A study of Paytm- a fintech wallet and

payment bank

BY- MANJU BAGRIYA

BBA GEN SEM 6
BBAG-17072
A70006417070
 Introduction
• Indian financial sector has been impacted by FinTechs since the past decade.
• Payment banks were born out of the need to evolve financial sector after the 2008
crisis in the banking sector.
• Paytm is the leading fintech in the digital money and payment banks sector.
• Services provided by Payment bank- Savings account, current account, demand
deposits, provide remittance services, mobile transfers, purchase services and other
banking services such as ATMS, Net banking and third-party fund transfer
• Paytm has the 55% market share in Payment sector.
• Objectives-
• To highlight the role and function of payment banks
• To study the factors which made the Paytm wallet a success in the market
• To understand the current scenario of Paytm’s working as a Payment bank
 Methodology
• Both qualitative and quantitative data has been used for the study.
A. To study the Paytm wallets success factors quantitative data was collected
through primary data source i.e., questionnaire.
B. Paytm payment bank’s effect in financial inclusion was studied using
qualitative data taken from secondary sources such as journals, research
papers, articles etc.
• The study’s data is collected in the limited geographical area of “Mumbai” only.
• SPSS software is used for the analysis of the primary data.
• This report has Practical relevance.
• Sample size was limited to 100
 HYPOTHESIS
1. On the basis of Demonetization and Paytm wallet.
H0- There is no relationship between demonetization and success of Paytm wallet
H1- There is a relationship between demonetization and success of Paytm wallet

2. On the basis of E-wallet services and use of services.

H0- There is no relationship between services provided and success of Paytm wallet
H2- There is a relationship between services provided and success of Paytm wallet

3. On the basis of feet on ground approach and use of Paytm Wallet.

H0- There is no relationship between social reach and success of Paytm wallet
H3- There is relationship between social reach and success of Paytm wallet

4. On the basis of Paytm Payment bank and increase in financial inclusion.

H0- Paytm payment bank has a no effect on financial inclusion.
H4- Paytm payment bank has an effect on financial inclusion.

5. On the basis of Fintech and Paytm Payment Banks better performance.

H0- Paytm Payments bank is successful not because it is fintech.
 Findings
A. Factors that led to success of Paytm wallets
Sr. FACTORS –
DEPENDENT VARIABLE P value R. Square value (%)
No INDEPENDENT VARIABLE
1. Demonetization Switch to Paytm Wallet and using it 0.010 65%
2. Services provided by Paytm People using services of Paytm - -
Paytm for ticket bookings
2.1 - 0.000 14.5%
(train, bus, flight, movie etc)
2.2 To recharge and pay bills - 0.000 23.8%
2.3 Privacy and security services - 0.006 75%
3. Market reach (feet on ground) Using Paytm 0.020 54%

• The above table represents the findings of the study conducted on Paytm wallet.
• It was understood from the study that demonetisation was the major push for Paytm to increase its active user
base as it showed the value of R at 65%.
• The services of Paytm received a moderated response showing out of all the privacy and security were the major
ones to why people chose Paytm.
B. Paytm Payment banks – (Financial inclusion)
• Paytm payments bank is the first one to declared profits of 19 cr in the year 2019
• Out of total target of 500 million merchant onboarding (people from the sectors of unbanked and
underbanked) completed total of 233 million bank accounts in two years
• 2019 total deposits- 1000cr
• REASONS FOR SUCCESS- (FinTech)
1. largest e-wallet customer base i.e., big customer base to shift in payment bank accounts
2. Hyperlocal Model of Banking (5000 Paytm ATM across India)
3. Partnership with Mumbai Dabbawallas- 5000 dabbawallas have been equipped to collect
instant payments for their ‘dabba’ service through Paytm QR.
4. May 2018- launched Asha Ki Kiran programme- aimed to educate women about financial
services and create new employment opportunities across smaller towns and cities
5. July 2018- partnership with the Grameen Foundation for Social Impact (GFSI) 
6. Tie ups with online merchants such as Uber, Zomato etc.
7. Variety of services and products available under one app- Paytm mall, financial advisory, bank
account and wallet in one app, special accounts for corporates, competitive interest rates etc.
 Conclusion
• Paytm’s e-wallet got a boost due to demonetization and increased its customer base which
it maintained with its variety of services and great security policies.
• Banking on the same initial large customer base of e-wallet, applied strategies to reach the
underbanked and the unbanked for its payment bank.
• Tie ups with organizations, merchants, corporates etc. with competitive interest rates
further made it possible for the Paytm payment bank to be the leading payment bank of
India.
• Suggestions-
1. More fintech based companies to be supported not to overshadow traditional banks but
for technological disruption in the financial market.
2. Rules and regulation by RBI should be loosen in the initial stages when companies are
yet to get stable source of revenues.
3. More campaigns programs related to Financial literacy related programs should be
conducted in order to encourage people’s trust.
4. courses related to such topics should be include in the curriculum of schools, colleges,
professional courses.
THANKYOU