STUDY OF DISRUPTIVE

TECHNOLOGIES AND
ASSOCIATED SOCIAL &
ETHICAL ISSUES

SUBMITTED BY-
MAYANK KUMAR
2228334
Table of Contents
Introduction………………………………………………………………….2
Disruptive Technologies adapted by Paytm…………………………...….…2
1. Artificial Intelligence……………………………………………….…......2
 Positive innovation…………………………………….….…...……...2
 Ethical issue…………………………….….………………………….3
2. Robotic Process Automation (RPA)……………………………………....3
 Positive innovation……………………….…………………………...3
 Ethical issue………………………….….…………………………….3
3. Paytm Cloud……………………………………………………………….3
 Positive innovation…………………….….…………………………...3
 Social issue……………………………………….….….…...………...4
4. Virtualization………………………………………………………………4
 Positive innovation…………………….….…………………………...4
 Risk factor……………………………………………………….….…4
5. Internet of Things (IoT)…………………………………………………...4
 Positive innovation……………………………………………….…....4
 Manager’s implication on technology…………………………….…...5
6. Market Needs………………………………………………………………5
 Second order Effect……………………………….…………………...5
 Third order Effect……………………………………………………...5
7. Recommendation……………………………………………………...…...6
8. Conclusion………………………………………………………...……….6

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Disruptive Technology's
Ethical, Social, and Risk Issues
Introduction
Start-ups are drawing attention to the technology that poses
a serious threat to already established companies. These organizations must establish
themselves as technological leaders; otherwise, they risk losing market share to new
disruptors. Because Paytm is using digital technologies to challenge traditional banking
practices, it was chosen as the subject. The study also looks at the funding sources that Paytm
has used, such as Berkshire Hathaway, SoftBank, and the Alibaba group. Both opportunity
creation and discovery are essential to these disruptors. They explore a wide range of
possibilities by combining innovation and discovery.

On the other hand, this development in cashless transactions makes it easier for customers to
speed up transactions in the conventional banking system. Paytm uses 58 different types of
technologies, including HTML5, jQuery, and Google Analytics, according to G2 Stack.
Eighty-four technologies are actively used on the Paytm website; claims Build With.
Examples include SSL by Default, Viewport Meta, and iPhone/Mobile Compatibility. The
analysis in this report is based on how Paytm's top five disruptive technologies and the
associated social issues will affect management.

Disruptive Technologies adapted by Paytm

1. Artificial Intelligence

Positive innovation
 The business has started testing a facial recognition tool to help customers unlock the
payment application using their smartphones after the successful launch of cashless
payments (Nair, 2018). If Paytm implements this feature, it will be the first company
to offer facial recognition for digital payments. The business is concentrating on
security threats like phishing and password fraud. Enabling this feature makes it
possible to make instant payments at merchant locations in a single blink.
 India Stack features like eKYC, Aadhaar-based verification, and Paytm's Payment
Bank also uses UPI.

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Ethical issue
 The majority of businesses continue to offer goods and services using hourly labor.
Artificial intelligence, on the other hand, enables a business to use less human labor,
which lowers employee pay. AI-driven business owners stand to profit financially as a
result.
 In the future, using e-KYC, Aadhar-based authentication, third-party payment service
providers, and mobile wallets may cause business disruptions for retail banks, internet
giants, financial product aggregators, and distributors.

2. Robotic Process Automation (RPA)

Positive innovation
 B Robot is referred to as bots. RPA technology, a component of Paytm BOT,
automates the bill-paying process and notifies users when it is time to make a
payment. BOTs execute much more quickly than a human user would be able to pay
bills manually.

Ethical issue
 Human evaluators used text input to communicate with an unidentified entity and then
determined whether they were speaking with a human or a machine. Humans have a
limited capacity for kindness and attention, but artificial intelligence has virtually
limitless resources for fostering human connections. The brain's reward centers have
already been activated by machines, even though most of us are unaware of this.

3. Paytm Cloud

Positive innovation
Paytm offers the best business apps for businesses using cloud computing that is
powered by AI (Bhakta, 2018). Paytm focuses on businesses, start-ups, and
developers. Along with workflow automation, payment integration, messaging, and
customer engagement services will be readily available.

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 Social issue
 There are many chances for other distributors who sell their products in the market to
lose sales when an all-in-one package is offered. In order to compete, individual
dealers will also need to integrate a variety of applications or sources.

4. Virtualization

Positive innovation
 By issuing virtual Visa cards, Paytm enters the virtualization market. All significant
online retailers that accept Rupay cards currently accept the Paytm Digital Rupay
card. We need to choose the debit card payment option.

Risk factor
 The virtual credit card has a credit limit of between Rs. 100 and Rs. 50,000 per
transaction per day. Based on the credit balance, card payments may occasionally be
restricted to a single payment. The card has a date of expiration. Customers cannot
rely solely on this form of payment and must always check the expiration date. This
virtual card expiration date comes with additional risk factors.

5. Internet Of Things (IoT)

Positive innovation
 Paytm Smart POS enables business owners to accept debit and credit card payments
directly from their front desk by converting a smartphone into an EDC (electronic
data capture) device, as per (Paytm Launches New IoT-Based Payment Device, Smart
POS, 2021)
 The Smart POS and the Paytm for Business app allow retailers to accept contactless
card payments whenever and

anywhere.

 Paytm plans to provide businesses with 50 lakh IoT devices in the next few years.
 Paytm announced the new Soundbox 2.0, which includes a digitally enabled screen
that shows the paid amount in real-time and provides a voice-based response.
 Alternatively, merchants can double-tap the "function button" to get a daily payment
summary.

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  Currently, the app is available in five different languages: English, Hindi, Tamil,
Telegu, and Kannada. However, the company plans to add additional regional
languages, such as Marathi.
 Users can accept unlimited payments at zero percent fees directly into their bank
account using Paytm All-in-QR, which is included with the device.

Manager’s implication on technology

 The high competition creates significant confusion for all the Managers or even the
general public in adapting to technological advancement.
 When there is a surplus of IoT devices in the market, there is a vast chance for the
market to slow down as people tend to choose alternatives.

Market Needs

Second order Effect

 Paytm's mobile eCommerce platform not only integrates but actively promotes these
services with regular discounts and offers from its merchants. Paytm has around 5
million merchants serving these customers. Paytm already has around 200 million
active users nationwide as per (“Paytm Payments Bank Disruptive Effects To Be Felt
Beyond Banking,” 2017)
 Today's digital customers rely on their banks for many things. Financial services firms
must meet these demands via multiple digital channels, quickly and in the customer's
context.
 Since Paytm has embraced various IT-related technologies, other NBFCs might
follow suit for sustainability.
 With marketing automation, users can build personalized customer relationships
across multiple channels. Also, businesses can easily design their customer lifecycle
and interaction touchpoints while offering rewards that matter.

Third order Effect

 Indian banks like ICICI and Axis Bank are constantly improving digital banking
capabilities. They provide a wide range of customer service options like in-app
contextual help and a universal in-app search tool. Live chat and service links are

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 other examples. Paytm’s customer service is limited to an IVR and a few service
links. (“Paytm Payments Bank Disruptive Effects To Be Felt Beyond Banking,”
2017)
 The Government has also taken up initiatives to make cashless payments. Thus, the
Government can also consider all the strategies followed by Paytm for secured
transactions.

Recommendation
 Even though AI-driven security offers encrypted data that cannot be easily hacked, it
depends on the internet facility around the clock. Because the company cannot always
rely on the network facility, it should offer alternatives to ensure that customers'
cashless currency is handled with care.

Conclusion
 In terms of mobile contact points, enrollment and login capabilities, money
management tools, digital marketing, and sales expertise, Paytm still has a way to go
before meeting market demands. As a result, the company uses disruptive
technologies more frequently. Because digitization is the current trend, it seems
unlikely that disruptive technologies will significantly impact the industry.