Understanding Product

PhonePe is a mobile payment application that enables users to transfer money instantly, by using just their mobile number.

Vision:

To build a large, scalable & open transaction ecosystem that creates the maximum positive impact for all stakeholders.

Mission:

The company aims to make digital payments so easy, safe, and universally accepted that people never feel the need to carry
cash or cards again. Its online payment system is based on Unified Payments Interface (UPI) and a digital wallet. PhonePe
strives to make commerce a seamless experience for both customers and businesses.
Understanding
Market ● In a recent report, Credit Suisse estimated
that digital payments in India would reach $1
trillion in FY23 with mobile payments
accounting for $190 billion, the estimate for
2018 is $10 billion.
● UPI comprises of 60% of total payments by
volume in India presently.
● Currently, 250 banks are live UPI members,
which means they allow interbank fund
transfers using UPI.
● There are over 50 UPI apps with PhonePe
leading the space.
Understanding Market
Competitor Analysis
 Google Pay
Google Pay is a digital wallet platform and online payment system developed by Google to power in-app, online, and
in-person contactless purchases on mobile devices, enabling users to make payments with Android phones, tablets, or
watches.

Differentiators:

● Most secure transactions with the powered by googleʼs reliability and technical advantage.
● Cleaner and a more user friendly interface.
● Great marketing and retention strategies involving gamification.

Cons:

● No wallet option
● No additional Finance features like investing in MF, gold etc.
 Paytm
Paytm is India's leading financial services company that offers full-stack payments & financial solutions to consumers, offline
merchants and online platforms. The company is on a mission to bring half a billion Indians into the mainstream economy
through payments, commerce, banking, investments, and financial services

Differentiators:

● Massive presence in the vendor space compared to the competitors. Boasts highest market share in offline merchant
payments with 15% month-on-month growth.
● Bill payments, mobile recharge, DTH services and much more!
● Unique services in form of vouchers, Paytm mall, education, games, travel, entertainment and food.

Cons:

Highly complex, cluttered interface. Difficult for feature discovery process.

 Market Insights

● While PhonePe has penetrated much of consumer base, it lacks in

merchant base penetration.
● This could be owed to the fact that, most of the features present on the
app are driven towards regular consumers. There aren’t additional
features catering to merchant space.
● PhonePe vision caters to all the stakeholders involved in the process.
Therefore the solutions I propose in the case study, offer to cater to the
merchant customer segment.
Stakeholders
Understanding Users
Persona 1
Name Diligent Dilip
Profession Self-Employed - Fixed shop retailer
Bio
Dilip is an owner of a kirana store and deals
with everyday commodities.
Persona 1 Pain points
● Dilip operated previously in physical
money medium.
● After the boom of digital payments, dilip
finds it difficult to track money inflow
and outflow.
● His experience is what he usually relies
on to order items seasonally.
● But that's not entirely accurate in helping
him maximising his profits
Persona 2
Name Efficient Eknath

Profession Supermarket chain Owner

Bio

● Eknath is a businessman who owns a

supermarket chain called Fresh Foods.

Persona 2 ● He is someone who believes in using technology

for optimising businesses and is always on the
lookout for innovative ideas to improve
businesses

Pain points

● Eknath observed that the process of checking out

at the cashier is highly inefficient.
● During peak times it is crowded and in lul period,
it is a redundant work hour expenditure on
employees.
Proposed Solutions
Hands Free
Shopping! ● Status Quo in Supermarkets is, customers walking
around the store, stacking up their baskets and
paying at the Billing counter after scanning the
products.
● This process could be sped up rapidly by outsourcing
the scanning part to customers.
● Customers can scan the barcodes of items in the
PhonePe app, include quantity and leave the there.
● Finally, when they are done shopping, they can pay
their bill all at once within the app itself and choose
to collect it then and there or have them delivered(if
the store offers delivery).
● The supermarket staff then shall collect the claimed
items and give them to customer.
● This saves the customer a lot of time and the vendor
can ensure efficient productivity from staff, all the
while having state of the art analytics tools on the
store data to optimise business.
Kirana Klub
● For small scale fixed shops (kirana
shops, general stores), the vendors
can purchase PhonePe vendor
solutions.
● PhonePe shall look at other
supermarket stores in the area that
are existent customers and can
recommend the most in demand
general items in the location and
time frame.
● Additionally, cashbacks and offers
can be provided to the customers as
an effort to attract customers to the
store.
 Environmental Factors

● Cheap Internet Data in India.

● Penetration of Smartphones (With good cameras) in India
● Penetration of UPI based payments in India.
● Growing importance of automation, analytics and digitization in
businesses of India
● Pandemic compelling supermarket players setting up contactless
shopping and delivery services to customers
Business Model
Thank You!

PV Sriram
April ʼ22 Cohort