Indian digital payment company Paytm- its journey , shareholding, competitors and strategies.

1. INTRODUCTION
Founded 2010
Founders Vijay Shekhar Sharma
Parent One97 Communications
Headquarters Noida, Uttar Pradesh, India
Industry Mobile payments and E-commerce
Revenue ₹3,314 crore(FY 2018)

2. Journey Map
2010
Paytm was
founded in
August 2010
2012-13
Adopts IMPS as
a new payment
method
Crosses 30,000
orders a day.
Launched the
Paytm Wallet
Launched into E-
commerce with
online deals and
bus ticketing
2014-15
Added options for
payment of
education fees,
metro recharges,
electricity, gas, and
water bill payments
IRCTC adds Paytm
as a mode of
payment
2015-16
Paytm launched
movies, events
and amusement
parks ticketing as
well as flight ticket
bookings and
Paytm QR
2016-17
Launched rail
bookings and
gift card.
2013-14
2011-12
Launch of Bills
and ticketing
vertical
2017-18
10 crore app
downloads
Launched
Paytm Gold
Paytm
Payments Bank

3. Share Holding Pattern
Source- https://m.economictimes.com/

4. Value Proposition
● PayTM Wallet enables easy and fast payment and Transfer.
● E-commerce based on trust and credibility of payment.
● PayTM offers bundle services on a single platform.

5. Service Marketing Mix (7 P’s)
Product Mix
● Paytm offers online payment system
and e-commerce medium.
● It offers products and services like
paytm mall, payments bank, mobile
payment, digital wallet, online
shopping ,etc.
● Paytm can be accessed on
smartphones as well as computers.
● QR code scanning helps in faster
transactions.
Price Mix
● Paytm is a medium through which
customers can make payments.
● Paytm wallet is free for the customers
to use. (Except transaction fee on
transfer from wallet to bank)
● It also offers great discounts and
cashbacks .
● Paytm earns its revenue from
commissions on transactions, interest
on wallet balance and advertising.

6. Place mix
● Users can access Paytm through a
smartphone or laptop that has internet
connectivity like any other app or
website.
● Paytm is widely accepted as a mode of
payment across various industries,
sectors and geographies.
● Almost all the restaurants,
supermarkets and hotels accept paytm
as a mode of payment.
● These show the extensive reach of the
service, which is widely accepted by
vendors and customers alike
Promotion mix
● Paytm was able to scale up its
business quickly after demonetization.
● Ad campaigns have been showcased
through TV commercials, online
Banners, billboards, Print media like
newspapers, magazine, etc.
● The catchy phrase, ‘Paytm karo’ has
also helped them to become a
household name.
● They also rely heavily on word-of-
mouth publicity.

7. People
● Paytm gives utmost
importance to its people
(customers, employees
and suppliers)
Process
● Main objective- ‘to initiate
hassle free transactions
with user friendly
interface’
● Person is required to
load money into wallet or
use debit credit/ credit
card to make
transactions.
Physical Evidence
● Presence, awareness
and acceptability among
merchant and consumers
are a solid proof of their
physical evidence which
can be seen through
placards on shops that
say-’ paytm accepted’.

8. STP
SEGMENTATION
PayTM has done very broad segmentation by grouping people, who have internet
access into one segment. There are other parameters for segmentation based on:
Demographics- Age
Geographic- Tier 1, 2,3 cities
Psychographic- Lifestyle
Behavioral- Knowledge

9. TARGETING
PayTM has reached large number of internet users via customised email based on historical
data,social media,online advertisements,mobile apps and word of mouth.
POSITIONING
PayTM has pioneered the e-commerce market by successfully establishing
Point-of-difference :
● large market penetration
● first move advantage
Point-of-parity :
● convenience
● technology.

10. Competitors
DIRECT COMPETITORS
(payments)

11. Major advantages of Paytm over its
rivals
1. Ease of Onboarding Merchants
2. Viral Distribution
3. Feet On Street Approach
4. Frictionless Payments

12. Competitive Advantage
https://www.moneycontrol.com/new
s
(All figures in %)

13. Revenue Model
1. Commissions Revenue Model
2. Subscription Revenue Model
3. Advertising revenue model
4. Transaction Fee Revenue Model
5. Interest on investment of customers
wallet Balance

14. SWOT ANALYSIS
Strengths
● First mover
advantage
● Bundled services
● Credible and Simple
● Cashbacks & Offers
● Convenience options
● Large User Base(35
crore as of June
5,2019)
● Growing Merchant
Tie-ups(1.2 crore)
Weakness
● Unable to handle
traffic when new
offers are launched
● Transaction failures
Opportunity
● Growing Internet
penetration
● Growing smartphone
users
● Changing family
dynamics ( shift to
online shopping)
● Govt emphasis to
promote Cashless
Economy
Threats
● Competitors
● Data Security &
Privacy
Source:UserBase-https://www.livemint.com

15. Critique
1. Paytm has been criticised on the grounds that its customer
support is not good.
2. It has faced many transactional issues, where people have
lost money.
3. It was also criticised at time of demonetization when it used
Prime Minister Modi as the face of their brand.
4. In an audit it was found that some of the sellers were
colluding with employees to earn cashback offers.

16. Future Plans
1. Paytm’s newly launched wholesale business is expected to generate 15% of the Paytm Mall’s
business.
2. Paytm is going to invest another 5000 crore rupees in business in next 3 years.
3. The company is also aiming to double the number of quarterly transactions from 100 crore per
quarter earlier this year to 200 crore per quarter by end of the year.
4. The company intends to invest more money in financial services this year as customer lifecycle
is getting to the next level of maturity.
5. The target of the paytm is to capture 50 crore users.

17. Thank you