framework

2.1 Introduction to the world of Digital Transaction

As Defined by Investopedia, Digital Transaction is “A seamless and non-traditional system
involving one or more participants, where transactions are effected without the need for cash.
Digital transaction involves a constantly evolving way of doing things where financial
technology companies (Fintech) collaborate with various sectors of the economy for the
purpose of meeting the increasingly sophisticated demands of the growing tech-savvy users.”

Breaking Down 'Digital Transaction'

A digital transaction converts a traditional cash-operational society to a

cashless one. It can be anything from paying for goods at a brick-and-mortar
store to transferring money online to making investment trades. Let’s look at
an everyday transaction which looks quite simple but is actually embedded
with digital intricacies in every step of the way.

Digital transaction above was made to show how the benefits of technology
adaptation outweigh the costs for businesses, financial institutions, and end-
users. Still, there are digital initiatives that come up to disrupt the previous
digital transaction setups. Just as credit cards are disrupting the use of cash,
processes like online transactions and cryptocurrencies are disrupting the
regimen where physical presence and credit cards, respectively, are required
for transactions. The e-commerce portal has provided a means by which
buyers and sellers can engage in digital transactions; cloud service platforms
have provided a digital process for storing data; crowdfunding gateways
have provided a means by which individuals and startups can have access to
funds; peer-to-peer lending forums have provided a way for individuals to
lend to and borrow from each other without the hassles of the traditional
banking regulation; robot advising tools have provided a way for individuals
to plan their retirement phase; etc. These all constitute digital transactions
that may eventually get disrupted by new inventions over the years.

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 DIGITAL WALLET

2.2 A INTRODUCTION TO PAYTM

Digital Wallets is a system that securely stores users' payment information

and passwords for numerous payment methods and websites. By using a
digital wallet, users can complete purchases easily and quickly with near-
field communications technology. They can also create stronger passwords
without worrying about whether they will be able to remember them later.
Digital wallets can be used in conjunction with mobile payment systems that
allow customers to pay for purchases with their smart phones. They can also
be used to store loyalty card information and digital coupons. Digital Wallets
can be used for anything and everything! Right from utility payments to e-
tailing and offline payments, you can perform most of your daily
transactions.6

There are basically 4 Types of Digital Wallets available

1. OPEN WALLETS: These are the ones that allow users to buy goods and
services, withdraw cash at ATMs or banks and transfer funds. These services
can only be jointly launched with a bank. M-Pesa by Vodafone and ICICI is
one such example. Apart from the usual merchant payments, it also allows
you to send money to any mobile number bank account

2. SEMI-OPEN WALLET: These allow users to transact with merchants

that have a contract with the wallet provider. You can't withdraw cash or get
it back. You'll have to spend what you load. For Example: Airtel Money

6
www.aboutpaytm.com

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 3. CLOSED WALLET: These are quite popular with e-commerce
companies, where a certain amount of money is locked with the merchant in
case of a cancellation or return of the order, or gift cards.

4. SEMI-CLOSED WALLETS: For Example, Paytm, which do not permit

cash withdrawal or redemption, but allow you to buy goods and services at
listed merchants and perform financial services at listed locations.

As per RBI announcements, India is a country that is very fast accepting

online payment thought mobile wallet. The number of transactions
undertaken through the mobile wallet is increasing by the day.

Out of the above listed Example, One Digital Wallet that has firmly set foot
in this section of Digital Economy is Paytm. When Vijay Shekhar Sharma
has launched Paytm back in 2007, he would have just been wishing for
creating a name for The Company. Now, with the massive growth, Vijay has
a mission of making Paytm the first Trillion Dollar India Company. This
might just come true. So, this project is all about Paytm- A story of Rags to
Riches.7

7
www.paytm.com

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 2.3What is paytm?

Paytm (Full form PAY THROUGH MOBILE) is an Indian payment and

commerce company based out of Delhi NCR, India. Launched in August
2010, it is the consumer brand of One97 Communications. Since its
inception as a mobile recharge application way back in 2010, it has
expanded vertically and horizontally to include in its ambit services such as
money wallet, transfer of money, Utility bill payments, movie ticket
bookings, air and rail ticket bookings, bus ticket and LPG purchase.
Recently, it has also added services like payment of Loan EMI, Insurance
premium, option to purchase gold, Etc. in its services umbrella.

As in November, 2016, the company announced that its android app has
crossed 50 Million download on the google play store and its overall user
base (on android, IOS and desktop) had crossed 150 million with a record 5
million transaction a day and process around Rs 24000 Crore.

Partnerships with hundreds of thousands of outlets across various categories.

Some of its major offline partners include Future Group, More, Big Bazaar,
Spencer’s, Ezone, Croma, Fortis Health World, Indian Oil, Hindustan
Petroleum, Mother Dairy, WHSmith, Haldiram’s, Vaango, KFC, Pizza Hut,
Barista, Costa Coffee and many more make Paytm one of the most widely
accepted payment wallets in India. However, it is not the partnership with
big business houses that make what it is, it’s the acceptance of Paytm by
small merchants that makes Paytm overwhelming.

Paytm is one of the 3 entities to have received the Payments Bank License
by RBI (The other two being Airtel Payment bank and India Post).8

8
https://en.wikipedia.org/wiki/Paytm

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 2.4GROWTH OF PAYTM

Paytm is India’s largest mobile commerce platform. Paytm started by

offering mobile recharge and utility bill payments and today it offers a full
marketplace to consumers on its mobile apps. We have over 100mn
registered users. In a short span of time Paytm has scaled to more than 60
Million orders per month. Paytm is the consumer brand of India’s leading
mobile internet company One97 Communications. One97 investors include
Ant Financial (AliPay), SAIF Partners, Sapphire Venture and Silicon Valley
Bank. Paytm strives to maintain an open culture where everyone is a hands-
on contributor and feels comfortable sharing ideas and opinions. The team
spends hours designing each new feature and obsesses about the smallest of
details. The approach is simple – to design something we’d LOVE to use
ourselves.

Vijay Shekhar Sharma, an engineer from Delhi College of Engineering,

founded One 97 in December, 2000. The company initially started by
offering live astrology services for a GSM operator in Delhi in 2001. Over
the next few years it launched SMS based applications, VAS for landline,
gaming applications and subscription based content services.

The real foray into mobile commerce came in 2010 when the company
launched Paytm as an online recharge portal. By 2011-12, the company was
handling 500 million subscribers on a daily basis. It launched Paytm
Marketplace and Semi Closed Wallet in 2013-14.

With over 22 million registered customers and 12 million app users, the
company was processing 8, 00,000 orders per day. Its recent achievements in

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 2014-15 included tie-ups for Paytm wallet with IRCTC and Uber and
reaching million orders per day mark.

Vijay Shekhar wants to turn Paytm into an internet conglomerate. On this

path, it has acquired consumer behavior AI app, Shifu, on demand
hyperlocal home services provider Near.in. It also made key investments in
auto booking platform Jugnoo, fitness tracking GOQii, logistics data venture
LogiNext, hyperlocal deals startup Little, among others.

Paytm got the RBI approval to open Payment Banks and aims to disburse
loans to 500 million Indians by 2020. It is also preparing to launch Local and
Hyperlocal Deals from the neighborhood stores on the Paytm app. Paytm
seems to be revolutionizing the digital and mobile fin-tech space big time
with a gamut of new features and products announced in the past year9

9
https://en.wikipedia.org/wiki/Digital_wallet

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 2.5 SERVICES OFFERED BY PAYTM

1. RECHARGE- Paytm was introduced as a mobile recharging app. Mobile

and DTH recharge still forms a bulk of transactions undertaken on Paytm.
The number of transactions that happen on Paytm is a because of the fact
that it was introduced at a time when people were unaware of recharging
through the internet. People in India were still dependent on small retailers
and paper coupons to do a mobile recharge. The concept of recharging by
sitting at home was a clear breakthrough.

Paytm has partnerships with a number of Telecom operators and DTH

operators for recharging. It also provides a number of discount offers and
cashback options in order to attract customers. However, it is worth noting
that Paytm acts as an intermediary in recharges only. It does not earn
anything when a customer recharges through Paytm. However, it collects
some commission from telecom operators for recharging their mobile
numbers.

2. MOBILE WALLET: As already stated, Paytm Wallet is a semi closed

wallet in which money loaded through either debit/credit card or internet
banking. The money in the wallet can then be either used to transfer to any
other Paytm wallet, transfer to bank or use at payment at a merchant’s store
who accepts Paytm. Paytm however, does not allow to physically withdraw
money and hence is semi closed. Paytm wallet is one of the most widely
accepted digital wallet in India. Demonetization which took place on 8th
November, 2016 was a great boost to the business of Paytm wallet as people
who were in shortage of hard cash opted to pay at merchants via Paytm.
Paytm wallet, however, is changing infrastructurally. It is being converted to
a Payments bank (to be discussed later).

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3. UTILITY BILLS PAYMENT: Gone are the days when queues were
necessary for paying electricity or water bills. Paytm allows users to pay their
utility bills through its wallet and not only this, it also gives cashbacks and
other offers for the same. At present, Paytm accepts electricity bills of 20
electricity supplying companies, 3 Gas supplying companies and 2 water
boards, most of which are major players in the utility supply market. Movie
tickets: This is fairly a new area in which Paytm has ventured. Up until 2015,
BookMyShow had a clear monopoly over online movie booking segment.
However, Paytm has made an aggressive entrance in this segment and is in
final talks with inox and cinepolis to acquire their screen. With a large and
active customer base, Paytm poses a huge threat to BookMyShow. And as is
common in all services of Paytm, it offers cashback on movie tickets and has,
to the relief of the customers, removed the “Internet handling charges”
introduced by BMS.

4. SHOPPING: just like flipkart, snapdeal or amazon, Paytm too offers an

electronic market place from where people can buy all kind of stuff. The
Paytm market place operates B2C model and reduces the intermediary cost
and hence the last price to buyers is very less. The market place of Paytm is
inspired by its parent entity, Alibaba which is largest online shopping
website. Paytm, operates a 0-inventory model for shopping, i.e. it does not
hold any inventory with itself and the order when placed through Paytm is
directly sent to the merchants who had displayed the advertisement and the
merchants in turn prepares to pack and deliver the product. Paytm charges a
very small amount from merchants as a commission.

It is worth mentioning here that recently, Paytm has launched its new
application called Paytm mall, an online market place that is a spin-off from
the existing business, something done by Paytm to create a business venture
to focus entirely on the shopping aspect of business.

27 | Page
5. TRAVEL BOOKING SERVICES: As a digital wallet, Paytm is accept
by several agents who give travel services. The most common use is by Ride
hailing app Uber. When uber was launched in India, Paytm was the only
mode through which one could pay in Uber. Paytm is also accepted by
Redbus, which is the largest provider of online bus services. The latest
addition to this category is acceptance at IRCTC. IRCTC is the online
booking portal of The Indian Railways and as in April, 2015, nearly
13,40,000 ticket were booked on IRCTC in one day on an average. With the
acceptability of Paytm on IRCTC, Paytm has been able to capture a segment
that was alien to any digital wallet until then. This partnership will be highly
beneficial to Paytm as it can now handle a chunk of the large number of
transactions of IRCTC. As per data of 16th February 2017, Paytm saw over
10-million tickets across bus, train and air travel booked on the platform.

6. MISCELLANEOUS SERVICES: Apart from the major services

provided by Paytm as stated above, several other services are also offered by
Paytm. These are ripe services and hence a substantial growth is expected in
them. Some of them are:

• Metro card recharges: Until the present day, only the Delhi and Mumbai
metro stations are accepting payments through Paytm. In fact, 10 stations
have made it compulsory to make payment through Paytm. It is expected
that soon Paytm will also be accepted at metro station of other metropolitans.

• Toll Payment: this was the outcome of the demonetization of the 500 and
1000 Rs notes. Vehicle drivers can now pay their tolls through Paytm. At the
present time, only the Rajiv Gandhi Sea Link Toll and Mumbai Entry/ exit
tolls, accept Paytm officially.

• Financial Services: Paytm can also be used to pay the insurance premium
of several insurance companies like ICICI Prudential Life Insurance, SBI

28 | Page
 General Insurance Limited, Reliance Life Insurance, TATA AIA Life
Insurance, Reliance General Insurance, Religare Health Insurance, IndiaFirst
Life Insurance.10

10
https://paytm.com/about-us/our-policies/

29 | Page
 2.6 PAYTM WALLET

What is Paytm Wallet?

Paytm Wallet is the digital payment instrument where you can transfer money
from your bank account or credit card to use for transactions on the platform.
You need to set up an account using your mobile phone number and email ID to
setup a Paytm account and transfer cash to the wallet. The money in the Paytm
Wallet can then be used to pay for the services on Paytm. Apart from this, it can
also be used to make payments at various merchant sites like domino’s, big
basket, IRCTC etc. Paytm has several modes of making payment like payment
with phone number, payment via QR code and offline payment. The availability
of these several modes of payment make Paytm a consumer favorite.

As per RBI norm, we can add up to Rs. 10,000 in a month in the Wallet; if we
want to increase the monthly limit, then we can get the KYC (Know Your
Customer) processor done. With this, we can have up to Rs. 1 lakh in the Paytm
Wallet at any point of time.

How to use Paytm and Paytm Wallet?

In order to use the Paytm Wallet and transact cash-free, follow the steps below:

• Set up a Paytm account using your mobile number and email ID

• Add some money to your Paytm Wallet using net banking, debit card, or
credit card

• To transfer money to someone else, select the 'Pay or Send' option

• You can make payments to others or to bank accounts on Paytm by

scanning a QR code

30 | Page
• Alternatively, you can send money to another Paytm user via their phone
number

How to use Paytm for offline payments?

You can make cash-less payments using Paytm Wallet even without internet
connectivity. If a retailer accepts Paytm as a mode of payment, you can either
use QR codes or bar codes, along with a One-Time Password (OTP) to pay
them. To do this, you need to open the app, select the ‘Pay or Send’ option, and
choose between QR code or bar codes (provided in two separate tabs). Just scan
the code and enter the OTP to authorize the payment offline. This feature can be
especially useful right now, when the whole country is facing a cash crunch and
internet connectivity is still not good enough to facilitate online transactions.

Is Paytm Wallet safe?

Security is top of everyone's mind when it comes to any digital, but Paytm –
which is an RBI-approved wallet – says it keeps the money you put in the
Wallet is “protected under Escrow account with a reputed bank.” Paytm uses
Verisign-certified 128-bit encryption technology, which means that the secret
key used in transactions is a sequence of 128 bits and does not reveal anything
about the password length or contents. The platform is PCI DSS 2.0 certified,
which means it does not store credit card data in unencrypted form.

Security Features:

The Paytm ID + Password alone are not enough to access your Paytm Wallet.
Even if someone takes your Paytm ID & Password, it is not possible to login as
OTP is delivered to your registered mobile number when logging from a new
device. So, the only way to access your account is to use the combination of
your Paytm ID/Password + Your own device or New Device with OTP to your
registered mobile number.

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App Lock Password: You can now enable your phone’s default screen lock/
Pin/ Password/ Pattern/ Fingerprint as your 2nd level of security to access
Paytm. You will be asked to reconfirm you Pin/Password/Pattern/Fingerprint
before you can make a payment using Paytm Wallet. This deters any
unauthorized use of your Wallet Account.

Sending and receiving OTP every time one logs in can be cumbersome. To cope
up with this, Paytm has a feature that lets us have a verified device, i.e. every
time we log in from that device, we don’t need an OTP. In fact, if the user
wants, he may keep himself logged in. However, as stated above, the app lock
password will be required to complete any transaction.

Usage Limits:

1. When anyone Signs Up on Paytm, a wallet gets created for him in which
he can add upto Rs. 20,000/- in a calendar month. This is as per RBI
regulations. As a result, there is a cap on how much a person can spend. Also,
there can be delays in getting cashback if the monthly limit of adding Rs.
20,000 gets exceeded.

2. One can become a Paytm VIP customer for FREE by getting their KYC
(Know Your Customer) done and store up to Rs. 1 lakh in your wallet.

3. One can transfer up to Rs. 25,000 per month from Paytm to their Bank
Account as per the RBI regulations. This limit applies to minimum KYC (Rs.
20,000) wallet & Full KYC (Rs.1 lakh) wallet.

4. The minimum amount to send to the bank is Rs 100.

5. one can only send Rs.5000 per transaction

32 | Page
6. New Paytm customers have to wait 3 days before sending money to a
bank account, however, if KYC formalities have been completed, then they can
send money to any bank account immediately without any waiting period.

7. It takes up to 24 hours to reflect money in one’s bank account after you

initiate the transfer from Paytm App

Various Fees:

All Paytm users could transfer money from Paytm to their bank account at 0%
fee (till 31st January 2017). And once Paytm Payments Bank is launched,
Paytm will ALWAYS allow users to transfer money from Paytm wallet to
Paytm Payments Bank Account at 0% even after 31 Jan’16. This includes all
KYC & Non-KYC users & merchants:

• Paytm Wallet to Paytm Wallet (When you Pay using Paytm to some other
Paytm user): Lifetime 0%

• Money Transfer from Paytm Wallet to Paytm Payments Bank Account:

Lifetime 0%

• Money Transfer from Paytm Wallet to Any Other Bank Account: 0%

Applicable Charges Applied by your Bank11

11
https://paytm.com/about-us/our-policies/

33 | Page
 2.7 METHODS OF PAYMENT VIA PAYTM

As already laid out, Paytm is one of the most widely accepted digital wallets in
India. Paytm is accepted by small traders like grocery shops, pharmacy, etc. to
big e-tailors like Oyo Rooms, Domino’s, etc. The major reason of the wide
acceptability is the modes via which we can pay through Paytm. Let us have a
look at the payment mechanisms of Paytm:

1. PAYMENT VIA PHONE NUMBER:

This payment mechanism is the most primitive method of payment on Paytm. A

Paytm account is created primarily by a phone number. The process of paying
by phone number is basically sending money from one Paytm account to
another, i.e. if the payee does not have a Paytm account created by his phone
number, the money will not reach the payer. Hence, the money will be reverted
back to the payee’s account. This mode of payment became very popular when
Paytm added the option to pay money to phone number from our phonebook
without having to enter the phone manually.

However, when the number of transactions by phone number increased, the

number of errors in entering the phone number increased. Hence, what used to
happen was that the money was being sent over to wrong Paytm account. When
the money gets credited in the payers account, it becomes impossible to recover
the amount unless the payer himself wants to return it. Hence, it became less
secure. As a result, the new payment mechanism i.e. payment by QR code was
introduced.

2. PAYMENT VIA QR CODE:

QR code (abbreviated from Quick Response Code) is the trademark for a type
of matrix barcode first designed for the automotive industry in Japan. A QR
code consists of black squares arranged in a square grid on a white background,

34 | Page
which can be read by an imaging device such as a camera, and processed using
Reed–Solomon error correction until the image can be appropriately interpreted.

In case of Paytm, every Paytm account holder has a unique QR code which the
payer can scam to make payment. After scanning the QR code, the payer needs
to enter the amount he needs to pay and the amount shall automatically be
debited from the payer’s account and get credited in the payee’s Paytm account.

The biggest advantage of this mode of payment is that the money will be sent
only to the account in which the payer wants to send it to. There is no scope of
any kind of cross connection and hence, it is absolutely secure

Another advantage is that the payment is very quick, lightening quick. It does
not take any time for the app to read the code.

The major disadvantages of the above two modes of payment is that an internet
connection is mandatory to make payment through the above two modes. In a
country like India where internet is still a poor man’s dream, something else
was needed to make Paytm reach a wider audience.

To combat this problem, The Offline mode of Payment was introduced by

Paytm.

3. THE OFFLINE MODE OF PAYMENT:

In a country that still dreams of making internet available to all, making and
receiving money without the internet would surely was a breakthrough. This
feature will enable feature phone and non-internet users to go cashless with
Paytm. This move will offer millions of consumers and merchants across India
access to mobile payments. Users can now dial 1800 1800 1234 and pay any
Paytm customer without an active internet connection.

35 | Page
To use this, service, as a first step, Paytm customers and merchants must set
their 4 Digit Paytm PIN on call. They can then enter the recipient’s mobile
number, amount and their Paytm PIN to successfully transfer the money from
their Paytm wallet to another Paytm wallet.12

12
https://blog.paytm.com/how-to-use-paytm-5613fda6956b

36 | Page
 2.8 PAYTM vs FREECHARGE

THE COMPARATIVE ANALYSIS

Both the companies started as mobile and DTH recharge companies with e-
payment as their core business, however, one chose diversification and the other
did not. They represent two strikingly different schools of thoughts when it
comes to strategic planning & marketing. Paytm visualizes brand building as a
more concrete step in running the business whereas FreeCharge focuses on
giving greater benefits to its customers in the form of cash backs and vouchers
to retain their engagement. Considering the figures in Table 1.1, Paytm clearly
appears to be ahead of its rival Freecharge in terms of customer base, unique
visitors, revenue and valuation. Both the Companies are doing well and have
become giants in just 5 years since their inception; it is very difficult to decide
which one is the right way to move ahead.

Paytm’s revenues are sourced from multiple avenues: interest received from
Paytm escrow account, advertising other products on its websites, annual
subscription fees from different sellers, who list their products on its website,
commission from the seller for their products listed at Paytm websites, Paytm
Wallet, etc. On the other hand, FreeCharge is keeping it simple by not adding
any products or services that dilute its positioning.

Both, Vijay Shekhar Sharma, founder - CEO of Paytm and Kunal Shah, founder
-CEO of FreeCharge, have called each other's approach as 'flawed' and 'myopic'.
Shah in an interview to Hindustan Times told that combining payment business
and hawking (e-commerce) on the same platform as Paytm does is a 'flawed'
approach; on the other hand, Vijay Shekhar Sharma retorted that combining the

37 | Page
shopping and payment process on a single platform will reduce the overall time
for a transaction and thus, will leave more time with customers to do more
transactions13

Table showing comparative data between Paytm and Freecharge (2018)14

PAYTM FREECHARGE
Customer base 100 Million 20 Million
Employee Base 2000-5000 51-200
Total Fund Raise $1.83 Billion $120 Million
App Downloads 50 million 12 million
Daily Unique visitors 14,00,980 221,377
Bounce rate 24% 17%
Daily Revenue $24,140 $9,994
Monthly Revenue $7,34,750 $3,04,182

Variables used for study and Reason for their use:

1. Customer base: Since both application depend on the number of users, it

becomes necessary to compare the customer base before any other variable.

2. Fund Raised: Both the applications are start-ups. The amount and quality
of fund received determines both, their potential and their future prospects

3. App Downloads: Both the startups depend on the android or iOS

application for usage. The number of downloads also shows the customer
preference.

13
https://topandroidtips.com/paytm-vs-freecharge-e-wallet-apps/

14
IOSR Journal of Business and Management (IOSR-JBM)

38 | Page
4. Alexa India Rank: Alexa Inc is a California Based company that ranks
websites on the basis of data traffic and analytics. The rank provided by it
proves the high customer usage of Paytm

5. Bounce rate: It is the number of customers who navigate to other websites

while navigating a particular page. Lesser the better.

6. Revenue: This is the litmus test. More the revenue, more is the consumer
acceptance15

15
www.quora.com

39 | Page
 Chapter 3

Data Analysis

METHODOLOGY OF STUDY
Research means a search for knowledge or gain some new knowledge and
methodology can properly refer to the theoretical analysis of the methods
appropriate to a field of study or to the body of methods and principles
particular to a branch of knowledge.

Research Design: A research design is the arrangement of conditions for the

collections and analysis of data in a manner that aims to combine relevance to
research purpose with economy in procedure.

Universe

The universe of the study is metropolitan cities of Kolkata, Howrah, and Sliguri,
along with smaller cities like Asansol, Dhanbad and Bardhaman.

Sample Unit

The sample unit pertaining to the study is 50 respondents

Sample Size

The sample size of 50 served the purpose of the study.

Sample Method

The sampling method used is non-probability convenience sampling.

Methods of data collection Data collection

The word data means any raw information, which is either quantitative or
qualitative in nature, which is of practical or theoretical use. The task of data
collection begins after a research problem has been defined and research design
chalked out. While deciding about the method of data collection, the researcher
should keep in mind that there are two types of data primary and secondary.

40 | Page
Primary data

This is those, which are collected afresh and for the first Time, and thus happen
to be original in character. There are many ways of data collection of primary
data like observation method, interview method, through schedules, pantry
Reports, distributors audit, consumer panel etc. The method used by me for the
primary data collection was through questionnaires.

Questionnaire method

For the collection of primary data, I used questionnaire method. A formal list of
questions, which are to be asked, is prepared in a questionnaire and questions
are asked on those bases. There are some merits and demerits of this method.
These as under: -

Merits: -

1. Low cost even when universe is large.

2. It is free from bias of interviewer.

3. Respondents have proper time to answer.

4. Respondents who are not easily approachable can also be reachable.

5. Large samples can be made.

Secondary data

These are those data, which are not collected afresh and are used earlier also and
thus they cannot be considered as original in character. There are many ways of
data collection of secondary data like publications of the state and central
government, reports prepared by researchers, reports of various associations
connected with business, Industries, banks etc.

Secondary data were collected from the following sources:

a) Books related to the topic

b) Organization documents

c) Magazines

d) Websites

41 | Page
 PROFILE OF THE SAMPLE

The sample was formed on the basis of information gathered; considering the
Age group as well as Occupation of the group of people: -

● Students
● Neighbors
● Colleagues

QUESTIONNAIRES SUPPORTED WITH PICTORIAL ANALYSIS

1. Are you a Paytm user?

Yes 38
no 12

ARE YOU A PAYTM USER?

YES
NO

Analysis of the data

Of the 50 respondents, 38 people were users of Paytm. This goes on to show

that Paytm is a popular payment tool among people.

42 | Page
 2.How frequently do you use Paytm?

DAILY 6
WEEKLY 9
FORTNIGHTLY 4
MONTHLY 11
RARELY 20

HOW FREQUENTLY DO YOU USE PAYTM?

DaILY
WEEKLY
FORTNIGHTY
MONTHLY
RARELY

Analysis of data

The number of weekly and monthly users on Paytm is 18% and 22%
respectively. This indicates the fact that the users of Paytm are active and not
dormant. The users who rarely use Paytm are dormant users .

43 | Page
3.What do you use Paytm for?

RECHARGE 20
SHOPPING 7
BOOKING RAILWAY TICKETS 7
SENDING MONEY 8
PAYING AT LOCAL MERCHANTS 8

WHAT DO YOU USE PAYTM FOR?

25

20

15

10 Column1

0
RECHARGE SHOPPING BOOKING SENDING PAYING AT
RAILWAY MONEY TO LOCAL
TICKETS PEOPLE MERCHANTS

Analysis of data

The services that most people use on Paytm are recharge and Sending money to
people. Recharge on Paytm is very convenient. The convenience was further
increased when Paytm introduced one click recharge option.

Apart from this, the number of people using Paytm wallet (to send and receive
money) is very high. This forms the basis of my case study.

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4.How much money is usually revolved in your Paytm account in a month?

0-500 15
500-2000 17
2000-5000 12
5000-10000 5
ABOVE 10000 1

How much money is usually revolved in your

Paytm account in a month?

0-500
500-2000
2000-5000
5000-10000
ABOVE 10000

Analysis of data

This is a rather skewed data due to the fact that mostly peers and teenagers were
used as a sample. The amount of money revolving in the Paytm wallet signifies
usage of Paytm. The limit of usage is 25000 and of KYC customers it is
1,00,000. Hence it can be assumed that the money revolving in Paytm wallet
can be much more than the above data.

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5.Which other Rival Applications do you use other than Paytm?

FREECHARGE 9
MOBIKWIK 9
GOOGLE PLAY 24
OTHERS 8

Series 1
30

25

20

15
Series 1

10

0
FREECHARGE MOBIKWIK GOOGLE PLAY OTHERS

Analysis of data

Paytm, mobikwik, Freecharge and Google pay are currently the biggest players
in Digital wallet market. Apart from Paytm, users prefer Google Pay the most.
This forms the basis of a comparative study between Paytm and Google pay

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6.What are some feature that you feel Paytm lacks when compared with the
rivals?

A CREDIT/DEBIT CARD FEATURE TO TRANSACT 17

LACK OF PROMOTIONAL OFFERS 21
FEWER MERCHANT ACCEPTABILITY 10
OTHERS 2

What are some feature that you feel Paytm

lacks when compared with the rivals?

OTHERS

FEWER MERCHANTS ACCEPTABILITY

Series 1
LACK OF PROMOTIONAL OFFERS

A CREDIT/DEBIT CARD FEATURE TO

TRANSACT

0 5 10 15 20 25

Analysis of Data

This question is basically being to find the shortcomings of Paytm. As per most
respondents, the biggest shortcomings are the lack of promotional offers given
to small merchants. This is one area which has made Freecharge very popular
among teenagers.

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7.How likely is it that you will recommend Paytm to your friends and
associates?

1 4
2 4
3 9
4 20
5 13

How likely is it that you will recommend

Paytm to your friends and associates?
25

20

15

10

0
1 2 3 4 5

Analysis of data

Word of mouth is one of the most effective modes of advertisement. The popularity of Paytm
is because of the fact that “One customers brings another 3 customers” to Paytm. The
number of who highly recommend Paytm is the maximum.

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8. Paytm is one of best technology innovation in 21st Century?

1 2
2 7
3 19
4 14
5 8

Paytm is one of best technology innovation

in 21st Century?
20
18
16
14
12
10
8
6
4
2
0
1 2 3 4 5

Analysis of data

This survey is all about what people think of paytm is this a best technology of
21st Century or not.

49 | Page
9. Paytm is a way ahead of its competitors?

1 4
2 8
3 13
4 17
5 8

Paytm is a way ahead of its competitors?

18

16

14

12

10

0
1 2 3 4 5

Analysis of data

This is way to see what peoples think about paytm is it ahead of its competitors

50 | Page
10. Paytm campaign supports “MAKE INDIA DIGITAL”

1 5
2 4
3 10
4 17
5 14

Paytm campaign supports “MAKE INDIA DIGITAL”

18

16

14

12

10

0
1 2 3 4 5

51 | Page
 Chapter 4
Conclusion And Recommendation
Conclusion
The mobile wallet market is currently one of the most dynamic segments of the
society. With the government launching The BHIM app, we see that even the
people at the highest echelons of the society are using the latest technology.
Digital wallets have come a long way but still have a lot of scope for growth
and diversification. The amount of competition we see in this segment is
something that will keep the players motivated to be better.

Paytm, which commenced operations an online recharge portal has diversified

its business in leaps and bounds. Paytm has now literally become a verb which
common masses use as a synonym to transfer money. The business slogan of
Paytm- “Paytm Karo” is catchy in itself and has always attracted people towards
it.

The growth of Paytm mainly has to do with the first mover advantage that
Paytm got as a result of becoming the First in a market which the potential of
which is limitless. Paytm began its market assault by injecting huge amounts of
cash in order to drive out competition and to draw customers. It soon diversified
into all kinds of business thereby posing completion to some large companies in
different segments. One of the biggest advantages that Paytm has received is
that while it keeps on growing, the competitors are still revolving around their
core competence.

All these said, nothing in this world is perfect. Paytm too is not devoid such
imperfections. However, it is worth noting that time again the management of
Paytm ha proved that they are aware of what is going on in the society and have
been quick to respond. Paytm is one of the most trusted company in the world
of digital markets and it is expected that it will remain so in the times to come.

52 | Page
 Past Limitations and Improved Measures
As already stated, there are a few creases in the business model of Paytm yet to
be ironed out. Some of these according to me are:

1.Limitation- The lack of a Virtual card facility and Paytm Bank: Paytm might
be widely accepted as a mode of payment. However, it still lacks the virtual
credit/debit card feature which has become common the world of digital
transactions. A virtual card is launched in partnership with a bank account and
can be used to pay online. This will allow payment as merchants which still do
not accept Paytm.

Measure- Introduction of Virtual Debit Card: Paytm Payments Bank offers a

Savings Account with no account opening charges or minimum balance
requirements. Keep upto Rs. 1 lac of deposits and enjoy benefits like:

•Use our Rupay Debit card across most online websites and apps in India.

• Enjoy Platinum benefits such as discounts and cashbacks across a large

number of merchants.

•Enjoy Platinum benefits such as discounts and cashbacks across a large number
of merchants

•Withdraw cash at more than 200,000 ATMs across India

•Swipe your Card at stores across India

•Your Debit card will have a QR code to receive money instantly.

2.Introduction to UPI system:

UPI is the new buzz word in town. However, Paytm does not currently provide
UPI Services and does not accept payments via UPI. This feature must be
enabled in order to cope with upcoming competitions.

Measure- BHIM UPI Launched: We are welcoming BHIM UPI on our

platform. We aim to be the country’s largest issuer and acquirer of UPI, and
establish the most comprehensive payments system in the country. You can
create your own Paytm BHIM UPI ID on the app, which will be your mobile-
number@paytm by default. You can link any of your Savings bank account

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with this unique Paytm BHIM UPI ID and start sending & accepting money.
Paytm BHIM UPI IDs are being accepted across all banks and BHIM UPI apps.

3.Limitation- Service Diversification and Extension: Paytm right now offers

certain services which are location specific. For example, tolls and metro
recharges are available only in cities of Mumbai and Delhi. This should be
extended to other cities too.

Measure- Collaborating with diversified service providers: Paytm is now

offering every little thing that we need to fuel our life. From being just a online
recharge platform, Paytm has now entered into the following fields:

•Electricity Bill Payment

•DTH Recharge

•Landline Recharge

•School Fees Payment

•Metro Card Recharge

•Paytm Gold

•Gas Subscription

•Insurance

•Broadband

•Car Toll : FastTag

•Loan

•Water Supply

•Datacard

•Life Insurance

•Petrol

•Municipal Payments

•Movies
54 | Page
 Chapter 8
BIBLIOGRAPHY

Following websites were used during working on the project:-

● https://Paytm.com/
● http://www.forbesindia.com/
● https://tech.economictimes.indiatimes.com/
● http://www.business-standard.com/
● http://www.business-standard.com/
● http://www.livemint.com/
● http://www.thehindubusinessline.com/
● http://indianexpress.com/
● https://www.indiatoday.in/
● https://www.bloombergquint.com/
● http://www.businesstoday.in/

55 | Page
 Questionnaire
Personal Information

1. Gender
● Male
● Female

2. Age Group *
● Less than 15
● 15 - 20 years
● 20-30 years
● 30 and Above

3. Please provide your place of Residence *

● Kolkata
● Delhi
● Bangalore
● Asansol
● Dhanbad
● Others

Questions

1. Are you a PayTM user? *

● Yes
● No

2. How frequently do you use PayTM? *

● Daily
● Weekly
● Fortnightly
● Monthly
● Rarely

3. What do you use PayTM for? *

● Recharge
● Shopping
● Booking railway tickets
● Sending money to people

56 | Page
● Paying at local merchants
● Other:

4. How much money is usually revolved in your PayTM account in a

month *
● 0 – 500
● 500 – 2000
● 2000 – 5000
● 5000 – 10000
● Above 10000

5. Which other Rival Applications do you use other than PayTM? *

● Freecharge
● Mobikwik
● Jio Money
● Other:

6. What are some feature that you feel PayTM lacks when compared
with the rivals? *
● A credit/ debit card feature to transact
● Lack of Promotional offers
● Fewer merchants’ acceptability
● Other:

7. How likely is it that you will recommend PayTM to your friends and
associates?
● On the scale of 1 – 5

8. Paytm is one of best technology innovation in 21st Century?

● On the scale of 1-5

9. Paytm is a way ahead of its competitors?

● On the scale of 1-5

10. Paytm campaign supports “MAKE INDIA DIGITAL”

● On the scale of 1-5

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