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  1. 1. 1 A PROJECT REPORT ON Submitted in partial fulfilment of the requirements for the award of degree of Master of Business Administration (M.B.A) (To Guru Gobind Singh Indraprastha University, Delhi ) SUBMITTED TO: SUBMITTED BY: Dr. SUSHIL CHABRA SHWETU KUMAR DEAN (M.B.A) VIJAY YADAV PERIYAR MANAGEMENT ATIQU-UR-RAHMAN AND COMPUTER COLLEGE ADITI BANSAL FARUKH MBA-2ND SEMESTER 2014 – 16
  2. 2. 2 DECLARATION We, SWHETU KUMAR, VIJAY YADAV, ATIQU, ADITI BANSAL and FARUKH bonafide students of PERIYAR MANAGEMENT AND COMPUTER COLLEGE , JASOLA(GURU GOBIND SINGH INDRAPRASTHA UNIVERSIY). I hereby declare that the research title over “PAYTM”, has been done by the undersigned with full devotion for partial fulfilment of degree of M.B.A. We also declare that the facts mentioned are true to date and best of my knowledge; any discrepancies have been avoided for the same. SHWETU KUMAR VIJAY YADAV ATIQU-UR-RAHMAN ADITI BANSAL FARUK
  3. 3. 3 AACCKKNNOOWWLLEEDDGGEEMMEENNTT Behind every study there stands a myriad of people whose help and contribution make it successful. Since sucha list will be prohibitively long, We may be excusedfor important omissions. We would like to express my heart-felt gratitude to our dean respected DR.SUSHIL CHABRA , for his invaluable guidance and encouragement. We would also like to record our sincere gratitude to all those who have helped us directly or indirectly in the fulfillment of this study. SHWETU KUMAR VIJAY YADAV ATIQU-UR-RAHMAN ADITI BANSAL FARUK
  4. 4. 4 TABLE OF CONTENTS Chapter-1 pageno# INTRODUCTION....................................................................6 1.1 About Paytm……………………………………………..……6 1.2 Achievements……………………………………………….....8 1.3 Technical Architecture Of Paytm……………………….…..9 Chapter-2 WORKING AND TECHNOLOGIES OF PAYTM.............10 2.1 Supply Chain Management Of Paytm………………………10 2.2 Web Technologies Of Paytm……………………………….…11 2.3 Web Based Tool Of Paytm…………………………………....13 Chapter- 3 REVENUE MODEL OF PAYTM………………..................15 3.1 Registration Process For Merchants In Paytm.…………….17 3.2 Overview: How Merchants Sell Their Product ..…………….19 3.3 Subscription Charges From The Merchants………………....20 3.4 Revenue Model Adopted By Paytm……………………..…….22 3.5 Why People Attract Towards Paytm………………………….26
  5. 5. 5 Chapter- 4 E-COMMERCE SECURITY AND PAYTTM.....................30 4.1 What is E-Commerce Security………………...……………..30 4.2 E-Commerce Threats…………………………………………..31 4.3 Procedure That Recognizes, Reduces, Eliminates Threat…..34 4.4 Security Infrastructure…..…………………………………….35 4.5 Porter’s Five Forces……………………………………………43 4.6 Security, Awareness, Policies………………………………….46 4.7 Techniques Used For Security………………………………..48 Chapter- 5 ELECTRONIC PAYMENT SYSTEM…………………......50 5.1 How To Do Recharge On Paytm……………...………….…..53 Chapter- 6 BIBLIOGRAPHY....................................................................57
  6. 6. 6 CHAPTER-1 INTRODUCTION 1.1 ABOUT PAYTM: Paytm means “Pay through Mobile”. It is one of the largest is one of the fastest growing Indian e-commerce shopping websites launched in 2010. The name of the company who launched the Paytm is One97 communication. Initially it is focused on Mobile and DTH recharging. The Company headquartered in Noida, India. It gradually provided recharging and bill payment of various portals including electricity bills, gas bills as well as telephone bills. In 2014 Paytm has started the business same like as the facilities are getting from the other E- Commerce company such as Flipkart, Amazon, and Snapdeal. Today, it is India's most popular online destination for prepaid mobile & DTH recharges and shopping, and its Android and iOS apps have been ranked among the most popular apps. In only 3 years since the founding, the company created a user base of 25 million wallet users and 10 million app downloads. SERVICE: In 2014, the company launched Paytm Wallet, India's largest mobile payment service platform with over 40 million wallets. The service became the preferred mode of payment across leading consumer internet companies such as Uber, Bookmyshow, Makemytrip. FUNDING: Paytm got a major boost in e-commerce when Indian industrialist RatanTata made personal investment in the firm in March 2015.In the same month, the company received a $575 million investment from Chinese e-commerce company AlibabaGroup, after Ant Financial Services Group, an Alibaba Group affiliate, took 25% stake in One97 as part of a strategic agreement. PARTNER: Paytm works with all mobile operators in all states in India for prepaid mobile, DTH and Data card recharges and postpaid mobile, landline and Data card bill payments. Its partners with the multiple national banks, for credit card, debit card and net banking payments. Pay tm also works with various billers for utility bill payments.
  7. 7. 7 Paytm– #1 RechargeDestination Rechargeswereneverso simple! Excitingcoupons Over300,000 transactions daily Over100,000 offers powereddaily Fig 1#: Screen shot introduction to paytm
  8. 8. 8 1.2 ACHIVEMENTS: 2014 – Paytm is Gold Winner at the MMA Smarties in the Mobile App category. 2014 – Paytm is Silver Winner at the MMA Smarties in the mCommerce category 2014 – Paytm wins the Best Mobile Money product at the 4th India Digital Awards. 2013 – Paytm wins Knowledge Faber Best Mobile Wallet Program Award. 2013 – Paytm wins a special mention in m Billionth Awards in mCommerce/mBusiness category. 2013 – Paytm is Gold Winner at the MMA Smarties for E- Commerce. 2012 – Paytm is recognized as the Most Innovative Startup of the Year at the Entrepreneur India event organized by Franchise India.
  9. 9. 9 1.3 TECHNICAL ARCHITECTURE OF PAYTM: Figure 2#: A high-level architecture for electronic commerce. There are three components to this architecture: the Internet, a firewall, and your organization. The Internet is where you will interact electronically with your customers, your firewall will provide you with reasonable protection against people who wish you harm, and your organization’s systems will process the business transactions generated on the WWW by your customers.
  10. 10. 10 CHAPTER-2 WORKING AND TECHNOLOGIES OF PAYTM 2.1 SUPPLY CHAIN MANAGEMENT OF PAYTM: It is the management of flow of goods and services to the customer. Supply chain management has been defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. Fig 3#: SCM of paytm
  11. 11. 11 2.2 WEB TECHONOLOGY OF PAYTM: SERVER SIDE PROGRAMMING LANGUAGE  JAVASCRIPT CLIENT SIDE PROGRAMMING LANGUAGE  JAVASCRIPT MARKUP LANGUAGE  HTML CHARACTER ENCODING  UTF-8: UTF-8 (8-bit Unicode Transformation Format) is a variable-length character encoding for Unicode, which is backwards compatible with ASCII. EXTERNAL CSS  External Cascading Style Sheets define style rules in a separate CSS file. EMBEDDED CSS  Embedded Cascading Style Sheets define a set of style rules in a <style> element within a web page. INLINE CSS  Inline Cascading Style Sheets define style rules directly within an (X)HTML element using the style attribute. SESSION COOKIES  Session cookies are temporary cookies, which are deleted when the user closes the browser. EXTERNAL CSS  External Cascading Style Sheets define style rules in a separate CSS file. EMBEDDED CSS  Embedded Cascading Style Sheets define a set of style rules in a <style> element within a web page.
  12. 12. 12 INLINE CSS  Inline Cascading Style Sheets define style rules directly within an (X)HTML element using the style attribute. SESSION COOKIES  Session cookies are temporary cookies, which are deleted when the user closes the browser HTTPONLY COOKIES  Http Only cookies are used only in the HTTP protocol and not in client side scripts, which may increase security. NON-HTTPONLY COOKIES  Non-Http Only cookies are used in the HTTP protocol and also in client side scripts, which may be a security threat. SECURE COOKIES  Secure cookies are used only via an encrypted connections, which may increase security. HTTP STIRCT TRANSPORT SECURTIY  HTTP Strict Transport Security (HSTS) defines a mechanism enabling web sites to declare themselves SSL CERTIFICATE AUTHORITY  GeoTrust is a SSL certificate authority owned by Symantec. This includes SSL certificates issues by the certification branch of Equifax, which was acquired by GeoTrust. WEB SERVER  NGINX - Nginx (pronounced as "engine X") is a lightweight open source web server.  NODE.JS - Node.js is a server-side JavaScript environment for writing network programs such as web servers. TOP LEVEL DOMAIN  .COM - Commercial entities
  13. 13. 13 2.3 WEB BASED TOOLS OF PAYTM The basic requirement for a merchant to have a Web presence or have an electronic commerce site, is  a connection to the Internet, and  a Web server in the company network. The two main ingredients in a Web server are its hardware and software. 2.3.1 WEB SERVER HARDWARE: A merchant should think carefully when making a decision on the Web server computer. The decision depends on factors such as: Operating system of the network. UNIX operating system is found to be more rugged than that of Windows, but UNIX is more complex to manage than Windows. Hardware requirement of the Web server software. A PC with a midrange CPU, small hard drive, and 32 megabytes of memory will perform poorly when compared with a high-end workstation or a powerful UNIX-based computer. Expected traffic or the number of transaction per unit time. Running a large, enterprise- class application server (such as an ERP system) on a personal computer is not feasible. Other software running on the same computer. For example, running a Web server and a database server can significantly slow down the performance of a computer. Scalability of the hardware -- meaning upgrade of components such memory, disk space, disk mirroring, or even connect additional Web servers if necessary.
  14. 14. 14 2.3.2 Benchmarking Web Server Hardware and Software: A benchmark test considers several factors such as:  The computer hardware  The Web server software  Network connection: A Web server on a T3 connection can deliver Web pages to clients much faster than it could on a T1 connection.  Throughput: It is the number of HTTP requests that a particular hardware and software combination can process in a unit of time.  Response Time: It is the amount of time that a server requires to process one request.  Type of Web page: A server that delivers mostly static Web pages will perform better than the same server that delivers dynamic Web pages. A dynamic page is a Web page whose content is shaped by a program in response to user request (such as a database query), versus a static page, which is just a plain HTML page. 2.3.3 Web Server Software Feature Sets All Web server software provides some basic features which can be classified as: Core capabilities Site management Application Construction, and Electronic commerce CORE CAPABILITIES: IP-Sharing or Virtual Server Logical file Security FTP Site Analysis Searching
  15. 15. 15 SITE MANAGEMENT:  A Web server provides tools to manage multiple Web sites, file security, virtual file, and log file analysis.  Administration of a Web server can be performed from a remote computer in the network. APPLICATION DEVELOPMENT: Application development includes Web editors and extensions to produce Web pages – either static or dynamic. These include HTML editors such as FrontPage for static Web pages. For dynamic Web pages, there are protocols such as Common Gateway Interface (CGI) and Application programming Interface (API) that are used by programs such as Java and C++ to develop dynamic Web pages. ELECTRONIC COMMERCE: Some Web servers provide advanced services that support online selling and buying (such as shopping cart and catalog services). An electronic commerce software can provide templates and other tools to quickly develop an e-commerce site. This might include templates for product browsing, shopping carts, and credit card processing.
  16. 16. 16 CHAPTER-3 REVENUE MODEL OF PAYTM Paytm earn their revenue through the market place model. They work on market place model and they belive in the market place model for their revenue, they give to opportunity to vendors to sell or listed their products on paytm webside, so the buyer are comes and buy the products. In this activity paytm charge commission from the seller so this is a some part how they generate their revenue. They do also some more activity to generate their revenue. Paytm knows that Revenue model is framework of is a description How a business generate income, profit,or an average earning in a business.and they fully concentration their revenue model. That’s belive also purely marketing strategy, they get earnings from sponsored advertisers, showing ads, they give coupons (from sponsors), so inorder to gain some popularity and to bare the competition they are giving the cashback. So they attract more visitors as well as get more sponsors, ultimately making them profitable. its a most profitable strategy of paytm.
  17. 17. 17 Fig#4 : Screen shot of paytm market place : they give the opportunity to sell their product on paytm web site. 3.1 Registration Process For Merchants In Paytm Website: Paytm provide market place for merchants .this is a registration process for merchants to register themselves in paytm website. They provide simple registration for merchants to sign up in the site, the mandatory fill up are show red star(*) they must fill up by merchants. The form process is very simple you fill up are some neccerary things like: name ,email-id, mobile number, city ,business name, category(business), business address. And all completion you press the submit botton and after you can business in the paytm website . this a activity of paytm to earn their revenue through the merchants,
  18. 18. 18 Fig 5# After completion this process paytm offer to merchants choosethe subscription plan this is the way paytm earn the revenue from the merchants.through the subscription model. This is the part of subscription model of paytm.
  19. 19. 19 3.2 Overview: How Merchants Sell Their Products Through Paytm Site: This screenshot shows the seller name , product description that is filled by the seller, product images, and the price of the product that all this filled are set by the seller.if the buyer buy this product from the site so seller paid commission to paytm on every sell. Fig 6# : This is the activity the paytm earn revenue from the seller as a commission when seller products are sold in this site. This is the best strategy for paytm to earn their revenue part.
  20. 20. 20 3.3 The Subscription Charges From The Merchants: This is the annually subscription plan they charge by paytm fron their seller, they divided their subscription charges into four category:- Silver plan Gold plan Platinum plan Budget (zero setup plan) This plan have own their benefits ,highest plan is platinum plan give more benefits to seller to sell their product in site. In other hand silver plan give less benefits as comparative to platinum or gold plan. This all the plan are charge by the seller one time in the annually Fig 7#
  21. 21. 21 The paytm charge also additional charges through the sellerlike: annual maintenance charge (AMD) that is 2500 annually, and 12.38% charges if its applicable. It’s a part of paytm subscription model to generate their revenue. In this strategy paytm give the more opportunity(plan) to its merchant and give the diffrent benefits to the seller . 3.3.1 Top Merchants They Use Paytm Wallet: This all are merchants with paytm wallet, this merchants are contribute revenue for paytm to provide paytm wallet facility to buyer. This is also the way the paytm earn the revenue from the buyers. All this are big e-business site they are done huze transeaction daily. This merchants avail the facility paytm wallet which is provided by paytm. The famous merchants in the paytm are: dominos,, book my show, ebay, uber, and haldiram. Fig 8#
  22. 22. 22 3.4 REVENUE MODEL ADOPTED BY PAYTM: They are some models they are adopted by the paytm to generate their revenue thae model are shown below: Fig 9#
  23. 23. 23 3.4.1 ADVERTISING REVENUE MODEL: In this model paytym allow to merchants shows their advertisement on paytm websites and charges some amount for this advertisement.this is the way the paytm used to generate their revenue. This method for generate revenue are covered under the advertising revenue model. This model is more beneficial for paytm to generate their revenue.the charges are charger by them they advertised their product on paytm site. The yippee noodles show their advertisment on the paytm site and thet paid some money to paytm . this is a way paytm generate the revenue from the advertisment revenue model. Fig 10# : It’s a screen shot shows how yippee noodles show their advertisment on paytm site
  24. 24. 24 3.4.2 SUBSCRIPTION REVENUE MODEL: Paytm also use the subscription model. They charge the subscription amount from the seller annually and generate their revenue. they categorized their subscription into four categories all are mention and discuss early in this project. They charge annually maintenance charges also as a commission that is RS 2500. This whole process is comes under the subscription model of paytm through them they generate their revenue. The subscription model is most beneficial for paytm because all the seller who are register themselves into paytm all are paid subscription charges to run their business in paytm site. Basically the paytm adopt the paid circulation subscription revenue model to generate the revenue in their business.this is the most beneficial model as comparative to others model to generate the revenue. 3.4.3 TRANSACTION REVENUE MODEL: paytm also charge their revenue through the buyer as well as seller transactions. Through this model paytm charge some amount from buyer and seller when they transact in the paytm site and avail the paytm facility. This screen shot shows that what charges paytm charges when the buyer are transact through paytm wallet.
  25. 25. 25 If you loading your money into the wallet, paytm charges nothing amount in this transeaction, If you purchase any product at merchant site the paytm also charge nothingin this transeaction. If you transfer the money into one wallet to other person wallet, on this transaction paytm also not charge any amount. but if you transfer the money from paytm wallet to bank paytm charge 4% of the amount that you are transfer into bank . this is the transeaction revenue model of paytm . 3.4.4 ADVANCE PAYMENT REVENUE MODEL: In this model paytm received the interest on the payment of customer until they are not transfer the money into seller account. When the paytm received amount from the customer they are not instantly transfer on seller account. They hold the amount and gain the interest on this amount. Through this process paytm generate their revenue from the advance payment revenue model. This model is very beneficial for paytm to generate the revenue this all process is also called escrow account process. 3.4.5 COMMISION REVENUE MODEL: IN this model paytm charge commission from the seller for their listed product in paytm websites. And they charge commission on every sale on the site of paytm from the seller. This commission is totally based on the sell of the product if buyer buy the product from the paytm site so paytm charge the commission from the seller for each sell in their website. Through this process paytm generate their revenue. The commission based model are also beneficial for generate the revenue .the commison based model are also trend in ever e-business site, paytm also adopt this revenue model to generate their revenue.
  26. 26. 26 3.4.6 They Are Some Other Activity The Paytm Earn The Revenue: • Paytm escrow:through escrow account paytm received intrest,when buyer payment to their purchase that amount hold by paytm untill customer not confirm it.if customer not confirm in next 7 days paytm expect buyer satisfied with the product and they transfer the money seller account. • Paytm earn by advertising other products on websites. • Patym charges annual subscription fees to the sellers who list their products on website • Introducing Paytm Wallet, a secure digital wallet where you can store money and use it to make quick recharges, pay bills, do shopping on Paytm. You can also send money to friends & pay for various services like Uber, MakeMyTrip, BookMyShow & many more. 3.5 WHY PEOPLE ATTRACT TOWARD PAYTM: Easy Accessible: The paytm side easy to accessible they are much easy as compare to other site people are like them for their easy accessible specialty .paytm also available on the mobile, tablets, laptops , and for paytm the high speed data connection is not required .it is easily work on mobile without any problem. Chat Facility: Paytm provide chat facility to their buyer so they can bargain the product price from the seller..through very easy steps they can avail the facilty of paytam chat facility. This screen shot define how a customer bargain to the seller:
  27. 27. 27 Fig 11# Mobile Friendly: paytm service is also available in mobile so you can easily download and use this application in your mobile anywhere. On other hand we can say that it’s a mobile friendly application. They are available on many store: Fig 12#
  28. 28. 28 Safe And Secure Payment: paytm uses many trusted software for their security purpose they used many security application they provided best security when any transaction are done, they uses 256 bit of encryption for their security purpose. Fig 13# This are the application/ software paytm use for their security purpose RBI Approved Digital Wallet: Their digital wallet are approver by the reserve bank of India(RBI). So people are trusted on their paytm wallet service. That means They follow all the rules and regulation they are required to work e-wallet. They provide 45+ banks for net banking.(one of the largest Payment Gateways in India.) You canalso Rs 1 lakh plus money transfer (follow the KYC(know your customer ) rule and regulation) otherwise its RS 10000 .
  29. 29. 29 Seller Opportunity In Paytm: SELLER OPPORTUNITY IN PAYTM Fig 14# : A consumer can also sell or do business with the help of paytm Partner With Paytm: Fig 15#
  30. 30. 30 CHAPTER-4 E-COMMERCE SECURITY & PAYTM 4.1 WHAT IS E-COMMERCE SECURITY: Computer security refers to the technological and managerial procedures applied to computer systems to ensure the availability, integrity, and confidentiality of information managed by the computer system against unauthorised access,modification, or destruction. It deals with the transmission of data in a secured environment to the people sitting thousand miles away from each other. Intruders penetrate into the computer using different ways; they make use of malicious programs to cause destruction and breach privacy. Security experts make use of firewall and cryptography techniques to prevent suspicious data from reaching to the host computer and use algorithms to encrypt the data while sending it across the network. Computer security refers to the protection given to computers and the information contained in them from unauthorised access. It involves the measures and controls that ensure confidentiality, integrity, and availability of the information, processed and stored by a computer. These three aspects are responsible for effective computer security. With an increasing amount of people getting connected to networks, the security threats that cause massive harm are increasing also. Network security is a major part of a network that needs to be maintained because information is being passed between computers etc and is very vulnerable to attack. Over the past five years people that manage network security have seen a massive increase of hackers and criminals creating malicious threats that have been pumped into networks across the world E-commerce security is the protection of e-commerce assets from unauthorized access, use,alteration, or destruction of data. More than $388 billion globally per year attributed to cyber crime and a large portion of that is related to e-commerce. 4.1.1 Six Dimensions Of E-Commerce Security : Integrity: prevention against unauthorized data modification Nonrepudiation: prevention against any one party from reneging on an agreement after the fact Authenticity: authentication of data source
  31. 31. 31 Confidentiality: protection against unauthorized data disclosure Privacy: provision of data control and disclosure Availability: prevention against data delays or removal 4.2 E-COMMERCE THREATS: Intellectual Property Threats: These are those use existing materials found on the Internet without the owner's permission, e.g., music downloading, domain name (cyber squatting), software pirating. Client Computer Threats:  Trojan horse : Appears benign, but does something other than expected.  Bots: Covertly installed on computer; respond to external commands sent by attacker to create a network of compromised computers for sending spam, generating a DDoS attack, and stealing info from computers.  Viruses : Replicate and spread to other files; most deliver “payload” (destructive or benign) Macro viruses, file-infecting viruses, script viruses.  Worms: Designed to spread from computer to computer Can replicate without being executed by a user or program like virus. 4.2.1 Unwanted Programmes Installed Without User’s Informed: Browserparasites : Can monitor and change settings of a user’s browser Adware : Calls for unwanted pop-up ads Spyware : Can be used to obtain information, such as a user’s keystrokes, e-mail, IMs, etc.
  32. 32. 32 Communication Channel Threats:  Sniffer Program: Eavesdropping program that monitors information traveling over a network.  Phishing : Deceptive online attempt to obtain confidential information  E-Mail Scams: Spoofing Legitimate Web Sites: Misrepresenting oneself by using fake e-mail addresses or masquerading as someone else Spoofing a Web site is called “pharming,” redirecting a Web link to another IP address different from the real one Threatens integrity (steal business from true site, or alter orders and send to true site), and authenticity (difficult to distinguish between true and fake Web address) Carried out by hacking local DNS servers. Denial-of-service (DOS) Attack : Hackers flood Web site with useless traffic to inundate and overwhelm network. Use of bot networks built from hundreds of compromised workstations. Distributed Denial Of Service (Ddos) Attack : Hackers use multiple computers to attack target network from numerous launch points Microsoft and Yahoo have experienced such attacks. Fig 16#
  33. 33. 33 Server Threats: Hacking : Hackers are those Individual who intends to gain unauthorized access to computer systems. Where as Crackers are those Hacker with criminal intent. Types of hackers:  White hats – hired by corporate to find weaknesses in the firm’s computer system  Black hats – hackers with intention of causing harm  Grey hats – hackers breaking in and revealing systemflaws without disrupting site or attempting to profit from their finds. Cybervandalism: Intentionally disrupting, defacing, destroying Web site. Data Breach: When organizations lose control over corporate information to outsiders. Credit Card Fraud: Fear of stolen credit card information deters online purchases.  US’s federal law limits liability of individuals to $50 for a stolen credit card.  Hackers target credit card files and other customer information files on merchant servers; use stolen data to establish credit under false identity.  Online companies at higher risk than offline due to difficulty of guarenteeing true identity of customers.  E-Sign” law giving digital signatures same authority as hand-written ones applies only to large corporations, but not to B2C e-commerce. Spoofing (Pharming) : Misrepresenting oneself by using fake e-mail addresses or masquerading as someone else . Spoofing a Web site is called “pharming,” redirecting a Web link to another IP address different from the realone. Threatens integrity (stealbusiness from true site, or alter orders and send to true site), and authenticity (difficult to
  34. 34. 34 distinguish between true and fake Web address) Carried out by hacking local DNS servers . Spam (Junk) Web Sites : Collection of advertisements for other sites, some of which containing malicious code. Appears on search results, hiding their identities by using domain names similar to legitimate ones, and redirecting traffic to spammer domains. 4.2.2 OTHER SECURITY THREATS : Sniffing : Eavesdropping program that monitors information traveling over a network. Insider Jobs: Single largest financial threat. Poorly Designed Server And Client Software : Due to increase in complexity and size of OS, application software, and browsers. Social Network Security : Social engineering attacks tempting visitors to FB pages to click on “bad-behavior” links. Mobile Platform Threats : Same risks as any Internet device Malware, botnets, vishing/smishing. 4.3 A PROCEDURE THAT RECOGNIZES, REDUCES, OR ELIMINATES A THREAT: Intellectual Property Protection  Legislature  Authentication
  35. 35. 35 4.4 SECURITY INFRASTRUCTURE : Fig 17# The security infrastructure is the implementation of the security policy. The security infrastructure is the technology which is chosen to secure the e-business and the rules by which it operates. Some examples of this include Enforcing password aging and expiration. Enforcing the complexity of passwords. Blocking prohibited outbound connections from the firewall. Requiring digital certificates to authenticate. Remote access connections to an organization’s network
  36. 36. 36 4.4.1 Client Computer Protection: Digital Certificates and Public Key Infrastructure (PKI) : Still missing a way to verify identity of Web sites. We can do this by using digital document issued by a trusted third party called certificate authority (CA). Digital Certificate Includes: Name of subject/company Subject’s public key Digital certificate serial number Expiration date, issuance date Digital signature of CA Public Key Infrastructure (PKI): CAs and digital certificate procedures that are accepted by all parties is Pretty Good Privacy (PGP) – a widely used e-mail public key encryption software [go to to download it]. Fig 18#
  37. 37. 37 Browser Protection : Browser security is the application of Internet security to web browsers in order to protect networked data and computer systems from breaches of privacy or malware. Security exploits of browsers often use JavaScript - sometimes with cross-site scripting (XSS)] - sometimes with a secondary payload using Adobe Flash. Security exploits can also take advantage of vulnerabilities (security holes) that are commonly exploited in all browsers (including Mozilla Firefox, Google Chrome, Opera, Microsoft Internet Explorer, and Safari). Anti-virus software: It is the Easiest and least expensive way to prevent threats to system integrity. What it requires is daily updates. 4.4.2 COMMUNICATION CHANNEL PROTECTION: Encryption : Transforms plain text data into cipher text readable only by sender and receiver. Their purpose is to Secures stored information and information transmission . It Provides 4 of 6 key dimensions of e-commerce security:  Message integrity – assurance that message hasn’t been altered.  Nonrepudiation – prevents user from denying sending the message.  Authentication – verification of identity of person (computer) sending the msg.  Confidentiality – assurance that msg. was not read by.
  38. 38. 38 Public-Key Encryption (Asymmetric) Vs Private-Key Encryption (Symmetric): Fig 19#
  39. 39. 39 Secure Sockets Layer (SSL): Establishes a secure, negotiated client-server session in which URL of requested document, along with contents, is encrypted Designed to establish a secure connection between two computers. Virtual Private Network (VPN): Allows remote users to securely access internal network via the Internet, using Point-to-Point. Fig 20#
  40. 40. 40 Secure Hypertext Transfer Protocol (S-Http) :
  41. 41. 41 Digital Signature : Digital signature refers to the 41igitized images of paper signature used to verify the authenticity of electronic document. In other words, digital signatures play the role of physical signatures in verifying electronic documents. A signature is not part of the substance of a transaction, but is a representation. Fig 21# It is a mathematical technique used to validate the authenticity and integrity of a message, software or digital document. Firewall It is a network security system that controls the incoming and outgoing network traffic based on an applied rule set. A firewall establishes a barrier between a trusted, secure internal network and another network (e.g., the Internet) that is assumed not to be secure and trusted. Firewalls exist both as software to run on general purpose hardware and as a hardware appliance. Many hardware-based firewalls also offer other functionality to the internal network they protect, such as acting as a DHCP server for that network.
  42. 42. 42 Fig 22# Proxy Servers (Proxies) : Software servers that handle all communications originating from or being sent to the Internet. Initially for limiting access ofinternal clients to external Internet servers Can be used to restrict access to certain types of sites, such as porno, auction, or stock-trading sites, or to cache frequently-accessed Web pages to reduce download times. Fig 23#
  43. 43. 43 4.5 PORTER’S FIVE FORCES : Porter five forces analysis is a framework to analyze level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry. Named after Michael E. porter, this model identifies analyzes 5 competitive forces that shape every industries, and help determine an industry‘s weaknesses and strengths . 1. Bargaining power of suppliers 2. bargaining power of customers (buyers) 3. intensity of competitive rivalry 4. Threat of substitute products or services 5. Threat of new entrants Fig 24# PORTER’S FIVE FORES FOR ONLINE RETAILER ” PAYTM” BARGAINING POWER OF SUPPLIERS: The bargaining power of suppliers is also described as the market of inputs. Suppliers are the manufacturers of finished products. For any products there are many suppliers online, so they can’t show power on online retail companies. For example, if
  44. 44. 44 you take computer category, there are many suppliers like HP, Apple, Lenevo, and Toshiba everyone wants to sell their products through online retails like Paytm. Selling online saves a lot of money for the manufacturers, and as many people now a days prefer purchasing products through online stores, companies cannot afford to lose this channel. So in this industry the supplier power is low. BARGAINING POWER OF CUSTOMERS (BUYERS): The bargaining power of customers is also described as the market of outputs. Buyers in this industry are customers who purchase product online. Since this industry is flooded with so many players, buyers are having lot of option to choose. With many competitior’s like, Snapdeal, Flipkart, Shopclues, etc. customers get a wide range of choices. Customer would prefer the one who would provide goods at reasonable price, deliver it fast and provide them with other benefits like COD, EMI facilities, others offers etc. here buyers have more power. INTENSITY OF COMPETITIVE RIVALRY: For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. Competition is very high in this industry with so many players like Homeshop18, Snapdeal, Amazon, etc. many competitiors means more choices for the customer to choose from. This also increases the cost incurred by the company to stay in the customers mind i.e. on promotions and advertisements etc. giving the customers better deals, making customers experience delightful and continuous innovation can help a company to stay at top even with tons of competitors around.
  45. 45. 45 THREAT OF SUBSTITUTE PRODUCTS OR SERVICES:  Substitute for this industry as of now is physical stores. Their threat is very low for this industry because customers are going for online purchases instead of going to physical stores as it will saves time, effort, and money. With the advent and penetration of internet and smartphones, future in retail belongs to online retail.  When we compare relative quality, relative price of product a person buys online with physical stores, both are almost same and in some cases, online retail stores offers mores discounts and this attracts the customer to purchase products online. THREAT OF NEW ENTRANTS: Threat of new entrants is very high in this online retail industry because of following reason:  There are very less barriers to entry like less capital required to start a business, less amount of infrastructure required to start business. All you need is to tie up with suppliers or products and you need to develop a website to display products so that customers can order products, and a tie up with online payment gateway provider like bill desk.  Indian government helps allowed 51% FDI in multi-brand online retail and 100% FDI in single brand online retail. So, this means foreign companies can come and start their own online retail companies.  Industry is also going to grow at a rapid rate. It is going to touch $83 billion by 2022. Industy is going to experience an exponential growth rate. So, obviously no one wants to miss this big opportunity. With the new entrants like Jabong, Snapdeal, Flipkart, Shopclues etc rapidly racing towards the top position, Paytm needs to devise new strategies to avoid this threat from new entrants.
  46. 46. 46 4.6 SECURITY AWARENESS AND POLICIES : A need for security awareness and training is required to implement computer security in an organisation. The main purpose behind security awareness is to enhance security by improving awareness of the need to protect system resources, developing skills, and knowledge so that computer users can perform their jobs more securely and build knowledge needed to design, implement, or operate security programs for organisations and systems. A security policy is a formal statement of the rules for people who are given access to an organisation’s technology and information assets. The main purpose of security policy is to inform users, staff, and managers of their obligatory requirements for protecting technology and information assets. To retain the value and genuineness of the policy, it must include these components: computer technology purchasing guidelines, privacy policy, access policy, accountability policy, authentication policy, information technology system and network maintenance policy and violations reporting policies. 4.6.1 Security Policy, Procedures, and Practices A Security PolicyIs A Formal StatementOf The Rules :  high-level description of the technical environment of the site, the legal environment (governing laws), the authority of the policy.  risk analysis identifying the site's assets, the threats existing against those assets, and the costs of asset loss  guidelines for reacting to a site compromise (e.g., whether to trace the intruder or shutdown and rebuild the system) .
  47. 47. 47 Security-RelatedProcedure:  Procedures address such topics as connecting to the site's system from home or while traveling, retrieving programs from the network, using encryption, authentication for issuing accounts, configuration, and monitoring. Security Practices:  Implement a one-time password system. Ensure that all accounts have a password and these passwords are difficult to guess.  Use strong cryptographic techniques to ensure the integrity of system software on a regular basis.  Keep the systems current with upgrades and patches.  Audit systems and networks, and regularly check logs for detecting an intrusion. 4.6.2 HOW TO MINIMIZE SECURITY THREATS: Making Your Business Less Of A Target - consider what needs to be on public or shared systems and, where possible, remove sensitive business information. Increasing The Perception Of Your Business As Secure - ensure that all aspects of security appear to be installed and well managed. Ensuring That Warning Signs- on your website are clearly displayed to any user who attempts to access secureparts of it.
  48. 48. 48 Not Providing Any Publicly Available Information- regarding the security systems or operating systems in use. Making Certain That Your Employees Are Well-trained- In properemail and internet usage, eg not opening unfamiliar attachments or clicking on suspicious links. 4.7 TECHNIQUES USED FOR SECURITY: Server Security: Use firewalls and proxy servers. Message Privacy (or confidentiality): assures that the communication between trading parties are not revealed to other, therefore unauthorized party can not read or understand the message . Message integrity: assures that the communication between trading parties are not alerted by an enemy. Authentication: The term “authentication”determines the user of the computer is actually who he/she claims. The term “authenticationof the receiver”:allows the sender to be sure that the party he/she intend to get the message is the one who is receives it.
  49. 49. 49 Authorization: Ensures that the trading party has the authority of transaction. Fig 25# : The whole security goes within for e-commerce site like to paytm
  51. 51. 51 INTERNET BANKING: Banking thorugh bank official websites. User ID & Passward is must with register mobile number for OTP. DEBIT/CREDIT CARDS : Online transaction on PAYTM is secure with the highest levels of transaction security currently available on the Internet. PAYTM uses 256-bit encryption technology to protect your card information while securely transmitting it to the respective banks for payment processing. E-VOUCHERS(eGV): The e-Gift Vouchers (EGV) can be redeemed online against Sellers listed on only. EGVs can be redeemed by selecting the payment mode as e-Gift Voucher. IMPS (Immediate Payment Service ): IMPS is Immediate Payment Service that enables you to make payment through your bank account via mobile. What is MMID? MMID (mobile money identifier) is 7-digit number issued by bank to customer for IMPS transactions. What is OTP? OTP is one-time password issued by bank to customer for payment transaction through IMPS.
  52. 52. 52 What is ItzCash Cash Card? ItzCash is now the leading cash card provider and a holistic payments solution company. Features of ItzGift Cash Card: ItzCash cash cards have a good number of features that make them a good option for cashless transactions. Some of them include:  Secured transactions: Cash cards involve secure procedures that make the transactions reliable and heavily secured. It is hard to make a transaction without the card.  Quick processing: Cash cards function similar to an ATM machine that can transact money with a single swipe on the machine.  Added discounts: Many brands tie up with cash card companies to come up with exclusive limited offers on products. These apply to only cash card users and no one else.  Convenient and hassle free gift option: A corporate cash card can be used as a gifting option for employees during gifting occasions. ItzGift cards from ItzCash carry the flag for a cashless gift card.
  53. 53. 53 5.1 HOW TO DO RECHARGE ON PAYTM? Step 1: Login to Fig 27#
  54. 54. 54 Step 2: Enter your mobile number in the desired box. Fig 28#
  55. 55. 55 Step 3: Select Proceed to recharge. Fig 29#
  56. 56. 56 Step 4 : Select the payment option. Fig 30# Recharge is done.