CHAMELI DEVI GROUP OF INSTITUTIONS, INDORE

Synopsis

ON

“A comparative Analysis of Paytm And BHIM app during

pandemic”

Submitted to Devi Ahilya Vishwavidyalaya, Indore for the preparation of Major Research
Project in Master of Business Administration (2020-2022)

Guided by: Submitted by:

Dr. Rachna naik (Mo. Mustafa khan) MBA(FA)

TABLE OF CONTENT:-

1)Introduction

2) Review of Literature

3) Rationale of the Research

4) Objective of the study

5) Research Methodology

6) Data Representation and Analysis

7) Expected Outcome of the research

8) References
 1) Introduction:
The digital payment space in India has witnessed a steady transformation since the 90’s with the
liberalization of the Banking industry and introduction of new technologies such as Magnetic Ink
Character Recognition (MICR), Automated Teller Machine (ATM), etc. Thereafter, in 2010,
various payments products (stored value cards, wallets, and recharge vouchers) and service
providers were launched. India is experiencing a growth trajectory in digital payments that is
more prolific than many advanced less-cash economies.
Demonetization in November 2016 and constant push by Government and regulators for less
cash economy have propelled the growth trajectory. The digital payments market in India was
valued at INR1,638.49 trillion in FY 2019 and is expected to reach INR4,323.63 trillion by FY
2024, expanding at a compound annual growth rate (CAGR) of ~22 per cent during the FY 2020
-FY 2024 period.

Bharat Interface for Money (BHIM) is a mobile app developed by National Payments
Corporation of India (NPCI), based on the Unified Payment Interface (UPI). It was launched by
Prime Minister Narendra Modi, at Digi Dhan mela at Talkatora Stadium in New Delhi on 30
December 2016. It was named after B. R. Ambedkar and is intended to facilitate e-payments
directly through banks as part of the 2016 Indian banknote demonetisation and drive towards
cashless transactions.
The app supports all Indian banks which use that platform, which is built over the Immediate
Payment Service infrastructure and allows the user to instantly transfer money between bank
accounts of any two parties. It can be used on all mobile devices.
Paytm is an Indian e-commerce payment system and digital wallet company, based out of
NOIDA SEZ, India. Paytm is available in 10 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
education institutions with the Paytm QR code. California based PayPal had filed a case against
Paytm in the Indian trademark office for using a logo similar to its own on 18 November 2016.
As of January 2018, Paytm is valued at $10 billion.

2) Review of Literature:
Secondary data and sources of information such as:
1) Sohini Bagchi 04-05-2020
At a time when the COVID-19 pandemic has made social distancing the new normal, cash
payments aren’t exactly a good idea. You never know if the currency note your customer is
handing over to you is infected by the virus or not. Hence, if you still haven’t added an electronic
payment system, we suggest it’s time you wake up and smell the coffee.Because there’s no need
to be physically present to make a purchase, your potential audience becomes almost
unlimited.You may have noticed that the payment industry in India has undergone massive
changes in the last couple of years. Earlier, Point of Sale (PoS) machines were a common sight at
small business premises. But today, digital payment options — particularly mobile payment apps
or mobile wallets — are slowly replacing traditional payment methods.

2) M. Cabrera -13 June 2020

IT HAS been three months since we’ve observed social distancing and stay-at-home protocols.
Since there is no vaccine for the deadly Covid-19 yet, everyone is starting to accept the fact that
normalcy is still a long way off. So, adapting to the “new normal” and moving forward are the
best steps to take.One positive thing to take note of during this pandemic is that it revealed one’s
capabilities, skills and talents when it comes to business online. Online businesses have been
around for quite some time now, but engagement has been at an all-time high. And also promote
the online payment mode without any physical contact.

3) Joanne Dewar, Chief Executive Officer, Global Processing Services-APR 27, 2020
The dawn of the new decade has seen the world gripped by an unprecedented health crisis, with a
pandemic never experienced before in our lifetimes affecting countless individuals, families and
communities. To date, almost 2.8 million people have been affected by the coronavirus (COVID-
19), with 2.7 billion of the global workforce facing full or partial closures of their workplaces
and governments rushing to provide stimulus packages to soften the economic blow from the
outbreak. These restrictions have affected banks as well, with widespread branch closures and
opening hours shortened in an effort to curb the spread of the virus. Customers are increasingly
being encouraged to use online and mobile banking as customer service phone lines are
inundated with a huge volume of calls. With greater restrictions in movement being introduced,
access to one’s finances – at least digitally – becomes crucial.

4) Andrew Maykuth – The Philadelphia Inquirer (via TNS)-Jul 6th, 2020

Tom Ivory, the founder of the Baker Street Bread Co. in Philadelphia’s Chestnut Hill section,
fought a valiant effort for years to rein in bank fees by imposing a minimum credit card purchase
of $10. But more customers wanted to go cashless, and Ivory eventually relented and accepted
plastic for any transaction, no matter how small. About 78% of the purchases at the café and
store are now paid through credit cards or other electronic transfer — up from 10% just five
years ago.“You have to keep up with technology,” Ivory said. “To operate as just a cash business
today is a suicide mission. You’re just not going to succeed.”The coronavirus pandemic has
accelerated the
trend toward a cashless economy, financial experts say, buoyed by the growth of e-commerce
and the fear of handling paper money contaminated with COVID-19. During the lock down,
when Baker Street’s retail business was limited to takeout at the doorway and was conducted
only by phone or online, nearly every transaction was cashless.The Centers for Disease Control
and Prevention, in official guidance to retail workers in response to the pandemic, encouraged
the use of touchless payment options, when available. Cash withdrawals from ATMs plunged
25% nationwide during the early weeks of the pandemic, according to industry figures.The
electronicstransfer industry has hailed the growth of a cashless economy as a consumer-driven
trend and expects it will continue as the nation adapts to living with the pandemic. About 27% of
business owners reported an increase in contactless payments in late March, according to a
survey by the Electronic Transactions Association, a payment technology trade group, and the
Strawhecker Group, a consulting firm for the payments industry.Big Finance is the key driver
moving us to a cashless society,” he said. “You’ll notice banks have been slowly closing
branches and ATMs and they’re doing so in an effort to nudge us more toward their digital
platforms. This saves them labor, it saves them a lot of real estate costs, and it improves their
bottom line.”

5) Sulabh Agarwal-27th April 2020

We’re living through extraordinary times right now. The COVID-19 pandemic is changing
business—and much else—forever. The global payments ecosystem has proven resilient in the
face of the pandemic. The general public continues to trust payments systems and providers, and
no substantial outages of core infrastructure have been reported.But the industry is far from
immune to the impacts of the crisis.The biggest changes for payments providers due to the
pandemic include an increase in non-performing loans, a reduction in revenues and greater
demand on customer service teams. Total payment volumes have shrunk due to the reduction in
consumption and trade.In the short term, this will force payments providers to make operating
model changes, likely prioritizing greater flexibility and new short-term goals.The long-term
impacts of the pandemic on global payments are likely to be even greater. Early in March, the
World Health Organization warned that banknotes may spread coronavirus. The WHO
recommended using contactless payments where possible to help control the virus. COVID-19
further undercuts the use of cash by forcing many retailers to close their doors and sell
exclusively through online orders for delivered goods. For these reasons, the pandemic is driving
adoption of contactless payments in a major way. It is unlikely that it will end the use of cash
everywhere, of course, but it may be enough to push many markets towards a new cashless
paradigm.

6) Research and Markets -Jul 01, 2020

Digital payment method adoption grows during the COVID-19 outbreak Consumers’ payment
behavior is changing as a result of the coronavirus outbreak, according to the report. Nearly 50%
of global shoppers were using digital payments more than before the pandemic, and the majority
plan continues doing so after the virus is contained. E-Wallets and contactless cards are the top
payment methods benefitting from this change, as consumers use less cash and make more
purchases online. In an international survey cited in the report, close to three-quarters of
respondents found that contactless was a cleaner way to pay. E-Commerce payment choices
amid the pandemic differ by country. When purchasing on E-Commerce websites during the
pandemic, global consumers mainly use credit cards and digital wallets, although there is also a
strong variation in the way shoppers in different countries pay online. For example, more than
two-thirds of digital buyers in Canada chose to pay by credit card when shopping online during
the outbreak, while UK buyers preferred debit cards and those in Italy opted for digital wallets
like PayPal. Payment security was the top criterion applied by online shoppers when selecting
their top payment method, according to an April 2020 survey.

7) PRADEEPA H-
National Payment Corporation of India (NPCI) urged Indian citizens to use digital payments in
order to reduce social contact and contain the COVID-19 outbreak. As per a survey conducted by
Mckinsey, the post-COVID-19 usage intent for digital payments is 92% than its current user
growth of 12%. This clearly indicates that digital payment systems would continue to command
a high level of confidence from the general population post-COVID19.

8) Manpreet Kaur (2017)

This study has examined the role of Demonetization and the role of Electronic Payment System.
This study concluded that the cashless transaction system is reaching its growth day by day, as
soon as the market become globalized and the growth of banking sector more and more the
people moves from cash to cashless system. The cashless system is not only requirement but also
a need of today society. All the online market basically depends on cashless transaction system.
This study furthers found that the cashless transition is not only safer than the cash transaction
but is less time consuming and not a trouble of carrying and trouble of wear and tear like paper
money. It also helps in record of the all the transaction done. So, it is without doubt said that
future transaction system is cashless transaction system.

9) Dr. Poonam Painuly, Shalu Rathi(May 2016)

In their paper “Mobile Wallet: An upcoming mode of business transactions” (May 2016) has
explained about mobile wallet, types and trends. Then discussed about Role of mobile wallet in
various sectors like Banks, Retail and Hospitality. The paper explains the importance of mobile
wallet for Banks, Customers and Companies. In future scope it talks of mobile wallets becoming
a latest marketing channel in near future. And contribute highly in a seamless shopping
experience for the customers that increase their tendency for frequent and more repurchases with
delightful experiences. To conclude they speak the importance and growth of mobile money in
business, social and economic prospective.
3) Rationale of the Research
 It involves purpose of the study
Indian economy is a developing economy and fastest growing economy and for growing
effectively Indian economy should adopt cashless transactions and vision towards cashless
economy because in India 86% of transactions are cash transactions. Cashless economy has
many advantages. It includes fast and secures transaction; improve GDP of country, strict action
against Black money, and Easy and Identifiable income of customers. This study is mainly
focus to Indian government campaign “Digital India” for promoting the cashless transactions
after the demonetarization.
4) Objective of the study:
All the objectives of the study are mentioned in the MRP (such as:
 How digital payments can help countries cope with COVID-19 ,Other pandemics
 To study the awareness of customers towards online payments.
 To study the covid-19 on online payment Industry
 Study to promote the cashless transaction

5) Research Methodology
 Research Design
Descriptive research design is used as the research methodology.
 Sample Design
Sample Size =100
 Tools for data collection
Primary Data
The primary data has been collected through self-designed questionnaire and
questionnaire has been filled by sample population
 Tools for data analysis
Chi-squared test has been used.

6) Data Representation and Analysis

 Data analysis and understanding
 Data presentation through:
 Pie charts
 Tables
 Graphs

7) Expected Outcome of the research:

 Overall result of the study
 Conclusion
  findings
 Suggestions

8) References:
1. Shwetu Kumar, Vijay Yadav, Atiqu-Ur-Rahman, Aditi Bansal 1. (2014), “A study
onPaytm” Guru Gobind Singh Indraprastha University, Delhi

2. FE Bureau (2017), “Transfer funds from Paytm wallet account soon; here is what is on
agenda”, Accessed from

3. Bessant, J., Lamming, R., Noke, H., and Phillips, W. (2005) Managing Innovation Beyond
The Steady State, Technovation, 25(12), 1366-76.

4. Balan, R., Ramasubbu, N., Tayi, G. (2006) Digital Wallet: Requirements and Challenges.

Available: https://apollo.smu.edu.sg/papers/digitalwallet_case.pdf

5. https://www.slideshare.net/vijay7o/paytm?next_slideshow=1

6. https://www.marketing91.com/swot-analysis-paytm/