SUMMER TRAINING REPORT ON

ONLINE TO OFFLINE MODEL OF PAYTM

“Submitted in the Partial Fulfillment for the Requirement of Post

Graduate Diploma in Management”

(PGDM)

Submitted to: Submitted by:

Mr. Akshat Dubey Neha Sirohi

80

2015-17

Jagannath International Management School

Kalkaji, New Delhi

2
 CONTENTS
Description Page no

Acknowledgement 4
List of tables 5
List of figures 6
Executive Summary 7
Certificate from Organization, faculty and declaration from student 8-9
Declaration 10
1. E-COMMERCE
12
a) Introduction
13-19
b) Origin & development
20-22
c) Growth, present & future
23-27
d) O2O-concept
28
e) objective of the project
2. Company Profile
30-32
a) Origin
33-35
b) Present strategy & Future projects
36-38
c) Products and services
39
d) List of key personnel in paytm.com
40-42
e) Revenue model of paytm
3. Research Methodology 43-44
4. Analysis & Interpretation 45-60
5. Findings & Inferences 61-62
6. Recommendations and conclusion 63-65
Appendices 66-70
Bibliography 71-72

3
 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. I would
like to extend my sincere thanks to all of them.

I am highly indebted to Mr. Nipun Sachdeva for his guidance and constant
supervision as well as for providing necessary information regarding the project &
also for his support in completing the project.

I would like to express my gratitude towards members of PAYTM.COM, my team

members, my internal guide Mr. Akshat Dubey and all other faculty members of
JIMS for their support, kind co-operation and encouragement which helped me in
completion of this project.

I would like to express my special gratitude and thanks to industry persons for
giving me their attention and time.

I would also like to extend my heartiest thank to my college seniors, all my

friends and my parents for providing their valuable assistance and patience that
enabled me to complete this project report.

Neha Sirohi

4
 LIST OF TABLES

Table no Page no
Table 1.1 51

Table 1.2 52

Table1.3 52

Table 2.1 53

Table 2.2 54

Table 2.3 54

Table 3.1 56

Table 3.2 57

Table 3.3 57

Table 3.4 58

Table 4.1 59

Table 4.2 60

Table 4.3 60

5
 LIST OF FIGURES

Figure no Page no
Fig1.1 46

Fig1.2 46

Fig1.3 47

Fig1.4 47

Fig1.5 48

Fig1.6 48

Fig1.7 49

Fig1.8 49

Fig1.9 50

Fig1.10 50

6
 EXECUTIVE SUMMARY

The marketing research project report has been written keeping in mind the
Indian (Delhi NCR being the focus) operations of PAYTM.COM - India’s largest
mobile commerce platform. Paytm a consumer brand of India’s leading mobile
internet company One97 Communications started by offering mobile recharge
and utility bill payments and offers a full marketplace to consumers on its mobile
apps.

The company aims at making stuff easy and intuitive In addition to usability, it
strives to create accessibility, convenience and credibility.

O2O the acronym, which stands for both online-to-offline and offline-to-online
business, refers to strategies to get more online shoppers into brick-and-mortar
businesses or, on the flipside, to convince people who prefer physical
transactions to try out online commerce and payments for the first time.

By adapting O2O Model Company desires to enter into the routine payment
chain as it believes that Indians will prefer to use Paytm for small purchases
because In India’s economy, every rupee matters. People don’t want to pay tips
or anything extra and by using Paytm they can pay the exact amount like 67
rupees, instead of rounding them off, giving it an edge over cash since providers
don’t have to carry tons of change.

Paytm is marketing its O2O strategy to the regular population as a convenient

cash substitute that saves your time, money and hassle of carrying change all
the time. Paytm also has an edge over credit and debit cards as it does not
charge processing fees and the app is faster to use than card readers.

7
8
9
 DECLARATION

I hereby declare that the major project report, entitled “Online to Offline Model”, is
based on my original study and has not been submitted earlier for any degree or
diploma of any institution/university.

The work of other author(s), wherever used, has been acknowledged at

appropriate place(s).

Place: Delhi Date:

Name: Neha Sirohi Candidate Signature:

External Guide: Internal Guide:

External Guide Signature: Internal Guide Signature:

10
 CHAPTER I

INTRODUCTION TO E-COMMERCE

11
1.a Introduction

At first, the term ecommerce meant the process of execution of commercial

transactions electronically with the help of the leading technologies such as
Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which
gave an opportunity for users to exchange business information and do
electronic transactions.

Electronic commerce is a term for any type of business, or commercial

transaction that involves the transfer of information across the Internet. It covers
a range of different types of businesses, from consumer based retail sites,
through auction or music sites, to business exchanges trading goods and
services between corporations. It is currently one of the most important aspects
of the Internet.

Although the Internet began to advance in popularity among the general public in
1994, it took approximately four years to develop the security protocols (for
example, HTTP) and DSL which allowed rapid access and a persistent
connection to the Internet. In 2000 the meaning of the word ecommerce was
changed. People began to define the term ecommerce as the process of
purchasing of available goods and services over the Internet using secure
connections and electronic payment services.

Ecommerce allows consumers to electronically exchange goods and services

with no barriers of time or distance. It has expanded rapidly over the years and is
predicted to continue at this rate, or even accelerate. In the near future the
boundaries between "conventional" and "electronic" commerce will become
increasingly blurred as more and more businesses move sections of their
operations onto the Internet.

1.b Origin and development

12
Origin

The rise of internet companies in India started in the mid-1990s. The first Indian
internet companies mainly featured online classifieds, matrimonial and job
portals. The low penetration of internet, lack of awareness and lack of
development and confidence in online payment systems were reasons for Indian
internet companies not actively engaging in e-commerce. It was only in the mid-
2000s, after the dot com bubble burst that e-commerce industry in India started
to take off. The first e-commerce services available were mainly offered in the
travel industry. With the proliferation of low cost carrier airlines, ticket offering
started to be made online.

The evolution of e-Commerce in India can be broadly divided into two phases
based on the emergence of various sub-segments.

 First wave: advent of online Naukri and Shaadi

The introduction of internet in India in 1995 marked the beginning of the

first wave of e-Commerce in the country. Moreover, economic
liberalization after the launch of reforms in 1991 attracted MNCs and
brought about the growth of the IT industry. The implementation of
liberalization policies led to the demise of the license regime, and high

13
taxes and import restrictions, as well as facilitated the growth of SMEs.
The IT industry and SMEs were the early adopters of internet. This led to
the emergence of B2B, job searches and matrimonial portals.

B2B directory: India’s first online B2B directory was launched in 1996. The
liberalization of the country’s international trade policies was the key factor
that accelerated the growth of B2B online portals. It enabled buyers and
sellers to easily connect with their global counterparts.

Online matrimonial: In 1996, the first online matrimonial portal was

launched in India. A concept unique to India,1 online matrimonial portals
transformed the perception about the matchmaking process from
“marriages are made in heaven” to “marriages are made in cyber space.”
Such portals have now evolved to cater to various segments of the
population such as NRIs, H1B visa holders, widows or widowers,
divorcees and other special groups.2

Online recruitment: India’s online recruitment industry took shape in 1997.

The growth of the services sector, following the launch of economic
reforms in 1991, resulted in the creation of additional jobs.

In this background, internet proved to be an efficient medium that allowed

employers and job seekers to connect. Prior to job portals, weekly
government magazines such as Employment News and newspaper
notifications were the primary means for employers and job seekers to
interact.3

Online classifieds gained quick popularity among users, as they did away
with concerns pertaining to physical delivery, logistics and taxation issues.

Although online businesses had begun to develop in the late 1990s, the
supporting ecosystem had not been put in place. The first wave of e-
Commerce in India was characterized by low internet penetration, a small
online shopping user base, slow internet speed, low consumer acceptance

14
 of online shopping and inadequate logistics infrastructure. Thereafter, the
IT downturn in 2000 led to the collapse of more than 1,000 e-Commerce
businesses in India.4 Following this, there was muted activity in the space
in India between 2000 and 2005.

 Second wave: duplication of global business models and improvement in

ecosystem

The entry of Low Cost Carriers (LCCs) in the Indian aviation sector in
2005 marked the beginning of the second wave of e-Commerce in India.
Travel emerged as the largest segment. People began relying on internet
to search for travel-related information and to book tickets. As a ripple
effect, the success of the online travel segment made consumers
comfortable with shopping through the medium, thus leading to the
development of online retail.

Online travel: The decision of LCCs to sell their tickets online and through
third parties enabled the development of Online Travel Agents (OTAs).
Prior to the entry of LCCs in 2005–06, air travel was considered a luxury
meant only for the rich and for corporate travel. LCCs changed the
scenario by making air travel affordable for a large number of people.
They developed their own websites and partnered with OTAs to distribute
their tickets online and, thus, contain costs. The Indian Railways had
already implemented the e-ticket booking initiative by the time LCCs
commenced their online ticket booking schemes.

Online retail: The growth of online retail was partly driven by changing
urban consumer lifestyle and the need for convenience of shopping at
home. This segment developed in the second wave in 2007 with the
launch of multiple online retail websites. New businesses were driven by
entrepreneurs who looked to differentiate themselves by enhancing
customer experience and establishing a strong market presence.

15
 Group buying: Starting in 2010, the group buying and daily deals models
became a sought after space for entrepreneurs in India, emulating the
global trend. Group-buying sites have seen a significant rise in the number
of unique visitors and membership. This growth has attracted investments
from VCs.

Social networking actively used by organizations to reach out to

customers: In the second wave, social networking gained steam in the
Indian online space. It has gone on to become an integral part of people’s
lives. Initially used for staying connected with friends, social networking
websites have now emerged as an anchor in any company’s digital
strategy.

Ecommerce has a great deal of advantages over "brick and mortar" stores and
mail order catalogs. Consumers can easily search through a large database of
products and services. They can see actual prices, build an order over several
days and email it as a "wish list" hoping that someone will pay for their selected
goods. Customers can compare prices with a click of the mouse and buy the
selected product at best prices.

Online vendors, in their turn, also get distinct advantages. The web and its
search engines provide a way to be found by customers without expensive
advertising campaign. Even small online shops can reach global markets. Web
technology also allows to track customer preferences and to deliver individually-
tailored marketing.

The online retail industry is rapidly growing today as brick and mortar stores are
being replaced by click-only models or brick cum click models of business.

E-commerce space relating to the deals and discounts websites started

becoming popular towards 2009 and onwards while the concept of social media

16
for e-commerce is still trying to make a foothold in the markets despite having
one of the largest populations using Facebook.

Developments

In 1991 e-commerce became a hot choice amongst the commercial use of the
internet. At that time nobody would have even thought that the buying and selling
online or say “The online trading” will become a trend in the world and India will
also share a good proportion of this success.

India first came into interaction with the online E-Commerce via the IRCTC. The
government of India experimented online strategy to make it convenient for
public to book the train tickets. Hence, the government came forward with the
IRCTC Online Passenger Reservation System, which for the first time
encountered the online ticket booking from anywhere at any time. This was a
boon to the common man as now they don’t have to wait for long in line, no
issues for wastage of time during unavailability of the trains, no burden on the
ticket bookers and many more.

The advancements in the technology as the years passed on have been also
seen in the IRCTC Online system as now one can book tickets (tatkal, normal,
etc.) on one go, easy payments, can check the status of the ticket and availability
of the train as well. This is a big achievement in the history of India in the field of
online E-Commerce.

After the unpredicted success of the IRCTC, the online ticket booking system
was followed by the airlines (like AirDeccan, Indian Airlines, Spicejet, etc.). Airline
agency encouraged, web booking to save the commission given to agents and
thus in a way made a major population of the country to try E-Commerce for the
first time.

17
Today, the booking system is not just limited to the transportation rather hotel
bookings, bus booking etc. are being done using the websites like Makemytrip
and Yatra.

The acceptance of the ecommerce on a large scale by the Indian people

influenced other business players also to try this technique and gain high profits.
Though online shopping has been present since the 2000 but it gained popularity
only with deep discount model of Flipkart. In a way it re-launched online shopping
in India. Soon other portals like Amazon, Flipkart, Jabong, etc. started hunting
India for their businesses.

Online shopping in its early stage was a simple medium for shopping with fewer
options. The users can just place an order and pay cash on delivery. But, in last
few years this field has been renovated to a high extent and hence fascinated
many customers. Today, the online shopping has become a trend in India and
the reason behind the adoption of this technique lies in the attractive online
websites, user friendly interface, bulky online stores with new fashion, easy
payment methods (i.e. secure pay online via gateways like paypal or cash-on-
delivery), no bound on quantity & quality, one can choose the items based on
size, color, price, etc.

Despite being a developing country, India has shown a commendable increase in

the ecommerce industry in the last couple of years, thereby hitting the market
with a boom. Though the Indian online market is far behind the US and the UK, it
has been growing at a fast page.

Further, the addition of discounts, coupons, offers, referral systems, 30days

return guarantee, 1-7 days delivery time, etc. to the online shopping and the E-
Market have added new flavors to the industry.

E-commerce is slowly giving way to m-commerce as more and more users are
accessing the internet and shopping online through smaller devices like
smartphones, tablets and notebooks. Hence it becomes essential for the e-
commerce companies to enhance their website features and looks to match with

18
the new devices being used for shopping. Developing apps for easier mobile
transactions is also essential to target this growing segment of consumers.

With more than 900 million mobile subscribers, India has a burgeoning desire for
internet on mobile, and the same should be expected for payments and
commerce on mobile. Mobile payments have been available in India since 2010

Earlier mobile transactions involved typing out complicated SMS messages for
making payments. Furthermore, the whole process of payment was dependent
on the telecom network. However, with increased smartphone penetration, app
and wallet based payment solutions, the problem of dependence on network
operators and the complexity in sending SMS to enable payments have been
addressed.

The market for mobile enabled payments in India has grown more than 15 times
to reach its current size of US$ 1.4 billion by the end of FY’15 from US$ 90
million at the end of FY’12.

19
1.c Growth, present & future

India had an internet user base of about 354 million as of June 2015 and is
expected to cross 500 million in 2016. Despite being the second-largest user
base in world, only behind China (650 million, 48% of population), the penetration
of e-commerce is low compared to markets like the United States (266 million,
84%), or France (54 M, 81%), but is growing at an unprecedented rate, adding
around 6 million new entrants every month.

E-commerce market is likely to grow ten-fold in next five years i.e by 2020 to
reach $100 billion on the back of increasing penetration of internet, smartphones
and spread of digital network in rural areas. country's e-commerce sector, which
is around $10 billion (Rs 65,000 crore) at present, can even touch $250 billion in
next ten years. This boom will happen because the broadband would take over.
E-commerce market would be driven by the local languages and broadband
internet penetration into rural India.

By 2017, India will have 350 million smartphones and it will create demand.
Meanwhile, e-retailing and various other formats of retail such as direct selling
could co-exist and grow as there are several models growing in retail across the
world. 500 million Indians are expected to connect to internet and it would create
huge consumer opportunity.

In India, cash on delivery is the most preferred payment method, accumulating

75% of the e-retail activities. Demand for international consumer products is
growing much faster than in-country supply from authorized distributors and e-
commerce offerings.

In 2015, the largest e-commerce companies in India were Flipkart, Snapdeal,

Amazon India, and Paytm.

About 70% of India's e-commerce market is travel related. There were 35 million
online shoppers in India in 2014 Q1 and is expected to cross 100 million mark by
end of year 2016. By 2020, India is expected to generate $100 billion online retail

20
revenue out of which $35 billion will be through fashion e-commerce. Online
apparel sales are set to grow four times in coming years.

Another big segment in e-commerce is mobile/DTH recharge with nearly 1 million

transactions daily by operator websites.

Online transactions are not only restricted to online retail or travel anymore, with
the influx of mobile and ‘on-demand’ based businesses, customers are looking
for convenience and ease of access for products and services at all times. India
is witnessing a year on year growth of close to 40% in digital transactions.

Payment system providers are now offering ready-to-integrate development kits

for mobile app companies to deliver a native payment experience.

Savvy consumers are now even ditching their credit/debit cards when it comes to
making a purchase online, all thanks to wallet and banking apps which allow swift
checkout experience.

Another notable development that is happening with the onset of the wallet
adoption is the usage of these instruments beyond the digital space.
Restaurants, brick and mortar stores which depend upon PoS systems for
payment collection can also give wallet users an option to use the same instead
of swiping their bank cards, a part of online to offline commerce

Also, to keep up with the pace of the global economy, the Government too is
pushing out policies to encourage a movement towards a cashless society. This
is happening through various initiatives: Payment banks, Bharat Bill Payment
Services, proposal to do away with surcharge / convenience fees, etc.

Payments via NFC are a development that has already come into practice.
However now contactless payment is the next step, where in a tangible scenario
customers can make payments by flashing their card at the terminal.

21
Evidently the future of digital payments also lies in giving the best transaction
experience to the end user while easing the payment collection process for any
business.

Nonetheless the pace at which technology revolution is happening already, and

the way even the lower economic classes are adopting digital innovations, the
country might get on an accelerated highway to going cashless in the
foreseeable future.

22
1.d Online-to-Offline Model - Concept

O2O commerce refers to a general Online-to-Offline business model that utilizes

web-based markets and tools to attract the digital shopper to participate in in-
person retail consumption. Ultimately, O2O encompasses a whole industry with a
wide array of different techniques and services aimed at incorporating the digital
& physical marketplaces.

Online-to-offline commerce is a business strategy that draws potential customers

from online channels to physical stores. Online-to-offline commerce, or O2O,
identifies customers in the online space, such as through emails and internet
advertising, and then uses a variety of tools and approaches to entice the
customer to leave the online space. This type of strategy incorporates techniques
used in online marketing with those used in brick-and-mortar marketing.

The Online to Offline market is a growing and attractive segment. The reasons
for that are fairly straight forward. While online shoppers are just around 20
million, there are a little over 200 million smartphones in the country. Changing
consumer behavior means that they demand instant gratification and aren't ready
to wait. That is where hyper local deals delivered through an app play a key role.

It is a win-win all around, claim merchants, marketplaces and users. The local
merchant can control stock and inventory, as well as whom they choose to sell
to. The buyer not only gets a lower price, but he also supports local economic
activity. The marketplace, of course, takes a cut in the entire process.

Retailers once fretted that they would not be able to compete with e-commerce
companies that sold goods online, especially in terms of price and selection.
Physical stores required high fixed costs (rent) and many employees to run the
stores, and because of limited space, they were unable to offer as wide a
selection of goods. Online retailers could offer a vast selection without having to
pay for as many personnel, and only needed access to shipping companies in
order to sell their goods.

23
Some companies that have both an online presence and an offline presence
(physical stores) treat the two different channels as complements rather than
competitors. The goal of online-to-offline commerce is to create product and
service awareness online, allowing potential customers to research different
offerings and then visit the local brick-and-mortar store to make a purchase.

Techniques that O2O commerce companies may employ include in-store pick up
of items purchased online, allowing items purchased online to be returned at a
physical store, and allowing customers to place orders online while at a physical
store.

The rise of online-to-offline commerce has not eliminated the advantages that e-
commerce companies have. Companies with brick-and-mortar stores will still
have customers that visit physical stores in order to see how an item fits or looks,
only to ultimately make the purchase online (referred to as “showrooming”). The
goal, therefore, is to attract a certain type of customer that is open to walking or
driving to a local store rather than wait for a package to arrive in the mail.

PAYTM ONLINE-TO-OFFLINE MODEL

Indian payment and mobile commerce firm Paytm, is on a mission to be the first
profitable company in the e-commerce segment. For this, it has charted out a
multi-pronged strategy that will lead to Paytm’s break-even sooner than the
expected 2017 target.

One of the key strategies that Paytm is trying to replicate from its Chinese parent
Alibaba is to involve the local merchants in the e-commerce and boost their sales
through what is widely known as O2O (online-to-offline) marketplace, a business
model that the Chinese e-commerce giant has been focusing since the last few
months. With this model, Paytm, in which Alibaba has a little over 25 per cent
stake, plans to take on bigger rivals such as Flipkart and Snapdeal in terms of
both GMV (total amount of transactions) and profitability.

24
Under the O2O model, a consumer searches for the product or services online
but buys it through an offline channel. For example, a local store, which doesn’t
want to sell online because of the discounting nature of online marketplaces, may
find this model useful. Paytm wants to rope in these local players and help them
drive the footfall and sales at their stores. Paytm benefits as these stores in
return act as individual warehouses and fulfilment centers.

With a focus on O2O and other businesses including wallets and recharges,
Paytm expect to do GMV of $10 billion by end of 2016. Company is already
clocking about $3 billion in GMV.

Roping in local merchants- Major part of the investments will go towards

building warehouses. In fact, both Amazon and Flipkart have doubled their
warehousing capacity in the last one year at a time when Paytm has none.
Compared to these players, Paytm has raised a little over $600 million so far and
has been instead investing in roping in more local merchants. Starting this year, it
has already roped in 1,500 merchants in the top 10 cities. It plans to add another
15,000 by June across 50 cities, which means that many small warehouses.

There are sellers who deliver the goods to customers directly and incentivize
them to do faster delivery. It does not only give out discounts but also doles out
cash-backs, which goes to the customers Paytm wallet thus getting the customer
to do more transactions.

The company’s major investments go into expanding its wallet business, getting
more sellers on board and investing in companies that can help Paytm in its
growth. For example, it has recently invested in O2O discovery platform Little
and hyper-local service marketplace near.in.

While Alibaba in China is currently targeting the $150-billion O2O services,

anything from food to home services, back in India Paytm is eyeing the multi-
billion dollar offline electronics, home appliances and merchandise segment. No

25
other e-commerce player in India has entered this segment so far. Paytm entered
into the O2O model early this year and sold goods worth ₹500 crore in just 20
days. While every other marketplace is trying to find its niche, Paytm is optimistic
that O2O will drive their business very fast. Company is also trying to identify
other categories that they can trade through O2O model. Cars and bikes is a big
time opportunity and it is exploring that. 500 bikes have already been sold on
Paytm through O2O much recently. Paytm expects O2O to drive profitability as it
doesn’t require any investments in logistics or warehousing.

Apart from the regular features of O2O trade Paytm’s O2O provides the
merchant with an opportunity that they can be a part of paytm O2O scheme as
long as they want. I.e. once a merchant agrees to use paytm as a payment mode
he is not bounded by paytm in any contractual liabilities nor does he needs to
undergo any lengthy registration procedure just a normal requisite- download the
apps login and you are all set to go. Besides this paytm doesn’t imposes itself as
a compulsory payment mode and can be an easy switch for debit card/credit card
machines as they charge rent from the keeper whereas paytm uses scan able
paper code which is free of cost.

Paytm basically has two models under O2O

1. P to P: under the P to P (Paytm to Paytm) model the vendor who is

registered with paytm receives the money from the Paytm wallet of the
customer into his Paytm wallet which on accumulation he needs to
transfer to the bank on his own using the “send” button on the wallet app.

The minimum amount that is required for transfer to bank is rs.100 and
maximum wallet limit of a merchant is rs.1 lakh per month out of which
(under this model) only rs.25000 are transferable to bank and rest
rs.75000 will remain as paytm cash in merchant’s paytm wallet.

26
 2. P to B: P to B or Paytm to Bank is the second model designed for bigger
clients such as Nescafe, dominos, chayos and other big chain players.
This model is backed by proper paperwork and legal formalities. Herein
whatever money is collected by the merchant through paytm goes straight
to his bank account after a deduction of 1.5 transaction fee. No limits are
present on withdrawal under P to B.

O2O - at a glance

 Paytm's offline merchant netwok includes small 'paan' shops, vegetable

vendors and big retail outlets such as Aditya Birla Group's food and
grocery retail arm More, Indian Oil petrol pumps, food chains such as Cafe
Coffee Day and Pizza Hut, and several schools and colleges.
 Paytm gives these merchants a sticker with a personalized code, which
can be put near the cash counter. Customers with Paytm accounts can
then scan the code from their mobile. The system asks how much to pay
the merchant and the amount is immediately transferred to the merchant.
 Currently, the Noida-based startup does 3.5 million offline transactions in
a month worth $8.5 million, excluding mobile recharges. It estimates
transactions in the offline business alone to grow 10 times to 35 million by
the year end.
 Some of these offline merchants are being trained to also become cash
collection agents for its payments bank to acquire customers and recharge
Paytm wallets. As Paytm continues growth in tier 2-3 town, it wants to
enable their unbanked and underbank customers to enable them to add
money to their Paytm wallets through physical add cash points, bank
network and ATM.

The company plans to have 3.5 lakh add points by the end of this year from
67,000 at present.

27
1.e Objective of the Project

The basic objective of the project is to understand what is Paytm O2O.

Understanding the target market and the approach behind the scheme.

Further the research is conducted over certain amount of target market to

determine the following:

1. How much awareness is present regarding paytm in the local markets?

2. The primary reason for which people use Paytm. Their motivation and
association regarding Paytm.
3. How many people are reluctant in using paytm and why? The research
tried to find out the reason of non-usage.
4. If paytm withdraws its cashbacks will the people who use paytm still
continue to use it or switch over?
5. Whether people are aware of the latest developments such as O2O and
Payments Bank being launched by paytm.
6. The level of acceptability shown by people to new models. Whether
factors like age, gender etc. impact their will to explore.
7. Out of a sample how many people could not get convinced to accept
paytm as a payment option and the reason for their denials.

28
 CHAPTER II

COMPANY PROFILE

29
2.a About Paytm – Origin and Growth

Paytm is an online recharge and bill payment application that offers prepaid
mobile, datacard and utility recharge services. Paytm is an acronym for "Pay
through Mobile." It was founded and incubated by One97 Communications as a
prepaid mobile recharge website in 2010. Today, it is recognized as India's most
popular online venue for prepaid mobile and DTH recharges and shopping. In its
first three years. Paytm's Android and iOS apps have been among the most
popular. Since its inception, the company was able to create a base of 25 million
wallet users and 10 million app downloads. It is compatible with all mobile
operators in all Indian states for prepaid mobile, DTH, and datacard recharges as
well as for postpaid mobile, landline and datacard bill payments. Paytm is also
collaborating with several national banks for credit card., debit card, and Internet
banking payments.

Paytm is working with different billers for utility bill payments. Four years after it
was created, the company launched Paytm Wallet to become India's largest
mobile payment service platform with more than 40 million wallets. It became the
preferred method of payment by some of the top consumer internet companies
such as Uber, BookMyShow, Tolexo, and others.

The company got a major boost in 2015 when Indian industrialist Ratan Tata
invested on the company. In the same month, it got $575 million investment from
Chinese e-commerce company Alibaba Group. Paytm will have the rights to the
branding of the series with the company logo, designation as sponsor of the
series, stadium visibility, and broadcast sponsorship. Paytm was the official
partner of the Mumbai Indians in the Indian Premier League.

The company was also given the license to start India's first payments bank.
Once created, the bank will attempt to attract Paytm's mobile payment users by
offering them new services which includes debit cards, savings accounts, online
banking and transfers, and others. However, the payments bank will be a
different entity where Vijay Sharma will have a 51% share. One97

30
Communications will have a 31% share and 10% shares will be allotted to the
subsidiary of One97 and Sharma. Among the major competitors of Paytm are
Freecharge, Mobikwik, and Rechargeitnow.

Paytm users can also pay for fuel at Indian Oil Petrol pump through the wallet.
Users can also book movie tickets as the e-commerce player has partnered with
PVR Cinemas.

SPONSORSHIPS

Paytm holds the title sponsorship rights from Board of Control for Cricket in India
(BCCI) for all international and domestic bilateral series hosted by the BCCI for a
period of four years (a total of 84 matches) starting from August 2015 for INR 203
crore (32 Million USD), or INR 2.42 crore per match played in India. The rights
include sponsor branding of series with the title sponsor logo, designation as the
title sponsor of the series, visibility at the stadium, and broadcast sponsorship
rights. This also includes all BCCI domestic (Ranji Trophy and Duleep Trophy
etc.) matches in India. Previously, Paytm had spent about INR 50 crore during
8th season of Indian Premier League. Paytm also served as an associate
sponsor on Sony TV network (which has the telecast right of IPL).

AWARDS AND RECOGNITION

In 2012, Paytm was recognized as the ‘Most Innovative Startup of the Year’ at
the Entrepreneur India event organized by Franchise India. In 2013, the company
received several awards, such as Knowledge Faber Best Mobile Wallet Program
Award, a special mention in m Billionth Awards in mCommerce/mBusiness
category, and MMA Smarties Award for mCommerce.

31
In 2014, Paytm App featured in Apple App Store’s Best of 2014 in the
Mobile/DTH Recharge & Shopping Category. The company also won or was in
the competition for Indian Express IT Award in Mobility Solutions 2014, finalist at
the international Meffys in Consumer Trust category, Gold Winner at the MMA
Smarties in the Mobile App category, Silver Winner at the MMA Smarties in the
mCommerce category, recognition among Delhi/NCR’s Top 50 Brands at a
celebration by Paulwriter, and the Best Mobile Money product at the 4th India
Digital Awards.

In 2015, the company also received several awards, such as the Most Innovative
Company of the Year 2014 Award at Business Standard Awards, Future Leaders
at the NASSCOM Future Leaders event, Smart Innovators of 2014 at the Inc.
India Awards, the Best Wallet Award at IAMAI’ India Digital Awards in Delhi on
15 January 2015. Company's CEO, Vijay Shekhar Sharma, was recognized
among the most Innovative CEOs of 2014 by Inc India.

32
2.b Present strategy & Future projects

In 2015 Paytm received a license from RBI for starting India's first payments
bank. The bank intends to use Paytm’s existing user base for offering new
services, including debit cards, savings accounts, online banking and transfers,
to enable a cashless economy. The payments bank would be a separate entity in
which the founder Vijay Shekhar Sharma will hold 51%, One97 Communications
will hold 39% and 10% will be held by a subsidiary of One97 and Sharma.

With 120 million wallets, India’s largest mobile wallet company Paytm boasts of a
user base that is six times the number of credit card users in the country. Paytm
wants to be present everywhere the consumer is transacting and own the entire
life cycle of pay, shop and save. The company also runs an online marketplace
where over 100,000 merchants sell their goods. But unlike other e-commerce
players, Paytm does not have its own fulfilment centers or inventory. About 50%
of the company’s e-commerce sales come from tier 3 and 4 towns and there are
many sellers who are waiting to take their business online. Paytm is looking to
host about 500,000 merchants on its platform by end-2016.

Of its current gross merchandise volume (GMV) of $4 billion, sales from the
marketplace account for about 50%. The company hopes to clock a GMV of $10
billion by the end of the year, with e-commerce contributing roughly the same
percentage. Helping it achieve that number will be the next two parts of Paytm’s
overall strategy — a bigger offline merchant network and payments banks.

In November 2014, the company started giving its offline presence a big push: it
gave its merchants a sticker with a personalized QR code, which was put up near
the cash counter. Customers with Paytm accounts could then scan the code
using their smartphones and the amount to be paid would be transferred from
their wallets to the merchant’s.

The company is currently clocking 3.5 million offline transactions per month, with
its network now including small kirana and paan shops, auto drivers, vegetable
vendors and bigger retail outlets such as Aditya Birla Group’s food and grocery
33
arm More, Indian Oil petrol pumps and food chains such as Barista, Costa
Coffee, KFC and Pizza Hut, apart from the Delhi Metro and several schools and
colleges.

The company is working on various models that will enable customers to pay
offline, including QR codes, one-time passwords and even sound-based
payments systems at toll gates. There are only 1.3 million points of sale (PoS)
terminals, limiting the use of digital payments, and Paytm wants to overcome this
by targeting nearly two to three times this figure by the end of the year. The
company does not charge its offline merchants by transaction and instead hopes
to build enough use cases for them to spend on the Paytm network instead of
taking money out of the system. Customers could then pay utility bills, make
phone recharges, buy train tickets, shop, pay school fees and even top up other
Paytm wallets.

Cashbacks form an important part of the strategy the company uses to

encourage customers to make repeat transactions. Paytm spent around Rs.600
crore on cashbacks in the past year alone and is looking to rationalize cashbacks
this year. The final part of its strategy will be the launch of its payments bank
later this year.

Paytm is also approved as an operating unit for Bharat Bill Payment System, as
a result of which users can pay their bills anytime and anywhere.

Paytm plans to launch a series of new products, including insurance, wealth

management services and loans through its new payment bank that aims to open
for business in August.

Paytm, is working on a plan to introduce insurance cover for bus passengers

against a range of risks, such as accidents, missed travel, cancellation of ticket
and loss of baggage. The passenger would be given an option to choose the
insurance cover and the premium would be bundled with the bus fare, as in the
case of domestic air travel. Around 30,000 tickets are booked daily on Paytm's
platform. The average fare is Rs.500.The travel insurance business in India is

34
worth Rs.400-500 crore and the cover is mostly taken by those who travel
abroad. While the government is talking to insurance companies to introduce
personal accident and baggage loss cover to railway passengers, the bus travel
segment is yet to open up to the idea.

Amongst other services, the bank will offer customers the option to invest as
little as Rs.1 in a money market fund, buy daily insurance to underwrite movie
tickets or buy travel tickets at nominal costs. At the backend there will be tie-ups
with other banks and financial institutions.

The bank will retain the Paytm brand name and identity when it is launched after
receiving, final regulatory approval. Last year, the Reserve Bank of India granted
"in-principle" approvals to 11 applicants including Paytm, Reliance Industries,
Bharti Airtel BSE -1.67 %, and Vodafone among others to set up payment banks.
These ventures can accept deposits, convey remittances and dispense
payments and financial services with a focus on the unbanked segments
including migrant workers. They cannot lend to their customers, though.

There is a high level of dormancy in the bank accounts of lower-income group, as

traditional banks treat these as additions and not the "core" of their portfolio.
Paytm's approach will mark a "fundamental shift" as the core of its business is
keeping active users in the lower income group.

Paytm will allow customers to move money to an instrument where it will earn
more than it earns in their savings account but the extra element is that it will be
available when needed at that instant.

35
2.c products and services

Paytm is widely recognized as an online recharge and bill payments portal. It

offers a wide range of services which are not just constrained to bills and mobile
recharge. Apart from the services paytm is also an e commerce portal and offers
a variety of products in different categories.

Services

Sr.no Name of services

1 Mobile recharge

2 Electricity bill payment

3 DTH recharge

4 Metro recharge

5 Gas bill payment

6 Data Card recharge

7 Landline and Broadband Recharge

8 Education-fees

9 payment

10 Insurance

11 Water bill payment

12 Hotels bookings

13 Bus tickets

36
 products

Sr.no Major categories product

1 Mobile & Accessories Mobiles
Tablets
Cases and covers
Mobile accessories
Power banks
Screen guards
Selfie sticks

2 Electronics Laptops and Desktops

Computer Accessories & Peripherals
Camera & Accessories
Television
Large Appliances
Kitchen appliances

Gaming

3 Men’s Fashion Clothing

Watches
Footwear
Grooming & personal care
4 Women’s Fashion Ethnic wear
Western wear
Foot wear
Fashion Accessories
5 Home & kitchen Kitchen storage & containers
Dinning and serving
Cookware & Gas stoves
Kitchen tools
6 Sports, health & beauty cycle

37
 Badminton
cricket
Tennis & table tennis
7 Baby, Kids & Toys Toys & games
Kids accessories
Baby care
8 Cars & Bikes Cars
Bikes & Scooters
9 Gifts & Sweets Dry Fruits
Gift Cards
Décor
Combos
10 Books Entrance Exam books
Literature & Fiction
Academic & Professional
Self Help
11 Stationary Pens
Writing & Drawing
Files and Folders
Packaging Supplies
Office Supplies
12 Industrial Supplies Power tools
Hand tools
Safety
Security
Test & Measurement
Abrasives
Fasteners

38
2.d List of key personnel in Paytm.Com

Sr.no Name of the person Designation/role in the company

1 Vijay Shekhar Sharma Founder & CEO

2 Ravi Adusumalli Director

3 Vivek Mathur Director

4 Ruchi Sanghvi Director

5 Naveen Tewari Independent Director

6 Neeraj Arora Independent Director

7 Peng Yijie Director

8 Jing Xiandong Director

9 Ratan.N.Tata Board Advisor

10 Jai Das Board Advisor

11 Vivek.N.Gour Independent Board Director

39
2.e Revenue Model of Paytm
A revenue model is a framework for generating revenues. It identifies which
revenue source to pursue, what value to offer, how to price the value, and who
pays for the value. Paytm is a sales channel for businesses willing to sell their
products online. It believes in a marketplace model i.e. a secure transactional
website where selected suppliers can sell their products or services to buyers.
Paytm is the provider of online Marketplace Service, where vendors register their
products and buyers come to buy. Paytm earns its revenue in the form of
commission from the seller.

Through escrow account paytm receives interest, when buyer pay for their
purchase that amount is held by paytm until the customer does not confirm it. If
customer does not confirm in next 7 days paytm expects that the buyer is
satisfied with the product and they transfer the money to the seller’s account.

Paytm also earns by advertising other products on websites like Haldiram, pvr,
sherkhan, Uber, MakeMyTrip, BookMyShow & many more Patym charges
annual subscription fees to the sellers who list their products on website. Under
advertising revenue model paytm allows sellers to show their advertisement on
paytm website and charges some amount for this advertisement.

In subscription model paytm allows different seller to list their products on their
website and paytm charges some annual subscription fees from these sellers.
Which generates revenue under advance payment model paytm received the
interest on the payment of customer until they do not transfer the money in the
seller account.

Indirect source they earn revenue: - Any value in your Paytm Wallet which is not
utilized in the aforesaid manner may stand forfeited at the discretion of Paytm.
Paytm reserves the right to forfeit the amount post adherence to the following
communication process: – Paytm will send 15 days advance communication to
Customers for outstanding amount in Paytm Wallet by SMS at the mobile
number on which Services have been activated. – In case no response is

40
received from the customer, second reminder will be sent to the customer to
respond within next 15 days – In case no response is received on the second
reminder, third reminder will sent to the customer to respond within next 7 days.
– Again if no response is received on the third reminder, amount will be tagged in
the system as forfeited and send to Board for approval. Post Board approval
forfeited amount will be recognized as income in books of account.

The revenue is a life blood of any business but as blood is an utmost necessity
for survival the structure also plays an equal important role in a company’s
existence. This structure is nothing but for the model on which company works a
basic outline of its functions. Let’s discuss paytm’s business model:

Paytm Business Model

Paytm has grown to be the big fish in their own space having started very
humbly. Paytm started out as a recharging service that helped people top up
their pre-paid accounts and here they are competing with the biggest in the e-
commerce space with the likes of Flipkart and Snapdeal.

Paytm is in three businesses.

1. The Recharge business

2. The E-commerce business
3. The Wallet business

1. The Recharge Business

This business is what they started off with. They create one of the earliest
platforms for phone recharges, which were much simpler than the offline mode of
it. For recharges Paytm earns a commission of 2 to 3% per recharge. The
recharge market is worth millions of dollars. And Paytm controls about 30% of
this market. This will hand them a handsome sum of money. This business will

41
get stagnant after a while, when penetration has reached far enough and the
subscriber base doesn’t grow. Its constant money and more importantly, it’s
traffic to the website. This business is what has fueled their growth and right now
it provides traffic and a database to upsell their next business.

2. The E-commerce Business

Everybody is seeing the value of the e-commerce market place business. It’s a
great way to earn a profit on the items sold and the online channel makes it much
more potent than the online channel. Paytm has done just that. They got into the
e-commerce business and promoted their e-commerce platform to their existing
users. They’ve recently tied up with over 1,000 brands to set up mini shops within
Paytm to truly create a marketplace. This would be run exactly like an offline
channel; to explain it further it would be run like a mall. The brands would control
their brands experience and Paytm would earn a percentage of every sale.

3. The Wallet Business

This is the business that Vijay Shekhar Sharma (Founder of Paytm) hopes will
take Paytm to the stratosphere. He believes that the wallet business of Alipay
that grew into a $60 Billion business could be replicated in India. They got the
license for a pre-paid wallet from the Government of India and are hoping to tap
into the banked and the unbanked. This wallet would be the front for all payments
where you could buy a movie ticket to paying the milkman with this wallet. It
would be a one-touch payment for every sale, which makes it extremely hassle
free. Having a service connected directly with a wallet is what Paytm believes will
be a differentiator in e-commerce as well. They make commissions from the
retailers for every transaction that is made through the wallet.

The advantage Paytm has is their Investor. Their majority Investor is Alibaba.
Alibaba has a 40% stake in Paytm and calling them a behemoth would be
justified. Alibaba is in no hurry and they are trying to capture all markets. Alibaba
also has an extensive experience in payments and this could be very beneficial
for Paytm.

42
 CHAPTER III

RESEARCH METHODOLOGY

43
Research Methodology

This research has been conducted to analyze the acceptance of new

developments in market by the local vendors and shopkeepers. This research is
primary in nature and aimed at understanding their mindset towards companies
like Paytm and how positive are they to become a part of this radical change.

The data relating to company and its background is secondary in nature, and has
been collected from various websites and news articles.

For the purpose of my study I have taken a sample size of 70. The sample
majorly includes small shopkeepers near and within institutional areas.

A questionnaire has been used for conducting this study, which enlisted almost
all major questions through which a respondent’s familiarity and acceptability
towards the brand could be gauged.

The questionnaire was prepared based on the conversation with the company
employees, initial interactions with the customers and keeping in mind the basic
motive of O2O and our work pertaining to it.

The sample size was selected on a random basis according to the areas and
shops that we visited.

The analysis and calculation part have been done with the help of SPSS. The
major findings and results have been concluded after performing chi-square tests
(hypothesis testing).

44
 CHAPTER 4

ANALYSIS AND INTERPRETATION

45
4.1 Graphical representation

Gender of the respondent

fig 1.1

Age of the respondent

Fig1.2

46
Use of Internet

Fig1.3

Online payments

Fig1.4

47
Respondent’s Awareness about paytm

Fig1.5

Companies preferred by respondents

Fig1.6

48
Respondent’s association about paytm

Fig1.7

Respondent’s awareness about paytm O2O

Fig1.8

49
Respondent’s likelihood to enroll as merchant

Fig1.9

Reason for respondent’s non acceptation of O2O model

Fig1.10

50
4.2 Hypothesis Testing
1. Relationship between age of the respondent and their likelkhood of getting
convinced to get enrolled as a merchant

H0: There is no relationship between “Age” and “Enrolement”.

Ha: There is a relationship between “Age” and “Enrolement”.

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

age of the respondent *

whether the merchant enrolls 70 88.6% 9 11.4% 79 100.0%
with paytm or not

Table 1.1

age of the respondent * whether the merchant enrolls with paytm or not
Crosstabulation

Count

whether the merchant enrolls

with paytm or not

Yes no Total

age of the respondent below 20 years 2 1 3

20-30 years 19 8 27

30-40 years 13 6 19

51
 40-50 years 9 4 13

above 50 years 7 1 8

Total 50 20 70

Table 1.2

Chi-Square Tests

Asymptotic
Significance
Value Df (2-sided)

Pearson Chi-Square 1.176a 4 .882

Likelihood Ratio 1.348 4 .853

Linear-by-Linear
.471 1 .493
Association

N of Valid Cases 70

a. 4 cells (40.0%) have expected count less than 5. The minimum

expected count is .86.

Table1.3

According to the Chi-Square tests there is no relationship between the age of a

respondent and their enrollment as .882 is > 0.05, hence the outcome of this test
is null accepted.

The age cannot be considered as a factor affecting the enrollment process as it

is subject to a lot other factors such as knowledge of internet, techno- friendly
attitude, understanding of the changing scenario, perception regarding the brand
etc.

52
 2. Relationship between age of the respondent and reason why merchant
declines to be a part of O2O

H0: There is no relationship between age and reason for decline

Ha: There is a relationship between age and reason for decline

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

age of the respondent * why

does the merchant declines 70 88.6% 9 11.4% 79 100.0%
to be a part of O2O

Table 2.1

age of the respondent * why does the merchant declines to be a part of O2O
Crosstabulation

Count

why does the merchant declines to be a part of O2O

It
doesn’t blocks Non- Converts
suits my my in- familiarity my
complex business hand with money
process type cash internet to white Others enrolled Total

age of the below 20

0 1 0 0 0 0 2 3
respondent years

53
 20-30
2 2 2 2 0 0 19 27
years

30-40
1 2 2 0 0 1 13 19
years

40-50
0 2 0 0 2 0 9 13
years

above 50
0 0 0 1 0 0 7 8
years

Total 3 7 4 3 2 1 50 70

Table 2.2

Chi-Square Tests

Asymptotic
Significance (2-
Value Df sided)

Pearson Chi-Square 22.121a 24 .572

Likelihood Ratio 23.206 24 .508

Linear-by-Linear Association 1.439 1 .230

N of Valid Cases 70

a. 31 cells (88.6%) have expected count less than 5. The minimum

expected count is .04.

Table2.3

According to the Chi-Square tests there is no relationship between the age of a

respondent and their reason to decline to be a part of O2O as .572 is > 0.05,
hence the outcome of this test is null accepted.

The age cannot be considered as a factor affecting the. There are other factors
such as lack of trust on online services and companies, bad experience or bad
54
reviews about the company in the social circle, online mode calls for money
being converted into white etc.

55
 3. age of the respondent and their association with paytm

H0: age does not affect the way a person associates with paytm.

H1: age does affects the way a person associates with paytm.

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

age of the respondent * how

does the respondent 70 88.6% 9 11.4% 79 100.0%
associates with paytm

Table 3.1

age of the respondent * how does the respondent associates with paytm
Crosstabulation

Count

how does the respondent associates with paytm

E-
mobile Easy commerce
recharge cashbacks payments website Others Nothing Total

age of the below 20

1 0 0 0 0 2 3
respondent years

20-30
6 6 4 0 2 9 27
years

30-40
5 9 0 2 2 1 19
years

56
 40-50
5 2 0 1 0 5 13
years

above 50
4 0 2 0 2 0 8
years

Total 21 17 6 3 6 17 70

Table3.2

Chi-Square Tests

Asymptotic
Significance (2-
Value df sided)

Pearson Chi-Square 32.780a 20 .036

Likelihood Ratio 40.226 20 .005

Linear-by-Linear Association 1.778 1 .182

N of Valid Cases 70

a. 26 cells (86.7%) have expected count less than 5. The minimum

expected count is .13.

Table3.3

According to the Chi-Square tests there is a relationship between the age of a

respondent and the way they associate with paytm as .036 is < 0.05, hence the
outcome of this test is null rejected.

Age and association are feebly positively correlated to each other.

Symmetric Measures

57
 Asymptotic
Standardized Approximate Approximate
Value Errora Tb Significance

Interval by Pearson's R
-.161 .120 -1.341 .184c
Interval

Ordinal by Spearman
-.188 .125 -1.582 .118c
Ordinal Correlation

N of Valid Cases 70

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

Table 3.4

58
 4. whether a respondent who uses paytm regularly is affected due to
cashbacks majorly.

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

respondent uses paytm

regularly * whether cashbacs
70 88.6% 9 11.4% 79 100.0%
are a major factor affecting
respondent to use paytm or not

Table 4.1

respondent uses paytm regularly * whether cashbacks are a major factor affecting
respondent

to use paytm or not Crosstabulation

Count

whether cashbacs are a major factor

affecting respondent to use paytm or not

strongly strongly
agree agree neutral disagree Total

respondent uses paytm strongly

14 4 1 2 21
regularly agree

agree 7 4 2 0 13

neutral 5 7 4 0 16

disagree 5 3 2 0 10

strongly
5 3 1 1 10
disagree

59
Total 36 21 10 3 70

Table 4.2

Chi-Square Tests

Asymptotic
Significance (2-
Value Df sided)

Pearson Chi-Square 10.853a 12 .542

Likelihood Ratio 12.312 12 .421

Linear-by-Linear Association .456 1 .499

N of Valid Cases 70

a. 14 cells (70.0%) have expected count less than 5. The minimum

expected count is .43.

Table 4.3

According to the Chi-Square tests a respondent using paytm daily is not majorly
affected by cashback as .542 is > 0.05, which signifies no relation between the
two scenarios, hence the outcome of this test is null accepted.

Cashbacks alone cannot be considered as a factor affecting/motivating

consumers to use paytm on a daily basis.

60
 CHAPTER V

FINDINGS AND INFERENCES

61
Findings and Inferences

The findings of this research are as follows:

1. Maximum number of people associate paytm with mobile recharges or

cashbacks.
2. Women are more rigid when it comes to accepting new technological
changes.
3. The age of the respondent does not effects their getting enrolled with
paytm. People between the age bar of 20-50 are more likely to get
enrolled if they have been convinced properly and realize some
advantage.
4. There is no relationship between the age of a respondent and their reason
to decline to be a part of O2O. The age cannot be considered as a factor
affecting the. There are other factors such as lack of trust on online
services and companies, bad experience or bad reviews about the
company in the social circle, online mode calls for money being converted
into white etc.
5. A respondent using paytm daily is not majorly affected by cashback.
Cashbacks alone cannot be considered as a factor affecting/motivating
consumers to use paytm on a daily basis.

62
 CHAPTER VI

RECOMMENDATION AND CONCLUSION

63
Recommendation and Conclusion
Paytm is an e-commerce company majorly recognized for its mobile recharge
and bill payment services but a very less percentage of people is aware about
the other services being offered by paytm.

Paytm is up with few highly ambitious plans such as payments bank, insurance
etc for future the preparations of which has already begun and an effort t making
india a cash-less market has already been started by paytm in the form of O2O in
order to spread awareness and give rise to cash counters that can work as points
where customer can pay cash and get instant paytm cash on the go in seconds
or vice-versa in case of dire need.

The problem facing this plan is the lack of awareness in people regarding paytm;
its schemes and its working model. Many people hold grave misconceptions
about the company as they fail to understand how the company is being able to
thrive after offering cashbacks at such huge rate.

In order to build a strong customer base paytm needs to build up trust among
people by being transparent and making itself more visible and transparent.
Paytm must take in notice certain points which were prominently noticed after
talking to a few people in Delhi markets:

1. It must advertise more and must focus on word of mouth publicity. It is

both a constructive mean as well as a destructive tool if not used properly.
India is an emotional and sentimental country paytm needs not only target
the indian mentality of “we accept whatever comes free” rather it should
try to get attached to the country’s sentiments if it wants to plant itself in
india.
2. Special focus is needed on the customer needs and after sales services
i.e. the ease and comfort of consumer must be a priority so that the
consumer feels connected and can trust the company.
3. Cashbacks on some regular categories must be more or less constant
because the cashbacks which keep on appearing today and vanishing the

64
 next day effects the low- income group customer a lot they do not
appreciate complexity as they fail to understand it and paytm is wanting to
target the lower vertical so it has to be user friendly by all means.
4. Paytm needs a series of survey to understand the needs of the customer
their fears and reason of latching out the techno- base brands and later on
cater to all those nreeds to get an upper edge over competitors.

65
 APPENDICES

66
Questionnaire

1. Kindly tick your gender:

a) Male
b) Female

2. Kindly tick your age:

a) Below 20 years
b) 20-30 years
c) 30-40 years
d) 40-50 years
e) Above 50 years

3. Kindly tick your business type:

a) General store
b) Photo copy shop
c) Cyber café
d) Gift shop
e) Garment store
f) Juice corner
g) Fast food joint
h) Medical store
i) Stationary
j) restaurants
k) mobile recharge shop
l) Others

4. Do you use internet?

a) Yes
b) No

5. Have you ever made any online payment?

a) Yes
b) No

67
6. If your answer to Question 5. is yes then what kind of payment have you
made?
a) Mobile recharge
b) Bill payment
c) Online shopping
d) Net banking
e) Money transfer
f) Others

7. Are you aware of paytm?

a) Yes
b) No

8. Which of the following companies is your 1st preference in the terms of

recharges, payments etc.
a) paytm
b) recharge it now
c) pay u money
d) mobikwick
e) freecharge

9. How do you associate with paytm:

a) Mobile recharge
b) Cash backs
c) Easy payments
d) E-commerce website
e) Others
f) Nothing

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10. Kindly rate the following sentences in the degree of agreement.

Particulars Strongly agree neutral disagree Strongly

agree disagree

I use paytm all the time

Paytm is the safest payment

portal

I use paytm because of its

cashbacks

Paytm app is very convenient

to use

I am very satisfied with the

quality of services provided by
paytm
I trust paytm

The model of paytm is very

transparent
Paytm is very profitable

11. Are you aware of paytm O2O scheme?

a) Yes
b) No

12. Would you like to enroll yourself as an O2O merchant with Paytm
a) Yes
b) No

13. If your answer to question no 12 is “NO” then kindly tick the reson for the
same.
a) complex process
b) doesn’t suits my business type
c) It blocks my in-hand cash
d) I don’t trust online transactions

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 e) Non-familiarity with internet
f) Converts my money to white
g) Others

14. Who are you most likely to refer paytm?

a. Family
b. Friends
c. Fellow merchants
d. Suppliers
e. Customers
f. None of the above

70
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to-e-commerce-market/

http://www.iosrjournals.org/iosr-jbm/papers/Conf.15010/Volume%201/14.%2087-
92.pdf

https://krunalhp.wordpress.com/2015/08/18/understanding-paytm-business-
model/

https://www.quora.com/What-is-the-business-model-of-Paytm-What-is-its-
concept-capability-and-value

http://www.geekdashboard.com/stores-accepting-paytm-wallet/

http://www.thehindubusinessline.com/info-tech/paytms-next-big-bet-
onlinetooffline-model/article8214902.ece

http://www.indiainfoline.com/article/news-sector-retail/paytm-introduces-pay-
through-wallet-on-top-online-merchants-114091700129_1.html

http://timesofindia.indiatimes.com/tech/tech-news/Indian-e-commerce-market-to-
touch-100-billion-by-2020-KPMG/articleshow/50093392.cms

https://www.pwc.in/assets/pdfs/publications/2014/evolution-of-e-commerce-in-
india.pdf

http://www.ey.com/Publication/vwLUAssets/Rebirth_of_e-
Commerce_in_India/$FILE/EY_RE-BIRTH_OF_ECOMMERCE.pdf

https://en.wikipedia.org/wiki/Mobile_payments_in_India

https://letstalkpayments.com/mobile-payments-market-in-india-grew-by-more-
than-15-times-over-the-last-4-years-proximity-payments-low/

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http://www.iamwire.com/2016/03/scenario-digital-payments-india-2016-trends-
future/133921

http://www.networksolutions.com/education/what-is-ecommerce/

http://www.investopedia.com/terms/o/onlinetooffline-commerce.asp

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