PAYTM Campus Connect

Shriraj Bamne – E010

Current Market
01 Scenario 02 Competitive Landscape

Plan for next 100 Marketing and Growth

03 Million customers 04 Initiatives
Current Market Scenario

The payments industry has been experiencing

advancement, growth and innovation at a steady rate.
Demonetization was a learning curve which gave a push 01
to the payments market along with UPI transactions.

Digital payments in India will more than double to

$135.2 billion in 2023 from $64.8 billion this year,
02 according to an Assocham-PWC India study. India will
see the fastest growth in digital payments’ transaction
value between 2019 and 2023, with a CAGR of 20.2%

The key growth driver for digital payment would be

inter-operability between the pre-paid instrument (PPI)
players. What makes interoperability possible today is 03
the UPI, which allows users possessing accounts in
different banks to transact with each other in real time

The digital payments industry would need to address

challenges such as low margins primarily due to a
04 cashback-driven culture, process inefficiencies like Know
Your Customer bottlenecks and cyber security threats.
 Current Market Scenario
The Way Ahead
The rise of digital commerce, innovation in payments
technology using AI, blockchain, the Internet of Things (IoT)
and real-time payments and the introduction of mobile point
of sale (POS) devices will also contribute to further growth.

“Consumers and merchants in smaller cities are open to trying

out new technologies and this has facilitated the penetration
of non-cash payments to a great extent.”

2.02%
India’s share of worldwide transaction value of digital payments

Support to Digital
Payments from RBI
15 Basis Points
Reduction of the interchange on card payments
 Digital payments, especially via the Unified
Payments Interface (UPI), have seen huge
growth in the past few years, the volume of UPI
transactions marked an almost 400% increase,
while the amount transacted showed a roughly
500% increase.

Between April 2019 and May 2019, the amount

transacted increased by ₹10,414.9 crore, the
number of transactions fell from 781.8 million
to 733.5 million. However, the average amount
per transaction grew to ₹2,078 in May 2019, up
by almost 10% from April 2019.

Recently, the Nandan Nilekani committee on digital payments had recommended that the Reserve Bank of
India (RBI) and the government must target growth in the volume of digital payments by a factor of 10 in three
years, leading to doubling in value relative to gross domestic product. The committee also highlighted the need to
expand the acceptance infrastructure across the country and also to reduce the interchange on card payments by
15 basis points. The panel also pushed for removal of all charges on digital payment transactions for the
convenience of customers.
 Competitive Landscape

Time spent by users on payment apps (min/month) Market Share in Mobile Banking (as per RBI)

Paytm has processed 70 million UPI based merchant transactions out of the total 120 million transactions in the
country in May 2019. The digital payments firm is the leader in merchant-based UPI transactions with 60% of the total
market share, and seeing a 10% monthly growth rate in this segment.

12 million offline merchants have accepted payments via Paytm BHIM UPI.
 Competitive Landscape
Strengths
- Paytm has got extremely high brand
awareness across India
S W
- Paytm is largely accepted by merchants
across India, which has helped it grow
- Strong marketing campaigns have helped
spread brand awareness
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
to boost their customer base
- Offer more banking services along with
online payment options
O T
Weaknesses
- Audience in India is less savvy as majority
consider cash as primary currency
- Paytm has diversified too much
- Paytm has not been able to capitalize
enough in the ecommerce payments
aggregator market
Threats
- Tough competition from other ewallet
apps especially Google Pay taking up the
personal transactions market space
- Banks offering ewallets on their saving
accounts
- Security and privacy of user
 Plan for next 100 million
43% 76%
Percentage of unemployed youth Indian Internet users under age 35
43% Young Indians are either unemployed or Since more than three quarters of the internet
working and still living in poverty. As the future using population of the country is youth, the
users are going to be the youth of the nation, product should be envisaged to have a connect
it is pivotal that Paytm launches a product with the young population of the country.
which aligns very well with the needs of this
segment.

First Idea
Allow users to use the Paytm app as a portal for opening small savings accounts (up to a certain limit) which
can earn interest overtime and also allow users to invest/trade in small value stocks and bond options.

Savings Account Facility Revenue Generation

Users can save up to Rs.2lakh in a Paytm savings account and Paytm can partner with upcoming restaurants and apparel
can receive interest as per a pre-defined rate in the form of brands so as to provide users with special offers and discounts
Paytm money along with other cashback offers. from these brands in the form of interest/benefits.

Trading Option Easy User Interface

Users can also get an option of using their Paytm balance to The interface will be kept very easy for users to understand
invest in small stock and bond options. The risk and returns at basic trading/investing fundamentals. Small businesses
the initial stages will be kept low so as to test the system first. looking to go public can also benefit from this venture.
Second Idea

Second Idea
- The auto rickshaw market in Indian cities is considerably huge and full of potential.
- Paytm can tap into this market by making these auto rickshaw drivers as their
customers.
- Paytm can enable a portal on their app for users to pay the auto rickshaw fare
- This portal will guarantee safety of the user’s as well as the driver’s number.
- The payment transaction will be kept seamless via a QR code.
- The transaction can be made even more simpler by introducing a ‘Tap to Pay’
system in the later stages. This will allow the user to gently tap his/her phone on
the driver’s phone or a specially designed hardware placed near the backseat to
complete the payment.
- This will increase the user base of Paytm by a large number.
 Marketing and Growth Initiatives

Pursue Aggressive Marketing Onboarding Strategic Partners

Cultivate relationships with newer brands to
It is necessary that the idea reaches the maximum number of
supplement the ‘cashback as interest’ feature. Onboard
people across the country so as to convert as many people as
small businesses to create a conducive bond portfolio.
possible to Paytm users right away.

Taking care of legal aspects

Government’s support could be sought as product is
meant for the benefit of the Indian youth. Option to
enter into small term loan market can be kept open.

Marketing Initiatives
Above the line marketing strategies can be used to
portray Paytm as leaning more towards a personal bank
rather than just an e-wallet/digital payments system.

Partnership with Rickshaw Driver Unions

Paytm can get in an alliance with the Rickshaw Driver
Unions to maximize the reach. This will also give a
better insight into areas for improvement.
 Digital Marketing Campaign
Mail Promotion

Promote upcoming ventures by mail to existing users. Also,

identify target consumer base through existing database. Foreign markets attraction
Promote the initiative globally to enable funding to smoothen the
Facebook/Instagram entire venture and also enable keeping contingencies.

Upload timely content on Facebook and Instagram pages.

Leverage influencers to maximize the reach of the initiative. Digital content/TV Promotion
Subtle advertisements and mentions in trending TV series and other
Youtube digital media content over the internet, television and cinemas.

Paid promotion on Youtube to get maximum reach in the first

place. Maximum response can be expected through this method.
References
- Assocham-PWC India study
- Nandan Nilekani committee study
- Livemint
- Economic Times
- Owler

Thank You