A Detailed Study on The Promotional Strategies Of E Wallet

Of UPI

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor of Management Studies

Under the Faculty of Commerce

By

PARTH PAWAR

Roll No: 420133

Under the Guidance of

Prof. ANITA DAS

UNIVERSAL MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

Plot No. 17, Tilak Road, Opp. Lion’s Garden, Ghatkopar (East), Mumbai 400 077
APRIL 2023.

1
 UNIVERSAL MSG-SGKM COLLEGE OF ARTS, SCIENCE AND
COMMERCE

Plot No. 17, Tilak Road, Opp. Lion’s Garden, Ghatkopar (East), Mumbai 400 077

CERTIFICATE

This is to certify that Mr. PARTH S PAWAR has worked and duly completed his
Project Work for the degree of Bachelor of Management Studies under the Faculty of
Commerce in the subject of Finance and his project is entitled, “A Detailed Study on
The Promotional Strategies Of E Wallet Of UPI” under my supervision.

I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of any
University.

It is his own work and facts reported by his personal findings and investigations.

Prof. Anita Das

Name and Signature of

Guiding Teacher

Date of submission: March 2023.

2
 Declaration by learner

I the undersigned Mr. PARTH S PAWAR hereby declare that the work embodied in
this project work titled “A Detailed Study on The Promotional Strategies Of E
Wallet Of UPI”, forms my own contribution to the research work carried out under
the guidance of Prof. Anita Das is a result of my own research work and has not been
previously submitted to any other University for any other Degree/Diploma to this or
any other University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Mr. PARTH S PAWAR

Name and Signature of the learner

Certified by

Signature of the Guiding Teacher

Prof. Anita Das

3
 Acknowledgment

To list who all have helped me is difficult because they are so numerous, and the
depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal Ms. Nawal Khan for providing the necessary
facilities required for completion of this project.

I would also like to express my sincere gratitude towards my project guide Prof. Anita
Das whose guidance and care made the project successful.

Lastly, I would like to thank each person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me
throughout my project.

PARTH S PAWAR

Name & Signature of the Learner

4
 INDEX
Chapter Title Page
Number No.
1 INTRODUCTION
1.1 What is E Wallet
1.2 History Of E Wallet
1.3 Origin & Expansion
2 RESEARCH METHODOLOGY
2.1 Types Of Digital Wallet
2.2 Advantages & Disadvantages of E wallet
2.3 How Does Digital Wallet Work?
2.4 Ways To Ensure the Safety When Using E Wallet
2.5 UPI
3 LITERATURE REVIEW
3.1 Revenue Model
3.2 Funding
3.3 Growth
3.4 Marketing Strategy
4 DATA ANALYTICS AND INTERPRETATION
4.1 Analysis Through Graphical Representation
5 CONCLUSION
6 SUGGESTIONS & RECOMMENDATIONS
7 BIBLOGRAPHY
8 ANNEXURE

5
 INTRODUCTION

Virtual cash is an upcoming technology that has seen a lot of growth in the past years.
Cashless payments are now becoming a popular trend in almost every field.
Electronic Wallet is the software which resides on the buyer’s computer, and it holds
the digital cash and the digital certificate with the digital signature for billing,
shipping and the payment information for online transactions. The credentials can be
passed to merchant’s terminal wirelessly via near field communication (NFC). It
allows with a simple tap of the device onto a reader to exchange data between two
devices. Traditionally, a customer sees a product examines it and then pays for it by
cash, cheque or credit card. In the ecommerce world, the customer does not actually
see the product at the time of transaction, and the method of payment is performed
electronically. Electronic payment system (EPS) enables a customer to pay for the
goods and services online by using integrated hardware and software systems. The
main objectives of EPS are to increase efficiency, improve security, and enhance
customer convenience and ease of use.

1.1 WHAT IS AN E-WALLET?

The electronic wallet (E-wallet) provides all functions of today’s wallet on one
convenient smart card eliminating the need for several cards. The identification is
required for every credit card transaction and the card is equipped with a disabling
device if the card would be tampered. The electronic wallets which are frequently
used by online shoppers are commercially available for pocket, palm-sized, handheld,
and desktop PCs. They are secure, convenient, and portable tool for online shopping
and also store personal and financial information such as credit cards, passwords,
email contacts, bank accounts, PINs, and much more. Electronic Wallet presents
lower costs, employing the use of wallets removes the need for the intermediaries.
The applications provide more convenient transaction processing method for the
customers, giving the businesses which employ this technology the competitive edge
in the market. This opens up the entirely new aspect to the payment methods in large
markets, introducing many business opportunities and greater potential revenue.
There will be synchronization of data from multiple platforms, the bank accounts, the

6
credit and debit cards, the mobile accounts and the bills will be interconnected and
help in better management. It is like everything is under one roof.

The history of digital wallets is older than you think. Coca-Cola deployed arguably
the first solution to appear close to a digital wallet in 1997. The soft drinks company
installed two vending machines in Helsinki, Finland, which accepted payment by text
message.

Two years later PayPal launched its electronic money transfer services to handle the
buying and selling of goods over the internet. Unlike competitors Benz and Fluons,
PayPal decided against launching its own online currency and instead focused on
accepting fiat money.

2003 and 2007 saw the launch of Alibaba’s Alipay and Kenya’s M-Pesa respectively.
Both offered payment options through mobile phones. M-Pesa has 37 million
customers across Africa, and Alipay has 1.3 billion users.

What was the first digital wallet?

Was Apple Pay the first digital wallet? Not quite. Google is often cited as the
company to offer the first digital wallet. In 2011 it launched Google Wallet (now
known as Google Pay Send and part of Google Pay). Ahead of its time, it saw use on
only one phone model and only with Mastercard’s issued by Citibank.

In 2013 Google integrated Google Wallet with its email client Gmail. This allowed
users to send money through attachments. The physical Google Wallet Card followed
this, enabling cash withdrawal from ATMs and use as a debit card.

1.2 History of E wallet

What’s happening these days with mobile wallets brings to mind the Big Bang theory.
Scientists tell us that all the matter in the universe is speeding outward from a
momentous explosion that occurred 14 billion years ago—and, eventually, it will all
fall back inward. A somewhat similar, if less dramatic, fate is befalling the universe of
mobile wallets: It has expanded rapidly but is expected to contract.

7
“An explosion of payment options has been ignited by the [mobile payment] market’s
rapid growth to $180 billion—tripling in only three years,” according to a report by
Daniel Van Dyke, an analyst at Javelin Strategy & Research. “However, from 2019 to
2021, Javelin expects the explosion will give way to an implosion, as the number of
payment providers contracts.”

Despite those fireworks, the use of mobile wallets in the United States remains “de
minimis,” says Eric Grover, principal at Intrepid Ventures, a strategy consultancy.
Still, he describes mobile wallets as “already relevant and becoming more relevant.”

Although mobile wallet use remains a small niche, the number of consumers trying
out mobile wallets for the first time continues to grow steadily, says Emmett Higdon,
director of the mobile practice at Javelin. Smartphone owners who have used mobile
wallets grew from 11 percent in 2013 to 21 percent in 2015, according to Javelin
research. But the firm’s studies indicate repeat usage has declined from 3.7
transactions per user per month in 2013 to 3.5 in 2014 and 3.0 in 2015.

Mobile wallet adoption remained surprisingly flat during a six-month period ending
early this year, according to a report released in March by First Annapolis Consulting.
By January 2017, some 75 percent of Americans who own a smartphone and have a
bank account had made a mobile payment in the past year, but that percentage had
barely changed from the 74 percent who had done so by June 2016. What consumers
paid for with their mobile wallet transactions didn’t change much, either. Among
those who made mobile wallet payments by January 2017, 58 percent had done so to
pay a bill, compared with 54 percent in June 2016. Fifty-three percent had used a
mobile wallet to make a purchase in an app or online in the past year by January 2017,
down slightly from 55 percent in June 2016, the study shows.

Mobile wallets tend to fall into five categories, although industry observers agree that
the lines between categories can blur. Tech companies like Apple and Samsung
provide general-purpose horizontal wallets; retailers have banded together in efforts
like Merchant Customer Exchange’s (MCX) recently failed CurrentC; individual
retailers offer proprietary wallets à la private label credit cards; financial institutions
have introduced their own offerings; and wireless carriers have joined forces to enter
the fray.

8
The First Annapolis study similarly breaks down wallets into three categories: the
“Pays” (i.e. Samsung Pay, Android Pay, and Apple Pay); merchant wallets, such as
those offered by Starbucks, Walmart, and Dunkin’ Donuts; and wallets from issuers
such as Wells Fargo, Chase, and Capital One.

Grover describes the mobile wallet “flavors.” An open mobile wallet works somewhat
like a physical leather wallet, functioning as a container that holds payment products
(e.g., Visa and Mastercard accounts) and operating by the rules of those card
networks. Closed mobile wallets can be general-purpose (e.g., PayPal) or they can be
proprietary (e.g., Walmart Pay), enabling stores to take private label retailing online.
Closed mobile wallets can have their own rules, he notes.

Predictably, heavily smartphone-oriented younger consumers have shown themselves

willing to try mobile wallets; however, a number of older Americans have tried out
the technology, too. The First Annapolis researchers found that more than one third of
those age 65 or older have made a mobile payment recently.

“This wasn’t a segment of the population that we had captured in earlier research
studies—the presumption being that mobile payments were mostly a Millennial
phenomenon,” says Melissa Fox, senior manager at First Annapolis. “Activity is
certainly concentrated among younger consumers, but I was surprised how high the
penetration levels were among older participants.”

1.3 Origins and Expansion

The history of mobile wallets begins in July 2008, when Apple started an app store
and opened it to third-party developers, says Russ Jones, an analyst at Glenbrook
Partners. The opening gave just about everyone the opportunity to develop an app that
held payment data, he says.

It also led to a period lasting until about 2011 when the industry was “up for grabs,”
as uncertainty reigned about how the early mobile wallets would communicate
payments data, Jones says. But the questions didn’t end there. “The back-and-forth in
the industry was about what a mobile wallet was, how many wallets did you need,
how many wallets would there be, and would they all be on your phone at the same
time,” he says.

9
During that time, the payments industry was leaning toward storing transaction data in
smartphones while the rest of the world was enthusiastically embracing storage in the
cloud, according to Jones. Players who owned handsets thought the data should reside
there, those who owned the SIM cards wanted data to live there, and those who
controlled neither the handset nor the SIM card tended to believe the cloud should
store the data, he explains.

The first working demonstration of how the technology could converge came in May
of 2011 with the introduction of the Google Wallet. Google had aligned partners who
thought the smartphone should contain the data. It was under the control of the
wireless carrier, and the wallet was an app on the phone that Google developed. Bank
participation was limited. “So, they were off to the races with that,” Jones adds.

The Google offering proved mobile wallets could work, but its system was flawed
because it was based on a laundry list of requirements that few consumers could
fulfill, Jones explains. First, users had to have the right device—one of only a few that
contained near-field communication (NFC) chips at the time. They also had to have
the right Android operating system and a data plan with Sprint. They had to have a
card that not only came from one of just a couple of participating issuers but also had
been designated for use in the mobile wallet, he says.

Not surprisingly, the planets seldom aligned in just the right way to enable Google
Wallet. And further complications ensued, Jones explains: “When you walked into a
store, you had to unlock your phone and unlock the app. Now, we would laugh at that
with simple biometric identification.”

Other missteps have occurred, too. “The graveyard of mobile wallets is filled with
some high-profile names,” Grover observes, citing the demise of soft card, which was
backed by wireless providers AT&T Mobility, T-Mobile, and Verizon. Similar
ventures by wireless companies in Canada, France, and the United Kingdom also
failed, notes Jones. “In every country, carriers thought they could band together and
control the mobile wallet,” he says. “That belief turned out to be wrong.”

Another ill-fated mobile wallet, called Current C, was the product of MCX, a group
comprising some of the nation’s largest and most powerful retailers. MCX backers
included 7-Eleven, Best Buy, CVS, Lowe’s, Target, and other big names. Those and

10
other mobile wallets died young despite having financial angels with virtually
unlimited resources because they couldn’t reach critical mass, says Grover.

Besides simply wanting control of a mobile wallet, the retailers in MCX had a
burning desire to bypass the fees that card brands levy upon transactions, Higdon
notes. But substituting a direct connection between the point of sale (POS) and the
consumer’s checking account presents the problem of persuading every entity
involved, including banks, to cooperate, he maintains. That challenge may have
helped kill off Current C, he suggests.

Throughout the years, some problems worked themselves out. In the early days,
debate raged over what entities would control payments data used in them—the
wireless carriers or the banks, Jones recalls. Instead, the operating systems took
ownership of the payments information, which makes it difficult for app providers to
have a competitive position, he notes. “That turned out to be the real surprise,” Jones
says. Meanwhile, other surprises have unfolded. In one example, the industry has
moved from using actual payments data to employing tokens. In another example,
biometrics are taking precedence over personal identification numbers to unlock
wallets.

Those choices took hold, and the resulting model for mobile wallets has been
embraced by card networks around the world and could become an “adoption ramp,”
Jones says. Meanwhile, merchants almost everywhere are becoming increasingly
likely to have the capability to accept mobile payments because they’re obtaining
EMV-compatible equipment that nearly always takes mobile transactions, too, he
notes.

Apple Pay, for example, was launched in October of 2014 with 220,000 merchant
locations in the United States, and it now claims 2.2 million for an increase by a factor
of 10, according to Jones. And while merchants have been gaining mobile capability,
consumers have been replacing aging smartphones with new models that can make
mobile payments, Jones explains. The Apple product line has become mobile-capable,
and Android is approaching that point, he maintains.

The January First Annapolis study found Apple Pay to have the highest activation and
usage rates among compatible devices when compared to Android Pay and Samsung
Pay. “Although maybe not as high as many initially anticipated, I think that’s

11
surprisingly high when you think about how relatively short a timeframe that is,” says
Fox.

Chapter 2 Research methodology

A descriptive research design has been used in this study as it describes the various
characteristics of the population from which the sample has been selected. The data
for this research was gathered from both primary as well as secondary sources. The
secondary data was collected from various articles, newspapers, and journals.
Whereas primary data was collected by sending a structured questionnaire on various
social media platforms such as WhatsApp, Facebook, Instagram, and LinkedIn, to
gather responses from individuals. Telephonic Interviews were also taken to ensure
that valid data is achieved. Two questionnaires were designed for data collection by
establishing various factors from the study of existing literature relating to the
research. The objective of one questionnaire was to get responses from users of these
m-wallets. Whereas the other questionnaire was framed to collect data from
merchants of small businesses such as restaurant owners, service providers, general
storekeepers, and other small businesses of Delhi. The second questionnaire that
targeted responses of business merchants was translated into the Hindi language to get
responses from those who didn’t know English. In this study, the TAM approach was
used to analyse the factors for adopting m-wallet technologies among consumers. The
factors included in this study for the analysis are ‘ease of use’, ‘usefulness’, ‘risk’,
‘attitude’, ‘secure’ and ‘intention to use

Prepaid Payment Instrument (PPI)

RBI had introduced a digital form of payment system known as Prepaid Payment
Instrument (PPI). In 2009-10, RBI had issued 26 PPI license. From then PPI issuers
were allowed to issue semi-closed wallets that enabled payments without two-factor
authentication. (The Boston Consulting Group, 2016) It is a payment instrument

12
which is used for purchasing goods and services and to transfer money to anyone. As
per the RBI’s policy, the total amount deposited in PPI’s cannot exceed ₹10,000 in a
month and ₹100,000 in a year. (Dubey, 2019)

13
2.1 Types of Digital Wallets

The following are the Types of Digital Wallets

1. Closed Wallet

A company selling products and/or services can develop a closed wallet for
customers. Users of a closed wallet can use the funds stored to make transactions with
only the issuer of the wallet. The money from cancellations, returns, or refunds is
stored in the wallets. Amazon Pay is an example of a closed wallet.

2. Semi-closed Wallet

A semi-closed wallet allows users to make transactions at listed merchants and

locations. Although the coverage area of such wallets is restricted, both online and
offline buying can be done through the wallets. However, merchants need to enter
into agreements or contracts with the issuers for accepting payments from the mobile
wallets.

3. Open Wallet

14
Banks or institutes partnered with banks issue open wallets. Users with open wallets
can use them for all transactions allowed with a semi-closed wallet in addition to
withdrawal of funds from banks and ATMs and transfer of funds.

Examples of Digital Wallets

1. PayPal One Touch™

 The PayPal One Touch™ app is an extension of the usual services offered
by PayPal.
 It enables users to make payments or transfer funds faster by allowing them to
skip the login screen and eliminate the need to enter passwords.
 PayPal’s mobile wallet app can also be operated on a desktop, laptop, or
tablet.
2. Apple Pay

 The Apple Pay digital app is streamlined and available exclusively for users of
iPhones, iPads, and Apple watches.
 It allows users to make transactions for both online and in-store purchases.

 For in-store transactions, users can unlock their phones and hold them near a
compatible point of sale system.
 The Apple Pay app enables a seamless and secure way of payments,
providing ease of experience.
3. Google Pay

 The Google Pay app enables users to make transactions on an app or any

website using debit or credit card details saved to the users’ Google Account,
Google Play, Chrome, YouTube, Android phones, and watches.
 The app also supports other electronic documents such as student ID, movie
tickets, gift coupons, store cards, and transportation tickets
4.Closed wallet

 A closed wallet allows users to make payments through an app or website.

 This type of wallet is typically created by businesses that sell products or

services.
 Users of a closed wallet can only use the stored funds to make transactions

15
 with the wallet’s issuer.
 If a transaction is cancelled or a refund is issued, the entire amount is returned
to the wallet.
5.Semi-closed wallet

 A semi-closed wallet allows users to easily make transactions at specific

merchants and locations.
 This type of wallet has a limited coverage area.

 To accept payments from a semi-closed wallet, merchants must agree to a

contract or agreement with the issuer
6.Open wallet

 Banks offer open wallets that can be used for any type of transaction.

 Open wallets make it easy to transfer funds and can be used for online and in-
store payments.
 The provider of an open e-wallet allows users to conduct transactions from
anywhere in the world, but both the sender and receiver must have accounts on
the same app.
7.Crypto wallet

 Cryptocurrency wallets store users’ public and private keys, which act as
ownership certificates.
 Hardware wallets, also known as cold wallets, provide an extra layer of
security and safety.
 These wallets can be operated offline using a USB stick.

 Cryptocurrency payments can be made using hardware wallets.

8.IoT wallet

 IoT stands for Internet of Things

 IoT devices include smart watches, jackets, wristbands, and other devices

 Some examples of IoT devices include smart car computers and smart
refrigerators
 IoT devices include smart watches, jackets, wristbands, and other devices

 Some examples of IoT devices include smart car computers and smart

16
 refrigerators
2.2 Advantages & Disadvantages of E Wallets:

Advantages of E Wallets

It offers more solace for certain buyers – 

Right when you’re passing on an electronic wallet, you will confine the number of
cards you pass on when you travel. You now don’t have the essential to pass on a
huge load of cash with you by a similar token. You ought to just tap your device to
the portion holder, or have your phone checked, to pay for the things you are
purchasing. That suggests you’re finished passing on a pocketful of things any spot
you go.  
 

It offers induction to various kinds of cards – 

Electronic wallets regularly store MasterCard and check cards. They can be used for a
wide collection of cards, regardless, if the provider is suitable for the wallet you are
using. That infers you can store rewards cards, relentlessness cards, and even coupons
inside your electronic wallet, allowing you to acknowledge indeed a paperless
lifestyle. 
 

It offers more prominent security – 

If you have a wad of cash in your pocket that gets lost, you have zero options open to
you to recover your resources. Losing your Visas suggests you should contact each
credit expert to drop each card, by then have another issue. With an electronic wallet,
the information is taken care of through an untouchable provider. It’s rushed behind
your mystery expression or biometrics. Whether you lose your contraption, you’ll
really move toward your e-wallet once you get another device.  
 

It might be used everything thought about retailers and online stores – 

Electronic wallets have gotten comprehensively recognized in the past couple of
years. Most territories that recognize cards as a portion elective will allow you to pay
with your electronic wallet. Disregarding the way that there are as yet a couple of
regions that are using more settled getting ready progressions, which confines
something or organization access, the number of retailers who give portion access in

17
this manner continues extending each year.  
 

It anticipates that customers should endorse each trade – 

Electronic wallets work like a check card while beginning a trade. They anticipate that
you should incorporate your PIN to support portion. For contraptions with biometrics,
an installment would require your remarkable imprint to favor it. That gives you
another layer of assurance from unapproved purchases or the financial risks related to
misrepresentation.  
 

It may offer permission for new rewards –

Various electronic wallets offer inspirations to ask clients to use them as opposed to
traditional portion procedures. You may find limits apply to explicit purchases, for
instance, fuel, food, or travel. A couple of associations may work with your e-wallet
to provide for offer unequivocal cutoff points moreover. That suggests you can put
aside money without changing your methods of overseeing cash. You’re just changing
how you pay for those things.  
 

It could help you with your spending plan – 

Various electronic wallets can help you track your methods of overseeing cash. Some
may create reports that show you unequivocal orders of consumption. You can
similarly distribute fixed monetary designs to unequivocal cost arrangements to
ensure that you’re not spending more than you should on explicit things. If you have a
top-notch thing to purchase, regardless, you can impair this component to acquire sure
there’s adequate money available to make the portion.  

Disadvantages of Electronic Wallets:

It isn’t totally open far and wide – 

The number of retailers that recognize portions from an electronic wallet depends
upon the veritable wallet you pick. In December 2016, just 36% of retailers
recognized Apple Pay. 34% of retailers recognized PayPal as a sort of portion. Just
25% of retailers recognized Master Pass. Around 2 million retailers in North America

18
at present offer induction to some sort of compact portion through an electronic
wallet.  
 

It really anticipates that you should pass on something – 

But an electronic wallet offers more convenience for certain customers, it doesn’t
totally discard the essential of passing on something with you. If you don’t have your
PDA with the remainder of your belongings, by then you have no genuine method to
complete a trade. Since these wallets don’t store your ID and other required things,
you’re really constrained to pass on a standard wallet or bag with you moreover.  
 

It requires your contraption to have a charge – 

There’s also the burden that an electronic wallet anticipates that you should have a
charged device to have it work. On the off chance that you’re passing on a traditional
wallet, you won’t need to worry about how much battery life is left on your phone.  
 

It doesn’t clear out your security perils – 

The security of your PDA or PDA is dependent upon the settings you use. If you
don’t have your device guaranteed with some sort of mystery word, by then someone
could take your contraption and perhaps access the resources in your monetary
equilibrium or Visas. There are positive security inclinations to consider which make
an e-wallet a significant advancement, anyway it requires the able organization of it to
intensify them.  
 

It may charge you more to manage portions – 

Countless electronic wallets that offer a prizes program will charge you a cost to
move those prizes. You may be expected to deal with portions considering a specific
objective to get to these favorable circumstances moreover. While using the PayPal
charge program, for example, customers get 1% cashback when their trade is a
standard imprint credit trade. Using a PIN through modernized wallet exploits since
you’re changing how the retail store treats the trade. In case you consume $900
consistently, you’d lose over $100 consistently for the convenience of this portion

19
method.  
 

It could engage in stupid spending – 

Exactly when money is electronically-based instead of something real, a couple of
individuals fights with their methods of overseeing cash. The money doesn’t feel
authentic, so genuine arranging doesn’t occur. If you are as of now endeavoring to
keep a monetary arrangement with a traditional wallet, by then an electronic wallet
may fuel that issue.  

2.3 How does a digital wallet work?

Digital wallets employ several technologies -- including mobile apps, mobile

hardware devices, near-field communication (NFC) and security methods such
as tokenization -- to create a user-friendly, mobile and ostensibly secure payment
experience.

To use a digital wallet, a user enters their card information into the digital wallet app
or site. The information is encrypted, and the wallet is available for use once the
device is unlocked and the user authorizes the wallet. To make a mobile payment, the
user holds their smartphone close to the contactless terminal.

The most popular technologies digital wallets use include the following:

20
Quick response (QR) codes. These barcodes encode information into a black and
white pattern that a user can access with a smartphone camera or their digital wallet's
scanning system to initiate a payment. Payment apps can encode information,
including the transaction amount and the intended recipient. For example, in the
PayPal app, a QR code can be generated that enables shoppers to use their accounts to
pay for items in store.

NFC. This wireless data transfer technology uses electromagnetic signals to enable

smartphones, tablets, laptops and other devices to share and transfer data when in
close proximity. Generally, two devices need to be within an inch and a half of each
other to connect.

Magnetic secure transmission (MST). This mobile payment technology enables

smartphones to transact wireless payments with both traditional pre-chip magnetic
stripe systems and modern no-swipe credit card terminals. It generates a magnetic
signal like when someone swipes the magnetic stripe on a credit card reader. MST
enables customers and retailers to transact securely without having to upgrade their
equipment.

Rationale of the Study

M-Wallets had gained prominence in India after the occurrence of demonetization

when there was a cash crunch. First, it was used for recharging and bill payments. But
afterward, it became common for transferring money from person to person and for
making payments. Recently in Income Tax Act, a new provision has been
implemented from 1st February 2020, requiring that businesses of turnover more than
₹500 million must provide facilities of accepting payments from their customers
through digital payment modes. However, if any business fails to do so, the business
owner will be liable to pay a penalty of ₹5,000 per day. (Indo-Asian News Service,
2019) According to the RazorPay report, digital payments in Delhi NCR had seen a
442% growth from 2018 to 2019. It indicated that Google Pay was the most preferred
app with a 50% share in the market in 2019. (Economic Times, 2020) Recently, a
survey was conducted by a consultancy firm named Local Circles which claimed that
digital payments are mainly made for the purchasing of essential products and for
recharging of smartphones. The survey revealed that Paytm and Google Pay are

21
amongst the top digital payment applications that customers use. (Press Trust of India,
2020) Therefore, this research is conducted to know the intention of m-wallet users of
Delhi for adopting these services and also to evaluate the impact of this on the
merchants of small businesses of Delhi.

Objectives of the Study

1. To analyses the intention of users for adopting the m-wallets in Delhi.

2. To analyze the satisfaction level and to know the preference of users, whether they
will continue to use the service in the future.

3. To evaluate the relationship between demographic variables such as customer’s

age, gender, income, education and perception of using m-wallets.

4. To recognize the most widely used m-wallet service in Delhi.

5. To understand how these wallets are adopted in small businesses of Delhi to accept
payments

. Hypothesis

1.H01: Ease of use has no significant impact on the secure factor for adopting m-
wallets

2.H02: Ease of use has no significant impact on the usefulness for adopting m-wallets.

3.H03: Ease of use has no significant impact on risk.

4.H04: The secure has no significant impact on the usefulness and risk.

5.H05: Attitude has no significant impact on the usefulness and risk for the adoption
of m-wallets.

6.H06: Usefulness has no significant impact on the risk.

7.H07: Future intention to use has no significant impact on ease of use and secure
factor. 8.H08: Future Intention to use has no significant impact on the usefulness.

22
2.4 Five Ways to Ensure Safety When Using e-Wallets

1.Report fraud immediately when you spot it: 

RBI has said that a customer of an e-wallet has no liability if the fraud is reported
within 3 days. However, this does not apply if the fraud is due to negligence of the
customer. So if you have shared sensitive details with a third party, you will be held
responsible for the loss and no recourse will be available. So, when you suspect fraud,
report it immediately to the customer service of the wallet. It has been seen that most
of the frauds happen due to negligence of the customer, so there are other safety tips
you must follow.

2.Be very sure of details you reveal or who you reveal it to: 

Sensitive details like passwords, OTPs and PINs should be provided only if asked by
a trustworthy app. You should never enter these details if you are not on a secure
payment gateway or within the official app. Also, never reveal any detail to any
person on the phone, even if the personal claims to be an official from a bank or a
wallet provider. Whenever Paytm sends you an OTP, you will get a message saying
never that you will never get a call from them asking you about your OTP. So never
click on any random link, download apps only from the official stores of Android,
Apple and Windows and always be very sure before you enter sensitive information.

3.Try and avoid auto-saving cards:

 E-wallets will ask you to auto save credit and debit cards so that you can use a card
by just keying in the CVV number and the OTP. This is really convenient, and e-
wallets try and ensure that your details are stored in a secure manner. However, even
if the chances are small, this could reduce the chances of fraud, in case there is a
security breach. So, avoid saving card details when prompted. If you have them
saved, you can remove then by going to the app’s settings.

4.Do not use public wi-fi networks: 

When you are in a public space, do not use free wi-fi on your phone. These wi-fi
networks could be unsecure, giving fraudsters access to confidential data.

5.Check your statements and minimize wallet top-ups: 

23
Make it a point to check your wallet transactions just like you check your credit card
bills. If there’s a fraudulent transaction, you will be able to spot it. Also, check every
time you get an SMS on your phone regarding any transaction. Also, it is a good idea
to limit the top-ups in your mobile wallet. A large top-up means that you can lose
more money in the event of fraud

To sum up, chances of fraud in e-wallets are slim, but they do happen. It is better to
be safe than sorry.

2.5 UPI

UPI is also a type of E-wallet

Why UPI?

UPI is a unique payment product that allows real time settlement of funds between
two bank accounts. The foremost advantage of using UPI is that it removes the need
for remembering your bank account details while doing a fund transfer. All you need
is the VPA ID of the sender and the receiver to transfer funds instantly. Here are some
of the salient features of UPI;

Immediate money transfers via mobile device 24*7 days and 365 days.

One mobile application for access to different bank accounts.

Single Click 2 Factor Authentication – Compliant with the Regulatory Guidelines but
offers a very strong feature of convenient single-click payment.

Virtual Payment Address (VPA) for Pull & Push offers enhanced protection also with
the customer not expected to enter information such as Card No, Account Number,
IFSC etc.

Bill Sharing with your friends.

Proper approach to Cash on Delivery hassle, race to ATM, or giving the exact
amount.

24
Enable payments at your merchant establishment through a single app or in-app
payments.

One stop shops for your Utility Bill Payments, Counter Payments, Barcode (Scan and
Pay related payments.

Use this feature for all your needs like Donations, Collections and Scalable
Disbursements.

 Allows you to raise Complaint directly from the Mobile App.

 UPI is constituted of the following players.

 Payer PSP

 Payee PSP

 Remitter Bank

 Beneficiary Bank

 NPCI

 Bank Account holders

 Merchant

 UPI - Benefits to the participants in this ecosystem

What are the benefits for banks?

 Single click 2 Factor Authentication

 Universal Transaction Application

 Leverage of existing infrastructure

 Safer, Safe and Creative

 Single/One Identifier Payment Base

 Enable seamless transactions for merchant

What are the benefits for customers?

 Available round the clock

 One application for access to various bank accounts

 Virtual ID use is more safe, no password sharing is necessary.

25
  Authentication of a single click

 Present Complaint directly from the Mobile Ap

What are the benefits for merchants?

 Seamless collection of funds from customers-single identifiers

 No hazard of storing the virtual address of the customer as in the Cards

 Tap consumers who do not have credit or debit cards

 Suitable for e-Com & m-Com transactions

 Resolve the problem of collection of COD

 Single click 2FA Customer Facilities-Seamless pull

 Payment In-App (IAP)

 Financial transactions Available through UPI

The primary objective of UPIs is facilitating seamless transfer of funds between two
bank accounts. Here are the transactions you can perform through your UPI App;

Send Money: This function allows the user to send money using the Virtual Payment
Address (VPA) or a combination of Account Number and IFSC, or even by scanning
the QR code.

Request Money: This function allows the user to initiate a collection request by

entering the Virtual Payment Address (VPA). In addition, using your UPI App,
money can also be transferred using Mobile if it is registered with BHIM or *99#. It is
also mandatory that the mobile number of the customer be connected to the bank
account.

Scan & Pay: Customers can pay by scanning the QR code using 'Scan & Pay' and
creating QR codes in the Payment Program.

Transaction Records: This option allows a user to search the history of transactions. It

also highlights pending UPI collection requests (if any) so that the user can accept or
deny payment requests. There is a report problem tab if the consumer is able to make
a query about transactions.

Profile Management: The profile management option in any UPI app lets users
display the static QR code and payment addresses generated. The QR code can be

26
downloaded and exchanged via various messaging applications such as WhatsApp,
Email, etc.

Check Bank Account Balance: Use this option to check the bank account that is
connected to the UPI app along with the status of the PIN. The customer can
set/change UPI PIN, a bank account linked to their UPI App, by clicking the 'Change
Account' tab given in the menu. This feature also allows a user to review their balance
of accounts.

What are the requirements to open a UPI account?

 In order to set up an UPI account, you need the following:

 An active Bank a/c held in India

 An active mobile number that is linked with your bank a/c

 Smart Phone with internet facility

 Debit Card for setting up the m-PIN and UPI PIN

How to install and register a UPI app?

Most banks and third-party UPI service providers have a dedicated UPI App for their
service. You can download them from the Google Play Store or iOS App Store. If
there is not a dedicated app, some banks have integrated their UPI service with their
mobile banking app. You can use it from there too.

The installation and registration process is pretty much the same for most UPI
providers. Just have a look at the below steps:

First, you have to link your bank accounts to the UPI app. For that, you have to make
sure that your mobile phone number is updated on all your bank accounts.

Download and install the UPI App of your choice. 

You have to register with the mobile number linked to your bank account

27
You will receive an OTP for device binding. This will link your UPI with your mobile
phone.

You will then be required to set a login PIN that will allow you to login to the app.
This is not the UPI PIN.

On the next step, you can enter your personal details like display name or profile
picture.

Next part is the important part where you link you bank accounts to your UPI account

Based on the mobile number, the UPI app will pull up all the bank accounts linked to
that mobile number.

You have to select one bank account number, that will be your default account to send
and receive money.

You will then create your UPI Virtual Payment Address (VPA) ID for that bank
account.

Next, you will set a UPI PIN for that VPA linked to that specific bank account. 

Once completing all these steps, you are all set with your UPI account and you can
start sending money, receiving money and making bill payments.

How do I send money to another person using my UPI App?

It is very simple to send money to your family and friends using UPI

You can choose to send money to a person using their VPA ID, phone number or their
bank account details.

Open your UPI app

Select the option for sending money

Select the method by which you want to send them money; VPA ID, Phone number or
Bank account details.

Enter the relevant details, the correct amount and your PIN number, when prompted.

The money transfer is done and both the parties will receive a confirmation message.

28
The amount is directly debited from your bank account and credited to the
beneficiary’s bank account.

Can I receive money on my UPI App?

Yes, you can receive money from someone using your UPI App. Here are the steps
for that;

Login to your UPI App

Click on the Receive Money option

Enter the sender’s VPA, amount and expiry time

The request will then be sent to the payer for approval 

Once he approves the transaction, your default account linked with VPA will be
credited

Both the beneficiary and sender receive an SMS to confirm the transaction

What is ‘Collect Request’? How do I use it?

Request collection is a request sent to you to collect money from you as a bill
payment or fund transfer. Keep in mind that money is charged / debited from your
account if you accept a collect request. Never approve/authorize an unknown person's
application for 'collection.'

How do I respond to a Collect Request that has been sent to me? 

 You'll get a message when someone sends a request to you to collect money.

 Click on the collect request notification you receive or login to your UPI App.

 Go to the notifications section to find the collect request

 Pick the requested Collect request from pending items.

 Click the Approve/Reject/SPAM button as per your wish.

 Enter the UPI PIN to accept the submission. Money will be debited from your

29
 account and sent to the beneficiary's account immediately.
 This is usually used for bill payments or online merchant payments

Can I connect more than one account to a single UPI account?

Yes, you can do that. Choose your current VPA when connecting to your second bank
account. If you connect more than 1 account to a VPA, you can set up a default
account to send and receive money.

How do I add a bank account to my existing UPI Account?

 You can add more than one bank account to your UPI Account. Follow these
simple steps to do that:
 Login to your UPI App

 Go to your profile section

 Choose bank accounts option

 It will list the bank accounts linked to your UPI

 Choose the option to ‘add a bank account’

 Enter the bank account details

 Authenticate the process with your debit card details and OTP

 The bank account is now added to your account

 You can set a unique UPI PIN for each bank account

 Make sure that you don’t share this UPI PIN with anyone

How to reset the UPI PIN for my bank account?

 If you forgot your UPI PIN or want to change it at some point, you can do so
through your UPI App. Here are the steps to do that:
 Login to your UPI APP

 Go to your profile section

 Choose the bank account for which you want to reset the PIN

 You will be required to authenticate the process through an OTP PIN

30
  Once authenticated, you can start using your new UPI PIN

How to pay an online merchant using UPI?

 UPI allows you to make payments for your online purchases. It is very simple
and similar to your credit or debit card payments.
 Add the items you want to purchase on the shopping sites cart

 Go to the payments page

 Choose UPI as your payment option

 Here you enter your VPA ID (XYZ@UPI)

 You will now receive a collection request on your UPI App

 You open the app and authorize the transaction by entering the UPI PIN

 The amount is debited and the payment for your shopping is completed

Is there a limit on fund transfers using UPI?

 The upper limit mandated by NPCI is Rs. 1 lakh per transaction and Rs. 1 lakh
total value of the transaction.
 A limit of 10 transactions can be initiated within 24 hours of the first
transaction.
 The limitations of the transactions will be determined in compliance with the
regulation of the bank.
 Banks can adjust UPI transaction limits under the upper limits of the National
Payments Corporation of India (NPCI) as per the policy of the bank.

What is an UPI Mandate?

UPI Mandate is a feature that allows you to pre-authorize (Mandate) transactions to

be debited from your bank account later. The mandate of the UPI is to be used in
situations where money is to be transferred later, but the commitment to that is to be
made now. It is likely that the sender will forget to send money later in order to
establish a mandate or to make a service/merchant payment where this feature may be

31
necessary. The account of the consumer shall be debited when the mandate is
fulfilled.

Benefits of UPI Mandate: 

Allows you to create mandates for payments that are to be done on a future date.

It serves as a promise to both the customer and the merchant in the case of
payment/service by the merchant.

How to use UPI mandate on your UPI App?

 Open the UPI app on your phone

 Click on the UPI mandate option

 It will give you four tabs; My Mandates, Create, Scan, and Request Receive

 My Mandates will show you all the mandates that you have created

 Scan option will let you create one using the recipient s QR code

 Request receive will show the mandate request received

Are there any transaction charges to use UPI?

There are no transaction charges to use UPI for your fund transfer activities.
However, check with your bank or provider on any charges they may levy.

2.6 UPI FAQs

1. What is an UPI-PIN? What happens if I entered the wrong UPI-PIN during a

UPI-PIN (UPI Personal Identification Number) is a 4-6 digit pass code that you
create/set when you first register with this app. You must enter this UPI-PIN to
approve all bank transactions. If you have already set up a UPI-PIN with other UPI
Applications, you can use the same for BHIM.

MPIN banks are different from the UPI-PIN, please create a new UPI-PIN in the
BHIM app

32
Please do not share your UPI-PIN with anyone. BHIM will not store or read your
UPI-PIN data and the customer service of your bank will never ask for it.

If you enter the wrong UPI PIN, the transaction will fail. In case you enter the wrong
UPI PIN multiple times, the bank can temporarily block UPI money from my account
(this varies from bank to bank).

2. Do UPI money transfers only happen during banking hours?

All payments are immediate and 24/7, regardless of the operating hours of your bank.

3. How is UPI different from IMPS?

 UPI provides features that are better than IMPS in the following ways:

 Provides P2P Pull capabilities

 Simplifies payments for merchants

 Single APP for bank transfer

 Single click two-factor authentication for enhanced security

4. Will the consumer need to register the beneficiary before transferring the
funds via UPI? What information would be expected of the beneficiary?

No, beneficiary registration is not necessary for the transfer of funds through UPI as
the fund would be transferred on the basis of the Virtual ID, Account + IFSC or
Aadhaar Number.

5. Will the customer need a bank account, or can this be connected to a card or
wallet?

No, the customer cannot connect a wallet to their UPI account, only bank accounts
can be attached.

6. Can I connect more than one account to a single VPA account?

Yes, you can do that. Choose your current VPA when connecting to your second bank
account. If you connect more than 1 account to a VPA, you can set up a default
account to send and receive money.

7. How can I change my default account?

33
You may switch the default account by selecting the preferred account option on the
App. Once you login to the app, go to your profile section and choose your bank
accounts. Here, you will find the option to add bank accounts to your UPI.

8. What happens if the transfer transaction fails or is transferred to an incorrect

account?

You need to carefully check all the details of the beneficiary before making any
transactions. In the event that such an error occurs, you can file a complaint from the
application itself via the complaint section. In the event of a failed transaction, the
balance will be refunded directly to the account within 7 working days.

9. What are some of the reasons for an UPI transaction to fail?

There are many explanations for a failure of the UPI transaction. The system must
have been down False UPI PIN Incorrect receiver UPI ID. If the recipient is not on
the Bharat Money Interface

10. What happens if my phone is lost or stolen?

If you lose your phone, the UPI PIN needed to approve all transactions would not be
known to a third party and will therefore not be able to use the Bharat Interface for
Money. In addition, you have to contact the customer service department at your bank
to make sure that your account is not misused.

The Rise of The UPI

Starting with 21 banks in 2016, the UPI ecosystem has today expanded to 381 banks,
enabling billions of digital transactions each month. According to the National
Payments Corporation of India (NPCI), the entity that manages the UPI, the country’s
digital payments ecosystem includes the following participants:

 Payer Payment Service Provider (PSP)

 Payee PSP

 Remitter Bank

 Beneficiary Bank

 NPCI

34
  Bank Account holders

 Merchants

To put it into context, apps that are used to make UPI transactions, such as PhonePe
or Google Pay, are called third-party app providers (TPAPs) in the value chain. Banks
are called payment service providers (PSPs) in the value chain, while they also double
up as remitters and beneficiaries in most transactions.

TPAPs can’t directly access the UPI network and need PSPs to connect with the UPI
network and enable transactions.

Currently, there are 381 live members on the UPI network, with 57 PSPs and the
remaining remitters or beneficiary banks.

UPI Enabled 2,348 Transactions Every Second In 2022

2022 was a great year for India’s digital payments framework, or UPI, on all fronts –
be it the number of transactions or their total value.

At the end of the calendar year 2022, UPI’s total transaction value stood at INR
125.95 Lakh Cr, up 1.75X year-on-year (YoY), as per the NCPI. Interestingly, the
total UPI transaction value accounted for nearly 86% of India’s GDP in FY22. 

Further, India saw a total UPI transaction count of 7,404.45 Cr in 2022, up 1.91X
YoY. The

number translates to nearly 2,348 UPI transactions per second.

35
In the first quarter of the calendar year 2022 (between January and March), the UPI
network saw a rise of 1.99X in the transaction count and a 1.92X jump in the
transaction value, compared to the year-ago period.

In the second quarter of 2022, the number of UPI transactions rose 2.17X YoY to
reach 1,740.10 Cr. Meanwhile, the transaction value surged 1.98X YoY to reach INR
30.39 Lakh Cr.

However, the second half of the year remained a bit slow for the UPI. While
the growth in the third quarter of 2022 remained flat QoQ, the fourth quarter
witnessed a decline in the growth rate of transaction value and count. 

Between October and December, UPI transaction value stood at INR 36.84 Lakh Cr,
up 1.55X YoY. Similarly, the UPI transaction count was up 1.73X YoY at 2,244.44
Cr.

Experts say that a slowdown in the growth of UPI transaction value and count
indicates that the digital payments ecosystem is approaching maturity, which, they
believe, is a good sign. 

Meanwhile, the average transaction value on the network, too, saw a slight decline
during the year, falling from INR 1,855 in 2021 to INR 1,711 in 2022.

36
The slight decline means that more users made small-ticket transactions (under INR
500) in 2022, compared to 2021. 

It is pertinent to mention here that in December 2022, 3.24% of the total person-to-
person (P2P) transactions and 14.57% of person-to-merchant (P2M) payments were
up to INR 500.

The increase in the number of smaller transactions was more evident in P2M
transactions, which means more small merchants are using UPI.

Big Guns of The Ecosystem

Last year, Phonepe, Google Pay and Paytm accounted for 6,380.75 Cr transactions
worth INR 107.10 Lakh Cr until November 30. For context, the transaction count
represents 96.36% of the total transactions in India in the first 11 months of 2022 and
94.67% of the total value of UPI transactions during the period.

37
The year also saw the rise of many new players such as CRED, Amazon Pay and
WhatsApp Pay.

The biggest surprise of the year was CRED, as the Kunal Shah-led fintech startup saw
its transaction number skyrocket to 13.19 Cr in November 2022 from just 1.07 Cr in
January 2022.

The startup’s transaction value jumped to INR 1.49 Lakh Cr in November from INR
14,189.86 Cr in January, making it the fourth-largest player in the field in terms of the
transaction value.

WhatsApp Pay, too, saw a rise during the second half of the year, after the NPCI
increased its UPI users cap to 40 Mn users.

Chapter 3 Literature Review

38
E-commerce or e-commerce refers to a variety of online business activities for
products and services. It is also related to “any type of business activity in which
participants engage electronically instead of physical exchange or direct physical
contact. E-commerce is often associated with online buying and selling, or the making
of any transaction involving the transfer of ownership or rights to use goods or
services over a computer network. Although popular, this description is not complete
enough to capture the latest developments in this new and ever-changing business
environment. The most comprehensive definition is: E-commerce is the use of
electronic communication technologies and digital knowledge in business marketing
to create, transform, and redefine relationships to create value between or between
organizations, and between organizations and individuals. While some use e-
commerce and e-business interchangeably, different concepts. In e-commerce,
information and communication technology (ICT) is used in businesses or inter-
corporations (activities between factories / organizations) and in business-to-
consumer marketing (activities between firms / organizations and individuals). In the
electronics business, on the other hand, ICT is used to improve one's business.
Includes any process that a business organization (whether for profit, government or
non-profit) operates through a computer network. The broad definition of e-business
is: "Transformation of organizational processes to bring about greater customer value
through the technology, philosophies and computing paradigm of the new economy."

Three main processes are developed in e-business:

Production processes, including procurement, ordering and stock filling; payment

processing; electronic links with providers; and production control processes, among
others.

Customer-focused processes, including promotional and marketing efforts, online

marketing, processing of orders and payments for customers, and customer support,
among others; and Internal management processes, which include staff services,
training, internal information sharing, video conferencing, and hiring. Electronic
applications enhance the flow of information between production and sales capacity

39
in order to improve sales capacity. Work team communication and electronic
publication of internal business information is also made more efficient

PAYTM

Paytm is a form of Indian electronic payment and e-commerce type based in Delhi
NCR, India. Launched in August 2010, it is a subsidiary of the parent company
One97 Communications. The name is an acronym for "Payment through Mobile." the
company has employed more than 13,000 employees since January 2017 and has 3
million offline vendors across India. It also uses Paytm payment gateway and Paytm
Wallet. Paytm was founded and launched by One97 Communications Limited in 2010
as a mobile recharge website. In an interview, its founder Vijay Shekhar Sharma
recounted how he was inspired when he visited China, when he saw vegetable sellers
using cell phones to get payments from other customers. This led to the launch of the
Paytm wallet in 2013. In October 2013, Sapphire Ventures invested $ 10 million.
Since 2014, Paytm has begun to grow its portfolio. In January 2014, Paytm Wallet
was launched. Uber and Indian Railways have been key to installing Paytm Wallet as
a payment method. In 2015, it provided payment services ranging from re-payment of
metro, electricity, gas to water bills and had an average user base of 10.4 crores. It has
also entered the tourism business and made it easy to book 20lakhs tickets a month.
Paytm's growth is divided into three phases - the first three years of product market
equity; the next was income and monetization; and the final phase will be profitable
and free cash flow. In 2015, Paytm started implementing QR codes and in 2018-19
ended its equity in the product market. From 2019-20 onwards, make money.

GOOGLE PAY

In simple terms as simple as possible, Google Pay is a revenue-generating

application. It allows its users to make online payments as easily as possible. It is a
reseller application, which works between the user and another third-party
application. It generates revenue over time through independent buyers and sellers. It
has a really high value within the data driven market. Google Pay may be a digital
wallet platform and an online payment system developed by Google to enable in-app

40
purchases, online, and personal touch on mobile devices, allowing users to make
payments on Android phones, tablets. , or watches. Users within us and in India can
also use an iOS device, even though they have limited functionality. In addition, the
service also supports passports such as coupons, passports, compass identity cards, car
keys, event tickets, movie tickets, public transportation tickets, store cards, health
records, and loyalty cards. Users connect credit or debit cards to their Google Pay
account, which is used to create in-store purchases or online. For Android devices,
Google Pay uses near contact (NFC) to communicate with payment terminals. If you
are logged into a personal Google Account within the Chrome browser, users can
make changes with Google Pay to sites that support the service. Google Wallet was
the company's first mobile payment system, developed for Android devices in 2011.
In 2015, renamed Android Pay, Google Wallet re-focused on peer payment (P2P). In
2018, Google announced that Google Wallet will join unpaid payment offerings under
the Google Pay product. Google Wallet was renamed Google Pay Send. Google Pay
is available for payment without touch on Android devices. Peer-to-peer activities and
account access are available on iOS. However, when using an iPhone or Apple Watch
with NFC payments, only Apple Pay is eligible for this use case. The Google Pay
service works with most banks and payment providers. Specifically, cards from Visa,
MasterCard, Discovery and American Express are called for support. Users should
ask their individual bank if they are unsure of its compatibility with Google Pay.
Additionally, the Google Pay users' website maintains a list of states sponsored banks.
There is also a list of Google support stores for featured stores and transportation
agencies that support Google Pay. Users should search for the Google Pay token or
payment token without touching the terminal. To pay, users must install the Google
Pay app on their device and connect the card to their account. After using Google Pay,
a list of previous tasks is stored in a personal Google account for later retention and
storage.

Market share of Paytm and Google Pay

India's digital economy has improved over the past few years. Undoubtedly, the
success story of UPI has been an important tool in the ‘Digital India’ program, with a
home payment gateway gaining success even overseas. Last year, the RBI also

41
announced the introduction of a UPI for feature phones. The central bank found that
about 74 Cr mobile phone users have smartphones in the country out of a total of 118
Cr mobile users. UPI phone support can be very important in the case of UPI growth
as well as investment and digital access.

UPI recorded 461 Cr sales in January 2022 costing INR 8.31 Lakh. Although the
number has been the highest in UPI history, it has only increased by 1% every month.
PhonePe led UPI numbers through INR 4.05 Lakh Cr transactions. Google Pay
retained its second lead, the transaction rate dropped to INR 2.98 Lakh Cr. Next in
line was Paytm (with jobs falling into INR 85,125 Cr); Amazon Pay (with services up
to INR 6,729 Cr) and WhatsApp Pay (with services cost INR 205 Cr).

TECHNICAL ARCHITECTURE PAYTM Figure 2

A high-level architecture for electronic commerce. There are three parts to this
structure: the Internet, the firewall, and the organization. The Internet is where the
organization will interact electronically with customers, the organization's firewall
will provide them with appropriate protection from people who wish to harm them,
and the organization's systems will process business transactions generated by WWW

42
by their customers. allows users to make or accept payments at any time without
spending any cash. If the Internet is not available, the user can re-scan the QR code to
make a payment. The money stored in the user's Paytm wallet can be transferred to
your bank account. To do this, the user can follow the steps below:

Payment to Paytm can sometimes take up to 7 days to be credited to the recipient's

account due to downtime or network fluctuations. In such cases when the bank is
unable to pay the payments, the money is returned to the individual Paytm wallet and
notification.

GOOGLE PAY

The following are descriptions of each component of the technical structures.

➢ Google Pay Mobile Device

Mobile devices powered by the Android OS allow users to safely add their cards to
Google Pay. Google Pay supports the process of token making, in which payment
networks make tokens on the card and add a specific device token to a mobile device.
For more information on making tokens, see how the payments work. Google Pay
works with most modern Android devices across all major manufacturers and form
factors. For minimum requirements, see Required.

43
➢ Transit Reader

Transportation students are usually card readers at the transport station or at the bus
stop. Transport and terminal students receive a payment certificate from Google Pay
in the same way that they receive proof of payment from a debit or debit card, which
does not affect anything. In order to accept payments without touch, the transportation
student must comply with the EMV protocol. For more information, see Basic
operating requirements.

In order for students to comply with and support mobile EMV payments, they may
need software upgrades. For more information about Google's requirements for EMV
tagging, see the Basic Operating Requirements.

For offline students or who do not have high-speed internet connection, transport
services are required to enable offline device verification (ODA). For minimum
requirements, see Required.

➢ Transport server

Background server Transport operators or program coordinators often use it. Card
readers often connect to the server from time to time and form a bunch together.
Servers receive group processing requests and forward requests to the transaction
payment processor.

➢ Payment Processor

A payment processor is a payment firm. It removes the tokens from the payment
details in the token and completes the transaction with the issuing bank. For more
information on payment processing, see how payments work.

➢ Token Service Provider (TSP)

TSP Payment Networks provide services for making token and issuing credit and
debit card tokens. Analysts have used TSPs to obtain payment confirmations based on
the tokens that the Google Pay app sends them.

➢ Google server

The server provides a link between Google Partners and an Android user-enabled
mobile device. TSP sends action notifications, such as authorization and payment

44
notifications, to Google servers. Google servers use this information to display
notifications and activity receipts to the user

3.1 REVENUE MODEL

PAYTM

Paytm gets its money from the local market model. They work with the market model
and believe in the local market model, earning the opportunity for retailers to sell or
list their products on the Paytm website, so the buyer comes to buy the products. In
this work a Paytm payment commission from the merchant so this is part of how they
make their income. They also do extra work to make money. Paytm knows that the
Revenue Model is a revenue stream. It is a definition of a business that generates
income, profits, or income within the business. And they are fully focused on their
income model.

That’s believe also purely marketing strategy, they get earnings from sponsored
advertisers, showing

Ads they give coupons (from sponsors), so in order to gain some popularity and to
bare the competition they are giving the cash back. So, they attract more visitors as
well as get more sponsors, ultimate lye making them profitable. It’s a most profitable
strategy of Paytm.

Easily 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 facility of
Paytm chat facility. This screen shot define how customers bargain to the seller:

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 it’s a mobile friendly application.

45
Safe and Secure Payment: Paytm uses many trusted software for their security
purpose they used many securities application they provided best security when any
transaction is done, they use 256 bit of encryption for their security purpose.

RBI Approved Digital Wallet Their digital wallet is approved 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.

Competitors-

 –Mobikwik

 –Free Charge

 –Vodafone M-pesa

 –Airtel Money

GOOGLE PAY

Google Pay is one of the most trusted and popular apps. It is a great option when it
comes to online payment. It has a lot of presence and has a great growing user base.

In previous Google applications, it can easily be said that Google Pay, while not
currently making money, has many opportunities to do so in the future. That's why
Google Pay is currently focused on growing its users as much as possible. If it is
established as firmly as possible, then it can easily make money. So, it becomes the
basis of its users and keeps its users in the loop in three easy steps.

It uses scratch cards, gift cards, and other fun offers to keep its users amazed, many
of which can be found by referring to friends, which provides clever exposure to the
app with ease.

It collects user data and uses it for research and development purposes to provide its
users with the best products and services that are most relevant to them.

Google Pay has very easy communication. It is available in many languages and is
very easy to use. This can also be considered as sources on which this app makes
money. They are as follows:

46
1. Mobile Recharges Google Pay makes mobile recharges as the primary source of its
revenue. Whenever a user makes a recharge on a SIM operator from this app, it gets
commissions from it.

2. Bill Payments One of the most convenient and essential features of Google Pay,
which makes it so popular among the users, is that it can be used to pay all the
different kinds of bills. These bills include electricity bills, water bills, DTH
recharges, postpaid bills, loan payments, and even various bank transactions.
Whenever a user uses Google Pay to pay any such kind of bill or make a transaction
of this sort, the app gets a commission from that company.

3. UPI Transactions UPI Transactions constitute a significant component of online

payments. Google might not earn any revenue from it. Still, it gains access to user’s
data, which it then uses to present the services and suggestions on products that will
perfectly capture their interest and thus increase their involvement with the app,
growing its base further.

3.2 FUNDING

PAYTM

Since its inception, Paytm has gone through various funding rounds to get investment
for the survival, growth and innovation of the brand. Below are two tables
representing the funding rounds of Paytm toll November 2021 and major investors in
the company.

47
DATE INVESTORS AMOUNT ROUND
K2 Global N/A Not Yet Verified
-
N/A Series A
JAN 2014 N/A
Alibaba $575m Growth Equity VC
JAN 2015 ANT Group
$65m Buy Out
MAR 2015 N/A
ANT Group $135m Growth Equity VC
APR 2015
Alibaba $680m Growth Equity VC
SEP 2015 ANT Group
$60m Late VC
AUG 2016 MediaTek Valuation: $4.8b
$240m Late VC
AUG 2016 Alibaba SAIF Valuation: $4.8b
Partners
ANT Group
$1.4b Late VC
MAY 2017 Softbank Valuation: $8.0b
$9m Early VC
JUN 2018 Paytm Not yet Verified
N/A Growth Equity VC
JUL 2019 EBay
$1.0b Series G
NOV 2019 Ant Group SoftBank Valuation: $16.0b
Di
$6.6m Late VC
MAR 2020 Valuation: $16.0b
$5.2b
T. FUNDING

48
GOOGLE PAY

The two founders of Google Pay in India have raised $ 13.2 million in the Seed
Support round with its neo-blocking epiFi led by Sequia India and the Ribbit capital.
Other participants in the sponsorship rounds are David Velez, Kunal Shah and VC
fund Hillhouse Capital. Most recently October 2020. The investment app,
ETMONEY, has partnered with Google to provide Google Pay users with an
investment route for mutual fund plans and the National Pension System (NPS).

This partnership will allow Google Pay users to identify the appropriate MF schemes
and invest in them within a few minutes using their Google Account and Unified
Payments Interface (UPI) ID. Google Pay users will not need to create a user ID to
access this facility. It will be the same if one wants to invest in NPS as well. Sujith
Narayanan and Sumit Gwalani, both founders of Google Pay India formerly known as
Google Tez, say the seed subsidy brings the first neo-bank epiFi to the tune of $ 50
million.

49
3.3 GROWTH

PAYTM

Paytm also recorded 1 billion sales in 2016, which has never been won by any of its
competitors. Check out some of the interesting numbers posted by the company - In
terms of business, Paytm managed more than 14 percent of the market through 53.8
crore jobs worth Rs 60,094 crore by September'21. Total Paytm Payments to
Merchants (GMV) for transactions amounted to more than Rs. 4 lakh crores in 2021.
Paytm provides payment services, commercial and cloud services, and financial
services to 337 million registered buyers and more than 21.8 million registered
merchants as at 30 June 2021

Few facts regarding the rise of Paytm:

✓ Paytm has more than 450 million registered users.

✓ $2 million was the initial investment made by Paytm founder, Vijay Shekhar
Sharma, in 2010.

✓ Paytm has 39 million daily active users.

✓ Paytm has generated 36.29 billion INR ($510 million) in 2019.

✓ Over 70 million games are played on Paytm Gamepind each month.

✓ 89% of users aged between 16 to 24 years prefer Paytm.

✓ India’s payments market is estimated to be worth $1 trillion in the next three years.

✓ 5 million Paytm transactions are processed every day.

✓ 850,000 offline merchants currently use Paytm.

✓ There are 2 times more men than women who use Paytm.

✓ 70% of Paytm users have an Android device.

✓ A 1000% growth in money added to the average Paytm account has been recorded.

50
✓ Paytm has also 89% of the mobile share in the market, with 70% coming from
Android, 4% from iOS, 11% from desktop, 14% from mobile web and 1% from
Windows OS. Compared to last year’s 72%, the share has increased a lot.

GOOGLE PAY

Google Pay is emerging as the secret weapon in Alphabet's (GOOGLE) plan to

dominate India's boom in online shopping, social networking, video streaming and
cloud gaming.

✓ Google Pay maintained its second lead with INR 3.03 Lakh Cr transactions.

✓ Google Pay is second in line in UPI market leadership.

✓ The payment giant commanded a little over 37.5% of the total market share in
2021 with transactions worth INR 2.74 Lakh Cr.

✓ Google Pay presently has over 10 Mn merchants across 19,000 pin codes,

✓ enabling 15 Bn transactions annually, spanning 220 Mn+ users.

✓ PhonePe and Google Pay currently own 47% and 34% of the UPI payments market
share respectively (as of December 2021).

SWOT ANALYSIS

SWOT Analysis is a tool used to plan strategies and strategic management in

organizations. It can be used effectively to develop organizational strategy and
competitive strategies. According to the System Approach, organizations are a
platform that works with their localities and consists of various sub-systems. In this
sense, an organization exists in two places, one being on its own and the other on the
outside. It is necessary to analyze these areas in order to implement management
strategies. This process of evaluating an organization and its environment is called
SWOT Analysis. (Gurel, 2017)

51
 After going through several online resources following strengths, weaknesses,
opportunities and threats are concluded for both the selected companies

PAYTM

Strengths:

– Paytm has got extremely high brand awareness across India.

– Paytm was able to scale up its business quickly after demonetization.

– Offers multiple cash back options to customers.

– Paytm is largely accepted by merchants across India, which has helped the brand
grow.

– Strong marketing campaigns have helped spread brand awareness.

– Word of mouth of cashless transactions and ease of use has been accepted well by
the people.

– Strong investments from Ratan Tata, Alibaba group etc have strengthened Paytm's
position.

Weakness:

– Audience in India is less the savvy as majority consider cash as primary currency.

– Paytm has diversified too much.

Opportunities:

– Paytm can cater to a larger audience with some offline presence as well.

– Paytm can educate customers on accepting cashless transactions and online

payments which would in turn boost their customer base.

– Offer more banking services along with online payment options.

Threats:

52
– Banks offering e-wallets on their saving accounts.

– Security and privacy of user is a concern for Paytm.

GOOGLE PAY

Strengths:

1.Easy to set up and use It's easy to install Google Pay on your smartphone or smart
watch. You must make sure that NFC is enabled. NFC stands for near-field
communications and is used for communication and transactions between two
electronic devices, one of which will be your smartphone or watch. NFC technology
is common in modern smartphones. If you are unsure, check Settings on your phone
to see if you have an NFC option. It is also necessary that your smartphone is the
latest model that uses at least Android Lollipop 5.0 or higher (released in 2014). You
can set it up with your basic information - mobile number and your bank account
number, cards (including prize cards) and enable permissions to get started. In 2020,
Google announced the launch of Google Pay. What has changed? Payment mode that
used to be a simple tap and pay app is now a multi-functional financial tool. You can
use it to pay for shopping at online stores, shops and restaurants, booking tickets,
peer-to-peer transactions including shared lunch payments, keeping visual cards,
passports and tickets. Additionally it allows you to connect to your bank accounts to
manage and search your accounts, and you choose to let Google Pay search your
inbox to check receipts. Although these new features are not yet available in all
countries, Google Pay is becoming a popular payment option worldwide. Also,
remember that you can reach out to their customer service team whenever you have
questions or concerns.

2.High level of security Google Pay is built on a number of security measures to

ensure that your money is not misused or stolen. Your credit card numbers are not
saved or shared with anyone. The entered information is stored on Google's secure
servers and Google automatically removes the cache. No paymaster can see or store
your banking details. You will be asked to use a one-time security code to complete
your transaction, which makes it safer to hack. With the option to block the service
remotely in case of phone theft, and keep access locked not only with a pin but also

53
with your fingerprints, with Google Pay you will enjoy more security compared to a
credit card. Even if your phone is stolen, as long as your phone is locked, a thief
cannot access Google Pay without knowing your access code or biometric
verification, and if necessary you can find, lock or wipe your phone remotely using
Find My Phone.

3.Carry only your phone or your smartwatch If you always carry your phone, or wear
your smartwatch, it does not matter if you leave your wallet at home. Just look at
supermarkets or stores that accept Google Pay and shop with just a few clicks on your
mobile app. These days, the number of merchants who accept Google Pay as a
payment mode is increasing, especially if you are in an urban area. It's that simple -
no problems.

4. Attractive promotion and reward programs One of the great benefits of mobile
payment methods like Google Pay is that besides being easy to use, they also reward
you for using or promoting it. If you choose to enter the Google Pay rewards program,
you can earn attractive returns and discounts at restaurants and other stores with all
eligible purchases. Offerings can be one-time coupons that you can use at various
stores or a refund. With the launch in 2020 there is a new Check tab where Google
will compile deals for you. The Explore tab also has a QR and barcode scanner that
helps you easily search for better deals in other stores before purchasing a product. In
addition, the transfer may earn you cash or other prizes. If you recommend a friend to
try Google Pay and pay with it, you can be rewarded for it. Check out the transfer
offers in the app for more details. Google Pay also allows you to increase store loyalty
and prize cards. Prizes will be added automatically when you purchase related.

5. And it’s free! According to Google, Google Pay is free for both customers and
vendors. Whilst a vendor might still charge you a credit card surcharge (which they
may apply to any card transaction) any surcharge is charged by the shop and not
Google Pay.

Weakness:

1. Not always accepted You can use Google Play in many stores and online shopping
sites, but you can't go anywhere without your cards or cash and be absolutely sure that

54
everywhere you will be able to pay with Google Pay. This is especially true if you are
heading to a market, or to a rural or remote area. Many large banks, as well as a large
number of other financial institutions, offer Google Pay to their customers. Use
Google Pay to pay at all stores with the ‘GPay’ or NFC logo, as easy as opening the
phone and holding it over a terminal to complete the payment. Google Pay is
welcomed into the millions of places around the world including supermarkets,
restaurants, clothing stores and other stores that will host Google Pay. However, there
are retailers who continue to oppose this payment option so if you are moving to a
new location it is wise to check in advance or manage another payment option. For
example, Walmart does not accept GPay or Apple Pay (apparently because it will lose
important data due to these mobile wallets), however it has set your own Walmart Pay
payment option. You can also shop online with Google Pay - whether you're booking
movie tickets, or your favorite sporting event, or shopping online. Select from the list
of options available during exit. At Ink Depot, you can easily complete the payment
of your orders with Google Pay or Apple Pay.

2. Not as effective on all phones Not all smartphones are the same. Although all
modern smartphones have NFC, if you have an older phone you may need to check if
NFC is working as Google Pay requires this to send transaction data to the payment
point. Google Pay is designed for Android devices, however in some countries (U.S.
and India) it can also be configured on Apple smartphones (IOS). You just can't tap
and pay with Google Pay on Apple's phone (or pay within mobile apps). For
foreigners with Apple phones your simple Apple Pay option (discussed below).

3. Concerns of Data Privacy Google Pay and many other mobile payment methods
leave behind a transaction record that causes concern for some people. However, the
high level of security used by Google Pay means you do not have to worry about
hacking. As mentioned above Google Pay does not store your banking information in
the app and never transmits your actual banking information which reduces the
chance of it being discovered and misused. Google Pay however tracks your
purchases, and your activity history is stored on Google. For those who want to clear
their activity history there are ways to do this - as posted on this blog.

55
Dependence on your phone or smartwatch Since your payment via Google Pay is
directly linked to a smartphone and mobile app, you will be stuck if you have a
problem with your phone or mobile network. So plan to make a backup copy when
you buy if you lose your phone, not in your mobile network, or your battery is dead.
Unless your phone is working, you will not be able to pay - in such a simple way.

Opportunities:

– Existing installed base of registered users.

– High growth industry

– Many untapped niches to dominate

– Vendor relationship, like FedEx

– Google retains merchants’ customer information.

Threats:

– Playing catchup with the top competitors

– Banks could easily enter market

– Many niche available for new comers

– Competition can eliminate profits

– Increasingly easy entry for competitors

3.4 MARKETING STRATEGY

A marketing strategy refers to an integrated decision-making pattern that outlines its

key choices about the markets to offer and the market categories to be targeted, the
marketing activities to be undertaken and the performance of these activities, and the
distribution of marketing resources between markets, market segments and marketing
activities. of a product that gives value to customers in exchange for the organization
and thus allows the organization to achieve certain goals. (Varadarajan, 2010)

56
Now, we take a look at the different marketing strategies adopted by Paytm and
Google Pay below.

PAYTM

Paytm's marketing strategy can be broken down into four main tactics:

– User acquisition: Paytm has been very aggressive in its recruitment strategies,
spending a lot of money on marketing and advertising campaigns. In particular, the
company focuses on finding new users through its wallet product.

– Engagement and retention: Paytm also works to engage and retain users by
providing various features and services. This includes payments, refilling, tickets, and
e-commerce.

– Monetization: Paytm has been successful in monetizing its user base by charging
merchants for transactions carried out through the Paytm platform.

– Viral growth: Paytm has leveraged word-of-mouth and viral growth to increase the
adoption of its products.

Reasons for quick adoption of application by users:

➢ Introduced Cashless Transaction With the growth of mobile phone users

worldwide, the online shopping and cashless shopping market has also expanded.
This is where Paytm helps, as it enables clients to use cashless or digital payments.

➢ Helps Small Businesses to Go Digital Another reason for the success of Paytm is
that it helps small businesses go digital. In a country like India, where most businesses
are still run offline, Paytm provides these businesses with an easy and affordable way
to go digital and expand their reach to new customers.

➢ Partner with Leading Brands They also tried to partner with as many leading
brands as possible to help promote their platform and encourage more people to use it.
Some of the brands they have partnered with include Uber, Ola, Zomato, Swiggy, and
more.

57
➢ Provides Numerous Services Apart from just being a mobile payments platform,
Paytm also provides numerous other services such as bill payments, movie tickets,
travel bookings, online shopping mall (Paytm Mall), and more. This gives users a
one-stop shop for all their needs and encourages them to use the platform even more.

➢ Event Sponsoring Paytm has invested significant time, money, and effort in
sponsoring various events, especially sporting events such as the IPL (Indian Premier
League). This has helped to create more noise and product awareness, which in turn
has led to an increase in users. Paytm is a major sponsor and supporter of the Indian
cricket team, providing the name with significant worldwide exposure.

➢ Offers Discounts and Cashbacks One of the main reasons why people love Paytm
so much is because it offers huge discounts on various services. For example, you can
get up to 50% off on movie tickets or 20% cashback on electricity bills. This
encourages people to use the platform more often, which has helped to increase its
popularity.

➢ Advertising Campaigns Paytm has been actively marketing itself as part of its
marketing strategy. The company has conducted many high-profile campaigns in the
past, which have helped to increase its visibility and popularity. They run their
campaigns through TV commercials, social media, newspapers, magazines, and even
billboards. After Paytm became a joint sponsor of the Indian Premier League, its first
major "Paytm Karo" campaign was launched in April 2015. Attracts New Customers
with an easy-to-use interface Apart from all the other reasons mentioned, Paytm's
easy-to-use interface is another feature that has helped attract new customers. With a
simple and easy-to-use design, Paytm makes it easy for anyone to make digital
payments. The forum is easy to understand and navigate, making it ideal for first-time
users. Additionally, there are various features available in the app that make
transactions faster and easier.

GOOGLE PAY

1. Google Pay focuses on partnerships, localization and the ecosystem approach as it

builds deeper relationships with the central bank and government to re-design and

58
build collaboratively and make products more cohesive and open to work
collaboratively within the ecosystem.

2. Its business based UX allows users to search for who paid them ahead of time,
rather than a work day or time. Under the business-based model users can see the
conversations of all the people or their business partner when they have to check a
payment record.

3. Introduce local forum: a way for businesses to build information and engage their
customers within the google pay app. Popular services such as urbanclap, goibibo,
makemytrip, redbus, eat.fit and over story were the first to enter its early access
program.

4. Enhance small business support with a new app called Google Pay for Business: a
free and easy way for small retailers and in-store to enable digital payments without a
time-consuming verification process.

5. The search giant stepped up its support for job seekers by introducing a spot on
google pay to help people find entry level positions that aren’t always easily
discoverable online.

6. It joined hands with the government to roll out ‘Digital Payment Abhiyan’ for
increasing awareness about cashless payment and online financial security in the
country.

7. It launched ‘the Vodafone-Idea Phone Line’ to help people in the rural areas,
where internet connection is weak, get information about everything.

8. Selection of the right campaign for the right user: Google Pay has played its smart
card by choosing gamification as part of virality. They know that small audiences
between the ages of 17-30 are the main users of their app so naturally, campaigns
should also be able to attract and engage these audiences. What could be a better
option than 'gamification'?

9. Give something to the user valuable enough to share: We all know that we take
something seriously or buy something when a product is recommended by our friends
unlike the type that advertises its product on television. This is the power of oral

59
marketing. #Goindia works with the same goal- ‘Get tickets by sharing with some of
your friends.’

10. User conversion: What is the best way to convert a user into your brand’s
customer? Offer samples. We see several brands giving out free products (Free
santoor soap with Parachute oil) and also giving out samples of food items in
supermarkets so that users who taste that brand’s product might like it and end up
buying the product. Google does the same thing. Look at the below instructions given
by google pay on how to earn more tickets and Kms.

FINDINGS

Going through all the resources and sorting then in all the subheadings such as,
technical structure, market share, revenue model, growth, SWOT and marketing
strategies following facts have been discovered

1. Online payment is rapidly gaining the status of default mode of payment for
products and services.

2. Even rural parts of India are accepting this new technology, with efforts of
government in making India more Digitalized.

3. Paytm was the pioneer in Online Payment Apps in India, thus enjoys a unique place
in consumers’ mind and lives of Indian citizens at large.

4. But as the competition has rose and plenty of online payment apps as well as banks
creating online options for transactions, the market share of Paytm has suffered
negatively.

5. Google entered the online payment industry after its Indian counterpart app Tez
was rebranded as Google pay for better recognition in the market worldwide.

6. In relatively less time Google Pay has acquired near to one-third of the online
payment market.

7. The marketing strategy of both the apps revolves around ease of using and vibrant
offers for the users when used for payment transactions.

60
8. The common threat in all the online payment apps comes down to data privacy and
security issues.

9. Also, this practice of using digital mode for even the minute payments on regular
basis, makes citizen more dependent on their smart phones. Any mishandling of the
phones can now be even more loss.

10. Even with record breaking transaction through online payment apps, its still
surprising how these apps are rarely in profits.

Phone pe

In this study, the discussion about this report contains the basic introduction about
both of the organizations “Marketing strategies Of Phonepe E-Wallet. Chawla (2019)
collected data from 744 respondents and discovered that trust, easy to use and security
have an effect on the attitude of consumers to use e-wallets. Girija (2019) collected
data from 150 respondents and revealed that cash back offers, and convenience are the
main reasons to use ewallets. Senthil (2019) surveyed 150 respondents and found that
users are satisfied with Paytm services as it resolves the problem within 24 hours.
Sivakumar and Balaji (2019) got responses from 100 respondents and discovered that
there is no significant relationship between age and use of Paytm. FE Bureau (2017)
states that According to the RBI: Demonetization has increased the growth of Paytm
& Mobi Kwik which is known as the Digital payment companies. “A Newspaper
Article in Financial Express”. Dr. Poonam Painuly, Shalu Rathi in their paper
“Mobile Wallet: An upcoming mode of business transactions” (May 2016) clearly
explains about the mobile wallet, it’s types and latest trends. At that point examined
about Role of portable wallet in different divisions like Banks, Retail and Hospitality.
The paper clarifies the significance of versatile wallet for Banks, Customers and
Companies. In future extension it also discusses on the versatile wallets turning into a
trend of advertising channel in not-so-distant future. Also, contributing exceedingly to
a consistent shopping knowledge for the clients that expansion their inclination for
regular and more repurchases with delightful encounters. They additionally talk on the
significance and development of portable cash in business, social and monetary
planned. The nearness of versatile wallet spreading from urban to country territories
on a huge scale. Henceforth, wallet cash sees a high splendid future in close time. Prof

61
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 © 2022, IJSREM |
www.ijsrem.com DOI: 4410.5281/zenodo.657801910.52 81/zenodo.6578019 Page 9
International Journal of Scientific Research in Engineering and Management
(IJSREM) Volume: 06 Issue: 05 | May – 2022 Impact Factor: 7.185 ISSN: 2582-3930
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. Key Pousttchi and Dietmar G. Wiedemann in their paper
“What Influences Consumers’ Intention to Use Mobile Payments?” (2008) studied the
adoption of mobile payments and evaluated what key influences affected consumers
to use mobile payments and found that subjective security was not a primary driver of
mobile payment acceptance. They found that perceived confidentiality of payment
details and perceived trustworthiness were strongly correlated. Four key variables
were found to directly impacting consumer intention and usage behavior: performance
expectancy, effort expectancy, social influence, and facilitating conditions. Myersin
(1969) stated that the vast majority of the innovation are essentially advertise driven
and is acquainted as an answer with the particular needs of the customer. Lynn (1966)
states that more development is presented in Consumer Market when contrasted with
mechanical markets. Galbraith (1970).

Phonepe E-Wallet PhonePe has been leading the industry in all key metrics including
number and number of jobs, registered users and vendor inclusion. The first to be a
market leader in the UPI with a market share of over 46% in the volume of activities
considered last year.

Benefits a of Phonepe .

 Fast and easy recharge.

 . A problem-free payment to the Seller.

 . Easy Bill Payment Kanye Autopay.

 . UPI Fund Transfer.

 . One app for many services.

62
  . Slightly Secure (Does not require a PIN or password to unlock)

 . Delay in payment.

 . Non-Credit of Money

Research Methodology

The aim of this research paper is to analyze the usage of PayTm by users. In order to
reach the aim a structured questionnaire was sent to 230 smart phone users who use
PayTm for online payment. The respondents were categorized on the basis of, age,
Frequency of usage, Purpose of usage and average monthly spending on PayTm. Out
of 230 people only 151 responded to the questionnaire. This research used descriptive
method in order to get the statistic result from respondents. Sample design: -. The
study is done by using Convenience sampling method with 95% confidence and 5%
margin of error. A sample of 50 employees have been taken across India. The data
gathered was analyzed using Percentage Analysis, Correlation Test and Chi-square
Test. Data Collection: In view of this questionnaires were sent to 50 respondents and
the inquiries were asked where their responses are noted. Respondents are mainly
college students, employed and non-employed youths, middle aged people both
employed and non-employed and the merchants

The research methodology used is explorative study which includes primary data and
secondary data. The sample size chose are 20 customers of Pay U Money and Pay tm
which constitutes 20 customers belonging to 18-30. Our survey is based on
questionnaire method.

 Awareness about Phonepe or Payu Money

Pay tm or Pay u Money refers to the electronic payment for online transactions which
offers recharges, shopping, utility bill payments etc. Nowadays, people are aware
about various services provided by pay tm or pay u money. It catches the attention of
young customers as it gets noticed by working on unique ads. As this brand is
increased day by day by the people it has created 100% awareness about the pay tm or
pay u money by both the age groups and agreed about various facilities provided by it.

63
 Any delay in payment

Paytm have the option of recharging and shopping from whenever, anywhere and
access from wherever they are. Before opting, pay tm people should think twice or not
whether they provide service. Pay tm plays a significant role in payment of online
transactions, but they suffer from the technological barriers as server may busy.
According to the survey, it shows greater volume for positive i.e. 60% people have
agreed that there is no delay in payment and 40% people have disagreed between 18
to 30 years. Even there is a positive reaction in 30 to 45 years, as 80% people agreed
and 20% people disagreed. The disagreed people have told about that they have

64
recharge mobile for Rs.100 but for 40-45 min it did not process and did not refund to
bank a/c. this error was due to technical fault in pay tm. Pay tm have the option of
recharging and shopping from whenever, anywhere and access from wherever they
are. Before opting, pay tm people should think twice or not whether they provide
service. Pay tm plays a significant role in payment of online transactions, but they
suffer from the technological barriers as server may busy. According to the survey, it
shows greater volume for positive i.e. 60% people have agreed that there is no delay
in payment and 40% people have disagreed between 18 to 30 years. Even there is a
positive reaction in 30 to 45 years, as 80% people agreed and 20% people disagreed.
The disagreed people have told about that they have recharge mobile for Rs.100 but
for 40-45 min it did not process and did not refund to bank a/c. this error was due to
technical fault in pay tm.

 Security system

Nowadays, pay tm offers advanced account protection to gain this we have to login to
additional layer of security on pay tm website. Pay tm has designed 2 step
authentications to keep safe and secure our pay tm in mobile applications. This feature
is to make sure our account safe always. As the security system is available to all in
advanced way, people are well known about the attractive security training; majority
of people i.e. 100% have satisfied with this between 30-40 years. Meanwhile, between
18-30 years’ age group 16 people are agreed and 4 people are disagreed because all of
them are vulnerable to password thefts. To secure our pay tm transactions, we tend to
use same password on all platforms and websites for our convenience.

 Problems encountered while making payments

Pay tm strongly believes in a sincere and transparent approach to its users. Pay tm
treats the users fairly all times and encounter the problems and they take care of all
complaints effectively. As the main aim of pay tm is at minimising customer
complaints, grievances and reviews an redressal as they give first preference to
customers to solve their problems. All the employees at pay tm works in a good faith
and people are attracted towards this pay tm or Pay u money application 15 people of
them are agreed and 5 people are disagreed in 18-30 years of age group. As well,
complaints raised by users are dealt with an open mind with courtesy and in timely

65
manner most of them are satisfied nearly 6 of them agreed and 4 of them disagreed
between 30- 45 years’ age group.

 Problem solving:

Refund to A/c, Refund to wallet, no refund For every problem, there is a solution.
Here also pay tm users will come across some of the problems like delay in service,
refundable etc. at the same time they also provide solutions to the customer problems.
Pay tm solve the problems by refunding their amount to their A/c or to the wallet.
Sometimes it may not refund also. According to the survey, the amount has been
refund to their wallet is high than refund to their a/c for the 18-30 years’ age group.
The amount that has been refund to their wallet is 16, and refund to their a/c is 4. But
for the 30-45 years’ age group users have received their amount to their a/c is high i.e.
6 than compare to refund to their wallet is 4. So, pay tm app has provided these types
of solutions as the users are increasing day by day.  Satisfied with coupons, cash
backs and offers Pay tm not only process quick online transactions for payments of
recharge, utility bill payments etc. it also provides various offers like coupons, cash
backs etc. recently pay tm is giving special offer as if we make payment for Rs 100
using our pay tm wallet we will get Rs 105 cash back within 5-6 min as it will be
valid for only 2 coupons. As it provides various offers it is attracted by all the users.
Special offers, coupons, cash backs etc offered by pay tm plays a major role. As in
today’s world people foresee about the various attractive gifts and keen to get benefit
from one thing. As per this majority of people i.e. 17 are satisfied and 3 are
unsatisfied between 18-30 years of age group. And also between 30-45 years 8 people
are satisfied and 2 people are unsatisfied.

 Satisfied with Phonepe or PayU money

Pay tm mainly focus on payment of online transactions, DTH recharge, utility bill
payments. It provides true, accurate and complete information about pay tm or pay u
money. It acts as a pivotal role as we can pay through debit card, credit card, net
baking. It also provides security system to safeguard our wallet balance and it also
offers cash backs, discount vouchers etc. Though it has been introduced recently
people are well known about this and satisfied in processing it. Nowadays world is
growing at large, they provide various applications to make online payments i.e. Pay
tm, Pay u Money, net banking etc. Based on the users, pay tm or pay u money

66
creating a new brand in the society. According to the survey in both the age groups
i.e. 18-30 years and 30- 45 years’ age group people gave their 100% satisfaction
towards pay tm but they have a request to get quick payment of transactions to benefit
more to them

DATA ANALYSIS

Digital Transformation is far beyond just moving from traditional banking to a digital
world. It is a vital change in how banks and other financial institutions learn about,
interact with and satisfy customers. An efficacious Digital Transformation begins
with an understanding of digital customer behavior, preferences, choices, likes,
dislikes, stated as well as unstated needs, aspirations etc. And this transformation
leads to the major changes in the organizations, from product-centric to customer-
centric view.

A study by CGI entitled, Understanding Financial Consumers in the Digital Era sheds
some light on the desires of today’s digital consumer. Interestingly, at a time when
financial institutions seem to be in a lock-step with each other, consumers are raising
the bar on their expectations. And, according to the study by CGI, they are willing to
leave where they currently bank if their needs are not met.

The most effective way to understand and bring the organization from traditional
banking to digital banking is Omni-Channel approach. Omni-channel is a
multichannel approach to customer service where all the channels are tightly
integrated, keeping customer in the centre of the integration. As customers continue to
change their channel usage patterns, banks and credit firms need to focus on
delivering a seamless customer experience across various touch points. More than just
an axiom, Omni-channel banking is a prospect to take bottom-line on higher note by
gaining insights from customers’ channels, behavior and preferences. Today’s
customers are more sophisticated and tech savvy, and to cater to their specific needs,
each customer needs a unique experience from banking. They want the companies to
understand their unstated needs as well as their likes. So, it should come as no
surprise that these customers are expecting similar kind of response and service from
banking institutions too. From researching new services, opening an account,
checking balance, conducting transactions, loans, credits, wealth management,

67
customer support, delivering an Omni-channel experience has become a key to
success in this competitive markeplace.

In the current multichannel model, customers are directed to the least expensive
channel which grounds to not only the dissatisfaction, but also the channel hopping.
The whole process is inefficient, costly and inconsistent. Omni-channel is not the
replacement of multichannel, but it’s the enrichment. Espousal of Omni-channel is
indispensable to ensure that customer experience is unified, incorporated and supports
customer at the right time, in the right place as the right way. It must be as per their
mobile and digital life style. Staying germane in current banking revolution entails
rdeep acquaintance of customers’ needs, wants and demands. It also requires the
precise mixture of IT infrastructure and innovative new technologies to certify that
one remains ahead in current market space to drive top, as well as bottom lines
upwards.

68
Few statistics on the future of customer engagement:

• 73% of marketers view customer centricity as critical to the success of their

business and role at the company. (The CMO Council, Mastering Adaptive Customer
Engagement 2014)

• 70% of buying experiences are based on how the customer feels they are being
treated. (McKinsey)

• A 2% increase in customer retention has the same effect as decreasing costs by 10%.
(Leading on the Edge of Chaos, Emmet Murphy and Mark Murphy)

• In the retail banking industry, customers who are fully engaged bring 37% more
annual revenue to their primary bank than do customers who are actively disengaged.
(Gallup State of the American Consumer 2014)

• Fully engaged policy owners purchase 22% more types of insurance products than
actively disengaged policy owners. (Gallup State of the American Consumer 2014)

• The majority of businesses are unable to support an Omni-channel customer

journey. (Forrester Wave Customer Service Solutions 2014)

• Only 12% can provide a seamless hand-off between channels. (Forrester Wave
Customer Service Solutions 2014).

69
70
 CHP 4: DATA ANALYSIS AND INTERPRETATION

4.1 ANALYSIS THROUGH GRAPHICAL REPRESENTATION

Have you heard of Mobile Wallets?

Answers No.of respondants Percentage

YES 95 96%
NO 4 4%

Interpretation:

The responses collected is 99 and it is collected in a limited sector that is Mumbai and
getting to know the perception of the respondents. The maximum of the respondent’s
has answered Yes that is 96% for which 95 people have responded out of 99
respondents. And 4% that is 4 people out of 99 respondents have answered that they
have not heard of the Mobile Wallet

71
Do you use Mobile Wallets?

Answers No. of respondents Percentage

Yes 84.8%
No 15.2%

Interpretation:

The responses collected is 99 and it is collected in a limited sector that is Mumbai and
getting to know the perception of the respondents. The maximum of the respondent’s
has answered Yes that is 84.8% for which 84 people have responded out of 99
respondents. And 15.2% that is 15 people out of 99 respondents have answered that
they do not use Mobile Wallet

72
Which of these Mobile Wallets do you use?

Answers No. of respondent Percentage

Google Pay 67 67.7%
Paytm 18 18.2%
Phone Pe 14 14.1%

Interpretation:

The responses collected is 99 and it is collected in a limited sector that is Mumbai and
getting to know the perception of the respondents. The maximum of the respondent’s
has answered Google Pay that is 67.7% for which 67 people have responded out of 99
respondents. Around 18.2% that is 18 people out of 99 respondents have answered
that they use Paytm and 14.1% that is 14 people out of 99 respondents.

73
Do you feel safe while using Mobile Wallet?

Answers No. of Respondents Percentage

YES 85 85.9
NO 14 14.1

Interpretation:

The responses collected is 99 and it is collected in a limited sector that is Mumbai and
getting to know the perception of the respondents. The maximum of the respondent’s
has answered Yes that is 85.9% for which 85 people have responded out of 99
respondents. Around 14.1% that is 14 people out of 99 respondents have answered No
as they do not feel safe while using the Mobile Wallet.

74
Do you prefer using Mobile Wallets over Cash/Plastic payment options?

Answers No. of respondents Percentage

Yes 70 70.7%
No 29 29.3%

Interpretation:

The responses collected is 99 and it is collected in a limited sector that is Mumbai and
getting to know the perception of the respondents. The maximum of the respondent’s
has answered Yes that is 70.7% for which 70 people have responded out of 99
respondents. Around 29.3% that is 29 people out of 99 respondents have answered No
as they do not prefer using Mobile Wallet over Cash/Plastic Payment Options.

75
Can you completely rely on E wallet for all kinds of banking?

Answers No. of Respondents Percentage

Yes 62 62.6%
No 37 37.4%

Interpretation:

The responses collected is 99 and it is collected in a limited sector that is Mumbai and
getting to know the perception of the respondents. The maximum of the respondent’s
has answered Yes that is 62.6% for which 62 people have responded out of 99
respondents. Around 37.4% that is 34 people out of 99 respondents have answered No
as they cannot completely rely on E wallets for all kinds of banking.

76
Would you say you started using the Mobile Wallet after demonetisations moved
by the government?

Answers No. of respondents Percentage

Yes 64 64.6%
No 35 35.4%

Interpretation:

The responses collected is 99 and it is collected in a limited sector that is Mumbai and
getting to know the perception of the respondents. The maximum of the respondent’s
has answered Yes that is 64.6% for which 64 people have responded out of 99
respondents. Around 35.4% that is 35 people out of 99 respondents have answered No
as they have not started using the Mobile Wallets after Demonetization moved by
Governments.

77
 CONCLUSION

Few years back it would have been impossible to imagine that Indian citizens
especially of yester generations and rural areas will be using smart phones to pay for
products and services, that too on a regular basis. Indian subcontinent has been going
through a wave of digitalization since 2016 and the online payment apps were too
welcomed under this government initiative. From top hotels, retail shops, and
department store to local vendors is using this platform for their money transaction.

Paytm has been the pioneer and had taken the risk of first mover which rewarded
them with the first mover advantage too. The new generation adopted the app at a
furious speed and showed the country that it’s a rather safe application to use and
involve money into. But soon many new players emerged in the market, noticing the
lucrative new industry backed by government ideology. These new entrants included
new companies like PhonePe and existing companies, which diversified their business
into this segment like Google Pay. Also, banks came up with their own online
payment platforms, which also further fragmented the market.

Google diversified its business model to enter the online payment market too. It
Rebranded the Tez app to Google Pay app. It is a very easy to use app which has
layers of security for the users. The trust and brand awareness to Google helped this
new app gain users rapidly and secure a strong spot on the market. With innovative
offers and marketing strategy the app tries to be relevant with the world.

However, the threats related to these apps still exist. Over dependency on smart
phones, data privacy leakages, internet issues, system failures and other issues always
pertains which makes users not fully transition to digital payment only.

78
SUGGESTIONS AND RECOMMENDATIONS

• People should be more accurate about refunding their amount directly to their wallet
if any delay in payment. People should update their Paytm or Google Pay.
applications from time to time in order to safeguard.

• Users should be more careful about the offers; cash backs provided by Paytm or
Google Pay.

• The digital payment system has to take necessary steps to overcome delay in
processing of payments.

• People are more aware about the online payments through mobile applications and
there is a wider increase in growth rate.

• Due to advanced feature in Paytm or Google Pay, net banking has been directly
replaced.

• Paytm or Google Pay is giving 2 level security authentications to safeguard our

payment details.

• Pay Tm Company has come across the customer problems immediately while
making payments.

• Paytm or Google Pay is providing easy payment structures compared to

Digital payment system.

79
 BIBLOGRAPHY

https://www.josephscollege.ac.in/pdf/jjmds/e-Wallet%20-%20The%20Smart
%20Walletworks%20-%20A.%20Aparna.pdf - introduction on E wallet

https://paytm.com/blog/payments/mobile-wallet/types-of-digital-wallets/ - types of E
wallet

https://www.techtarget.com/whatis/definition/digital-wallet - how to use e wallet

https://www.electran.org/publication/transactiontrends/a-brief-history-of-
%E2%80%A8mobile-wallets - history of E wallet

https://blog.717cu.com/resources/education/financial-education-blog/the-history-
ofdigitalwallets#:~:text=The%20origins%20of%20digital%20wallets,First%20online
%20purchase%20is%20made .- history of E wallet

https://streamlynacademy.com/blog/phonepe-case-study/ case study regarding phone

pe

file:///C:/Users/SP00761301/Downloads/SANGITA%20(1).pdf case study regarding

google pay & paytm

https://en.wikipedia.org/wiki/PhonePe history of phone pe

A study on intention & adoption of E wallet (google.com) survey conducted regarding UPI
Ewallet

80
 ANNEXURE

Age of the Respondents:

Answers No. of Respondents Percentage

18-25 57 57.6%
25-30 14 14.1%
30-35 11 11.1%
35-40 7 7.1%
Above 8 8.1%
15 1 1%
16 1 1%

Interpretation:

The responses collected is 99 and it is collected in a limited sector that is Mumbai and
getting to know the perception of the respondents. The maximum of the respondent’s
that is 57 respondents are in age group 18-25, 14 respondents are in the age group 25-
30, 11 respondents are in the age group 30-35, 7 respondents are in the age group 35-
40, 8 respondents are in the age group above 40, 1 respondent is of age 15 and 1
respondent is of age 16.

81
Gender

Answers No. of Respondents Percentage

Male 66 66.7%
Female 33 33.3%

Interpretation:

The responses collected is 99 and it is collected in a limited sector that is Mumbai and
getting to know the perception of the respondents. The maximum of the respondent’s
that is 66.7% or 66 respondents are Male and 33.3% or 33 respondents are Female.

82
Do you think E-Wallet can bring a change in India?

Interpretation:

The responses collected is 99 and it is collected in a limited sector that is Mumbai and
getting to know the perception of the respondents. The maximum of the respondent’s
that is 42.4% have answered that E wallets have already brought a huge wave of
Cashless era. About 5% of the respondents believe that they have not yet succeeded to
bring that change in India. And the rest 52% believe that they have done a good job
and they are being improving in the support that they have been providing to the
users.

Have you heard of mobile wallets?

 Yes

 No
Do you use Mobile wallets?

 Yes

 No
Which of these Mobile wallets do you use?

83
  Google pay

 Phone pe

 Paytm
Do you feel safe while using mobile wallets?

 Yes

 No
Do u prefer using mobile wallets over cash/plastic payment options

 Yes

 No
Do you think E-wallet can bring a change in India?

Can you completely rely on E wallets for all kinds of banking?

 Yes

 No
Would you say you started using the mobile wallets after demonetizations moved by
the government?

 Yes

 No
Overall, how would you rate the quality of the customer service experience?

84