Growth of PayTM in India.

A STUDY ON
GROWTH OF PAYTM IN INDIA

A Project Submitted to

University of Mumbai for partial completion of the degree of Bachelor

of Management Studies

Under the Faculty of Commerce

By

GAURAV SINGH BISEN

ROLL NO 08

Under the Guidance of

MRS. RASHMI MORYA

[Link] COLLEGE OF COMMERCE

315, NEW CHARNI ROAD, MUMBAI 400004

APRIL, 2019
 CERTIFICATE

This is to certify that Ms. GAURAV SINGH BISEN has worked and duly completed her Project
Work for the degree of Bachelor of Management Studies under the Faculty of Commerce and her
project is entitled “A STUDY ON GROWTH OF PAYTM IN INDIA” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that no part
of it has been submitted previously for any Degree or Diploma of any University.

It is his own work and facts reported by his personal findings and investigations.

PROJECT GUIDE INTERNAL EXAMINER EXTERNAL EXAMINER

PRINCIPAL COURSE COORDINATOR

College Seal

DR. MINU MADLANI DR. ANTARA SONAWANE

 DECLARATION

I undersigned Ms. GAURAV SINGH BISEN hereby, declare that the work embodied in this project
work titled “A STUDY ON GROWTH OF PAYTM IN INDIA” forms my own contribution to the
research work carried out under the guidance of Dr. Antara Sonawane is a result of my own research
work has not been previously submitted to any other University for any other Degree/ Diploma to this
or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated as such
and included in bibliography.

I, here by further declare that all the information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

GAURAV SINGH BISEN

ROLL NO 08

Date:
 Growth of PayTM in India.

ACKNOWLEDGMENT

To list who all have helped me in difficult because they are so numerous and the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thanks the University of Mumbai for giving me chance to do this project.

I would like to thank my Principal, Dr. Minu Madlani for providing the necessary facilities required
for completion of this project.

I take this opportunity to thank our coordinator Dr. Antara Sonawane for the moral support and
guidance.

I would also like to express my sincere gratitude towards my project guide MRS RASHMI MORYA
whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my parents and peers who supported me throughout my project.
 Growth of PayTM in India.

INDEX

Sr. No. Contents

● Chapter No. 1: Introduction

➢ Introduction
➢ Introduction to PayTM
➢ Objectives of the Study
➢ Limitations of the Study

➢ Need of the Study

➢ Hypothesis
➢ Services provided by PayTM
➢ Factors affecting growth of PayTM in India
➢ PayTM’s Competitors
➢ PayTM vs other E-Commerce firms
➢ Emergence of PayTM in India
➢ Future of E-wallet in India
➢ Opportunities for PayTM in India
➢ Challenges faced by PayTM in India
➢ Working of the company and its revenue model

● Chapter No. 2: Research Methodology

➢ Source of data
➢ Sampling plan
➢ Scaling techniques used
➢ Respondents demographic profile
● Chapter No. 3: Literature Review

● Chapter No. 4: Data Analysis and Interpretation

➢ Primary Data

➢ Secondary Data

➢ PayTM Pre Demonetization

➢ PayTM’s growth Post Demonetization

➢ PayTM CEO’s interview

➢ PayTM in India’s Development

● Chapter No. 6: Conclusions and Suggestions

➢ Conclusion

➢ Suggestions

● Bibliography

● Annexure
 CHAPTER 1: INTRODUCTION

“E-wallet is an online prepaid account where one can stock money, to be used
when required. As it is a pre-loaded facility, consumers can buy a range of
products from airline tickets to grocery without swiping a debit or credit card if so
their wallet is filled with sufficient amount required for payment." An E-Wallet
can also be called as an Electronic wallet or Digital wallet or Mobile wallet. It is a
virtual wallet, which can be created and managed using a mobile application
installed on your smartphone. The word “virtual” is used because instead of using
your physical plastic card, such as Credit card/Debit card etc., to make purchases,
you can pay with your smartphone, tablet, or smart watch. Various mobile wallet
service providers come up with their mobile application to help users create and
manage the virtual wallet services. Some of the major virtual mobile service
providers are PayTM, PayU, Mobikwik etc. One can preload a certain amount in
that digital/virtual account created with the mobile wallet service provider using
Credit Card/Debit Card/ Internet Banking, and spend it at various online and
offline merchants listed with the mobile wallet service provider. For example, if
you go to a restaurant ABC, which is listed with XYZ mobile wallet, you can pay
for your food through the smartphone without worrying about cash. These days
one can also pay various utility bills such as electricity bills, postpaid mobile bills
using a mobile wallet.

E-wallet has mainly two components, software and information. The software
component stores personal information and provides security and encryption of
the data. The information component is a database of details provided by the user
which includes their name, shipping address, payment method, amount to be paid,
credit or debit card details, etc.
For setting up an E-wallet account, the user needs to install the software on
his/her device, and enter the relevant information required. After shopping online,
the Ewallet automatically fills in the user’s information on the payment form. To
activate the E-wallet, the user needs to enter his password. Once the online
payment is made, the consumer is not required to fill the order form on any other
website as the information gets stored in the database and is updated
automatically.
 INTROUCTION TO URBANCLAP

UrbanClap is a platform to make our urban lives more fulfilling to solve our needs in a clap.
Hence the name, UrbanClap.
UrbanClap is India's largest at-home services marketplace. The platform helps customers hire
trusted professionals for services such as salon at home, cleaning, plumbing, carpentry, interior
design, wedding photography, yoga training and more. Since its inception in 2014, UrbanClap
has built a network of 100,000+ hand-picked service professionals, and served over 2 million
customers across major metropolitan cities of India.
UrbanClap is a platform to make our urban lives more fulfilling to solve our needs in a clap.
Hence the name, UrbanClap. It enables users to find any service professional like a plumber,
a wedding photographer, a yoga teacher, or an interior designer. They want to be the go-to
platform helping customers complete the projects that are important to their urban lives –
everything from designing their homes to capturing key moments, learning arts, filing taxes,
and getting healthier etc. UrbanClap is recognized as the fastest-growing startup in India.
Customers hire trusted professionals for all their service needs. Consisting of young and
passionate people working tirelessly to make a difference in the lives of people by catering to
their service needs at their doorsteps. Currently, the company has employed over 300 people,
with over 65,000 professionals having been enlisted. It is fully operational in at least 16 cities
in India
2

Organized service commerce is a large yet young industry in India. While India is a very large
market for home and local services (~USD 50 Billion in retail spends) and expected to double
in the next 5 years, there is no billion-dollar company in this segment today. The industry is
barely ~20 years old, with a sub-optimal market architecture typical of an unorganized market
– fragmented supply side operated by middlemen. As a result, experiences are broken for both
customers and service professionals, each largely relying upon word of mouth to discover the
other. The industry can easily be 1.5-2x larger than it is today, if the frictions in user and
professionals journeys are removed – and the experiences made more meaningful and joyful.
UrbanClap is a “services platform”, with the bold ambition to organize the key verticals within
the service commerce industry, bringing in the benefits of scale - structured processes, systems,
standardization, transparency and trust. This platform will enable billions of dollars in
commerce annually, and create jobs for 1 million+ service professionals. The key industries
that we are going to organize over the next few years include – home improvement, home
maintenance & repairs, appliance repairs, salon spa & makeup services, fitness & health at
home, academic tuitions, photography & events, packing & moving etc.
 OBJECTIVE OF THE STUDY

.
1- To study the other factors affecting the growth of UrbanClap in India.
2- To find out the awareness and preferences of the users towards UrbanClap services.
3- To study the services provided by UrbanClap
4- To study the impact of arrival of  Housejoy,/UrbanPro on UrbanClap
5- To study the emergence of UrbanClap in India.

Limitations of Study

1- The sample size was small.

2- The responses of the respondents were not fully reliable as it might have been
biased and required critical evaluation before use.
3- Since no incentives were offered, the rate of responses to questionnaire was low.
4- The response to the open ended question given by the respondents was difficult
to summarize.
5- The secondary data provided cannot be fully relied upon due to the problem
of accuracy and sufficiency.
6- The statistical data which were taken from the internet cannot be fully relied upon
as they might be exaggerated or biased.

Need of the Study

As UrbanClap is surging on an account of growing online marketplace for local

service in India, this study undertakes to give an insight about growth of
UrbanClap in India. This study helps in analyzing the reasons for the growth in
the number of consumers of UrbanClap. This study also helps in understanding
the preferences of the users with regard to online marketplace for local service
and to know the different kind of services provided by ser providers.
 HYPOTHESIS

Null Hypothesis H0:

1. There was a great boost in the users of PayTM after demonetization.
2. UrbanClap has taken a series of steps to increase its services,
3. UrbanClap is the market leader in online marketplace for local services segment.
4. UrbanClap usage by customers was affected due to coming up of Housejoy.

Alternative Hypothesis H1:

1. UrbanClap has not taken any steps to increase its services
2. UrbanClap is not the market leader in online marketplace for local services segment.
3. UrbanClap usage by customers was not affected due to coming up of Housejoy.
 SERVICES PROVIDED BY PAYTM

PayTM has become popular because it is easy to use, safe and having faster
payment process. It provides various services to its users such as mobile prepaid
recharge, bill payment facility, etc. Some of the services provided by PayTM are
given below-

1) PayTM Wallet

PayTM Wallet allows you to make secure transactions online; recharge, pay bills,
shop on PayTM, send money to friends & pay for various brands. The cash backs that
you earn from PayTM are automatically updated in the PayTM Wallet. PayTM wallet
is also used to update refunds on purchases. Users can deposit money in to their
PayTM Wallet and use it for shopping. You can use PayTM wallet on Uber,
Makemytrip, Bookmyshow, Fab Furnish, HomeShop18, Zovi, Healthkart, and much
more. PayTM Wallet can also be used to send and receive money from friends.

2) PayTM Mobile Recharge Offers

PayTM offers wide range of deals across different platforms. All type of mobile
recharges covering various service providers is available on PayTM. Also, discounts in
the form of promo codes are an attractive feature that PayTM offers.

3) PayTM Online Shopping

Shop all you want on PayTM and you will get paid back in the form of cash backs.
Discounts that are usually available on other e-commerce sites are available on PayTM.
However, there is an added advantage of getting cash backs. So you end up gaining
more than you spent, provided you use the right coupon.
4) PayTM Electricity bill payment

Trying to pay your bills while having a normal job can be difficult. Avoid the
hassle of a queue. Pay the bills online with just a few clicks.

5) PayTM DTH payment

PayTM offers varied and electric recharge offers across various service provides like
Dish TV, Airtel Digital TV, Sun Direct TV, Reliance Digital TV, Videocon D2H and
Tata Sky.

6) PayTM App

Recharge Mobile, DTH, Data card, Toll card and book Bus Tickets on the go with the
PayTM app. PayTM app offers efficient and easy way to pay your bills. Post paid
bills can be paid via PayTM app. It also has facility to add money to your PayTM
wallet.

7) PayTM other utilities services

The other utility services offered by PayTM are Movie Tickets, Flight Tickets, Train
Tickets, Hotel Bookings and much more. PayTM postpaid is a newly based feature
launched where the users can borrow money from PayTM for purchases and then pay it
back whenever they want to.
 FACTORS AFFECTING GROWTH OF PAYTM IN INDIA

The mobile wallet market in India is poised for significant growth as Indian
consumers are increasingly turning away from cash and card. The major factors
that led to the growth of PayTM in India are:

1- Demonetisation

The main driver for the surge within the e-wallet market in India to date has been the
demonetization exercise in November 2016. The government’s demonetization
move was a game-changer as it had led to a massive cash-crunch in the country as
most of the ATMs dried up, compelling people to switch to electronic-mode of
payments. While medium to large-value transactions continue to be made through
digital banking channels, the low-value day-to-day transactions are carried out
through mobile wallets.

2- Smartphone Penetration

These days, due to availability of smartphones at cheaper rates, it has become an

important part in day to day activities. They are not just useful for social media,
videos and taking selfies, but have become an important part of our day to day
activities for making payments for various options. In other words, as smartphone
is an important requirement for the use of e-wallets, smartphone penetration led to
the growth of e-wallets in India.
3- Internet Availability at Affordable Rates

India has seen a manifold increase in internet users in the last couple of years.
With the availability of low-cost internet, mobile internet is easily accessible to the
middle class segment that contributes to major part of the Indian population. Thus,
the usage of mobile wallets has started to become more popular among Indian
people.

4- Government Policies

The Indian government has introduced multiple schemes to encourage the use of
cashless payment in India. The introduction of cashless transactions from railways
to Highway tolls and launching apps such as BHIM and UPI, the government is
working aggressively towards the goal of cashless economy. The RBI has
approved ‘payments bank’ license for many Mobile Wallets including Paytm and
has also raised the usage limit to Rs 20,000 for accounts without KYC and
Rs.1,00,000 for accounts with KYC.

5- Security

Most of the people do not like to carry the huge sum of money with cash due to
fear of theft. For such masses, the mobile wallets are a real boon. Mobile wallets
provide a hassle-free and secure method to carry and transfer the huge amount of
money from one person to another. It also reduces the fear of swiping credit cards
for all transactions and hides the sensitive bank data from being exposed the
merchant’s site or establishment; further leading to the reduced probability of
unwanted financial happenings.
6- Attractive Offers

Many attractive offers have also been introduced by both governments as well as
mobile wallets company to lure more and more customers. From discounts at
petrol pumps by the government to attractive cash back offers by mobile wallets
companies, mobile wallets users are getting decent offers on most of the mobile
payments.
 PAYTM’S COMPETITORS

1- MobiKwik

Mobikwik, founded in 2009, is available to iOS, Android, and Windows Phone

users. It slowly grew to become the 2nd largest digital wallet by its shear strength
of user-experience and online merchant integrations. Their UI is exceptionally
clean and very interactive. They have faster checkout process for better user
experience.

2- PhonePe

It started as UPI payment app and later was acquired by Flipkart to be launched as
a digital wallet for the e-commerce giant. It definitely has a lot of smart people
behind the app as the first time user will find the app really easy to use. They
provide great cashback offers on online Bill payments (electricity, DTH, water,
mobile). They also provide fast and good user-experience of the app even though
they highlight a lot of services.

3- Freecharge

Freecharge is a great story in the Digital Wallet world due to the transformation
journey it has travelled. What started as a service to provide physical coupons for
online mobile recharges over years got bought over by Snapdeal and also pivoted
to a complete digital payments platform. However, even with a young and fresh
branding, they never could capture a user’s imagination like others. This wallet
always feels like an afterthought when making online transactions. But its still a
great app to have for transactions and offers. They provide users with quick and
simple payment process and also provide immediate cashback on transactions.
4- Airtel Money

Airtel Money easily has one of the largest user bases. However, most of the
transactions on the platform are limited to Airtel bill payments for mobile,
broadband and other services. They provide users with a wide range of exclusive
offers. With the Airtel Money account, users can easily recharge prepaid accounts
or pay postpaid bills. They can also shop online if the wallet has cash loaded in it.
Its also extremely safe as all the transactions that takes place requires a 4- digit
mPin.

5- JioMoney

JioMoney like airtel happens to be available for a large user base due to sheer
VOIP revolution Jio is driving in the country. It is launched in 2016 by Jio and
provides great discounts and offers. They still have a long way to go in terms of
integrations and offers. No registration is required for Jio users.

6- Ola Money

Ola Money which is the payment wallet offered along with the OLA cab booking
app has a large user adoption due it being one of the market leaders in the mobility
space. It is launched in 2015 by Ola. However, most people use it for paying Ola
bills or keeping money for cab rides. Ola Money makes it easy and quick to pay
for OLA cab rides, share passes, clearing ola credit.
7- Amazon Pay

Amazon Pay is one of the newest entrants in this space and grown quickly piggy-
backing on the popularity of the Amazon e-commerce platform. It provides decent
cashback offers across popular platforms like Amazon, BookMyShow, AbhiBus,
etc.

8- Buddy by SBI

This mobile wallet application was launched by State Bank of India to let users
transfer money to other users and bank accounts, pay bills, recharge, book for
movies, hotels, shopping as well as travel. This semi-closed prepaid wallet offers
its services in 13 languages and is available for non-SBI customers as well. This
app also allows its customers to set reminders for dues, money transfers and view
the mini-statement for the transactions carried out. Digital wallet by SBI Bank
which happens to be the largest bank in the country in user count. They are great
for payments and transfers. This wallet is also available to users without an SBI
account which makes it easy to register.

9- PayZapp

This digital wallet is by HDFC bank which like SBI is a major player. They focus
on simplified one-click payments which make using it extremely simple. It is one
of the top online wallets in India.
 PayTM vs Other E-Commerce firms

The strategy PayTM follows is different from other e-commerce companies in India.
Along with the selling business, the company has its payments bank which is unique as
compared to other e-commerce firms. PayTM and Freecharge, both started in August
2010 while only the former made it to billion dollars. PayTM covers the market widely
than any other e-commerce company in India. For example, Flipkart, Snapdeal or
Amazon deals with only physical consumer products and Freecharge or Mobikwik works
mainly for recharges. Companies like [Link] or IRCTC indulge in just e-travel
companies.

PayTM covers these all-together. Apart from these, PayTM does some unique online
businesses like selling gold or paying for loans or insurance premiums. Not only this, it
also allows people to pay their bills. Almost all the electricity boards in India have
collaborated with PayTM for paying their bills. The company also gives special offers
like cashbacks or vouchers for paying via its portal. This easy to use interface is also one
reason for the high number of transactions.

Another feature that PayTM has is its transaction failure policy, while paying from any
bank if the transaction fails PayTM returns all the amount in its wallet. For example,
recharging a DTH connection from its own website is risky than recharging the same via
PayTM as in the case of any failure, the transaction amount slides back to the wallet
hassle-free.
 EMERGENCE OF PAYTM IN INDIA

India is traditionally a cash-based economy, with the value of physical currency in

circulation estimated to be over 11% of GDP, one of the highest among emerging
economies. However, till date a large proportion of India’s population is unbanked
and has limited access to technology-enabled financial services. The Government
of India and the central bank have laid significant emphasis on financial inclusion
and making banking and payment services accessible to all. Non-bank players such
as telcos (through mobile money services) and business correspondents (BCs) —
entities that assist banks in providing basic banking services in rural areas — have
also contributed toward financial inclusion. The payments industry is growing
rapidly, driven by aspirational consumers, rising personal consumption
expenditure, urbanization and electronification. Banks have traditionally played a
central role in providing payments services; however, the landscape is evolving
with active participation from nonbanks in the electronic payments and remittance
space. The key driving factors for electronification of payments in India are
increasing smartphone penetration, growth in digital commerce, improvement in
computer literacy, access to internet and broadband, and supporting regulations.

Digital prepaid wallet operators have gained widespread adoption in recent times
and have built a substantial consumer base. It is estimated that the two leading
digital wallet operators in the country together have over 117m stored value wallet
accounts. Wallets started with basic services such as telecom recharge and bill
payments but are now available as payment options on most popular online
merchants. The next focus area for wallet companies is creating a physical
acceptance infrastructure at brick and mortar retailers for wallet payments. Wallets
providers have simplified the transaction experience and combined it with multiple
promotional offers to gain traction. Due to a sizeable customer base, wallets can
potentially drive transaction volumes at merchants and, as a result, major e-
commerce merchants in India have partnered with leading wallet players.
The India mobile wallet market is forecast to reach $4.4 billion in transactions by
2022, with a CAGR of over 148 percent during 2017-22, according to a new report
from Research and Markets.

India has already become the world's second biggest smartphone market after
overtaking the U.S., according to a press release about the report. Apart from
growing economy and population growth, India is also witnessing other trends,
like surging internet penetration, rising smartphone ownership, modernization of
lifestyle due to urbanization coupled with improvement in education level.

India's mobile wallet market registered whopping growth, with a CAGR of 48.85
percent during the review period of 2012-2016, according to the report. The
market advanced on the back of rising smartphone ownership, surging internet
penetration, increasing disposable income and convenience associated with such
services. The market is forecast to gain immensely during the forecast period of
2017-2022, due to the government's decision to demonetize INR 500 and INR
1000 currency notes and focus on making India a cashless and digital economy.
This will help the industry and directly benefit companies like Paytm, FreeCharge,
Oxigen and others, according to the report.
 THE FUTURE OF E-WALLETS IN INDIA

India is witnessing an exponential growth in the area of digital payment in recent

times. With ever-increasing internet and mobile penetration, the country is all set
to witness a massive surge in the adoption of digital payments in the coming
years. Furthermore, flagship government initiatives such as Digital India will act
as key catalysts and enablers of this transformation.

Mobile phones were only used to make calls and reply to texts. No one could have
imagined using a phone to switch on the lights or umlock the door. Better yet,
very few consumers could envision using a phone to take pictures, record a video
or watch their favorite movie. It is clear that mobile phones are used for literally
everything. If so, then why should we hesitate to replace traditional wallets, debit
and credit card for mobile wallets?

It is clear that mobile wallets are slowly making a mark as a form of payment
method, but cash still remains to be an imperative necessity for consumers’
lives. Experts from different sectors including network operations, banks, etc.
express that mobile payments will quickly replace traditional wallets over time.
Recent studies show that consumer’s awareness has increased mobile payment
usage.

Some of the factors that have made them successful include, making the mobile
payment system secure, making it familiar with the consumers, providing
attractive offers and enabling financial transactions. There are still challenges that
face mobile wallet integration like consumers’ perception, security risks and
fraud, etc.
 OPPORTUNITIES FOR PAYTM IN INDIA

1- Rural Areas

Rural areas always have a huge impact on the overall economic development of
any country. In the same remote are you find that most people do not have bank
accounts. By using mobile wallets people can conveniently create bank accounts
without physically going to a bank branch. Mobile wallets also present
transparency in a business transaction in the rural area. The increasing number of
mobile and internet users in the rural area will pave ways for the use of better
digital payment solution over time.

2- Tapping into the untapped market

According to data from Reserve Bank of India (RBI), India is the home to largest
number of unbanked families (more than 145 million). Potentially one of the
largest bases to capitalize on.

3- Increase in Number of Smartphone Owners

Not long ago surveys were carried out to show the growth of Smartphone
ownership. Now, 4 in 10 people own a Smartphone. The number is still growing
as more people are anticipated to be owners of a Smartphone. With the high
increase in Smartphone owners, so is the number of mobile payment users.
Consumers can only use a Smartphone to make mobile payments hence this
cannot happen if they do not have one.
4- Increased Interest in Mobile Payment among Smartphone Owners

More people who own a Smartphones understand and are interested in cashless
payment than before. This is evident in the younger and the more tech-savvy
population.

5- Mobile Banking and Inventive Mobile Payment Application

More banks are now offering mobile banking services to their customers. A
huge number of mobile owner use this service to transfer money from one
account to the other, check their balance and recent transaction. This service
acts as a catalyst to increase the use of cashless payment. Financial
institutions have also come up with inventive applications for mobile transfer.

6- Financial Inclusion

Financial inclusion is where individuals and businesses have access to useful

and affordable financial products and services that meet their needs that are
delivered in a responsible and sustainable way. A wallet that can cater to this
will definitely rule the Indian market.
 CHALLENGES FACED BY PAYTM IN INDIA

The mobile wallet industry has been on a rapid growth trajectory as India
moves to a less cash-dependent state. Along the road, however, there are a
number of challenges that the industry faces and needs to overcome. These
include the following:

1- Inertia in adoption

Cash transactions have been the dominant payment mode for Indians for a very
long time. Even though the penetration of digital payments has been rapidly
increasing, concerns regarding security, privacy and transparency of charges are
still prevalent among consumers. Industry players will need to invest significant
effort to overcome this barrier, not only through marketing campaigns, but also
through actual continuous product improvement.

2- Risk of security breaches and fraud

This is one of the biggest reasons why most consumers are reluctant to adapt to
mobile wallets. Contactless payment presents huge unknown risk and fraud like
leaked data, hacking, undetected malware, e-wallet vulnerabilities. Making the
technology secure for all consumer will aid in stopping any potential financial
breaches.

3- Competition from Credit & Debit Cards

Cards form one of the biggest challenges to further adoption of mobile wallets.
Given the current limits on transactions through this channel, limits which are
wider in the case of cards does provide a significant roadblock to adoption.
4- Issues with compatibility

Not all applications are made for all operating systems on mobiles. Many products
currently on the market are only compatible with one or two operating systems
(most commonly iOS and Android). Consumers are looking for options that make
transactions the most convenient, and issues with compatibility can hamper that
experience. Ensuring compatibility across all the major operating systems will play
a key role for these companies.

5- Consolidation in the industry

Despite the surge in the user base and popularity, mobile payment companies are
increasingly moving towards consolidation in the e-wallet space. For instance,
PayU acquired Citrus Payments, flipkart took over the payments app, PhonePe,
while Shopclues acquired Momoe, the mobile wallet for offline stores. Lack of
funding and growth in transactions between merchants and existing customers of
wallet companies has forced consolidation in this space. Investors are looking at
minimizing costs and changing the business model, issues the firms will need to
address in the future.

6- Impact of UPI

Introduction of UPI has created greater competition for mobile wallets, but in the
short term, mobile wallets are not expected to face a great impact. UPI-powered
apps will need to deliver on a number of fronts including transaction costs and
ease of use that rivals that of mobile wallets. However, there is scope for some
future cannibalization, and is a challenge the industry must face in the long run.
7- Regulatory Compliance

All mobile payment services need to abide by the legal requirements. This
entails both the financial and consumer-based regulations. This can be a
problem for new players who want to invest in a new market.

8- Moving beyond core services

Players in the mobile wallet space have begun moving beyond their core service
and delivering collateral services. For example, PayTM provides a broad range of
m-commerce services. “Offline connect has become one of the significant
domains adopted by mobile wallet players to democratize their platform. In
addition to m-commerce, other e-wallet players like MobiKwik have ventured
into hyper local transactions, cash pick-up and microcredit facilities. Adapting
business models to meet consumer needs, and to differentiate products from other
alternatives, including the UPI, will be a continual challenge for the companies,”
says the report.

9- Low Perception

Consumers still perceive that mobile wallets do not solve anything. They are still
not informed of the benefits of using mobile wallets over using cash or credit
cards. That is why most of them still use credit cards and debit cards for online
payment and banking.
 Working of the company and its Revenue Model

The company One97 as a whole has several revenue generating practices, e-commerce
being the most important one, they also generate valuation via OTA bookings, payments
generation and mobile wallet, PayTM is just one of the subsidiaries of this conglomerate.
The various revenue areas of PayTM are web and app e-commerce, payment and wallet
integration, seller services and payments bank. The model that the company uses is a
simple commission system, the shopping area of PayTM is a B2C e-commerce where
customers can choose the products, add them to their cart (known as shopping bag), find
discounts and/or promo codes and order them. After this, the seller’s job begins; the
seller ships the product to the customer via courier. The seller gets his agreed price of the
product minus the commission charged by PayTM for finding a customer. The maximum
cut that PayTM charges from a seller is around 20% of the selling price. This cut amount
excludes taxes and discounts. The other revenue source for the company is its payments
bank. PayTM also takes delivery charges which are completely at the discretion of the
company and see no government intervention; this delivery charge is the convenience or
listing fee that the company takes. Overall, the company has a business model which is
perfectly balanced for both online product selling and payment integrations. PayTM can
be used for paying various utility bills these days. People use PayTM e-wallet for bill
payments of DTH, internet connections, prepaid and post-paid phones, insurance
premiums, loans and EMI payments, electricity, metro. The company even sells gold on
its website. The company receives a commission on every payment made through its
gateway. People prefer PayTM to the conventional methods of paying bills for the
discounts in the form of cash backs and coupons, PayTM also charges a very nominal
fee when users opt for coupons. The specified amount of cash comes back to the wallet.
The users may use the wallet money later in their future transactions. This wallet money
cannot be withdrawn back into one’s bank account. The wallet is also a good source of
revenue for PayTM. After demonetization, people started keeping large amounts in their
PayTM wallets. PayTM has integrated its wallet with various companies like UBER and
IRCTC. It works as same as the payment gateways. PayTM discounts the transaction
amount by 1 – 3% and gives the rest to the seller.
 CHAPTER 2: RESEARCH METHODOLOGY

Source of data

This research study is conducted in order to understand growth of UrbanCalp in

India. The present UrbanClap market is growing on account of various factors such
as home services, smartphone penetration, etc. This research study studies all those
factors which led to the growth of home services in India.

The current study is based on primary data collected from different parts of
Mumbai, A well - structured questionnaire was designed to collect the
information. The questionnaire was sent to 200 people out of whom 146
responded.

The secondary data are collected from various sources such as Newspapers
(namely, The Economic Times, The Times Of India, Business Standard, The
Financial Express, and Mint), Internet (from various websites such as
[Link] , [Link] , [Link] , etc.),
Statistical records ([Link] ), Reports (namely, annual reports of
UrbanClap) and journals such as BVIMSR, s Journal of Management Research,
International Journal of Advanced Scientific Research and Development, etc.
 Sampling Plan

Sample Unit

In this research, the sample unit includes the people who have been using the
online market place for local services .

Sample Size

In this research, the sample size taken is 200.

Sampling Procedure

A questionnaire was sent to respondents for collection of primary data. Purpose

of this research was told to respondents and questions were explained to them in
case there was any need for understanding any particular question.

Method of Sampling

The method of sampling being used here is convenient. The method is a

non - probability sampling technique. People who were most conveniently
available were surveyed.

Scaling Techniques Used

Likert Scale was used in order to find out how useful the respondents think
UrbanClap is. A five point likert scale was used where 1 represented that
UrbanClap is not useful and 5 represented that useful is secure to us
Respondents Demographic Profile

Variable Characteristics Frequency Percentage

Gender Male 79 54.1%

Female 67 45.9%

Age Group 15-25 100 68.5%

26-35 18 12.3%

36-45 14 9.6%

46-54 9 6.2%

55+ 5 3.4%

Profession Student 43 65.2%

Employed 9 13.6%

Unemplyed 5 7.6%
 CHAPTER 3: LITERATURE REVIEW

The Literature study highlights the definition of 'E-Wallets' or 'Electronic

Wallets' or 'Mobile Wallets' or 'Digital Wallets' and the effect of
Demonetization on the growth EWallet users in India. It also describes various
other factors that led to the growth of EWallets in India. It also includes various
services provided by E-Wallet service providers and various merits and
demerits of using E-Wallets.

Investopedia (2018): “A digital wallet is a system that securely stores users'

payment information and passwords for numerous payment methods and
websites. By using a digital wallet, users can complete purchases easily and
quickly with near-field communications technology. They can also create
stronger passwords without worrying about whether they will be able to
remember them later.
Digital wallets can be used in conjunction with mobile payment systems, which
allow customers to pay for purchases with their smart phones. A digital wallet can
also be used to store loyalty card information and digital coupons.”

Business Dictionary: “E-Wallet is a software that resides on a buyer's

computer and holds digital cash, and a digital certificate with a digital signature,
as well as billing, shipping, and payment information for online transactions. Also
called electronic wallet."
Market Business News: "An e-wallet is a digital system that stores a person’s
payment information. ‘Digital’ means it exists purely electronically. It is a secure,
online wallet. The term is short for ‘electronic wallet,’ i.e., the ‘e’ of e-wallet
stands for ‘electronic.’ We also call it a digital wallet.
The e-wallet stores users’ cards digitally so that they can buy things electronically,
i.e., online. If you have this kind of wallet, you can pay for things online using
your laptop, tablet, or [Link] can also use your digital wallet to pay for
things in some cafes and shops that you physically [Link] e-wallets store your
loyalty cards, insurance cards, and driver’s license. They can also store your
health card plus other IDs that you’d normally keep in a traditional [Link] e-
wallet may also refer to where people store their cryptocurrencies, i.e., it may
mean a cryptocurrency wallet.”

The Economics Times: This article discusses e-wallets as an electronic card

used to make payments. It includes uses of e-wallets and goes on to describe the
two components (software and information) of e-wallets.

“ E-wallet is a type of electronic card which is used for transactions made

online through a computer or a smartphone. Its utility is same as a credit or
debit card. An E-wallet needs to be linked with the individual’s bank account to
make payments.
E-wallet is a type of pre-paid account in which a user can store his/her money for
any future online transaction. An E-wallet is protected with a password. With the
help of an E-wallet, one can make payments for groceries, online purchases, and
flight tickets, among others. E-wallet has mainly two components, software and
information. The software component stores personal information and provides
security and encryption of the data. The information component is a database of
details provided by the user which includes their name, shipping address,
payment method, amount to be paid, credit or debit card details, etc. "

Gopal Karmakar (2017): The article "Mobile Wallets Adoption In India"

defines mobile wallets and also includes reasons that led to the growth of e-
wallets in India.

“A mobile wallet is a virtual wallet, which can be created and managed using a
mobile application installed on your smartphone. The word “virtual” is used
because instead of using your physical plastic card, such as Credit card/Debit card
etc., to make purchases, you can pay with your smartphone, tablet, or smart watch.
Various mobile wallet service providers come up with their mobile application to
help users create and manage the virtual wallet services. Some of the major virtual
mobile service providers are PayTM, PayU, Mobikwik etc. One can preload a
certain amount in that digital/virtual account created with the mobile wallet service
provider using Credit Card/Debit Card/ Internet Banking, and spend it at various
online and offline merchants listed with the mobile wallet service provider. For
example, if you go to a restaurant ABC, which is listed with XYZ mobile wallet,
you can pay for your food through the smartphone without worrying about cash.
These days one can also pay various utility bills such as electricity bills, postpaid
mobile bills using a mobile wallet.”

“Narendra Modi’s vision to see a cashless India led the central government to take
numerous steps to avoid cash transactions and to ban black money circulation in
India. Steps such as no service charges on online train ticket booking on irctc
encouraged Indians to perform more digital transactions and in the process,
mobile wallets companies came up with different avenues to attract customers to
use their service. Steps such as cashback options were heartily welcomed by
Indians. Other factors such as convenience of payments — even as little as Rs. 10
could be paid through mobile wallets — and tie-ups with corporates and
government institutions for carrying digital transactions boosted the growth of
mobile wallets services in India.”

Manpreet Kaur (2017): in her article "Demonetization: Impact On Cashless

Payment System" describes demonetisation as progressive shift to a cashless
economy with a greater focus on electronic transactions.

“The demonetization of the highest denomination currency notes is part of several

measures undertaken by the government to address tax evasion, counterfeit
currency and funding of illegal activities. The requirement to deposit currency
notes in excess of specified limits directly into bank accounts has resulted in the
declaration of hitherto unaccounted income, subject to higher tax and other
penalties. India has one of the highest levels of currencies in circulation at over
12% of GDP and of this cash, 87% is in the form of Rs500 and Rs1,000 notes.
Globally, this is not unusual as the central banks of several countries pump
massive amounts of cash into the economy, mostly in very large denominations.
Facilitating faster payment services The payments eco-system in the country
provides multiple options to different segments of users for funds transfer as well
as for making payments in exchange of value for goods and services. With
increasing adoption of electronic payments, particularly those driving e-commerce
and m-commerce, there is a growing demand for faster payment services which, in
turn, facilitate ease in doing financial transactions.”

[Link] and [Link] (2016): in their article "Acceptance Of E-

wallet services: A study On Consumer Behaviour" describes e-wallet as an online
payment method and dicusses how smartphone penetration is one of the major
driving factor towards the growth of e-wallets in India.

“In today’s scenario, smart phones have become an important part in day to day
activities. As it becomes more affordable, the usage of smart phone users is
getting drastically high. Smart phones are not just useful for social media, videos
and taking selfies. They have now become an important part of our day to day
activities for making payments for various options. “E-wallet is an online prepaid
account where one can stock money, to be used when required. As it is a
pre-loaded facility, consumers can buy a range of products from airline tickets to
grocery without swiping a debit or credit card, provided their wallet is filled with
sufficient amount required for payment”. Service like e-wallet is innovation
facilitating more easier payments at the time of requirement.”
“E-wallet services generally result (1) Ease of use without having to enter
the debit/credit card details for every single online transaction. (2) For some
sites there is no minimum amount and you can deposit an amount as low as
Rs 10.
(3) benefits of e-wallet can be shared with friends and family (4) There is no
chance of a decline of payment since Ewallet is a prepaid account these are
some of the benefits that can be availed by using E-wallet.”

Gurmeet Singh Saini and Sushil Sharma (May-June 2017): in their

article "Factors Affecting Consumers' Perception Towards E-Payment Systems In
India" describes demonetization as a well planned move towards cashless
economy and discusses about how online payment systems reaped its benefits. It
includes all major factors that impacts perception of users towards e-payment.

“Demonetization by Government of India is a well-planned move towards a

cashless economy which came as a bonanza for several digital payment
platforms. Various mobile wallets and online payment systems are sprouting to
reap the benefits of this opportunity. These vibrant payment systems evaporate
the importance of cash as the only method of exchange of value.
Perception of consumers towards these payment systems is highly important for
future growth. This study aims to discover perception of users towards
electronic payment (e-payment).
Literature review indicates that factors such as usefulness, ease of use, security,
trust, and risk significantly affect users' perception. A conceptual model was
developed and tested in this study mainly focusing on factors influencing users'
perception towards e-payment. A self-administered questionnaire was developed
and disseminated to 200 respondents out of which 150 valid responses were
considered for further analysis. Cronbach alpha was used to check the reliability
of the questionnaire. Exploratory factor analysis was used to extract the variables.
Correlation and multiple regression analysis revealed that usefulness, ease of use,
and security significantly impact perception of users towards e-payment.
However, results for trust and risk are insignificant. It has been found out that
there is a great potential for future expansion of such payment instruments and the
challenge is to meet the continuously growing expectations of
consumers. Several implications can be drawn from the study for both marketing
managers and policy makers which help in developing strategies directed at
increasing epayment acceptance, and usage.”

Dr Hem Shweta Rathore (2016): in her article "Adoption Of Digital

Wallet By Consumers" studies the factors that influence consumers in adoption of
e-wallets.

“In today-world, smartphone has become essential part of daily life. Due to
technology, mobile users can nowadays use their smartphones to make money
transaction or payment by using applications installed in the [Link]
smartphones can function as leather wallets, it is called “Digital Wallet” or widely
known as “Mobile Wallet”. The present study tries to study the various factors
that can affect a consumer’s decision to adopt digital wallet as a mode of online
payment. Apart from this, the study also attempt to find out the various risks and
challenges faced by users of digital wallet.”

“A structured questionnaire was sent to 150 smart phone users who also use
digital wallet for online payment. The respondents were categorised on the
basis of gender, age and occupation. Out of 150 people only 132 responded to
the [Link] questions were based on consumer’s preference for
online mode of payment, the factors affecting their choice and the challenges
faced by them while using digital wallet. This research used quantitative method
ANOVA in order to get the statistic result from respondents.”

“Digital wallets are quickly becoming mainstream mode of online payment.

Shoppers are adopting digital wallets at an incredibly rapid pace, largely due to
convenience and ease of use. Tech-savvy shoppers are increasingly demanding
seamless, omni-channel retail experiences and looking for solutions that
deliver this.”

K.C. Balaji and K. Balaji (2017): The article "A Study On

Demonetisation And Its Impact On Cashless Transactions" describes
demonetization which took place in India in 2016 and how it let to tremendous
increase in cashless payment systems.

“Demonetization In India: Demonetization is not happening first time in India.

Earlier in 1946, the 1000 and 10,000 denominations notes were demonetised in
order to eradicate unaccounted money. The notes with the denomination of 1000,
5000 and 10,000 were re-introduced in 1954 and once again they were
demonetised on January 1978. After around 36 years the demonetization was
done in 2016. There are several unorganised sectors in India which are completely
based on cash economy. “In a historical move that will add record strength in the
fight against corruption, black money, money laundering, terrorism and financing
of terrorists as well as counterfeit notes, the Government of India has decided that
the five hundred and one thousand rupee notes will no longer be legal tender from
midnight, 8th November 2016. The Government has accepted the
recommendations of the RBI to issue Two thousand rupee notes and new notes of
Five hundred rupees will also be placed in circulation.” – Prime Minister,
[Link] on implementing demonetization on 8th November 2016. “

“Demonetization And Cashless Payment System: The mobile wallets and digital
payment happen to be the clear winner since demonetization. Paytm’s traffic had
increased by 435% and its downloads by 200%. Paytm is India’s leading mobile
wallet which allows users to make transactions “at 850,000 places across 1,200
Indian cities, including mom and pop shops, branded retail outlets, and petrol
pumps. The paytm calling the Prime Minister decision on demonetization as a
firm stand and advertised on the newspaper like: “boldest decision in the
financial history of independent India”. The troubles caused by demonetization
paved way for plastic money and cashless transactions at a larger scale.
Altogether the online transactions in India gone up by 250 per cent post
demonetization. The recent acceptance of e-transactions by people gave scope
for electronic banking in our country. There is a tremendous increase in mobile
banking and Immediate Payment System (IMPS) usage in India post
demonetization.

According to India-spend analysis of RBI, the mobile banking transaction had

grown by 175 per cent and the amount transacted had grown up by 369 per cent in
the past one year. There is a 3 times increase in in Rupay transactions on point of
sale to 10 lakhs a day, which is three times more than the normal transaction count.
Post demonetization, the card transactions in India boosted up by 133 per cent. The
120 crores worth transactions were witnessed by seven million transactions daily
in paytm and 15 lakh people of India started using cards (mostly debit cards). The
growth of usage of debit cards doubled after demonetization. The government of
India wants its people to cashless but it has its own pros and cons. Earlier, the
online transactions were done only through debit and credit cards or through net
banking. These options always had the issues of security and were not
userfriendly. After the smart phone revolution, there is a explosion in digital
payment options.”

Shamsher Singh and Ravish Rana (2017): The article "Study Of

Consumer Perception Of Digital Payment Mode" includes various factors that led
to the growth of digital payment and transition from cash economy to less cash
economy.

“The last decade has seen tremendous growth in use of internet and mobile phone
in India. Increasing use of internet, mobile penetration and government initiative
such as Digital India are acting as catalyst which leads to exponential growth in
use of digital payment. Electronics Consumer transaction made at point of sale
(POS) for services and products either through internet banking or mobile
banking using smart phone or card payment are called as digital payment. The
consumer perception of digital payment has a significant and positive impact on
adoption of digital payment. The structured questionnaire was used as research
tool for understanding consumer perception of digital payment. Primary data was
collected from 150 respondents in Delhi. ANOVA and frequency analysis was
used to analyze the responses.

ANOVA indicate that there is no significant variance in consumer perception

based on the demographic factors such as gender, age, profession and annual
income of the patients. However education was found to significant influence for
adoption of digital payment."

"There are number of facilitators which are leading to the growth of digital
payment and transition from cash economy to less cash economy. These
facilitators include penetration of internet connectivity on smart phones, non-
banking financial institution facilitating digital payment, one touch payment, rise
of financial technology sector and push by government either by giving
incentives or tax breaks. These all factors are creating a positive atmosphere for
growth of digital payment in India.”

Poonam Painuly and Shalu Rathi (2016): in their article describes E-

Wallet andits recent growth and also discusses its merits and demerits.

“The growing importance of technology and mobile together has recently marked
their presence felt infinancial transactions in the recent times. The facility of
speedy, secure and smart financial transactions issupported by the concept of
“Mobile Wallet”. Mobile Wallet has assisted the needs of business owner
andcustomer on a same go. The complexity of money transactions forces and also
promotes the usage of mobilewallet in today’s era.”

“Merits: Sometimes your wallet can be stolen, lost or picked, but your mobile
wallet remains secured with your personal password of the account created on
your phone. Moreover, it provides the advantage of saving even your minimal
amounts (in paisa) in exchange of a candy or even leaving that part on the sellers
account. For example if your bill accounted for ₹ 354.52 or ₹ 421.64, you will
not have to ask for change to anyone, and no one will give you a candy in place
of a rupee. Mobile wallet usage is also a time saving process and don’t need to
open several browsers. When you use Mobile Wallet, you don’t need to give your
confidential data related to your bank account and also protect yourself from
unwanted financial happenings. The biggest advantage in using mobile wallets is
its considerable rewards in the form of discounts and cash backs.”

“Demerits: In mobile wallet there is a limit of amount that you can deposit in
mobile wallet and also there is a daily spending limit. It means mobile wallets are
useless at the time of high payments. Also there are limited numbers of merchants
who currently and specifically use wallet money, so you will still need net
banking, debit or credit card or some cash. One major drawback is the dull battery
back-up of smart phones, you never know when your phone say’s you good bye.”
 CHAPTER 4 – DATA ANALYSIS & INTERPRETATION

PRIMARY DATA

The primary data collected using a well structured questionnaire was

analyzed and is presented below:

Figure 1.

AGE GROUP NUMBER OF PERSONS PERCENTAGE

15 – 25 100 68.5%
26 – 35 18 12.3%
36 – 45 14 9.6%
46 – 55 9 6.2%
55+ 5 3.4%
Analysis - Majority of the people who filled the survey were of the age group 15-25
years old. The accounted for about 69% of all the people who took the survey.
Though the survey questionnaire was passed to all the groups, the people belonging
to age group of 15 – 25 were more enthusiastic to fill out the survey.

Figure 2.

GENDER NUMBER OF PERCENTAGE

PERSONS
MALE 79 54.1%
FEMALE 67 45.9%
TRANSGENDER 0 0%
Analysis – We can infer from the above table and graph that a high number of
females answered the survey. Females accounted to 54.1% of the responses to the
survey whereas the male accounted for 45.9%.

Figure 3.

JOB STATUS NUMBER OF PERCENTAGE

PERSONS
STUDENT 95 65.1%
EMPLOYED 36 24.7%
UNEMPLOYED 15 10.3%

Analysis – Majority of the responses were received from the students. 36 employed
people also answered the survey who accounted to 24.7% of the total population who
answered the survey.
 Figure 4.

.
USE OF PAYTM NUMBER OF PERSONS PERCENTAGE
YES 115 78.8%
NO 31 21.2%

Analysis – Majority of the respondents use PayTM which accounted for 78.8% of the
total respondents.
 Figure 5.

USAGE NUMBER OF PERSONS PERCENTAGE

ONCE A DAY 24 17.6%
ONCE A WEEK 37 27.2%
1-3 TIMES A MONTH 37 27.2%
LESS THAN ONCE A 17 12.5%
MONTH
NEVER 21 15.4%

Analysis – Majority of the respondents use PayTM frequently. Some have daily usage
of PayTM in their day to day life while others have weekly or monthly frequent usage.
 Figure 6.

When did you start using PayTM Number of Persons Percentage

PRE-DEMONETIZATION 60 41.1%
POST-DEMONETIZATION 57 39%
I DON’T USE PAYTM 29 19.9%

Analysis – From the above responses we get to know that most of the people, who
have responded to the survey, used to use PayTM Pre-Demonetization and
approximately same number started using PayTM Post-Demonetization. Thus,
Demonetization increased the number of users of PayTM to a great extent. This
also helps us to conclude that most of the users in India started using PayTM after
the announcement of Demonetization and the growth in its user base was only after
Demonetization.
 Figure 7.

Change in Usage Number of persons Percentage

It increased 87 59.6%
It decreased 2 1.4%
It remained the same 57 39

Analysis – Next the respondents were asked if their usage of PayTM changed
after Demonetization. To this 87 people replied ‘it increased’ which accounts to
59.6% of the respondents, while 57 people said that it remained the same but, only
2 people replied saying that their usage decreased which is just 1.4% of the total
number of respondents. So, the usage of PayTM definitely increased after
demonetization.
 Figure 8.

Services Number of persons Percentage

PayTM Wallet 86 58.9%
Mobile Recharge 86 58.9%
Online Shopping 48 32.9%
Electricity Bill Payment 51 34.9%
DTH Payment 25 17.1%
Movie tickets booking 76 52.1%
Travel tickets booking 47 32.2%
Fees Payment 9 6.2%
Other Services 55 37.7%

Analysis – The above chart helps us to know, for what services do the respondents use
PayTM. From the above chart, we get to know that most of the users use PayTM for its
PayTM Wallet and Mobile Recharge (58.9%) , and Booking Movie Tickets (52.1%) . A
significant number of users also use it for Online Shopping (32.9%) and Electricity Bill
Payment (34.9%).
 Figure 9.

E-Wallet Number of Persons Percentage

Freecharge 34 23.3%
Mobikwik 17 11.6%
Oxigen Wallet 4 2.7%
Citrus Wallet 3 2.1%
Google Pay 99 67.8%
PhonePe 58 39.7%
Others 23 16%

Analysis – The new player in the market ‘Google Pay’ is being used by many of the
respondents in the population which affects PayTM in a negative way.
 Figure 10.

Do you prefer PayTM? Number of Persons Percentage

YES 93 63.7%
NO 53 36.3%

Analysis – Most of the respondents in the population prefer PayTM over other E-
wallets but some also prefer other e-wallets over PayTM. The latter number has
increased due to coming up of a new player ‘Google Pay’ which has gained the trust
of the majority of the population.
 Figure 11.

Usage declined? Number of Persons Percentage

YES 67 45.9%
NO 54 37%
MAYBE 25 17.1%

Analysis – 46% of the respondents agree that their usage of PayTM decreased after
coming up of Google Pay. On further enquiry, it was found out that people preferred
Google Pay due to the hassle free payment system. Google Pay also gained trust of some
of the people when it was taken over by Google and people had trust in Google.
 Figure 12.

How secure PayTM is? Number of Persons Percentage

1 (Least) 4 2.7%
2 6 4.1%
3 43 29.5%
4 70 47.9%
5 (Highest) 23 15.8%

Analysis – 93 of the total 146 respondents think that PayTM is a secure and trustworthy
wallet. 43 of the respondents consider it as fairly secured while 10 of the respondents
think it is not secure. It can be inferred that payTM is a secure way of transacting.
How do you think PayTM can improve its services?

The next question asked in the Questionnaire was, “How do you think PayTM can
improve its services?” To this question we got varied and very interesting answers from
the respondents. One of the interesting answers that we received was that PayTM should
have a feature wherein they should notify the user when they reach a minimum amount
in their PayTM Wallet. For Example – One user might like to keep Rs 500 always in his
PayTM Wallet, and whenever he reaches the low balance of Rs 500 the customer is
notified and he can put in more money in his bank account. In this service every
customer can set whatever amount he wants to keep as his minimum balance amount.
This service is adopted by banks, where in every account holder should maintain a
minimum balance, and if they don’t, they are charged for it. A few of the respondents
also said that PayTM should have more Cashback offers which makes the application
more appealing to the users. One of the interesting features that PayTM has is the
Cashback offer wherein the amount is first deducted from the PayTM Wallet but then
later on after a specified time (Usually 24 hours) the amount is added back to the
customers PayTM Wallet. Some respondents also advised that PayTM should also
improve its Customer Care Services as they were not very satisfied with their Customer
Care Services. There were also responses that there should be no transfer charges when
the customer transfers bank the money to his bank account. This just comes across as an
additional cost incurred by the user of the application. One respondent also said that they
can improve their services by making the transactions through PayTM much more safe
and secure.
 SECONDARY DATA

PAYTM Pre Demonetization

Figure 13.

Internet users as a % population in India.

PayTM’s entire business was conducted on the internet, though it has very recently
launched non-web based transaction methods. The surge in internet users helped the firm
to establish its base in the market. The company created a user base of 25 million wallet
users and 10 million app downloads and over the years has earned many accolades; the
PayTM iOS app was declared as best app in the Mobile/DTH Recharge & Shopping
Category, PayTM has been awarded as 'Most Innovative Start-up of the Year' at the
Entrepreneur India event organized by Franchise India. The company aimed at targeted
revenue of $4 billion by the end of 2015, however, the growth was not very swift and by
mid-2015 PayTM was completing orders about $15 million and could only increase to
$100 million by the end of 2015. Despite low growth than what had been expected the
company consolidated itself as the leader in e-commerce in India completing more
transactions than many of the other leading firms combined which is evident from Figure
2 below.
 Figure 14.

The above graph shows that even though PayTM did not reach its estimated targets, it
was still
the leader in comparison to other E-Commerce players in the market.

With of over $1 billion valuation as of October 2015, PayTM was handling 75

million orders a month and has over 50,000 merchants all over India.
PayTM and Uber:

Figure 15.

PayTM and Uber came up with such offers to attract customers.

PayTM’s major client till 2015 was car service provider Uber, which had developed
a smart phone based, ride-hailing app as a way to compete with traditional taxi
companies. It initially used PayTM's mobile gateway as the sole payment mode for
Uber rides in India apart from paper currency. However, in 2015, Uber revised its
payment policy and added a variety of payment options, such as debit cards, credit
cards, along with several other mobile wallet providers. This was a big blow for the
company as Uber on a daily basis averaged around 2,00,000 users per day.
PayTM’s Revenue and Profit

Figure 16.

The diagram (Figure 4) above shows One97’s growth of revenue since its inception, the
growth can be seen in tandem with the increase in number of internet users over the
country. The growth in the revenue of the company was continuous and steady for the
first few hours and they earned maximum profits in the Financial Year 2011-12 earning
about 57 crores as profit. The revenue earned by the company was steady for a few more
years until the Financial Year 2014-15 where they earned a revenue worth INR 337
crores. In the same Financial Year when the company earned the record revenue, they
also suffered a heavy loss worth INR 372 crores. This loss which the company incurred
was primarily due to the increase in the expenses incurred by the company. The company
aimed at large scale expansion in the Financial Year 2014-15 hence incurred heavy
expenses. The expenses incurred on Advertising and Promotions was 34 crores in the FY
13-14, which was increased to 403 crores in the FY 14-15. This increase was close to
1200%. They aimed at large scale expansion and to do so they relied heavily on
advertising and promotions in comparison to other expenses. The increase in expenses
from the FY 13-14 to the FY 14-15 can be seen below in Figure 5.
Figure 17.

The figure above shows the expense breakup of 2 different years, that is, financial year
13-14 and financial year 14-15.
 PayTM’s Growth Post Demonetization

PayTM growth had almost stagnated in the middle of 2016, the use of its e-wallet was
growing but not at a very swift rate. On 8th November 2016, the Government of India
ceased the legal tender of INR 500 and INR 1000 notes. As Reserve Bank of India
(RBI) was not able to supply this huge amount of currency in a short time, the following
months witnessed a huge gap between the demand and supply of new currency notes. In
wake of this people were forced to resort to PayTM and other methods for transactions.
Shopkeepers, roadside vendors all resorted to e-transactions during this time. PayTM’s
advertisement campaign "PayTM Karo" resonated within the minds of the people and
helped it take full advantage of the opportunity that presented itself. A lot of investment
by the company following demonetization helped it become the most used wallet in the
country. In 2016, the company had also invested a huge sum in becoming the title
sponsor of the Indian cricket team and this played off quite well as the timing of many
cricket matches coincided with demonetization.

To cope up with the increased in demand, the company hired 1500 employees in
December 2016. Post demonetization, users were adding INR 150 crores daily. This
figure increased almost four-fold when compared to pre-demonetization when people
were adding about INR 40 Crores on a daily basis. The average money in the wallet
soared from INR 65 to INR 228. In November 2016, the company added 0.15 million
merchants in its 1 million merchant network. Post demonetization, PayTM daily
transactions increased to 5 million a week which is roughly equal to the combined
average of a number of transactions by credit and debit cards daily. To expand its
reach, PayTM hired 20,000 sales people in 650 districts, in the months of December
2016 and January 2017. To administer the increase in the number of daily transactions,
PayTM bought 1,300 new servers to build a network that could support 10 million
transactions a day, that would help it virtually double its capacity. However, by March
2017 RBI had pumped back about 85% of the currency that had been brought out of
commission, as a result of which, PayTM in the country has shown a decline.

The road ahead:

This section is majorly divided into two parts the path ahead in e-commerce and that
as a payments bank.

E-commerce: With an internet base of about 462 million in 2016, that is expected to rise
drastically in the years to come, India is a potentially huge market for e-commerce. The
country has the second-largest user base in the world; however, the penetration of e-
commerce is quite low. The worth of e-commerce in India went up from $3.9 billion in
2009 to $12.6 billion in 2013, hence there is a lot of scope for the company to expand its
base in this sector. The Indian e-commerce market till 2015 had home-grown giants like
Flipkart and Snapdeal along with American major Amazon. When PayTM was just in its
initial stages, these giants had their roots deep in the Indian market. They had already
invested millions of dollars into building the supply chain, back-end logistics and
customer support. It has done well to rise in this environment however, if PayTM wants
to remain at its position, its strategy of offering zero commission to vendors may not be
enough, it will have to build strong backend logistics to facilitate fast and smooth
delivery for minimal consumer complaints. Also interest shown by giants such as
Alibaba in the Indian market may threaten PayTM’s position in the future.
Payments bank: The challenges faced by these payment banks have been divided here
by the consumer base, which has been divided into two major categories, the banked
segment that refers mostly to people in urban areas, the unbanked segment which refers
mostly to the rural segment and the not so tech-savvy people. When considering the
banked segment, the biggest challenge is the resistance to change from the traditional
banking system, also payments banks poses various security and reliability issues. While
considering the unbanked population, banking illiteracy poses the biggest problem.
People are either not aware or are reluctant to use PayTM and consider cash as the only
reliable option for making transactions. Amenities such as internet, smart phones are still
esoteric in the country. Focusing on good technology, better and more secure methods for
transactions using apt marketing strategies to increase the awareness regarding this
payment mechanism, giving more incentives to the users such as cashbacks, discounts,
bonus and royalty points are few ways that payments bank can make their way into the
current banking ecosystem of the country.
PayTM’s Revenue and Profit

Figure 18.

Source – Times of India, Date – 13th December, 2016.

The article on 13th December, 2016 by The Times of India read the following

“Bengaluru: Digital payments and commerce platform PayTM saw its net losses climb
fourfold to Rs 1,549 crore for the year ended March 31, 2016, according to documents
filed with the Registrar of Companies (RoC). The Noida-based One97 Communications,
which runs PayTM, had reported a loss of Rs 372 crore a year ago compared to a profit
of over Rs 5 crore during financial year ended March 2014 as cashbacks, marketing and
discounting have hit the company over the past two years.

PayTM's founder Vijay Shekhar Sharma drew an annual salary of about Rs

3.1crore in the 2015-16 fiscal compared to Rs 2.3 crore the year before, according
to the [Link] reported last week that Sharma, who held over 21% stake in One97
Communications, sold 1% of his holding to raise Rs 325 crore to fund his planned
payments bank, having got an in-principle approval from the country's central bank.
Neither did the Alibaba backed company spell out reasons for its soaring losses, nor
did it mention the revenues for fiscal ended March 2016. The company had reported
revenue of Rs 336 crore in 2014-15, as against Rs 210 crore in FY 2013-14. When
contacted, a company spokesperson told TOI in an emailed response, "The technology
sector needs front-loaded investments with a long-term vision for profitability. This
year, we have invested heavily in marketing, business expansion and manpower. This
will not only help us drive sustained growth over the long-term but also bring us
closer to our vision of integrating half a billion Indians to the mainstream economy ."

PayTM, one of the biggest spenders on marketing and advertising in the digital
payments space, has further enhanced its budget after the demonetization of high-value
currency notes and the government's push for a cashless economy . According to the
filing, the company plans to become operationally profitable by financial year 2019, as
stated by a valuation paper commissioned by PayTM and prepared by Deloitte Haskins
and Sells.”

The article spoke about the heavy loss the company suffered in the Financial Year 2015-
16. PayTM did not reveal the revenue earned by the company but they revealed the
loss figure of Rs 1549 Crore which was 312% greater than the loss the company
suffered in the previous financial year 2014-15. This loss was significantly due to the
expansion activities undertaken by the company in order to maximize their returns.
 Figure 19.

Vijay Shekhar’s Tweet when PayTM reached 200 Million Downloads.

Although PayTM reached a record of 200 million users, the company still suffered
heavy losses as their Marketing and Advertising expenses were really high in
comparison to the users they actually got. The targeted customer base was much larger
as compared to the ones they actually got. When on 27th February 2017, PayTM did
reach 200 million wallets the CEO, Vijay Shekhar Sharma did break out the news
through a tweet saying, “Double Century! Next milestone, 500 million by 2020” This
post shows that the company believed in long term expansion. They invested heavily in
a project and expect deferred returns over the years to come. From its incorporation in
2009, it took PayTM 6 years to get 100 million users. They reached the 100 million
users mark in August 2015, whereas the got the next 100 million users in the next one
and a half years. On 26 February, the company reached the mark of 200 Million users.
In the year 2016, PayTM broke some records and this was due to Demonetization.
After the announcement by the Prime Minster, a large number of people started using
PayTM.
 Figure 20.

These were stats the company came out with in the end of 2016, and thanked their
customers for
such a positive response.

Most of the services that are used on the app today were introduced in 2016.
Before this, PayTM was merely used for Mobile Recharge. In 2016, PayTM
expanded its horizon and started with booking movie tickets, airplane tickets,
railway tickets, event tickets, buying gold and booking hotel rooms.
 Figure 21.

The services introduced in 2016 and the revenue earned from them.

These stats surely do tell us that even though the numbers on the balance sheet did not
favor PayTM as they were suffering heavy losses, the company still did have their
prime time in the year 2016 after the announcement of 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 populations
belong to 56 big cities and the rest from small towns.
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).

Major Sources of Revenue

PayTM’s revenues are generated from multiple sources. This includes:

 Interest (ranging 4-6%) received from escrow account maintained in a

nationalized bank,

 Advertisements on its websites,

 Commission from utility payments and recharges,

 Commission of 1% for transferring money from merchant PayTM to

their bank accounts (Gupta 2016).

The total revenue during 2015-16 was 3360 million which was higher than 2100 million
in the previous year. However in 2015-16 it showed a loss of 3370 million.
Major Investors in PayTM

The major investors in PayTM includes:

 Ant financial known as Alipay,

 Alibaba groups,

 SAIF partners,

 Silicon Valley Bank and

 Sapphire venture (Bailay & Chakravarty 2015).

In March 2015, PayTM received an investment of US$ 575 million from Alibaba group
a famous chienese e-commerce company. Similarly Indian industrialist, Ratan Tata, too
made a huge personal investment in it. Furthermore, PayTM has also started working on
Alibaba’s financial services model which helps sellers and consumers to borrow small
loans on their debit cards from the ecommerce firm.

Market Reach and Future Investment

PayTM is planning to disburse small loans to 500 million of the population by 2020 in
its marketplace. It has been also seen that last year it has captured 26% of all the e-
payment industry. Other major contributors were debit or credit card at 40%, National
Electronic Fund Transfer (NEFT) at 25% and unified payment interface (UPI) at 9%
(Gupta 2016).
 Figure 22.

Growth in the number of users of PayTM

Shifu known for consumer behavior prediction platform and [Link] have been
acquired by PayTM in 2016. Whereas, Shifu has been acquired to enhance consumer
experience on its platform (Mishra 2016). On the other hand [Link] has been
undertaken to strengthen up its online to offline platform (Gupta 2015).

For the coming year it has planned to add some new features and services, to have
around 5 million merchants to make and accept digital payment in its platform. It is
also planning to make the sales and distribution companies to integrate in India.
 PayTM CEO’s Interveiw

It’s been a windfall for mobile wallet and payment bank company PayTM since the
government recalled Rs. 1000 and Rs. 500 notes. The government’s push for a cashless
economy has not only helped the company expand its customer base manifold but has
also made it a household name. In an interview to Hindustan Times, the PayTM CEO
Vijay Shekhar Sharma talks about how his company is gearing up to allay customers
concerns over cyber security and other issues.

This interview has been taken from The Hindustan Times, dated 28th December,
2016. The following questions were asked to the CEO Vijay Shekhar Sharma.

Question 1) There is a lot of apprehension about security while using

mobile/online banking? How is PayTM addressing security concerns of
customers?

Answer 1) At PayTM banks, we are making sure no individual is able to get defrauded.
This is not to say that somebody with a bank account can’t be defrauded. I am talking of
bank account of ours. So nobody can on phone call say that I am calling from PayTM
bank and I want your bank account or OTP number because we are removing the concept
of OTP from our banking process. That is the biggest thing that we are doing. There is
only one way to learn about security, which is about the systems to have a blockage of
elements that are leaky. For example if you give consumers any information which they
can share with others by mistake. So, we are removing the concept of shareable tokens.
OTP are shareable token. Also another thing that people do not know is that every bank
account, amount up to Rs. one lakh is insured by RBI and I don’t think people take this
into consideration. We are one of those rarest regulated and controlled countries in the
world where even the regulator has insured your money.
Question 2) While pushing for mobile banking, how do you plan to deal with poor
mobile/internet connectivity issues?

Answer 2) There are two elements to it. One is how the cyber security is going to work
and the other is how customers who do not have phone will be able to use it. One of the
things that we have done is that we have created a toll-free number-based banking and
payment service (1800 1800 1234). And, as we speak, we are getting at least hundreds
and thousands of calls a day there and serving them. This is not yet popular but we
believe that toll-free phone banking is going to be one of the main interfaces in our
banking service and for authentication we will do biometric verification. So one will
need mobile connectivity but data connectivity is not an obligation.

Question 3) You are taking micro ATMs to each and every village. How is it going
to work considering the low internet penetration in rural areas?

Answer 3) We are expecting that every village will have an internet and app connection.
That is a fundamental understanding in this conversation. We are giving them biometric
dongles. Then the app on our platform will allow them to cash in and cash out.
Question 4) You are moving the wallet as part of the bank. What sort of a deposit
base you are looking at?

Answer 4) Right now we are talking about 17 crore customers with PayTM. We have set
Q1 of next year as our timeline. I believe we should have at least 25 to 30 million
customers in the first year for sure. As for the deposit base, in terms of cash account, we
have 25 to 30 million in the first year. In terms of value term, see PayTM bank is totally
addressing a new customer base which has not been looked at by traditional banks.
Traditional banks also have a corporate account, savings account. I don’t think I am yet
going to say this number because we are yet to see what the numbers are going to come.
But right now I can say that PayTM itself has more than Rs 1000 crore in its wallet
account. Right now PayTM gets deposits of anywhere between Rs 122 to Rs 150 crore
every day in its account and on a cumulative basis the residual balance has started
reaching up to Rs 1000 crore.

Question 5) Since November 8, how much has your user base gone up?

Answer 5) We started at 15 crore and we are now 17.2 crore.

 PayTM in India’s Development

The e-commerce, as has been mentioned earlier has seen an outstanding growth in 2014 -
2016. The growth was because of the high rate of technology adoption led by the
increasing use of devices such as smart phones, tablets and notebooks, and access to the
internet. Because of e-commerce companies like PayTM, this sector in India has grown
by a compound annual growth rate (CAGR) of 34% since 2009. That is why, to get the
maximum benefit, public sector firms like "Delhi Jal Board", "South Bihar Power
Distribution, "BSNL", etc, have adopted e-commerce by partnering themselves with
PayTM. A company like PayTM is making India a digital nation with an approach
towards corruption less society. The number of middlemen involved when you buy a
product is reduced as companies like PayTM have a transparent system of knowing the
seller. Government can ensure right taxes on every product. It becomes difficult for one
to evade taxes with all the transaction data available online. The e-commerce sector
comes under the Information Technology sector. The sector has increased its contribution
to India's GDP from 1.2% in 1998 to 7.5% in 2012. According to NASSCOM, the sector
aggregated revenues of US$147 billion in 2015, where export revenue stood at US$99
billion and domestic at US$48 billion, growing by over 13%. Since PayTM is the largest
e-commerce company in India, it makes a significant impact in the Indian economy.
 CHAPTER 6 – CONCLUSION AND SUGGESTIONS

CONLUSION

PayTM incubated by One 97 Communications LTD and owned by Vijay Shekhar

Sharma is an E-Wallet which has taken over the market in the recent years and has
reduced the usage of cash in the economy making the economy cashless and digital.
Starting as only a Mobile recharge company in 2010, it has had a long journey and has
incorporated several new features like the PayTM wallet in 2013.

Having been funded by people like Ratan Tata in the past, and receiving an investment
of $575 from the Alibaba Group showed how much does the market believe in the
application. As May 18, 2017 Softbank invested $1.4 billion in the company, and as
one of the Largest Funding in India's Ecosystem which valued PayTM from $4.8 bn to
$8 bn. It was Softbank's single largest investment in India to date. PayTM had
previously raised $500 million from Alibaba and Ant Financial.

The primary and secondary data collected on PayTM help us to conclude the hypothesis
taken in the beginning.
1. The first hypothesis of increase in usage of PayTM after demonetization can be
proven with the help of primary data collected which shows that people started
using PayTM mostly after demonetization and the secondary data shows that the
number of downloads as well as the revenue of PayTM has increased after
Demonetization.
2. PayTM started introducing a number of services after demonetization so as enable
people to engage in cashless payments. It started registering most of the merchants
under PayTM so that it is easy for customers to pay through PayTM. In 2018, it
introduces UPI, PayTM payments bank, and hence it has launched a number of
services after demonetization proving our second hypothesis to be correct.
3. As can be seen from the primary data, most of the users use only PayTM and don’t
use any other E-wallets and the secondary data tells us that the number of users of
 PayTM is much more than any other E-wallet proving that PayTM is the market
leader in the E-wallet segment and hence proving our third hypothesis to be true.
4. It can be seen from the Primary Data that the introduction of Google Pay has
affected the PayTM users and they prefer Google Pay to PayTM for hassle free
payments. So, introduction of Google Pay has had a certain impact on the business
of PayTM, specially on the service of transfer of money.

All the above data helps us to safely conclude that even though the company did not
have profits in the last few years, they still expanded the most during these years. Post –
Demonetization, the user base increased exceedingly and the amount of money that
people then started keeping in the wallet increased by about 1000% and now that
PayTM has become one of the primary players in the market, to keep up with its new
competitions, the company should keep updating itself and should keep up with its
competition.

Recently, with the launch of Google Pay (formerly Tez), there has been a negative effect
on the business of PayTM. People have started using Google Pay for their day to day
transfer as Google Pay allows hassle free transfers, with every transfer giving an
opportunity to earn cashbacks. Google Pay has also started giving cashbacks if the
customers use Google Pay option to pay at various terminals. The launch of Google Pay
has had a tremendous effect on PayTM and PayTM needs to give good deals to its
customers so as to hold them to continue using PayTM.

The analysis and interpretation of the Primary and the Secondary data successfully proves
our hypothesis to be true.
 SUGGESTIONS

Suggestions for PayTM to make PayTM work better

1- An estimated 264 million people in the country are illiterate and neo-
illiterate, so, designing icons for these uneducated or less educated segments
will promote usage.

2- While e-wallet transactions rose in December 2016 following the currency

squeeze, people have been moving back to using cash for payments for a
variety of reasons, including the purported ease of use. So, PayTM need to
deliver both fast and convenient payments and there should be enough
advertising.

3- Most of the Indian people are in a habit to pay cash. So, marketing and
promotion techniques should be improved in order to create awareness among
non users and to encourage its use among the users.

4- Customer care should give a faster response or support in case of grievances

and complaints.

5- Attractive offers and cashbacks are one of the most important reasons for the
increasing popularity and adoption of e-wallets. So, PayTM should continue
providing these offers and should introduce more coupons and offers.

6- People in India still perceive that e-wallets do not solve anything. They are still
unaware about the benefits of e-wallets. So, it is required to educate the customers
about the benefits of e-wallets in simplifying the payment experience.
Suggestions for the users of PayTM

1- Strong passwords should be kept by the users on phones, tablets, and

other devices before using PayTM. Additional layers of security provided by
these devices should be used.

2- Users should use secure network connections. It’s important to be

connected only to the trusted networks. Public Wi-Fi networks should be
avoided. Wi-Fi connections requiring strong passwords should be used.

3- Users should keep the login credential secure. They should avoid writing
down information used to access the PayTM services such as username,
passwords, [Link] avoid any misuse.

4- Users should create a Unique Password for PayTM. The password should be
hard-to-guess and unique to prevent against the risk of unauthorized access.

5- Users should stay vigilant and be aware of the cell phone’s network
connectivity status and register for Alerts through SMS and emails. The user
should realize that when he/she is not receiving any calls or SMS
notifications for a long time against his/her PayTM uses, then it’s time to
make enquiries with the mobile operator to be sure about not falling victim to
such scams.
 BIBLIOGRAPHY

The information compiled in the book has been taken from the following sources:

 Ara, A. Das, Kishore K. (2015). “Growth of E-Commerce in India”

o International Journal of Core Engineering & Management (IJCEM) Vol 2
o Issue 4, 25−33.

 Ghuman, K. Srivastava, S. (2016). ““Recharging: The Right Way??” A case

study on e-payment giants: Freecharge & PayTM” IOSR Journal of Business
and Management, 87−92.

 UNICORNOMY (2016). PayTM Business Model & Revenue Model

Analysis, retrieved February 2016 from
[Link] business-model/

 “Indian IT-BPO Industry”. NASSCOM. Retrieved 15 December 2012

from [Link]

 Bailay, R. & Chakravarty, C., 2015. PayTM to disburse small loans to

500 million Indians by 2020. The Economics Times.

 BI intelligence, 2016. PayTM wants 5 million digital merchants – Business

[Link] insider.

 Gooptu, B., 2015. PayTM acquires [Link] to strengthen its presence

in online-to-offline space. The economics Times.

 Gupta, H., 2016. Digital payments see robust growth in 2016.

The Financial Express.
 Joshi, A., 2017. PayTM Records 1 Billion Transactions & 147M
Wallet Users in 2016! [Link].

 From a Paper called “Heuristic Analysis of ‘Growth of PayTM’” presented

at Indian Institute of Technology, Kanpur.

 Newspaper articles from The Hindustan Times and The Times of India

 The Economic Times (2018),

"Definition of E-Wallets",
[Link]
definition/e-wallets

 Manpreet Kaur (8th January, 2017), "Demonetization: Impact On

Cashless Payment System", International Conference On Recent Trends In
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[Link]/SGTB/[Link]

 Bob Forer (Feb 22, 2018), "Paytm Success Story | The Revolutionary
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Affecting Consumer' Perception towards E-Payment Systems in India",
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[Link]/[Link]/tcsj/article/view/1150
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"Mobile Wallet: An Upcoming Mode of Business
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 Anushree Bhattacharyya ( June,
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[Link]

 "Total revenue of global mobile payment market 2015-2019

(in billion U.S. dollars),
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 “7 key challenges India’s mobile wallet industry needs to overcome”,

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 Vipin Tyagi (February 22, 2017), “Mobile Wallets Adoption in India and
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wallet-market-share-by-service-india
 ANNEXURE

1) What is your age group?

a) 15 – 25
b) 26 – 35
c) 36 – 45
d) 46 – 55
e) 55+

2) What is your Gender?

a) Male
b) Female
c) Transgender

3) What is your job status?

a) Student
b) Employed
c) Unemployed

4) Do you use PayTM?

a) Yes
b) No

5) If yes, how often?

a) Once a day
b) Once a week
c) Once a month
d) 1 – 3 times a month
e) Less than once a month
6) When did you start using PayTM?
a) Pre-demonetization
b) Post-demonetization
c) I don’t use PayTM

7) Was there any change in your usage of PayTM after Demonetization?

a) It increased
b) It decreased
c) It remained the same

8) For what all services do you use PayTM?

a) PayTM Wallet (To transfer or receive money from other PayTM users)
b) Mobile Recharge
c) Online Shopping
d) Electricity bill payment
e) DTH payment
f) Movie tickets booking
g) Travel tickets booking (Flight or Train)
h) Fees payment
i) Other

9) Which of the following Wallets do you use apart from PayTM?

a) Freecharge
b) Mobikwik
c) Oxigen Wallet
d) Citrus Wallet
e) Google Pay
f) Phonepe
g) Other
10) Do you prefer PayTM in comparison to other E-wallets?
a) Yes
b) No

11) Did your usage of PayTM decline after coming up of Google Pay?
a) Yes
b) No
c) Maybe

12) On a Scale of 1-5, how secure do you think PayTM is? (5 being the highest)
a) 1
b) 2
c) 3
d) 4
e) 5

13) How do you think PayTM can improve its services?