s.

no Index Page
1. EXECUTIVE SUMMARY 5
2. INTRODUCTION TO E-COMMERCE 6
3. OBJECTIVES OF THE STUDY 7-17
4. COMPANY PROFILE 18-22
5. S.W.O.T. ANALYSIS OF PAYTM 23-24
6. MARKET PLAN 25-30
7. FEASABILITY STUDY 31-36
8. FINDINGS 37
9. LIMITATIONS 38
10. CONCLUSION 39
11. BIBLOGRAPHY 40
 MINI PROJECT-1

ON

"FINANCING PLANNING AND FORECASTING OF

PAYTM"

SUBMITTED IN PARTIALLY FULFILLMENT OF THE REQUIRMENTS

FOR THE AWARD OF

MASTER OF BUSINESS ADMINISTARTION

SUBMITTED TO:

Mrs.Anupama Srivastava

ASSISTANT PROFESSOR

DEPARTMENT OF MANAGEMENT

SUBMITTED BY:

Aditya Prakash Tripathi

ROLL NO:2401410700004

MBA 1st YEAR

Sagar Institute of Technology &Management, Barabanki

Affiliated by Dr. APJ Abdul Kalam Technical University, Lucknow

Session 2024-2025
 DECLARATION
I Aditya Prakash Tripathi, hereby declare that the
Mini Project-1 report on “FINANCING PLANNING
AND FORECASTING OF PAYTM” submitted in partial
fulfilment for the award of Master of Business
Administration. This Project is done by me under the
Supervision of, “ Mrs.Anupama Srivastava”.

Date:-21-02-2025
Student Name:-Aditya Prakash Tripathi

ACKNOWLEDGEMENTS
It gives me a great sense of pleasure to present the report of the MBA
Project undertaken during MBA 1st Year.I owe special debt of gratitude
to Mrs.Anupama Srivastava,Department of Management,Sagar
Institute of Technology and Management,Barabanki for her constant
support and guidance throughout the course of our work.Her
sincerity,thoroughness and perseverance have been a constant source
of inspiration for me.It is only her cognizant efforts that our endeavours
have seen light of the day.
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.

CHAPTER:

INTRODUCTION TO E- COMMERCE

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 retailsites, 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

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 ecommerce 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.

1.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 5 of the

license regime, and high 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 eCommerce in

India was characterized by low internet penetration, a small online shopping user

base, slow internet speed, low consumer acceptance.

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.
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.

years this field has been renovated to a high extent and hence fascinated many 7

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

8 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.

1.c Online-to-Offline Model – Concept

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

webbased 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.

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 10 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 brickand-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

ecommerce 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.

Paytm - 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.
CHAPTER:

OBJECTIVES OF THE STUDY

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.

CHAPTER:

COMPANY PROFILE

2.a Profile of the Organisation

Type of business: Private

Type of site: E-commerce

Founded: 2010

Headquarters: Noida, Uttar Pradesh, India

Founder(s): Vijay Shekhar Sharma

Key people: Vijay Shekhar Sharma (CEO)

Services: Online shopping, Payment system

Parent: One97

Website: paytm.com
Alexa rank: 351 (February 2017)

Current status: Online

2.b PROBLEMS TO PAYTM

PAYTM FACES MULTIPLE CHALLENGES AT A CRUCIAL

JUNCTURE OF ITS JOURNEY

Paytm, the mobile wallet and e-commerce start-up, became a household name in

the two months. So much so that it has become a generic term associated with any

e-wallet and has become an all-pervasive brand with high recall value.

Demonetization gave mobile wallet firms like Paytm helping them gain users at

exponential rates every day.

Since the demonetization drive was announced by Prime Minister Narendra Modi

on November 8, Paytm has added new users at unforeseen rates and its trading

volume grew up. But the brand has been facing some critical challenges in terms

of transaction. It is by overcoming these challenges that the digital wallet sector’s

market leader, Paytm, can stabilize its brand image and grow at a steady rate.

FOCUS ON ADVERTISING AT THE COST OF INFRASTRUCTURE

The leading e-wallet firm has been battling continued transaction problems.

Customers trying to load money onto their Paytm wallets have had money

deducted from their bank accounts but the credit had not reflected in their Paytm

wallets. Users also complained that efforts to transfer money back to their bank

accounts were also failing.

The technological backend of Paytm seems to have under high pressure. “When

demonetization was announced, Paytm could not have anticipated the 1000%

jump in users. What a technology company like Paytm should have done at that

point was focus on strengthening its backend and creating a platform, instead of

focusing on advertising,” said N Chandramouli.

The primary concern during this time has been the alleged non-responsiveness of

the Paytm customer care. Paytm users have been trying to reach out to Paytm via

Twitter to get their transaction related issues sorted. In return, Paytm has been

trying to draw the attention of its users to the various reasons why a transaction

might be failing and sharing Information on how to contact Paytm’s customer

care on Twitter and on the Paytm blog.

Paytm’s Twitter profile has been bombarded by messages from distressed uses

that are having problems making transactions via Paytm.

Paytm has been struggling to cater to its 170 million users, 20 million of whom

join between November 10 and December 20.

In addition, some days ago the Paytm app went missing from the iOS App Store

because a recent update of the app was buggy. Paytm sincerely regret the

inconvenience caused by this outage,” Paytm said on their blog.

SUSPECTED INSIDER FRAUD

Adding to this mix of unfortunate incidents, Paytm’s employees are now being

investigated by CBI sleuths for defrauding the company itself. It has been

reported that based on complaints from Paytm, two cases of fraud amounting to

nearly Rs 10 lakh have been registered against 22 private individuals. The police suspect that insiders
facilitated the fraud.
CONTROVERSIAL ADVERTISING STRATEGY

Many newspapers across India were splashed with a Paytm advertisement on the

morning of November 9th congratulating Prime Minister Modi for “taking the

boldest decision in the financial history of Independent India.” Opposition

political parties and politicians criticized Paytm for this advertisement from Delhi

Chief Minister Arvind Kejriwal and West Bengal Chief Minister Mamata

Banerjee, to RJD chief Lalu Prasad Yadav, nobody spared Paytm.

They dragged Paytm into a political war. “In the case of the newspaper

advertisement and the comments made by the Opposition the brand tends to get

colored - not a secular color but a party color. It is possible that some would stay

away from the app because of this party connection but that may not be too large

a section of the public,” said Bijoor.

Another advertisement from Paytm also faced criticism and this time Patym was

pressured into withdrawing the advertisement and changing the advertisement.

The digital advertisement ‘Drama Bandh Karo…Paytm Karo’ was seen to be

mocking the Situation and wasn’t appreciated by viewers.

CHAPTER:

S.W.O.T. ANALYSIS OF PAYTM

STRENGTH:-

The biggest strength of Paytm it has ties ups with various national banks and with

RBI for Debit and credit cards. Ever since it started online mobile recharges

Paytm pamphlets and acceptance boards and notices can be witnessed even on

road side tea stall and pan shops.

Paytm works with all mobile operators in all states in India for prepaid mobile

DTH & data card recharges and prepaid mobile land line & data card bill

payment. It partners with the multiple national banks for credit card, debit card

and net banking payments. Paytm also works with various billers for utility bill

payments.

Keeping in mind the mobile world paytm mobile application is compatible with

all possible platforms including android, IOS & windows.

WEAKNESS:-

Paytm has grown into something that offers a lot of functionalities in areas other

than its chief purpose i.e., recharge. This makes the app bulky and takes up lot of

space. Processing takes time and finally fails to recharge. No replies on mails

from customers. Huge traffic during festive seasons when new offers are
introduced. Since Paytm is a mobile commerce, obviously it requires smart phone

users.

OPPORTUNITIES:-

The biggest opportunity that is witnessed in the present day for Paytm or any

other online business is the act of Demonetization announced by PM Mr.

Narendar Modi and replacement of paper currency with plastic currency leading

India to 100% digital marketing. And encashing upon this since the

announcement of demonetization reports are Paytm has made a business of 1.28

crore in a single day and have added 40,000.

THREATS:-

The major threat that comes to the Paytm business is from other online portals i.e.

Snapdeal, Amazon, Flipkart and many more such online portals which provide

thousands of products under different categories from varied suppliers.

CHAPTER:

MARKET PLAN

STRATEGY OF PAYTM

The overall up-to-down 360 degree campaign made sure that all their offers reach

out to its targeted audience on social media too. Sharing their advertisement on

Facebook and Twitter, and even sponsored posts on Instagram and at time even

Snapchat.

However, the most effective of all strategies was the #PaytmKaro. It was being

added to almost every conversation that is being driven on Facebook and Twitter.

All the feedbacks, complaints (if any), comments etc started excessive use of this

#PaytmKaro .It’s observed that the advertisement rolls out some life situations

such as money transfer, online shopping, mobile recharge, paying at petrol pump

etc, which is made easy by Paytm services. This TV commercial that rides the

emotional route to connect with Indian mobile customers, has gained over 50K

views on YouTube.

#PaytmKaro had no digital campaign budget initially. TV was the primary

medium for the campaign and that is understood with the campaign.

With an objective of making Paytm a household name when it comes to mobile

money transfer, it was really surprising that why the brand had ignored the social

media savvy audience. But lately they realized its importance and grabbed the

opportunity.

The brand planned to run a social media campaign and even succeeded in it. Also
at a later stage it can obviously drive meaningful conversations with fans around

#PaytmKaro.

Bargain power which is currently not available at any other marketplace and

Paytm has made the selling and buying experience a lot more interesting.

Paytm had recently collaborated with IRCTC to make Paytm wallet payments as

one of the online payment options while booking a train ticket. According to the

annual reports of IRCTC, they process around 180 million transactions every

year.
PRESENT STRATEGY AND 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 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 23 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 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 24 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.
CHAPTER:

FEASABILITY STUDY

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.

List of key personnel in paytm.com

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.

Value Chain of Paytm

A value chain is a set of activities that a firm operating in a specific industry

performs in order to deliver a valuable product for the market. A value chain is a

business term describing the full range of iterative activities a company uses to

create a product or a service. The purpose of value-chain analysis is to increase

production efficiency so that a company can deliver maximum value for the least

possible cost.
Primary Activities:

1. Inbound Logistics- Inbound Logistics include transferring materials from the

supplier to the manufacturer. In the point of view of Paytm, inbound logistics

includes activities like receiving, storing and disseminating the input of products.

Paytm has outsourced most of its inbound logistics activities.

2. Operations- Operations are the activities which transform raw materials into

finished product. From Paytm perspective, it can include converting

consumer data to serve advertisements.

3. Outbound Logistics- Outbound logistics is the channel by which the final

product is distributed to the consumers. The final product of Paytm is made

available through the Paytm app.

4. Marketing and Sales- Marketing and sales activities of Paytm include –

marketing, sales force management, advertising and promotion, channel selection,

pricing etc.
Support Activities:

1. Firm infrastructure- Firm infrastructural activities which support Paytm include

finance, legal services, quality management, planning and general management.

2. Human Resource Management- HRM activities including hiring, training,

compensation and development of human resource of a firm.

3. Technology Development: Paytm uses different technologies to support

their activities. They use methods like Zendesk, Google forms for customer

support. For product and design, software like Google fonts and balsamic are

used. SendGrid, AppsFlyer are used for marketing.

4. Procurement: Procurement refers to the function of purchasing inputs used in

the firm’s value chain, not the purchased inputs themselves.

CHAPTER:

FINDINGS

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.

CHAPTER:

LIMITATIONS

 This is very difficult to collect the data from the firm what strategy they

are using to overcome the recession economic condition because different

company using the different strategy and also its very confidential for the

company so the company don't want to flash their marketing policy or

strategy.

 People of rural areas are not aware of the company because of no

promotional activities undertaken by the company.

 People are reluctant to use paytm as they think it’s a gamble.

 Sometimes the database is not provided then it becomes difficult contact

to people as our work is mostly through telephonic conversation.

CHAPTER:

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 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.

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