AMITY UNIVERSITY UTTAR PRADESH NOIDA

AMITY BUSINESS SCHOOL

RURAL MARKETING REPORT

ON

PAYTM

SUBMITTED BY : SUBMITTED TO :

Dr.Ritesh Dwivedi

Shipra Mand (05)

Aditi Agrawal (06)

Tulika Arora (10)

Aishwary Dubey (64)

Manisha Jha (66)

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 TABLE OF CONTENTS

S.NO PARTICULARS PAGE

NO.
1. INTRODUCTION

 About Paytm 3-4

 About Product Line 5
 Swot Analysis 5-7

 Marketing Mix 8-10

 Objectives
11

2. RESEARCH METHODOLOGY 12-13

 Methodology
 Research design
 Sampling
 Sample Size
 Limitation
 Data Collection Tools
3. DATA COLLECTION
 Primary 14-25

4. FINDINGS 26

5. CONCLUSION 27

6. ANNEXURE 28 - 29

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 Objective of the research h

CHAPTER 1 : INTRODUCTION

About Paytm

Paytm is an Indian e-commerce payment system and digital wallet company, based out
of Noida, India. Paytm is available in 11 Indian languages and offers online use-cases like
mobile recharges, utility bill payments, travel, movies, and events bookings as well as in-
store payments at grocery stores, fruits and vegetable shops, restaurants, parking, tolls,
pharmacies and educational institutions with the Paytm QR code. As of January 2018, Paytm
is valued at $10 billion. As per the company, over 7 million merchants across India use
this QR code to accept payments directly into their bank account. The company also uses
advertisements and paid promotional content to generate revenues.

Paytm was founded in August 2010 with an initial investment of $2 million by its
founder Vijay Shekhar Sharma in Noida. It started off as a prepaid mobile and DTH recharge
platform, and later added data card, postpaid mobile and landline bill payments in 2013. By
January 2014, the company launched the Paytm Wallet, and the Indian
Railways and Uber added it as a payment option. It launched into e-commerce with online
deals and bus ticketing. In 2015, it unveiled more use-cases like education fees, metro
recharges, electricity, gas, and water bill payments. It also started powering the payment
gateway for Indian Railways.

In 2016, Paytm launched movies, events and amusement parks ticketing as well as flight
ticket bookings and Paytm QR. Later that year, it launched rail bookingsand gift cards.
Paytm's registered user base grew from 11.8 million in August 2014 to 104 million in August
2015. Its travel business crossed $500 million in annualised GMV run rate, while booking 2
million tickets per month.

In 2017, Paytm became India's first payment app to cross over 100 million app
downloads. The same year, it launched Paytm Gold, a product that allowed users to buy as
little as ₹1 of pure gold online. It also launched the Paytm Payments Bank and ‘Inbox’, a
messaging platform with in-chat payments among other products. By 2018, it started
allowing merchants to accept Paytm, UPI and card payments directly into their bank accounts

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at 0% charge. It also launched the ‘Paytm for Business’ app, allowing merchants to track
their payments and day-to-day settlements instantly. This led its merchant base to grow to
more than 7 million by March 2018.

Paytm says it is witnessing increased adoption of digital payments by its users and merchants
in villages and smaller towns than in metros.The digital payments company claims to have
presence in 3 lakh villages, where it says has opened up cashless transactions through its
smartphone app and QR code solution. Paytm also claims to have on-boarded around 30 lakh
merchants accepting digital payments in small towns.Citing examples like Chitradurga in
Karnataka, Angul in Odisha, Unnao in Uttar Pradesh and Kangra in Himachal Pradesh, the
company said digital payments adoption in these locations was 20% higher than in metro
cities. Paytm QR, Money Transfer and Bill payments continue to garner the highest number
of transactions from these areas.Chief operating officer Kiran Vasireddy said the company
had grown by 40% in terms of coverage of geographies. It also revealed its merchant network
in small towns had grown to more than 3 million retailers, which registered similar
transaction sizes as peers in India’s large cities. Paytm said across rural and semi-urban areas
transactions using QR codes, cash transfer and bill payment were its most popular use cases.

Paytm Brand Analysis

Parent
Company One97 Communications

Category Ecommerce – Online payments

Sector IT & Technology

Tagline/ Slogan Paytm karo

USP Online payment systems with high customer base and

acceptance

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Product Line

Online transaction is a payment method in which the transfer of fund or money happens
online over electronic fund transfer. Online transaction process (OLTP) is secure and
password protected. Three steps involved in the online transaction are Registration, Placing
an order, and, Payment.

Online transactions occur when a process of buying and selling takes place through the
internet. When a consumer purchases a product or a service online, he/she pays for it through
online transaction.

Online transaction processing (OLTP) is information systems that facilitate and manage
transaction-oriented applications, typically for data entry and retrieval transaction processing.
So online transaction is done with the help of the internet. It can’t take place without a proper
internet connection.

Types of online Transcation System

 Paytm
 Google pay
 Bhim app
 Amazon pay
 Phone pe

SWOT analysis of Paytm

Strengths

 First mover advantage: Paytm was the first online payment company to set up
operations in India. Their timing was perfect since they started operations at around the
same time when smartphones started becoming popular.
 Convenience options: Paytm is an epitome of convenience since it is operational round
the clock and facilitates easy payment or transfer of funds anytime, anywhere. This
makes it increasingly accepted by an urban population who rely on online shopping for
even daily use items.

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 Tie-ups with merchants: Paytm can be used to transact with more than 3 million
merchants across India and the number is said to be growing every day. This makes
Paytm an easy shopping option for most customers irrespective of
their economic background or education.
 Bucket of services: Most of what one desires to do online can be done through Paytm.In
addition to the Paytm Wallet, today the brand has online reservation facilities, online
retail, and online recharge and there is also no need to go through payment gateways of
you are using paytm.
 Offers: Paytm has been able to grab and hold the attention of customers primarily
because of the never-ending offer stream it has been announcing.these are custom
designed with the Indian mindset in the frame and thus works like magic for zooming
sales.

Weaknesses

 Need for IT infrastructure: If Paytm functions have to be robust there has to be good
bandwidth and speed. This may be there in most cities in India but may not the case in
remote locations or even tier 2 towns.
 Lack of awareness amongst users: Most users are unaware of what Paytm can do for
them and confused about how the app needs to be used. The level of awareness
of technology tools and the inherent fear of making erroneous transactions is making
things worse.
 Fear of going cashless: Most Indians are used to transacting on cahs and are yet to get
used to being used to cashless transactions. However, with digitization and
demonetization, things are expected to pick up and this will help online wallet services.
 Poor customer care: One criticism leveled against Paytm is its poor customer service.
The app and the portal cater to a wide variety of customers whose concerns may be
minor.It is alleged that the call center executives are often rude and unable to handle
many of the queries.

Opportunities

 Growing demand for aggregators: Aggregators and middlemen are in demand

everywhere today.With growing technology usage people prefer to make most payments

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 from the convenience of their homes.This has increased the role of payment aggregators
in India.
 Demonetisation: One of the services that benefitted heavily from the Indian
government’s demonetization drive was online payment services and Paytm was one of
the biggest beneficiaries. In a move to digitize the country, such services will have more
opportunities coming their way.
 The surge in the number of working professionals: The number of working
professionals are increasing profusely. This means that for most couple’s time is scarce
making them rely more on home delivery services for their sustenance. When the
demand for online shopping increases there will be a corresponding increase in the
payment portals as well.

Threats

 Competition: With lowered barriers to entry, every new entrepreneur is looking at

aggregating services. There are a lot of online portals like pay charge, mobikwik etc and
even telecom service providers like Airtel and Vodafone are providing online payment
gateways.
 Growing concerns about safety: Today there is negative imagery of information
security and tracking of shopping habits. There is also growing concerns about how safe
the information submitted to payment portals are and the level to which such portals or
payments made through them are monitored.

Paytm STP

People with smartphones looking for cashless payment

Segment
transactions

Target Group Urban tier1 tier2 cities- young and middle aged people

Paytm can be used as an alternate for cash to make payments

Positioning
for daily basic needs

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Marketing mix of Paytm

Product:

Paytm is a leading online payment company and an ecommerce portal based out of India.
Paytm offers various products & services in its marketing mix like ewallet, online shopping
etc. The name Paytm is a short form for pay through mobile. Customers can access the portal
on computers and apps on their smartphones for making online payments like mobile
recharge, bills, shopping etc. Paytm wallet enables customers to pay bills like electricity,
recharge their mobile numbers, pay for DTH services, pay at restaurants, book air tickets,
movie tickets etc. Paytm basically empowers the customers to make payments instead of
using cash or debit / credit cards. Payments bank from Paytm enable customers to have bank
accounts like any other bank and have access to services like debit card, savings account etc.

Price:

Paytm is a free to use service as it is a medium through which customers can make payments
for the other services which they avail. The foundation of payment was because of series of
investments they received. Indian business tycoon had invested in Paytm as a personal
investment in the brand. After this, a funding of $575 million was received by Paytm from
China's leading business group Alibaba. Paytm also received funding from Taiwan based
Mountain Capital. These huge fundings enables the company to get new customers on board
and give them free service. Paytm is also parallely giving discounts and offers to promote its
online shopping ecommerce portal. This gives an insight in the pricing strategy in its
marketing mix. There are many other apps and tech companies similar to Paytm but none of
its competitors have a market share as strong as it has. Paytm earns its revenue from
commission which happen on the transactions. Also, money deposited and stored in the
ewallets are also used to generate income through interest.

Place:

Paytm, like any other app or website, is accessible everywhere through a smartphone or
laptop having internet connectivity. The Paytm office is headquartered in Noida, India. The

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service is currently serving the Indian consumers and is available throughout the country for
making payments and shopping. Paytm is widely accepted as a mode of payment across
various industries, sectors and geographies. Several restaurants, groceries, supermarkets,
hotels etc all accept Paytm as a part of payment. Ticketing houses and tour operators use
Paytm's service for rail, plane, bus ticketing. All these show the extensive reach of the
service, which is widely accepted by vendors and customers alike.

Promotion:

Paytm has been aggressively advertising itself as a part of its marketing mix. Ad campaigns
of Paytm are been showcased through TV commercials, online ad banners, billboards, print
media like newspapers, magazines etc. These have enabled Paytm to become a household
name, with a catchy phrase of "Paytm karo". Apart from this, the company has also been
actively involved in sponsorship of several events, competitions etc which have given the
brand tremendous visibility. Paytm has also been roped in as the official sponsor and partner
of the Indian cricket team, which would give huge publicity and visibility to the brand across
the world. Retailers, grocery stores and supermarkets accepting Paytm as a mode of payment
also display wall hangings and posters, which give the brand a strong visibility.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps
marketing mix of Paytm.

People:

Paytm, being a service brand, gives importance to its people ie its customers as well as its
employees. More than 13000 people are employed with Paytm as a part of its strong people
strategy in its marketing mix. Apart from employees, more than 3 million merchants accept
Paytm as a mode of payment. The company has grown in leaps and bounces as it has in
excess of 75 million app downloads. Also, more than 150 million people actively use Paytm
wallets for making online transactions.

Process:

Paytm has several business interface and customer friendly processes for the ease of doing
transactions. The basic process of using Paytm is as follows. Once a user has registered with
Paytm, they have to transfer some money using netbanking, credit/ debit cards, IMPS or other

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ways mentioned from their bank. Once the money is the Paytm wallet, codes and numbers of
vendors are used to transfer e-money from customer to vendor. As the brand is new and is
growing rapidly, it had also focused on customer service processes.

Physical Evidence:

Paytm's physical evidence is the presence of the brand with customers and merchants. The
app installed in smartphones is the biggest physical evidence for Paytm as the app interface is
the most critical moment of truth for the customer for making payments and vendor for
receiving the payments. Apart from this, the blue logo with Paytm written is easily
recognisable. The presence of stickers, hanging placards, posters etc of Paytm at outlets give
the physical presence of the brand. Hence, all this summarises the Paytm marketing mix.

Paytm Competition

Below are the 4 Paytm competitors:

1. Amazon pay
2. Mobikwik
Competitors
3. Google pay
4. BHIM
5. freecharge

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 OBJECTIVES

 To study the level of awareness and usage of online transaction applications among rural
population.

 To spread awareness about paytm and other applications.

 To study the acceptance level of paytmby the rural population.

 To study their perception towards paytm.

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 CHAPTER 2 : RESEARCH METHODOLGY

2.1 RESEARCH DESIGN

The study is descriptive in nature and based on the collection of the primary data.
Quantitative research methods were used for the collection of data. The questionnaire
structure is designed with closed ended questions. The survey and some interviews were
conducted in DayalpurSahib Village (Faridabad) and sample size of 200 respondents was
collected.

SAMPLING

Sampling is the process of selecting representative, subset of a total population for obtaining
data for the study of the whole population, the subset is known as sample. In this sample size,
the researcher decides how many elements of the target population to be chosen for this
study.The convenience sampling method was adopted in this study. The sample size of the
study was 200 respondents.

2.2DATA COLLECTION

In this research, both primary as well as secondary data has been used. For collecting data, a
properly defined questionnaire was developed as a research instrument, the questions were
designed keeping in mind the research topic”Awareness about Paytm”.

PRIMARY SOURCES

Primary Data Collection- In order to identify and understandthe level of awareness and usage
of online transaction applications among rural population , the questionnaire was circulated.

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SECONDARY SOURCES

Secondary data was collected from the company’s website, magazines, Newspapers.

2.3SCOPE OF THE STUDY

This research focuses on Paytm service users in DAYALPUR . The scope of the research
will describe the relationship between Paytm services on safety & security, transaction speed,
convenience, recharge, shopping, booking and transfer of funds, which can directly help in
depicting the awareness level of paytm and its benefits among the rural people and rural
people who still believe in doing transactions by cash only can be briefed about paytm and
motivate them to use the cashless facility further. The research we seek the views of
respondents on the awareness level of the online transactional applications ,this will show
how the company is performing in the rural market, how it can improve and increase its
market share. It is wise to cross check the internal views with a small number of depth
interviews with customers. The purpose of this research is to actually find out that are rural
people aware about paytm and how much of the rural percentage of that village has proper
knowledge about paytm.

2.4 LIMITATIONS

 Method of data collection was through personal interview and therefore bias becomes
a major limitation.
 Few respondents were not willing to provide all the information .
 The scope of the study is restricted only toDayalpur Village, the result may not be
applicable to other than the Dayalpur Village.

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 CHAPTER 3 : DATA ANALYSIS

1. क्या आप स्मार्ट फोन का उपयोग करते हैं?

Usage of Paytm Number of respondents Percentage

Yes 130 65

No 70 35

Total 200 100

35%
no
yes
65%

Interpretation :
It was found that more than 50% of the population ie. 130 people out of 200 used smartphone
in the village and the remaining either did not use any kind of phone or used simple basic
phones.

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2. क्या आप ऑनलाइन लेनदे न करते हैं?

Usage of Paytm Number of respondents Percentage

Yes 112 56

No 88 44

Total 200 100

44% yes

56% no

Interpretation:
In our survey we found out that 112 people used online transaction applications for various
purposes and 88 did not used online methods and rather used traditional methods of
transactions.

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3. आप ननम्ननलखित में से नकतने एप्स को जानते हैं?

Benefits Number of respondents

Paytm 135

Bhimupi 72

Mobikwik 7

Amazon pay 3

Google pay 43

160

140

120

100

80

60 135
40

20 72
7 3 43
0
paytm bhim upi mobikwik amazon pay google pay

Interpretation:
It was found out that the majority of the population was aware about paytm. Other popular
apps were bhimupi and google pay. Very few people knew about mobikwik and amazon pay.

4. क्या आप पेर्ीएम का उपयोग करते हैं?

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Usage of Paytm Number of respondents Percentage
Yes 108 54

No 92 46

Total 200 100

46% yes
54% no

Interpretation:
108 persons used paytm and 92 did not use paytm

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5. आप paytm का उपयोग नकस नलए करते हैं?

Benefits Number of respondents Percentage

Shopping 16 14

Electricity/gas bill 43 40
payment
Mobile recharge 31 29

Cashless transaction 18 17

Total 108 100

14%
bill payment

17% 40% mobile recharge

cashless transaction
shopping
29%

Interpretation:
Out of the people who used paytm, most of them used this app for gas and electricity bill
payments.29% of the population used paytm for mobile recharge and dth recharge.17% used
for various cashless transactions and 14% used for online shopping

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6. आपके अनुसार पेर्ीएम के क्या लाभ हैं?

Benefits Number of respondents Percentage

Cashback 33 30
Discount 18 17
Offers 0 0
Convenience 57 53
Total 108 100

30% convenience
discount
53% offers
0%
cashback
17%

Interpretation:
The people who used paytm said they used paytm mostly as it is very convenient to use and
they get cashback. Discount was another reason why they usepaytm. None of them was
attracted to the offers as there are not many.

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7. आआआआ paytm आआ आआआआ आ आआआआ आआआ आआआ?

Came to know Number of respondents Percentage

Television 30 28
Relatives/Friends 46 43
Shopkeeper 10 9
Others 22 20
Total 108 100

Others
Television
20%
28%
Shopkeeper Television
9% Relatives/Friends

Relatives/Friend Shopkeeper
s Others
43%

Interpretation:

After the survey, majority of the respondents came to know about paytm by family and
friends and few of them came to know about it by the advertisements, Respondents also
mentioned that they got to know about paytm by certain newspapers and radio channels.

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 8. आआआआ आआआआ paytm आआ आआआआआ आआआआआआआआआआआआ के बाद आआआआ
आआआआ?

Started After Number of respondents Percentage

Demonetization
Yes 57 53
No 51 47
Total 108 100

No
47% Yes
53% Yes
No

Interpretation:

According to the above data, Most of the respondents started using paytm after the
demontization came into existence wherease 47% of the respondents were using paytm
before demontization.

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 9. क्या आप paytm सेवाओं से िुश हैं?

Satisfied with services Number of respondents Percentage

Yes 104 96
No 04 4
Total 108 100

No
4%

Yes
No
Yes
96%

Interpretation:
According to the above data, majority of the respondents are satisfied with the services
provided by paytm and are have no certain problems in using the application.

10. आआpaytm आआ आआआ आआआआ आआआआआ आआआआआ?

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 Changes you recommend Number of respondents Percentage

Hindi Version 26 24
Customer Friendly 32 30
Good Internet Speed 2 2
Security of money 48 44
Total 108 100

24%

44% Hindi Version

Customer Friendly
Good Internet Speed
30%
2% Security of money

Interpretation:
According to the survey, major concern of the respodents were the security of money, still
their are people who feel that online fraauds can happen with them, few of them feel that the
application should be made more easier.

11. Paytm का उपयोग न करने के पीछे क्या कारण है ?

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 Reasons for not using paytm Number of respondents Percentage

Donot have smartphone 10 11

Donot have Bank A/c 20 22
Security Reasons 13 14
Donot know how to use 49 53
Total 92 100

11%

22% Donot have smartphone

53%
Donot have Bank A/c
Security Reasons
14%
Donot know how to use

Interpretation:
According to the data, major part of respondents donot know how to use the application and
most of them donot have bank accounts too.

12. अगर आपको पूरा ज्ञान नदया जाता है तो क्या आप paytm का उपयोग करें गे?

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 Interested after getting proper Number of respondents Percentage
Guidance
Yes 90 98
No 2 02
Total 92 100

2%

Yes
No
98%

Interpretation:

According to the survey conducted, respondents would definitely atleast try the application
once if they are properly guided about the use of application.

CHAPTER 4: FINDINGS

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1. Paytm has focused towards building its brand image. After demonetisation paytm made it
easier to pay with its digital payment option. Majority of respondents started using paytm
after demonetization.

2. Consumers think paytm is the epitome of convenience since it facilitates ease of payment
or transfer of funds anytime and anywhere and most importantly paytmdoesnot charge a
small fixed percentage(amount) while transferring money from one account to another.

3. Most consumers are unaware of what paytm can do for them and are confused about how
the application need to be used. However the respondents who were unaware about the
features and benefits of paytm showed interests and were willing to get more information
about paytm.

4. Today there is negative imagery of money security among rural consumers, therefore their
are people who feel that online frauds can happen with them.

5. The major users of paytm application were the male respondents, very few number of
women respondents use paytm in that village.

6. Majority of respondents use paytm for paying their electricity and gas bills as paytm has
eased their lives, earlier they had to stand in long ques in order to pay their electricity and gas
bills and now just one click and the bills are paid.

7. Paytm is a well- known and widely used app among rural consumers as compared to its
rivals because of its unique promotional strategies.

8. By the survey, it was also found that paytm should advertise its brand in such a way that
the rural consumers can relate and understand and paytm should take an initiative to guide the
rural consumers about the uses and benefits of application. This would help paytm to increase
their market share in the rural market.

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 CHAPTER 5 : CONCLUSION

Paytm is one among the best mechanical advancement in the present century and the
administrations offered by Paytm helps in Time utilization and furthermore it is anything but
difficult to utilize. Achievement of Paytm could be it was a plan of action presented in the
wake of concentrate the current circumstance winning in our nation and that is the reason it
went ahead after demonetization even in rural areas.Use of Paytm’s digital services (which
includes but may not be limited to prepaid recharge, bill payment, electricity bill, bus
tickets), the semi closed wallet service, the marketplace service or any such other
services which may be added on the Paytm Platform and which will henceforth be a
Paytm Service, from time to time.

Fruitful treatment of Paytm by purchasers and shippers is the best case of its positive effect in
the general public. Among its rivals, it is the most popular among the rural people and also
widely used and accepted. More and more promotional strategies should be implemented to
make it more prominent among the rural population.

CHAPTER 6 : ANNEXURE

Paytm आआआआआआआआआआआआ

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नाम-
आयु -
नलं ग-

1. क्या आप स्मार्ट फोन का उपयोग करते हैं ?

 हााँ
 नहीं

2. क्या आप ऑनलाइन लेनदे न का उपयोग करते हैं ?

 हााँ
 नहीं

3. आप ननम्ननलखित में से नकतने ऐप जानते हैं -

 Paytm
 Mobikwik
 Google pay
 BHIM
 Amazon pay

4. क्या आप paytm का उपयोग करते हैं ?

 हााँ
 नहीं

5. आप नकस उद्दे श्य से paytm का उपयोग करते हैं ?

 िरीदारी
 आआआआआआआआआआआआ
 आआआआआआआआआआआआआ
 कैशले सले नदे न

6. आपको क्या लगता है नक paytm के क्या फायदे हैं -

 Cashback
 Discount
 offers
 convenience

7. आपको paytm के बारे में कैसे पता चला?

 र्े लीनवजन
 दोस्त / ररश्ते दार
 दु कानदार
 अन्य

8. आआआआ आआआआ paytm आआ आआआआआ आआआआआआआआआआआआ के बाद आआआआ आआआआ?

 हााँ
 नहीं

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9. क्या आप paytm सेवाओं से िु श हैं ?

 हााँ
 नहीं

10. आआ आआआआ आआ paytm आआ आआआ आआआआ आआआआआ आआआआआ ?

 आआआआआ आआआआआआआ
 अच्छा इं र्रने र् कने क्शन
 पैसे की सुरक्षा
 customer friendly

11. Paytm का उपयोग न करने के पीछे क्या कारण है ?

 स्मार्ट फोन नहीं है
 Bank A/c नहीं है
 सुरक्षा कारण
 पता नहीं कैसे उपयोग करें
 अन्य

12. अगर आपको पूरा ज्ञान नदया जाता है तो क्या आप paytm का उपयोग करें गे?
 हााँ
 नहीं

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