PROJECT REPORT

On

Paytm
M.COM IV Sem – Marketing Management

(Session 2020-21)

THE BHOPAL SCHOOL OF SOCIAL SCIENCES

Submitted To Submitted By

Dr. Amrita Sahu Suraj Bhandari

Associate Professor Roll No.- 19103051

Department of Commerce
 CERTIFICATE FROM THE PROJECT GUIDE

This is to certify that the Project Report titled “Paytm” is a bonafide work of Suraj Bhandari
enrolment number R170190280081 undertaken for the partial fulfillment of Masters in
Commerce (M. Com) degree of Barkatullah University under my guidance. This project work is
original and has not been submitted earlier for the award of any degree or diploma of any other
University or Institution.

Signature of the Guide

Dr. Amrita Sahu

Associate Professor

Department of Commerce,

BSSS, Bhopal
 DECLARATION

I SURAJ BHANDARI son of Ravi Lal Bhandari certify that the project report entitled on
“Paytm”. The Report prepared by me is my personal and is authentic work under the guidance of
Dr. Amrita Sahu, Associate Professor, Department of Commerce.

Date: 15/06/2021 Signature of the Student

Place: BHOPAL Name: Suraj Bhandari

Class: M.COM (IV SEMESTER)

Roll Number: 19103051

Paytm
Type of business Private
Type of site Online Shopping
Payment Systems
Available in Multilingual
Founded August 2010
Headquarters Noida, Uttar Pradesh
Owner One97
Communications Ltd.
Founder Vijay Shekhar Sharma
Key People Vijay Shekhar S.(CEO)
 Amit Nayyar(President)
Ajay Shekhar S.(Vice P.)
Products Paytm Mall, Gamepind
Paytm Payments Bank
Paytm smart Retail,

Paytm

Paytm (a partial abbreviation for "pay through mobile") is an Indian multinational technology
company that specializes in digital wallet, e-commerce, payment system and financial services,
based in Noida, Uttar Pradesh, India. Paytm is currently 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, more than 20 million merchants across India use their QR code payment
system to accept payments directly into their bank .The company also uses advertisements and
paid promotional content to generate revenues.

History

Paytm was founded in August 2010 with an initial investment of $2 million by its founder Vijay
Shekhar Sharma in Noida, a region adjacent to India's capital New Delhi. 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 had launched the Paytm Wallet, which the Indian Railways and
Uber added as a payment option. It launched into e-commerce with online deals and bus
ticketing. In 2015, it added education fees, metro recharges, electricity, gas, and water bill
payments.
In 2016, it launched movies, events and amusement parks ticketing as well as flight ticket
bookings and Paytm QR. Later that year, it launched rail bookings and 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, with 2 million tickets booked
per month.

In 2017, it 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 Paytm Payments Bank and ‘Inbox’, a messaging platform with in-chat
payments. By 2018, it started allowing merchants to accept Paytm, UPI and card payments
directly into their bank accounts at 0% charge. It also launched the ‘Paytm for Business’ app (now
called Business with Paytm App), allowing merchants to track their payments and day-to-day
settlements. Its merchant base to grow to more than 7 million by March 2018.

It launched two new wealth management products - Paytm Gold Savings Plan and Gold Gifting
for long-term savings.

In January 2018, itentered into a joint venture with Alibaba Group-owned gaming company
AGTech Holdings to launch Gamepind, a mobile gaming platform. It was rebranded as Paytm First
Games in June 2019.

In March 2018, Paytm Money was started with an investment of ₹9 crore for investment and
wealth management.

In March 2019, the firm launched a subscription based loyalty program called Paytm First, and in
May 2019, it partnered with Citibank to launch Paytm First credit card.

In July 2020, Tata Starbucks partnered with Paytm allowing its customers to order food online
during the COVID-19 pandemic.
 Paytm Products
Paytm Payments Bank
In August 2015, Paytm received a license from Reserve Bank of India to launch the Paytm
Payments Bank as a separate entity. Founder Vijay Shekhar Sharma will hold 51% share, One97
Communications 39% and 10% will be held by a subsidiary of One97 and Sharma. The bank was
officially inaugurated in November 2017.

It was set to launch over 1,00,000 banking outlets across India by the end of 2018. However, the
bank's branches are yet to touch double digits.

The Bank has appointed veteran banker Satish Kumar Gupta as its new Managing Director and

CEO.

Paytm Mall
In February 2017, Paytm launched its Paytm Mall app, which allows consumers to shop from 1.4
lakh registered sellers.[59] Paytm Mall is a B2C model inspired by China's largest B2C retail
platform TMall. Sellers have to pass through Paytm-certified warehouses and channels to ensure
consumer trust. Paytm Mall has set up 17 fulfillment centres across India and partnered with
more than 40 couriers. Paytm Mall raised $200 million from Alibaba Group and SAIF Partners in
March 2018.[60] In May 2018, it posted a loss of approximately ₹1,800 crore with a revenue of
₹774 crore for financial year 2018. The market share of Paytm Mall dropped to 3 percent in 2018
from 5.6 percent in 2017.
 Objective

The company is on a mission to bring half a billion Indians into the mainstream economy through
payments, commerce, banking, investments, and financial services.

Paytm’s objective has been to increase the market share of the Wallet, capturing the market.

To achieve this, it had to overcome several hurdles, the biggest of which is that the adoption of
the Wallet as a way of keeping money online and transacting using mobile phones is a challenge
for many people in India. The brand also had to figure out how to increase the number of Paytm
Wallets, since success depends on volumes.

Paytm’s target market is all of India’s internet users and smart phone users. The Paytm mobile
app is available on all possible platforms including Android, IOS and Windows.

The publicity strategy was uniform and aimed at mass audiences across all cities. To truly reach
everyone, including those in regional markets, the brand even began using local vernacular with
its press ads, in an attempt to reach out to regional markets.
 Marketing Strategy

Paytm Introduces cashless transaction schemes

The potential market for online marketing as well as cashless transactions has also increased with
the growth of mobile phone users in the world. The company has been able to hit the customers
with smart phones with its cashless transaction schemes.

Paytm launched ‘Each one, teach one’ to increase cashless payments literacy - Back in 2016,the
company had announced Rs. 2100 in scholarship for 10,000 users who help increase digital
inclusion and adoption of Paytm and certificates for one lakh further users across all major
districts.

Paytm had also announced an incentive including Rs. one crore grand prize along with additional
prizes like motorcycles, smartphones, laptops and other exciting gifts. All users transacting
between 1st December 2016 and 31st March 2017 were eligible to win these prizes.

The ‘Scan any QR to pay using Paytm’ scheme has been launched in seven languages which are
Bengali, Marathi, Gujarati, Tamil, Telugu, Kannada, and Malayalam.

Paytm's Cobranding
Another USP of the company is co-branding. Brand cooperation with businesses such as Uber
and Meru Cabs has been successfully developed. Many more reputable brands have been helpful
in getting new customers to use Paytm.

Paytm’s Promotion and Advertising Strategies

Newspaper, transit media and television were the company's offline communication networks.
The Paytm promotions also used digital, print media and radio services.

Paytm was made a household name, using a phrase from the catchy word "Paytm karo"

The company's online advertisement strategy is focused on bringing visibility everywhere by

sharing their ad on Facebook and Twitter, and even sponsored posts on Instagram and at time's
even Snapchat.
Paytm’s Discount Offers
The biggest selling point for paytm was without question motivating people to use the offers that
have been run by the company.

The biggest selling point for paytm was without question motivating people to use the offers that
have been run by the company.

Campaign made by Paytm

Here is a list of the successful campaigns and partnerships with leading brand run by Paytm:

Paytm Karo :- This is one of the key announcements that rapidly gained populism. The
company has become active in social media. #PaytmKaro is being added to almost every
conversation that is being driven on Facebook and Twitter. The ad rolls out some life situations
such as money transfer, online shopping, mobile recharge which are made easy by Paytm
services.

Facebook Live:- Paytm has imbibed its customers with details about the value of user account
security and how they are protected against hacking. Paytm conducted a series of live Facebook
training series, “Paytm Merchant Connect- Training Series” which turned out to be a great
success.

The Soldier Mobile Game:- It's become a perfect campaign for technology-friendly people
and game lovers throughout the world. The match reveals the battle against the dishonest
militias of Spartan Paytm troops. The game targets the mission of the company of protecting its
users interests.

Credit cards :- The card's use was beneficial when the wallet was successfully used by the
company. By using the Username and Passwords customers can withdraw money from their
wallet reservations.

Dabbawallas in Mumbai :- Strategic ties between the business and the competent lunch
servers in Mumbai City. These messengers only pay through the Paytm App.
Auto-start of the SMS for a Month:- Paytm continues to send customers reminders
regarding payments. The messages are intended to notify the customer that the digital wallet
can be used to make those payments easily.

MBA Contest :- A contest held for students attending MBA courses are invited to produce a
video about the use of the paytm application. The winner will be the person whose videos receive
the maximum number of likes.

Sponsorship

In July 2015, One97 Communications, the firm that owns the brand Paytm, acquired the title
sponsorship rights for India's domestic and international cricket matches at home for a period of
four years starting in August 2015. The rights include sponsor branding of series with the title
sponsor logo, designation as the title sponsor of the series, visibility at the stadium, and broadcast
sponsorship rights. This also includes all BCCI domestic (Ranji Trophy, Duleep Trophy, etc.)
matches in India.

Previously, Paytm had acquired sponsorship rights during the 8th season of Indian Premier
League. It has also served as an associate sponsor on Sony TV network (which has the telecast
rights for IPL) and was the official partner of the IPL team Mumbai Indians. In March 2018, Paytm
became the Umpire Partner of the IPL for five years.
 SWOT ANALYSIS

In addition to the portal the company also owns the Paytm payment gateway and the Paytm
Wallet. Paytm achieved a major landmark by securing funding from the Chinese e-commerce
kingpin Alibaba after it raised over $625 million at a valuation of $1.5 billion. Currently, Alibaba
Group holde the highest stakes the owner company of in Paytm, One97 Communications.

Strength
Strengths are defined as what each business does best in its gamut of operations which can give
it an upper hand over its competitors. The following are the strengths of Paytm:

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.

Tie-up 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
Weaknesses are used to refer to areas where the business or the brand needs improvement.
Some of the key weaknesses of Paytm are:

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
Opportunities refer to those avenues in the environment that surrounds the business on which
it can capitalize to increase its returns. Some of the opportunities include:

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

everywhere today.With growing technology usagepeopleprefer to make most payments
from the convenience of their homes.This has increased the role of payment aggregators
in India.
 Demonetization:- 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
Threats are those factors in the environment which can be detrimental to the growth of the
business. Some of the threats include:

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 abut 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.
 High Growth After Demonetization

Paytm has focused towards building its brand image more concrete in the running competition.
Recently it has appeared to be ahead of its rivals mobikwik, freecharge and others. As per the
records, it was found that currently around 177 million of the users use Paytm in their day to day
life and make a total of 7 million transactions in a day (Joshi 2017). After demonetization, it has
achieved a total of 75 million unique users per month. Among all users around 40% users belong
to small cities, 67 million population belong to 56 big cities and the rest from small towns. In Dec
2016, information about total number of users, unique visitors and others things has been
mentioned in the list given below.

After demonetization paytm made it easier to pay with its digital payment option. There was
around 1000% growth in the money added to its wallet, 300% rise in app download and a gain of
20 million new users was recorded within 2 months (BI intelligence 2016).
 Expansion Plan

• Last year Paytm’s market share among the e-payment companies was 26%. Paytm is now
planning to explore new avenues. By 2020, Paytm plans to tap the loan market and
disburse small loans to 500 million people.

• The Paytm Payment Bank was launched in May 2017. A 5-member board committee has
been formed to expand the physical presence of the Payment Banks.

• Paytm is also planning to give WhatsApp a run for their money by launching a chat app
with more sophisticated features. Paytm acquired Shifu and Near.in to improve and
strengthen its offline and online platform and enhance customer experience.
 Controversy

California-based PayPal filed a case against Paytm in the Indian trademark office for using a logo
with a similar colour combination to its own on 18 November 2016.

In May 2018, the Indian investigative news agency Cobrapost released a video of an undercover
reporter meeting with Paytm's vice president, Ajay Shekhar Sharma who is the brother of Vijay
Shekhar Sharma. During the meeting, he reportedly said the company had provided the Indian
Government with the personal data of Paytm users in the Indian state of Jammu and Kashmir,
violating user's privacy and policies. Later, Buzzfeed reported that, Sharma has close ties with
India's ruling party Bhartiya Janata Party. Meanwhile, in response, the company tweeted that, it
had never shared user's data with third parties, denied the contents in the video, and stated that
it had never received requests from law enforcement on Twitter. Paytm also stated that any
person claiming otherwise "is not aware of the policy and is not authorised to speak on behalf of
the company".
Paytm has alleged that the Indian telecom companies are not blocking numbers used for phishing
activities and sued them for ₹100 crore in the Delhi High Court.

On 18 September 2020, the firmsofficial app was briefly unlisted from the Google Play Store
allegedly due to violations of the Play Store's gambling policy. The company claimed that Google
did not offer any prior warning or give the company an opportunity to explain its views on the
contentious 'cashback' offers while claiming that Google's own payments app Google Pay offered
similar 'cashback' offers and suffered no repercussions.
 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. What's more, for the up and coming business visionary's Paytm example of
overcoming adversity would be extremely motivational and a lesson to learn before beginning
another wander. 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 to wind up outstanding amongst other arrangement after demonetization. Can get
consideration in the general public as it centers around making mindfulness among individuals.
Instructing individuals about its administrations. Fruitful treatment of Paytm by purchasers and
shippers is the best case of its positive effect in the general public. Paytm is the best case of an
organization which used online business advertise better.
 References

https://startuptalky.com/paytm-marketing-strategy/

https://www.quora.com/What-are-the-objectives-of-Paytm

https://en.wikipedia.org/wiki/Paytm