1. Launching a Household Spends
Payment Product In Fampay
A Product Strategy Case Study
Ujwal Pawar
Analytics Associate,
Eversana (D&A - Commercial Analytics)
2. Problem Statement
With the mission to raise a financially aware and independent generation of kids, FamPay
wants instill the fact that the kids are incharge of their own payments and can also help out
others in their family in this.
Devise a product strategy of how should one go about getting kids on FamPay to form a
new habit of taking over household spends.
We can look at the following broad household categories:
● eCommerce transactions (fashion, electronics, etc.)
● More frequent ones like Food ordering and Groceries
● Bill payments (Electricity, Broadband, DTH, Water, Gas, Mobile Recharges, etc.)
● Movie tickets and planning family vacations
INSURJO 2022
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3. Contents
● Objective
● Problem
● User Persona Research
● The Solution
● Metrics/Impact
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4. Objective
● To understand typical spends in Indian households and their distribution among the family
members
● To identify current way of those transactions (online/offline) and pain points around that
● To identify the household transactions which can potentially & comfortably be shifted to teens
● Prioritization of transactions to build product around that; keeping the financial literacy of teens
at the core of it
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6. Existing Product Overview
● Two major products - Numberless Prepaid cards & UPI inside app
○ FamCard - 2x FamCoins Rewards, Customized name
○ FamCardMe - 4x FamCoins Rewards, Customized name & doodle, subscription of top brands
● Features of cards
○ UPI for teens and wallet of their own
○ Easy to use
○ Secure
○ Customizable with name & doodle
○ Tap & Pay
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7. Problem Understanding
● FamPay’s mission is to make teens more financially aware and independent
● Also FamPay wants to instill financial literacy in kids early on.
● Financial literacy consists of Earn, Spend, Save and Invest
● But FamPay, as of yet, mainly touched upon the spend part of it.
● FamPay’s wants to find potential next directions they should venture into based on the payments which can be
comfortably given to children for execution. As part of it we need to understand below set of pointers
○ Typical Indian household expenses and their execution responsibility sharing amongst the family members
○ Typical modes of payment (online/offline) for these various transactions
○ Transactions which can possibly be transferred to children out of all the transactions which currently are done by
parents
○ Ways in which these transactions can be facilitated through FamPay
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8. Slide 08/20 Launching a Household Spends Payment Product in FamPay INSURJO 2022
Towards Financial Literacy
Financial Literacy
Spend
Earn Save Invest
● Keeping the knowledge of spends is very
important
● knowing, predicting & preparing for future
spends is crucial for proper financial planning
● Categorization of spends to analyze (fixed vs
variable etc)
● General spends for teens would be food,
movies, stationary, mobile recharges etc
● They should know what they are spending on
and frequency of those spends
● Then they can try to keep those spends in
control
● Understanding of several ways of earring like
a salary, commission, freelance or payments
through equity
● Difference between variable vs fixed income
● Relationship of earn & spend that spends
needs to lower than earnings so that there is
scope of saving & investing
● Primary fixed income for teens is the pocket
money that they receive from their parents
● Secondary and variable income for them
would be the freelancing work that some
teens might be doing based on their passions
and likings
● Saving is putting excess money aside for
future purposes
● Savings without goals is futile
● Savings can be done for short to mid term
goals such as dream vacation, dream home,
dream bike etc
● After teens have understood their regular
spends & have controlled those to pretty fair
extent, they can work towards saving money
for their bucket list items like dream vacation
or dream bike
● This teaches them early on that its very
essential to save to achieve their goals
● Investing is the way to help your savings
grow and compound over long term
● Concept of investing might be easy to
understand but implementation and
monitoring can be quite daunting
● Investments also should have specific goal,
time horizon, numeric target & risk tolerance
● Tens who are earning by doing the
freelancing might be able to have some extra
money left even after spending and saving.
● This money left can be used by teens to
invest for learning purpose at least
General Meaning ->
Specific Meaning for Teens ->
Solution can be designed around these two sections as majority activity of teens falls into it.
9. User Persona
Research
● User Research
● User Persona
○ Their Habits
○ Biggest Pain Points for the User
● Household spends
10. User Research - Key insights
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● Parents are generally showed concerns about their child’s knowledge of budgeting
○ This is derived from the fact that many parents expressed that their kids ask money again & again throughout the
month and don’t properly manage their regular expenses with respect to their pocket money
● Also many parents complained that their kids try to complete their bucket list items by asking for more money rather
than saving from their pocket moneys of previous months and using that
● On the other hand, many teens also expressed their guilty feelings while asking for more money
● Also kids mentioned that they are not able complete their simple bucket list items and unable to enjoy with friends
● Parents expect their child to take some small responsibility of doing recurring payments such as electricity bills, gas
bills, mobile recharges etc (Obviously by taking the money from parents only)
Insights presented above are extracted from various interviews conducted with teens and their parents
11. User Persona
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Behaviour & Habits:
● Raj get pocket money from parents on monthly
basis
● He uses this money for his small expenses like
stationary, party, petrol etc
● Whenever his pocket money is over, he again
asks it from parents
Pain Points:
● He has to to depend on his parents for money
whenever his pocket money gets over
● He don’t have any idea about how to manage
his expenses and do some savings for his
passion & bucket list
● He wants to help his parents by taking entire
responsibility of bill payments like gas,
electricity, DTC, mobile recharges etc.
Behaviour & Habits:
● Deepak takes care of all big expenses of house
and Raj’s pocket money & other needs
● Nita takes care of some small expenses like
vegetables, milk etc
● Deepak & Nita give pocket money to Raj on
monthly basis
● But he spend all the pocket money in 15-20
days itself and asks for more
Pain Points:
● Deepak has to spend a lot of time on doing
payment and taking care of expenses
● Sometimes they need to give money to Raj
multiple times in month
● Deepak & Nita are afraid that their child might
not learn budgeting & saving and other financial
aspects if this things go on.
Raj, 16(M), is a student of 11th Std, works on
his passion of video editing & game design
Deepak & Nita, parents of Raj, work in IT
sector and fairly modern thinkers
12. Household Spends
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Big ticket and less frequent Recurring, small ticket & medium frequent Recurring, small ticket & highly frequent
General Spends
● Big grocery
● Fuel/transportations & Vacations
● Rent
● Electronics
● Small grocery & Vegetables
● Internet/wifi bills, DTH, Gas, electricity bill
● Clothes shopping
● Other daily or fixed type of spends
● Fast food
● Movies with friends/family
● Cab booking
● Phone recharges
Who typically executes these spends? Dad Mom Kid
Reasons behind this execution ownership
A lot of financial forecasting and family goals are
involved and hence this remains with parents
Little less variability and moms are generally
closer to these spends
Kids are well versed with these things hence
these things are taken care by them
Can these possibly and comfortably be
shifted to kids in family for execution? Why?
Partially!
Because big ticket spends related decisions &
execution will majorly remain with parents except
electronic gadgets where selection decision &
execution is or will be shifted to kids due to their
better tech savvy nature but how much to spend
that decision will still remain with parents.
Yes!
These are fixed type of spends and parents will
love to pass onto their kids. Because no risk of
variability is involved and kid will be able to take
some responsibility from parents shoulders. This
will help parents in terms of lesser workload and
also kids to learn finance practically.
Already Kids do this!
13. The Solution
● How did you ensure that you have taken a well rounded approach to the problem
● Solution Ideas & Prioritization
● Solution Overview
● Spends facilitation
● Savings Feature
● Investing knowledge
14. Solution Ideas & Prioritization
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❖ Spends - The spends which are transferable to kids needs to be facilitated through the app
➢ Priority 1 : Phone Recharges, DTH, Gas & Electricity bills needs to be prioritized due to their recurring nature and
can create a fixed source of income for FamPay
➢ Priority 2 : Trending & top deals page for Electronics like phone,laptops etc as these transactions are high margin
ones
➢ Priority 3 : Top deals and Trending page for Movie booking and Fast foods to keeps teens engaged since this is
very close to them
❖ Save - This is to keep parents wish fulfilled of making their kid financially aware which is incomplete without saving.
If a long term engagement is needed we need parents to be engaged and confident.
➢ Goal oriented savings (with Gamification) can be introduced with tracking by parents
➢ Tips and tricks to help teens save
❖ Invest - Same purpose as save but can be thought of as groundwork as for future product launches around invest.
➢ This can be more towards the educational blogs & videos around investment and can be quizzes to test.
➢ Parents can be involved to keep gifts for completing quizzes
15. Solution Overview
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❖ Spends Facilitation
➢ Fixed & recurring spends facilitation through various tabs on homepage
➢ High margin & low frequency spends facilitation through deals, trending, comparison content page tab on
homepage
➢ Movie booking & fast food facilitation through deals, trending, content page tab on homepage via partners like
BookMyShow & Swiggy/Zomato and monetization by using traffic diversion to their apps & Ad Revenue on content
❖ Savings Feature
➢ Savings being the essential part of financial literacy we need to have a feature for savings
➢ Goals categories can be given as options to user to start with such as dream vacation with friends, next gadget,
next party, etc
➢ This can be incentivized by paying interest in FamCoins and can be treated as FD/RD.
➢ Gamification of progress and digital piggy bank look would help motivate users
➢ Shared piggy banks for group of friends with common goals (e.g. Next Road Trip) to bring the social factor
❖ Investing Knowledge - Educational blogs & videos around investment and gifts from parents for completing quizzes
16. Spends facilitation
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● Fixed and recurring spends
○ Spends like Phone Recharges, Broadband, DTH, Gas & Electricity bills etc can be facilitate through different tabs on
homepage and different flows for each transactions. Prioritization of transactions based on implementation effort
and potential total margin during particular time frame of interest needs to be done
○ Incentivization for initial payments to get the info such as phone numbers, DTH, electricity meter numbers and get
user to start using the features
○ Notifications for further bill payments is very important step for recurring payments
● High margin & low frequency
○ Spends like phones, laptop, headphones and other gadgets are low frequency but high margin ones which can be
driven by content influence and comparison features which teens really love.
○ InApp content of these type of spends with affiliate links to product on different eCommerce platforms.
○ Users can be allowed to create review & blog after using the poduct which can be used as featured blogs
● Movie booking & fast food
○ Movie reviews and food bloggers content can be used for this page and affiliate links for monetization
○ Users can be allowed to create review & blog after using the poduct which can be used as featured blogs
17. Savings feature
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● Savings being the essential part of financial literacy we need to have a feature for savings to really move towards the
mission statement of complete financial literacy and to attract parents to get their kids to app more often
● Piggy bank type product can be created for this and goals categories can be given as options to user while creating
piggy banks such as dream vacation with friends, next gadget, next party, etc with specified time frame
● This can be treated as FD/RD and interest can be paid in FamCoins so that user stays on the app to further use this
savings.
● Gamification by using progress bar & streaks would help motivate users. Streaks means consistently saving for x
number of days without any break.
● Shared piggy banks for group of friends with common goals (e.g. Next Road Trip) to bring the social factor
18. Investing knowledge
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● Investing being the next step for savings and an essential part of financial literacy we need to at least start giving
some content to consume to make them aware that there is something called as investing & personal finance.
● Parents will be happy that their kid is learning about personal finance & investing so early in life.
● Parents can be engaged to keep gifts for their kids to get them to complete the quizzes after they consume some
content
● This will engage both parent & kids. But mainly for parents to feel confident that their kid is learning as well.
● Content can be used from youtube or various blogs
20. ● Secondary Metrics
○ # Active users (transacting)
○ Avg # Transactions
○ Avg spend ticket size
○ # Total active users (transacting + non transacting)
○ Time spent consuming content
● Impact measurement of features [For Early signs of impact & long term impact]
○ The spends facilitation will increase avg # transactions as early sign; as existing users will start using
new features to pay bill such as electricity, gas etc. This eventually will increase # active users (transacting).
○ Savings feature will first drive stickiness & engagement due to recurring saving on daily basis. Once
savings goal is complete they will spend on App and increase first avg spend ticket size (as most of
the saving goals will be for big ticket spends) and later # active users with transaction
○ Investing knowledge building will immensely help in making the app stand out to parents & gain
their trust and will ease out process of future launch of any investment product. But even in mid term
it will help build the user engagement. First impact indicator for this will be increase in the time
spent consuming the content
INSURJO 2022
Launching a Household Spends Payment Product in FamPay
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KPI - #Total money spend