Paytm

A STUDY ON CONSUMER’S ADOPTION OF

DIGITAL PAYMENT IN INDIA WITH
REFERENCE TO PAYTM

Dissertation synopsis submitted in partial fulfilment of the

requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

OF

BANGALORE UNIVERSITY

Submitted by:

PRAVEEN KUMAR M (194BCDM014)

Under the guidance of:

Ms. CHANDANA

INTERNATIONAL ACADEMY OF MANAGEMENT AND

ENTREPRENEURSHIP, BANGALORE
Bangalore University
2019-2021

1
 Paytm

INTRODUCTION:

“A STUDY ON CONSUMER’S ADOPTION OF DIGITAL PAYMENT IN

INDIA WITH REFERENCE TO PAYTM”.

This study is about the attitude of people towards adoption of Digital Payments methods
in order to have transparency in their operations. Digital Payments were encouraged by
Government of India after the announcement of demonetization on 8th November 2016.
The basic objective behind the initiative of Digital Payments was to achieve cashless
economy in the long run. Due to the increasing corruption and black money in India, it
was becoming difficult to avail the statement of transactions and transfers made by
people to other parties.

One97 Communications Ltd established “Pay Through Mobile” which is popularly

known as PayTM in August 2010 as a prepaid mobile recharge website. Vijay Shekhar
Sharma is the CEO of PayTM. PayTM was launched as a mobile recharge website but
today it is India’s leader in e-commerce. It allows to transfer money into its integrated
wallet by debit card, credit card and net banking. This wallet can be further used to
make payments for recharge, bill payments and shopping.

LITERATURE REVIEW:

Sanghita Roy, Dr. Indrajit Sinha (2014) . stated that E- payment system in India, has
shown tremendous growth, but still there has lot to be done to increase its usage. Still
90% of the transactions are cash based. Technology Acceptance Model used for the
purpose of study. They found Innovation, incentive, customer convenience and legal
framework are the four factors which contribute to strengthen the E- payment system.

Vijay Shekhar Sharma. (Paytm founder) Oct 23, 2018 China’s Alibaba and Japan’s
SoftBank backed Paytm Mall is stepping up focus on categories like grocery and
fashion, which can increase repeat customer transactions as it looks to compete with
Walmart-backed Flipkart and Amazon India, which control over 80% of the online
retail market. Paytm Mall wants to differentiate itself, with online to offline (O2O) push
to deliver 50% of the orders in 24 hours from 33% right now.

2
 Paytm

Prof Trilok Nath Shukla in his paper “Mobile Wallet: Present and the Future”
(June 2016) has discussed about mobile wallet, working, types and its advantages and
disadvantages. His analysis included perception of consumers and retailers about
mobile wallets. He concluded that mobile wallets will be used to engage with the
customer by the marketers and digital businesses. Irrespective of the market status of
these mobile wallets, marketers should take advantage of the emerging opportunities.

Balazs Vinnai, general manager, Digital Channels, Misys(April 25, 2016), says that
“It is critical for banks to consider new digital channels as part of an integrated strategy
and evolve from first to second generation digital banking: switching digital from a
supporting role, to the primary sales and communication channel for banks,” says
Vinnai. “Reengineering processes around the customer is not easy, but banks must
embrace digital banking to remain competitive and relevant.”

Kiran Vasireddy, COO – Paytm, December 12, 2018 said, “Paytm has become the
preferred payment choice amongst customers for in-store payments in India. Today,
Paytm is accepted at the largest variety of stores ranging from large brand outlets to
online platforms as well as small retailers across India. With ‘Paytm Cashback Days’,
we celebrate our customers choosing Paytm as their preferred mode for payments at
offline or online merchants by rewarding them with the best deals & cashback of the
year. This will be a significant part of our efforts to push the adoption of mobile
payments in the country & also help our Merchant partners significantly.”

STATEMENT OF THE PROBLEM:

With the rapidly changing technology , transaction methods in cashless modes have
been developed over the years but did not gain much popularity as expected. This was
because of using hard currency has financial transaction by the people. This
convenience of using hard cash or currencies has been a great threat to the economy in
the form currency duplication, creation of black money and corruption. Studies around
the world and professionally qualified analysis recommend and suggest that every
economy should move to cashless transaction from trade way of using the cash for
transaction. In the later stage, major reason for the sudden growth of cashless payments

3
 Paytm

and transaction were because of the demonetization policy taken by the government of
India on 8th November 2016. Along with demonetization, other two major contributors
for mobile wallets adoption were the penetration of smart phones and faster internet
infrastructure, as they are basic requirements.

NEED FOR THE STUDY:

New financial payment modes have started catching up the Indian market since its
establishment over the years, especially in the new era of digital payments from 8th
November 2016 (Demonetization). Digital India programme promotes various digital
payment methods or modes which help in converting the economy to less cash
economy. With the introduction of unified payment interface (UPI) facility in mobile
wallet, it becomes very convenient to make payments from one source by making
mobile wallets a centralised system for all payments.

OBJECTIVES OF THE STUDY:

• To find out the attitude of people towards adoption of Paytm in India.

• To find out the problems faced by people in making digital transfers.
• To find out the most popular method of Paytm.
• To have an idea regarding the expected future of digital payments in India.

DATA COLLECTION:

• PRIMARY DATA:
For this study, questionnaire method is used for collecting data to get first-hand
information. Convenience sampling method is used and sample size is 100 in
the city of Bengaluru.

• SECONDARY DATA:
Information collected from the newspaper articles, official websites of the
company, magazines, books for the data related to digital payment system with
focus on Paytm.

4
 Paytm

LIMITATIONS OF THE STUDY:

• Study will be conducted only in Bengaluru city.

• Study of the sample is of only to 100 random respondents. So this study may
not be applicable to whole customer category.
• Some of the respondents may not be serious in answering.

SCHEDULE OF ACTIVITIES:

CHAPTER 1 : INTRODUCTION.

CHAPTER 2 : LITERATURE REVIEW.

CHAPTER 3 : RESEARCH DESIGN.

CHAPTER 4 : DATA ANALYSIS AND INTERPRETATION.

CHAPTER 5 : SUMMARY OF FINDINGS, SUGGESTIONS, AND

CONCLUSIONS.

CHAPTER 6 : BIBLOGRAPHY.

STUDENT SIGNATURE:

GUIDE SIGNATURE: