Detailed SWOT Analysis of Paytm

SWOT is a tool to understand the strengths, weaknesses, opportunities and threats that the
organization is facing. It helps to understand where areas in which there is benefit, where there is
a need to take corrective measures, et. al.

Strengths of Paytm
Here are Paytm’s strengths that provide a competitive advantage to boost organization growth:

 First movers’ advantage in a growing economy – First one to integrate technology driven
financial service solutions in Indian market
 Payments on the click of mobile phones: Ease to make payments without any additional
charge at the click of mobile phones.
 Customer Base: Considering the rural and urban population across India as customers and
21 million merchant base, accepting digital payments, the base will grow
 Big Investors: Good funding and investors like Tata, Ant Group, Alibaba Group, SoftBank et.
al.
 Application adoption: From ticket booking to mobile recharge, offers a variety of services.
The application of Paytm is also user-friendly.
 Promotional Offers: Variety of offers for users to attract transactions.

Weaknesses of Paytm
Here are Paytm’s strengths that should be improved

 Customer Service: Several customer service concerns, including a lack of a helpline

number and FIRC filing delays, are widespread. Call centre executives at Paytm are often
rude and unable to handle many of the queries.
 Experiencing Fraudulent Activities: Electronic transactions are unquestionably
straightforward, convenient, and appropriate. Even yet, it demands a certain amount of
risk. As a result, you’ll need technical assistance as well as a secure mechanism to
complete the transaction and transfer payments.
 Requires an Internet Connection: The entire transaction mechanism for sending and
receiving money, as well as opening an account, is reliant on the internet and a fast
connection. It can function in both advanced and developed environments. Paytm services,
on the other hand, would be ineffective in growing economies and developing countries
where internet availability is a major concern.
 TDR Rates That Are Higher: Their TDR rates for payment gateways are slightly higher than
other companies.
 IT Infrastructure: As Paytm can work only on the internet, it most of the time makes things
worse for the user when he/she is zero with cash and relies on Paytm payments at the time
of merchant payments. The internet issues can occur in rural areas, remote locations and
even tier 2 cities.
 Services Creating Confusion: Sometimes offering lots of services can also be confusing for
users as most users are unaware of all the services that Paytm offers. The level of
unawareness of technology and fear of online transactions is making things worse.
 Fear of Losing Money: Indians still have fear of doing online payments and transactions as
most Indians are used to transacting in cash. But things are evolving so the people of India
will. Secured digitalization will soon pick up online wallet services. 

Opportunities for Paytm

Opportunities are areas in which a firm might focus to improve performance, improve services,
and, ultimately, profit.
  Digital Cryptocurrency: Freelancers and online users are increasingly using digital crypto-
currencies such as bitcoins. Many platforms are even willing to accept cryptocurrency. Many
variables, such as digital literacy, internet connectivity, and the internet, have contributed
to its growth. It also opens the door for Paytm to either launch or begins accepting this
currency.
 From Cash Economy Towards Digital Economy: Developing economies, such as India, are
aiming to go cashless or reduce their reliance on the currency. It presents a fantastic
chance for Paytm to expand its services to capitalise on the potential.
 Infrastructure: Paytm requires an infrastructure that can handle the goals as well as
expected quick growth in demand following the launch. Infrastructure is also required to
handle demand changes. 

Threats to Paytm
Environmental variables that can harm a company’s growth are known as threats. Paytm’s threats
include the following:
 Competition: Paytm is up against stiff competition from platforms like PayU, Razorpay,
PayPal, and others, all of which are vying for the same market share as Paytm. Paytm has
always been vulnerable to competition and will continue to be so in the future.
 Fraud & Hackers: When we consider the scope of the company’s operations, we find that it
operates in over 3 nations. It also poses a significant security risk from hackers throughout
the world.
 Strong Economic Regulations & Policies: Some nations, such as Taiwan, China, and Japan,
have rigid rules and regulations that make it difficult for corporations like PayPal to set up
shop there.