1

​MEDI-CAPS UNIVERSITY 
INDORE 

(CONTEMPORARY ISSUES IN 

MANAGEMENT-II) ON
“STUDY ON PAYTM” 

​Submitted as Partial Fulfillment for 

Degree of Master of Business 

Administration to Medi-Caps University, 
Indore 
2020-2022 

Guided By: Submitted By: 

Prof. Ruchi Kushwah​ ​ ​Ayushi Khandelwal 2000619 
Nandita Pandit 2000279
​

Kunal Upadhaya2000765
Yogendra Singh Sikarwar 2000637
Himanshu Maheshwari 2000402
 

   
2

 
CERTIFICATE 
 
 
This is to certify that the research report on the “​Study on
Paytm​” is a bonafide work carried out by Ayushi
Khandelwal, Nandita Pandit, Kunal Upadhaya, Yogendra
Sikarwar, Himanshu Maheshwari students of MBA 1st
semester batch 2020-2022 of Medi-caps University, Indore
under my guidance and direction.

DATE:
SIGNATURE:
PLACE:
NAME:
PROF. RUCHI KUSHWAH

 
 
 
   
   
 
3

 
DECLARATION 
 
We, AYUSHI KHANDELWAL, NANDITA PANDIT, KUNAL
UPADHYAY, YOGENDRA SINGH SIKARWAR and HIMANSHU
MASHESHWARI bonafide students of MEDICAP’S UNIVERSITY,
INDORE. We hereby declare that the research title over
“STUDY ON PAYTM”, has been done by the undersigned with
full devotion for partial fulfilment of degree of M.B.A.

We also declare that all the facts and figures included in the
dissertation is a result of our own research and investigation
Including formal analysis of the entire report work and the
same had not been submitted to any examination of this
institute.

AYUSHI KHANDELWAL (2000619)

NANDITA PANDIT (2000279)
KUNAL UPADHYAY (2000765)
YOGENDRA SINGH SIKARWAR (2000637)
HIMANSHU MASHESHWARI (2000402)
 
 
 
 
 
 
 
 
 
4

 
 
 
Acknowledgment 
 
Gratitude is not a thing of expression; it is more matter of
feeling.”

We would like to express our deep gratitude to our project

guider for providing us an opportunity to do a research work
under her guidance. She is always there with her competent
guidance and valuable suggestion throughout the pursuance
of this project work. She guided us to work honestly and to
give valuable suggestion for improving.

Finally we are glad to thank all the faculties who have

provided substantial guidance & support in preparation of
this report. This successful completion of report could not
have been possible without their cooperation and support.

Last but not the least we would also like to thank all the team
members whose response were off utmost importance for
the project work.

Above all no words can express our feelings to our parents,

friends, and all those who supported us during this project
work.
5

​ ​Table of Content
Page no.

1. Introduction 07
● Founder of Paytm 09
● E commerce 09
● Need of the study 10
● About Paytm 10
● Approaches 13
● Investors 13

● Revenue Model of Paytm 13

● Types of Wallet 14
● Digital Wallet 15
● Campaign by Paytm 15
● Impact of Demonetization on Paytm 15
● Extension of Paytm to overseas market 16
● Services provided by Paytm 17
● E commerce platform support Paytm
● Wallet Payment 18
● Fraud woes of Paytm 19
● Technical woes of Paytm 22
● Competitors 22
● Six immediate benefits of using payment
● gateway for business 23
● Findings 27
● A few key facts about Paytm Account 30
2. Research Objective 33
3. Literature Review 34
4. Research Methodology 38
6

5. Hypothesis (Graph, Chart) 39

6. Data Analysis/ Interpretation 46
7. Suggestions 55
8. Conclusion 56
9. Limitation of the Study 57
10. Scope of Study 58
11. Reference 59
12. Appendix 60

Introduction 

With a growing business, there grows a need to focus more on

the targets and goals, smoother operations and customer
oriented product and services. While you focus on growing
your business, fund disbursals (eg: timely payment to your
suppliers or instant cashback or other rewards to your
customers) can become one big challenge.
Mobile wallets are taking new dimensions in the 21st century
and becoming a popular medium for making payments. India is
7

growing at rapid speed in-terms of adopting the mobile

payments especially using mobile wallets. The government of
India has been pushing cashless transactions by introducing the
Demonetization of high value currency Rs 500 and Rs1000 on
November 2016. This has resulted a very high growth in digital
payments because of the cash crunch situations happened at
the ATMs and Banks. There are many leading wallet players in
the market such as Paytm, Free charge and ​Mobile wik ​which
have been marketing the mobile payments services through
the wallets across India. ​National Payments Corporation of
India (NPCI) ​has launched Bharat Interface for Money (BHIM)
app which offers UPI based interfaces which has helped wallet
companies to strengthen the wallet business further. The
Paytm ​is known as “Pay Through the Mobile” was incorporated
in Delhi in the month of August 2010 by the One97
Communications Ltd as a prepaid mobile recharge
website, founded by ​Vijay Shekhar Sharma. ​Paytm is India's
the largest leading payment gateway that offers
comprehensive payment services for customer and merchants.

It offers mobile payment solutions to over 7 million merchants

and allows consumers to make seamless mobile
payments from Cards, Bank Accounts and Digital Credit. Paytm
has launched Paytm Payment Banks, which aims to bring
banking and financial services to Indians. After demonetization
announcement on Nov 8th 2016, usage of Paytm has increased
drastically and registered over 7 million transactions worth Rs
120 crore1 and added one million new saved credit/debit cards
within 2 days after the demonetization and millions of
consumers and merchants across the country opted for mobile
8

payments on its platform for the first time. Although there are
number of e-wallet providers, Paytm’s revenue, have
collaborated with other financial service providers and
propensity to expand its service to the consumers.
 
Founder of Paytm 
Paytm was founded by Mr. Vijay Shekar Sharma in August
2010. He is also the CEO of Paytm. It started as a prepaid
mobile recharge website. Its headquarters are in Noida, New
Delhi, India. It is the consumer brand of parent One97
Communications. Ant Financial (Ali Pay), SAIF Partners, Media
tak, Sapphire Venture and Silicon Valley Bank are the investors
of One97. The company launched its first Paytm wallet in 2013.

E- Commerce 

It started as an online wallet, later transformed into a complete

mall and brought a paradigm shift to the retail industry. Be it a

prepaid mobile recharge, paying utility bills, booking train

tickets or shopping for clothes, this m-commerce store became
the substitute for several apps. Users can recharge their DTH,
book movie tickets, pay insurance premiums, shopping bills,
contribute to the charity of your liking and get in the fast lane
with Paytm FAST tag. The E-commerce aspect of the portal lets
several merchants list their products.
As we type, Paytm’s scope of operations and purview of
services is expanding with the addition of services, brands and
retail stores to its ambit.
However, it was just a matter of a few months, when we could
9

see it at the forefront of the e-commerce revolution in India. It

went on to become a semi-closed online wallet, and you could
transfer money into it via debit card, net banking or credit
card. This money can be used to almost everything that you
need to pay money for via the Paytm QR code or mobile phone
number. This m-commerce unicorn has evolved to an
extraordinary level and become a preferred choice for
payment. Ola Uber, every service provider accepts payments
via Paytm. The latest addition to Paytm is its e-retail platform.
It has more than seven million merchants using its QR code to
accept or make payments directly via their bank account. Use
cases such as Bus tickets and bill payments are just an aspect of
it, and now it is a full-fledged e-commerce platform with online
deals. The study about Paytm case study is one the best
experience in these days.

Web based commerce​ .

Market value ​- $18 billion (around Rs 1,116,00 crore)
Payments ​– Cash on delivery, E-Wallet, Credit card etc.
Players ​– Paytm ,Flipkart ,Snapdeal ,Amazon ,Cash karo etc.
​Paytm is a digital payments platform that allows you to

transfer cash into the integrated wallet via online banking,

debit cards , and credit cards , or even by depositing cash via
select banks and partners. Using the money in the Paytm
wallet, you can pay for a number of goods without using cash

NEED FOR THE STUDY 

10

 
The main aim of the study is to understand the perspective of
usage of mobile wallet from the point of women employees
who are working in banking and information technology sector.
Here, the main focus is on the women employee to appreciate
their willingness to adapt the new technology in today’s
scenario and to identify the areas where they use this Paytm
payment mode and finally to focus on the problems and
challenges they face during the usage of Paytm wallet
 
About PAYTM 

Paytm, as its abbreviation states, Pay through Mobile was

launched in 2010 by One97 communications as a prepaid
mobile and DTH recharge company. Gradually, it made its way
into the e-commerce market in the year 2014 and further
added bus ticketing to its kitty in 2015. Paytm now offers
multiple products ranging from primary mobile recharges to
buying apparels or electronics enabling customers to get
everything at one place. Thus, over a period of time, it has
become both a payment platform as well as the marketplace.
This strategy not only enables Paytm to serve multiple needs of
the customers, giving them a holistic experience by saving their
time and efforts but is also expected to be helpful in cross-
selling and up-selling and thus increasing the overall
profitability of the organization. It has even obtained the
license from Reserve Bank of India to run a Payments Bank. As
a result, Paytm is amongst the top 7 e-commerce companies in
India to have billion-dollar valuation and transformed the
business model of Paytm from a recharge web site to a
11

payment cum e- commerce marketplace. It has 100 million

Paytm Wallet users that carry out over 75 million transactions
every month. China’s Alibaba Group with its affiliate Ant
Financial invested $680 million in Paytm in September 2015 to
raise their stake to 40%, taking its valuation at somewhere
around $4 billion. On account of higher valuation, Paytm had
resources to stitch Rs.203 Crores worth of deal with Board of
Control for Cricket in India for 84 matches. Considering the
quantum of following that cricket has in India, this association
with BCCI for primary sponsorship rights is sure to get a lot of
visibility to Paytm brand and likely to catapult it as a national
brand with significantly high brand recall amongst all sections
of society.
Paytm is India's leading financial services company that offers
full-stack payments & financial solutions to consumers, offline
merchants and online platforms. The company is on a mission
to bring half a billion Indians into the mainstream economy
through payments, commerce, banking, investments, and
financial services. One97 Communications Limited that owns
the brand Paytm is founded by Vijay Shekhar Sharma and is
headquartered in Noida, Uttar Pradesh. Its investors include
Softbank, Ant Financial, AGH Holdings, SAIF Partners, Berkshire
Hathaway,
T Rowe Price, and Discovery Capital.
Vijay Shekhar Sharma, Founder & CEO of Paytm and One97
Communications Limited together own Paytm Payments Bank,
country's largest digital bank with over 58 million account
holders. Working on its mission to bring un-served &
under-served Indians under the formal banking system, it has
made banking accessible & convenient to people across the
12

country
through innovative use of technology.
It's wholly-owned subsidiary 'Paytm Money' has achieved the
distinction of becoming India's biggest investment platform
within its first year, and is now one of the largest contributors
of new Systematic Investment Plans (SIPs) to the Mutual Funds
industry; it has already received approvals to launch Stock
Broking, D-mat Services and National Pension System (NPS)
services, and strives to continue to broaden the financial
services and wealth management opportunities to the
unbanked and underserved Indians.
Paytm First Games, which is another group company (a joint
venture between One97 Communications Ltd and AG Tech
Holdings), has quickly become India’s go-to gaming and
stay-at-home entertainment option for millions of users across
the country. The platform caters to all types of gamers with an
exhaustive array of games for amateurs as well as esports for
gaming pros.
Paytm Insurance is a wholly-owned subsidiary of One97
Communications Ltd (OCL) and has secured a brokerage license
from IRDAI. It offers insurance products to millions of Indian
consumers across four categories including two-wheeler,
four-wheeler, health and life. The company aims to simplify
insurance and create a seamless, easy to understand online
journey for its customers.

Approaches: 
 
● They intend to reach every inch of the country and
en-route, empower small enterprises.
13

● They commit to operate in an economically, socially and

environmentally responsible manner.
● They hope to use their influence to garner financial & other
support for disaster victims & the underprivileged.
● They do their best to compensate negative effect on the
environment.
● They wish to share our technical knowledge with the
deserving to empower them​.

Investors: 
 
Major investors in Paytm include Alipay, Alibaba groups, SAIF
partners, Silicon Valley Bank, and Sapphire venture​.

Revenue Model of Paytm: 

 
A Revenue model is a framework for generating revenues. It
identifies which revenue source to pursue, what value to offer,
how to price the value and who pays for the value.
Paytm Revenue model is divided into:
● Advertising Revenue Model:​ In this model Paytm allows
seller to show their advertisements on Paytm websites and
charges some amount for their advertisement.
● Subscription Model​: In this, Paytm allows different seller
to list their products on their websites and charges some
annual subscription fees from seller which generates
revenue.
● Advance Payment Model​: In this model, Paytm received
the interest on the payment of customer until they not
transfer the money in the seller account.
14

● Commission Revenue Model​: Through this model, Paytm

charge commission from the seller for their listed product
in Paytm websites.

 
Types of E-wallets 

There are three types of E-wallets:

A) Open wallets​: These E-wallets can be used for purchasing
goods and services, funds transfer, withdrawing cash from
ATM and POS terminals. For example- Ru Pay, VISA,
MasterCard​ ​etc.
​B) Closed wallets​: It is an E-wallet which is issued to a
consumer by a company for exclusively buying goods and
services from that company. For example- Flipkart, Oyo Rooms
etc.

C) Semi-closed wallets​: They can be used for buying goods and

services at specific locations and merchants having alliance
with the issuing entity. They don’t have any options for cash
withdrawal. For example- Pay U, Paytm, Airtel Money etc.

Digital Wallet 

A digital wallet refers to an electronic device that allows an

individual to make electronic transactions. It is also referred by
other names like mobile money, mobile money transfer, and
15

mobile payment generally represents a payment services

operated under financial regulation and are performed from or
via a mobile device. This can include purchasing items on-line
with a computer or using a smartphone to purchase something
at a store. An individual's bank account can also be linked
to the digital wallet. In other words, mobile money transfer
refers to any method of monetary exchange
that utilizes the facility of a mobile device with authorized
support facility and conformance to defined and explained
legal policy.

Campaign by Paytm 

Paytm have even started a campaign called ―Paytm karo

 
 
 
 
Impact of demonetization on Paytm 
 
Demonetization of old currency notes of Rs.500 and Rs.1000
took place in the month December, 2016.Most of the E-wallet
providers has been benefitted with the demonetization but
Paytm has been extremely benefitted. It gave a sudden push to
six year old startup. Paytm has registered a landmark of seven
million transactions the worth Rs.120 crore the very next day
of announcement of demonetization. Within these two weeks
there were more than per day. From 10 November to 20
16

December, 20 million new users joined Paytm and increased its

total user base to 170 million. The company has additionally
added 150,000 merchants. During demonetization in India, the
company was doing more transactions than the combined
average daily usage of credit and debit cards. Paytm has
achieved more than its targeted performance. Within 12 days
of demonetization Paytm crossed $5 billion GMV sales. The
number of offline transaction has increased from 15% to 65%
in overall business. The valuation of Paytm has increased by
4.7%
 

Extension of Paytm to overseas market 

Digital payments company Paytm is considering foraying into

1-2 more developed markets in 2019, Chief Financial Officer
Madhur Deora said on Wednesday at the World Economic
Forum in Davos.
Paytm has already found its footing in Canada and Japan, and
several commerce and financial services verticals of the
company have begun to churn out revenue and profits, Deora
told the Reuters Global Markets Forum​.
"​We have found the developed markets to be very interesting,"
Deora said.
While the company can't commit to a definite launch in other
markets, it is working on building a scalable business, he
added.
Berkshire Hathaway Inc bought a 25 billion rupees ($356
17

million) stake in Paytm's parent company One97 in August last

year.
Paytm, founded in 2010, which counts China's Alibaba Group
and its financial services arm Ant Financial Services Group
among investors, faces intense competition from other players
such as Google Pay and state-backed Unified Payment
Interface (UPI).
 

Services provided by Paytm 

Paytm is India’s one of the largest and the most popular

E-wallets which are used by millions of users. Its app is
available on windows, Android and iOS operating systems.
Currently its business is not only limited to mobile recharge but
it offers a wide variety of services to the users. It is an easy way
to get the payments and provides an ultimate destination for
many services like-
Gas bill payment
Electricity bill payment,
DTH recharge,
Metro card recharge,
Insurance premium payment,
Landline bill payment,
Data card bill payment and recharge,
Mobile Bill Payment,
Mobile recharge
Booking movie tickets
18

Book hotels
Book bus tickets
Booking amusement park tickets, etc.
They even provide huge discounts, great deals and cash back
points to their users​.

E-commerce platforms support Paytm wallet 

payment  

UBER India
BookMyShow
Domino‘s Pizza
Jabong
FabFurnish
Zovi
Foodpanda
TastyKhana
JustEat
Haldiram‘s
Archies
India Time Shopping

Frauds and technical woes of Paytm 

 
Mobile payments and banking has made it easy for us to pay,
shop and save our money. Now you can do any of these from
anywhere in the country — our lives are so much easier now.
With advancements in technology, cyber attack methods and
19

tools have also changed from traditional vectors like malicious

software and vulnerabilities to more ingenious scams that can
be deployed from unexpected regions of the world.
Here are some uncommon ways they’ll try to trick us:
1. Fake Emergency Phone Calls
A forged phone call is one such attempt where a fraudster
poses as your relative or friend and asks you transfer funds
immediately.
How they pull it off:
They will collect your information from social networking sites
like Facebook, Linkedin, Twitter and so on. Once they have
enough information, they will call you and pose as a relative or
friend and talk to you about an ‘emergency’.
Once they are confident that you are sold on the idea, they will
ask you to transfer some money in their bank account or Paytm
Wallet citing those ‘emergency’ reasons. Once you transfer the
amount, he/she will further transfer that money to some other
account so that transaction cannot be reversed.
How to protect yourself:
Never share sensitive personal details on social networking
sites. Also, never transfer funds without confirming a person’s
identity.
2. Vishing
Vishing is an attempt where fraudsters try to seek personal
information like Paytm Bank PIN, Paytm OTP, Card expiry date,
CVV etc. via a phone call.
How they pull it off:
The fraudster poses as an employee from Paytm, the
20

government or a bank and asks you for your personal

information. They will cite various reasons like reward points,
free cashback, reactivation of account, etc. These details will
then be used to draw money from your account without your
knowledge.
How to protect yourself:
Never share your personal information or financial information
via SMS, call or email. Our teams will ​NEVER​ call you for such
sensitive information at any point of time.
Do not login to Paytm account unless you see green
padlock/secure sign, website is ​Paytm.com​ domain and it is a
https website.

3. Smishing
Smishing is when an SMS/Email/WhatsApp message is used to
lure you into calling back on a fraudulent phone number,
visiting fraud websites or downloading malicious content via
your phone.
How they pull it off:
Fraudsters will send you SMS/Facebook Requests/WhatsApp
messages telling you that you’ve won some prize money,
lottery, job offer and what not. They’ll ask you to share your
Paytm account/Paytm Payments Bank account details.
Unaware of what might happen, once you do that, they will
initiate fraudulent transactions using your account details.
How to protect yourself:
Never share your personal information or financial information
via SMS, call or email. Our teams will ​NEVER​ call you for such
21

sensitive information at any point of time.

4. Identity Theft
Identity Theft occurs when someone uses your personal
information to obtain a Credit Card, Loan and other services in
your name. Then those will be used for fraudulent
transactions.
How they pull it off:
They try to gain access to your details through Phishing,
Vishing, Smishing or any other nefarious means. They will call
you and try to collect your details by posing as Paytm Staff
maybe!
How to protect yourself:
Never share your personal information with a stranger or any
third party posing as a Paytm representative. Additionally,
update your bank records whenever you change your contact
numbers, address or email ID.
5. Money Mule
Money Mule is a term used for victims who are duped into
laundering stolen/illegal money via their bank account.
How they pull it off:
Fraudsters will contact you via email, SMS or job websites, and
convince you to receive money into you bank accounts in
exchange of attractive commissions. They will then transfer the
illegal money into your account.
They will then direct you to transfer the money to another
person’s account — starting a chain that ultimately results in
the money getting transferred to the fraudster’s account. This
22

way, you will become the target of all police investigations.

How to protect yourself:
Do not respond to emails asking for your bank account details.
For any overseas job offer, confirm the identity and contact
details of the company first. Remember, nothing comes for
free — so attractive offers/commissions might be too good to
be true!
  
Technical woes 
 
Paytm has been finding it difficult to manage the traffic on its
mobile app. The traffic increased to three times. It faced a
technical problem due to which the customers couldn’t make
the transactions. Paytm’s app disappeared from the Apple
Store for many hours They had de-listed the app due to
technical issues and were waiting for the updated version to be
approved by Apple
Competitors 
​

● Oxigen Wallet
● Mobikwik
● FreeCharge
● Vodafone M-pesa
● Airtel Money

Six immediate benefits of using Paytm 

Payment Gateway for your business 
23

Paytm has been one of the leading fintech players in India for
more than half a decade now. One of Paytm’s products which
is important from a small and medium business perspective is
the Paytm Payment Gateway. Whether you are a small mom
and pop store or a medium-sized establishment, Paytm
Payment Gateway has features that cover the entire spectrum.
In this post-COVID world we are living in, not having an online
presence is not an option for any small and medium business.
Paytm not only makes the onboarding process of its payment
gateway easier but offers a range of benefits. We shall take a
look at the six immediate advantages of using a Paytm
Payment Gateway.

▪ Paytm accepts every mode of payment 

Using a Paytm Payment Gateway does not force your
customers to only use Paytm or its related products for making
payments. In fact, Paytm offers 6 ways in which customers can
pay. These ten modes include:
Paytm Wallet
Bank account via UPI
Debit or Credit cards
Net Banking
EMI Option on cards
Paytm Post paid
Having a familiar mode of payment for the customer ensures
that there is no anxiety on the customer’s end to go for a new
mode of payment when presented with a Paytm Payment
Gateway front-end.
24

▪ Secure Payments 
Security of payments is pertinent in any online transactions.
Paytm uses the latest anti-fraud technology to keep things safe
for you and your customers. Paytm has a dedicated team of
200 cybersecurity experts to ensure every user transaction is
secure. Paytm is also certified by the Payment Card Industry –
Data Security Standards (PCI-DSS) with 128-bit encryption.
Artificial intelligence is routinely used to detect and block
suspicious-looking transactions – by analysing the behaviour of
fraudsters. In fact, Paytm’s security feature will also scan the
other apps on user devices to let users know if there are any
dangerous apps installed which may put user accounts at risk.
If such apps are found, unless they are uninstalled, Paytm will
not allow any transactions to keep users safe.

▪ Industry high success rate 

Paytm has direct integration with the top six banks in India, 15
Bank Gateways and networks. This results in reduced
transaction times, manual inputs as well as dependency on
mobile networks. Paytm monitors the health of the Payment
Gateway six times per minute and re-routes traffic to healthy
gateways. If you have multiple payment gateways, Paytm’s
AI-Powered Router helps in routing transaction traffic between
the multiple payment providers so that customers achieve a
higher payment success rate.
This paired with the fact that Paytm is the acquiring payment
service provider (PSP), issuing PSP as well as owns the payment
25

gateway leads to higher success rates in transactions. Paytm

Payment Gateway has some impressive numbers to show, such
as:
400 million monthly transactions
99.99% payment gateway uptime
2500 transactions per second
Largest card payment gateway and UPI payment gateway in
India
Customers can expect a payment completion time of a mere 20
seconds on any platform provided all the customer

▪ Checkout with saved cards 

Customers have the option to checkout with saved cards which
assists not only with reduced transaction times, but also has
the possibility to help a customer become a regular. Paytm has
a global vault for saving users’ debit and credit card details
stored on a secure cloud which are audited regularly by
authorities such as the National Payments Corporation of India
(NPCI), PCI-DSS from time to time. Along with cards, Paytm
offers saving details for wallet, post paid, saved UPIs, merchant
gift vouchers, Paytm Payments Bank details.
Saved cards or other payment instruments increase the success
rate of the transaction by 6-8 percent. It also makes it easier
for the customer to manage all their payment instruments and
switch between different saved cards for certain transactions.
With save card details, customers also get access to 1-click
checkout experience. Some well-known merchants who use
saved cards include Dominos, Near buy, Swiggy, Zomato, Hot
26

star, Uber, among others.

▪ Real-time bank settlements 

As a merchant, you naturally expect faster settlements at your
end for a transaction to be deemed truly complete. Depending
on the merchant industry and market practices followed, the
payment experiences can be customised. Merchants can select
from a range of options when it comes to settlement of the
transactions and how soon they want the funds transferred to
their accounts. You can go about it in two ways:
Settlement from the Paytm Nodal account can be done on the
same day or in batches at a frequency decided by the
merchant. For instance, a merchant can have funds settled
once every day or once in seven days, and so on
Settlement can happen even by a direct transfer to the bank
account of the merchant if he or she does not want to go via
the Paytm Nodal account route. Settlement destinations can
include a merchant’s bank account, Paytm Wallet or a UPI
virtual private address. Paytm also offers direct real time
settlement in merchant bank account by the issuer bank.

▪ Business growth insights on Paytm 

Merchant Dashboard 
Paytm Payment Gateway also gives every merchant access to a
visually rich dashboard which gives a lot of insights at just a
glance. You can track sale conversions, success rates as well as
analyse customer spends and understand when, how and how
much customers buy. Things you can do with the dashboard
27

include:
Creating payment links to be shared via SMS or social media to
reach your consumer
Disbursing funds, Viewing transactions, Generating invoices
Settlement reports Issuing refunds Paytm dashboard for
merchants also provides real-time analytics that can be used to
measure business performance and make decisions on the fly
to improve growth. Even changing settings such as new bank
accounts, display names, or a new QR code can be easily done
from the Dashboard’s Setting menu. Manage Users lets you
define roles and grant permissions to your employees using the
Paytm for Business Dashboard.
If you are still on the fence regarding integrating the Paytm
Payments Gateway, we have just given you six reasons to
consider it.

FINDINGS 
When several wallet companies are competing each other, it is
necessary to study the wallet companies which are providing
high level of service to the customers. So the researcher has
chosen the Paytm user as a case study and also taken four
leading competitors along with the Paytm to identify the usage
level in the pre and post demonetization period. For this, few
tests are used and some the key findings that table -2 and 3
show that means score about features of paytm and user
behaviour on it. It shows about all the respondents range from
strongly agree to neutral in the various attributes such as
convenience, perceived use, perceived easy of usefulness, new
28

technology, 24 x 7 services, simpler and speed. Some of the

respondents are between disagree and strongly disagree in
some of the variables viz., trust, cost, secured, cash crunch and
coupons and offering. Moreover the usage level of paytm along
with competitors is not significantly associated with pre and
post demonetization period except one wallet viz., Oxygen
Wallet. The respondents feel that , the respondents range from
strongly agree to neutral in the various attributes such as
convenience, perceived use, perceived easy of usefulness, new
technology, 24 x 7 services, simpler and speed. Some of the
respondents are between disagree and strongly disagree in
some of the variables viz., trust, cost, secured, cash crunch and
coupons and offering. Hence it is concluded that majority of
the respondents feel that features which are available in Paytm
are good while using wallet account.

A few key facts about your Paytm account 

Over 17 crore Indians use Paytm in their daily lives. That’s a lot
of people and a lot of usage. There are a few common queries
that we get from our users, and we have tried to answer them
in one consolidated post. Here we go…

1.Does transferring money to the Bank from Paytm account

take time?
At Paytm, we process your request for sending money to
bank ​instantly ​every time you press ‘Send Money to Bank’ in
the Paytm Passbook. In most cases, this money is reflected in
29

user’s Bank accounts within few minutes.

However, when the banking systems are going through stress
due to load spikes, banks could take up to 7 working days to
credit the amount in your bank account.

2. Is Paytm safe?
Completely. Paytm is PCI DSS compliant in terms of security.
We never store customer’s CVV number to ensure their Credit
and Debit Card details are completely safe. All financial
transactions on Paytm are done with 128-bit encryption SSL
security. We also engage in real time​ ​monitoring and
transaction engine to weed out suspicious transactions and
ensure the customer’s money is always secure.

3. Does Paytm charge a fee every time you transfer money to

bank?
All Paytm users can transfer money from Paytm to their bank
account at 0% fee till 31st January 2017.
Paytm Wallet to Paytm Wallet​ (When you Pay using Paytm to
some other Paytm user): ​Lifetime 0%
Money Transfer from ​Paytm Wallet to Any other Bank
Account​: ​Applicable Charges Applied by your Bank. ​Currently
it is 0% till 31st January 2017.

4. Can someone who has access to my phone steal money

from my Paytm Wallet?
We have launched an app password feature for your Paytm
Wallet. This will ensure money in your Paytm Wallet is safe
30

even if you lose or misplace your phone.

5. Does sending money using my mobile number expose me

to potential stalkers who can misuse my number?
Your security is of prime concern to us. When you transfer your
money using Paytm, we ensure your mobile number is only
partially revealed to the recipient.
Only the first two and the last three digits of your mobile
number would appear in the recipient’s Paytm Passbook. This
not only guarantees our customers full security against any
fraud, but also protects them from possible harassment and
spam calls.

6. Is it safe to pay at Petrol Pumps using Paytm?

We ensure every member of the field staff at petrol pumps
accepting Paytm are sensitized & trained about transacting
either at the safe distance as specified by PESO or at the sales
office of these petrol pumps.

7. Is the money I store in my Paytm Wallet ‘stuck’?

Over 2Mn (20 lakh) offline merchants across India currently
accept Paytm as their preferred payment mode. Paytm is
accepted everywhere including taxis, autos, petrol pumps,
grocery shops, restaurants, coffee shops, multiplexes, parking,
pharmacies, hospitals, kirana shops, newspaper vendors and
many more.
That’s not all. Paytm Cash can also be used to pay for online
recharges, utility bill payments, book movie tickets or travel
31

among other things on the ​Paytm Website​ or ​Android​/​iOS​ app.

Paytm is also accepted at hundreds of third party websites.
In case you need cash, you can always transfer some money to
your bank account instantly using the ‘Send Money to Bank’
option in the Paytm Passbook.

8. Does Paytm charge money to do KYC and become a VIP

Customer?
Paytm doesn’t charge a penny to upgrade your Paytm Wallet.
You can click on the upgrade option in the ‘Profile’ menu in
your Paytm app and a trusted Paytm Agent would arrive at
your address, collect the relevant documentation, guide you
through the biometric verification process and your Paytm
Wallet would be upgraded.

9. Does Paytm have a Customer Helpdesk?

A Paytm customer has various ways to get his/her grievances
addressed. He/she can raise an issue through the ‘​Customer
Care​’ section on app and web, or inform us about their
grievances by calling on our 24*7 Customer Care helpline
number — 0120–3888–388.
Alternatively, they can select a particular transaction in their
Paytm Wallet Passbook and click on ‘Need Help’ to report an
issue. While sending money using our instant money transfer
facility, customers also have the option to click on ‘Have an
issue?’ and report a failed transaction.
32

10. Is it difficult to upgrade my Paytm Wallet?

Upgrading your Paytm Wallet is quick and easy. KYC verified
users automatically become Paytm VIP customers and enjoy
several other benefits like no spending limit, exclusive offers
and more.

11. Can only registered businesses accept Paytm?

Anyone can instantly start accepting digital payments with
Paytm.

12. Is Paytm useful for merchants with business of more than

Rs. 1 lakh?
Businesses can enable the Paytm Wallet at their retail outlets
to allow quick and easy payments. It reduces queues at
payment counters while making it easier to track each
transaction. Our cost-effective solutions are geared to help
companies serve customers better. In that case, there are no
limits to how much you can transfer to your bank account.

Research Objective 
 
1. To study the behavioural factors of Paytm users .
2. To study the role played by Paytm in making India Digital.
3. To study the acceptance level of Paytm in India as an
alternative to the cash transaction.
4. To study the opinion among people in adopting Paytm as a
solution to the Indian Demonetization.
33

Literature Review 

On “Exploring Consumer Adoption of Mobile Payments - A

Qualitative Study” an empirical data was collected from 6
focused group sessions from interviewees who were from
Helsinki Metropolitan area in Finland. His findings have
concluded that relative advantage of mobile payments is
related to the specific benefits provided by the new mobile
technology such as time and place independent payments,
remote and ubiquitous access to payment services, avoiding
queues, complementing cash payments etc. This study has also
found that in certain use of situations like unexpected need of
payment, time pressure and lack of cash or loose change, the
access of mobile payments plays a pivotal role. He has also
suggested that many other determinants and factors are such
as compatibility, complexity, costs, network extension, trust
and perceived security. Since Mobile wallet belongs to mobile
payments category, his study has concluded that above
findings are applicable for mobile wallet adoption either
partially or fully.
This study has attempted and tested “An understanding of the
consumer acceptance of mobile wallet. This method follows
“Unified Theory of Acceptance and Use of Technology”
(UTAUT) model with constructs of security, trust, social
influence, and self-efficacy. Structural equation modelling was
applied to construct a predictive model of attitudes toward the
34

mobile wallet. Individuals’ responses to questions about

attitude and intention to adopt a mobile wallet was collected
and analyzed with various factors modified from usefulness
and ease of use are key antecedents of UTAUT. While the
model confirmed the classical role of technology acceptance
factors (i.e., perceived to users’ attitude), the results also
explicited the users’ attitudes and intentions influenced by
perceived security and trust. Hence in the extended model, the
moderating effects of demographics on the relations among
the variables were found to be significant.
This study explored the various factors that can affect
consumer decision to adopt the digital wallet in online
payment. This study conducted using ANOVA method. The
study has found various factors such as usefulness, alternative
choice for online payment, satisfied and security and safety are
the major factors plays important role in using digital wallet.
This study further suggested that promotional programme,
more discounts and reward points could increase the mobile
wallet popularity and adoption. This study concluded that
digital wallet is quickly becoming mainstream mode of online
payment. The shoppers are adopting mobile wallets at an
incredible rapid phase, largely due to convenience and ease of
use. Tech-savy shoppers are increasingly demanding seamless
Omni-channels, retails experiences and looking for solutions.
This study concluded that online cashless payments yet to
penetrate all the section of people which may happen in the
coming years
This study explained “an empirical study on consumer’s
35

adoption of mobile wallet”. The study focused on explaining

the use of wallet money supported by different companies&
also the various factor that decide consumer wish to adopt
mobile wallet. The study was based on primary data source
with the questionnaire issued to 150 respondents. It revealed
the various risk& challenges that mobile wallet user face. The
author concluded that Mobile wallet usage awareness as
spread among the people in India due to government policy of
demonetization and this as forcefully induced the usage of
mobile wallet and also he said that risk factors are reduced
considered which will ensure adoption and tremendous growth
of mobile wallets in the coming years.
This study has examined the role of Demonetization and the
role of Electronic Payment System. This study concluded that
the cashless transaction system is reaching its growth day by
day, as soon as the market become globalized and the growth
of banking sector more and more the people moves from cash
to cashless system. The cashless system is not only
requirement but also a need of today society. All the online
market basically depends on cashless transaction system. This
study furthers found that the cashless transition is not only
safer than the cash transaction but is less time consuming and
not a trouble of carrying and trouble of wear and tear like
paper money. It also helps in record of the all the transaction
done. So, it is without doubt said that future transaction
system is cashless transaction system.
 
Research Methodology 
36

 
Sample design​: -. The study is done by using Convenience
sampling method with 95% confidence and 5% margin of error.
A sample of 50 employees have been taken across India. The
data gathered was analyzed using Percentage Analysis,
Correlation Test and Chi-square Test.

Data Collection​: In view of this questionnaires were sent to 50

respondents and the inquiries were asked where their
responses are noted. Respondents are mainly college students,
employed and non-employed youths, middle aged people both
employed and non-employed and the merchants.

Data Analysis Tool​: ​Microsoft Excel program.

The aim of this research paper is to analyze the usage of Paytm

by users. In order to reach the aim a structured questionnaire
was sent to 230 smart phone users who use Paytm for online
payment. The respondents were categorized on the basis of,
age, Frequency of usage, Purpose of usage and average
monthly spending on Paytm. Out of 230 people only 151
responded to the questionnaire. This research used descriptive
method in order to get the statistic result from respondents.

Hypothesis 
 
H0: There is an acknowledgment level for Paytm as another
option to the money exchanges among individuals
37

H1: There is an no acknowledgment level for Paytm as another

option to the money exchanges among individuals.
H0: Services offered by Paytm are adaptable in supporting the
Cashless Economy
H1: Services offered by Paytm are not adaptable in supporting
the Cashless Economy
H0: Paytm is a solution to the India Demonetization.
H1: Paytm is not a solution to the India Demonetization.
H0: People give importance to Paytm in their day to day life.
H1: People don’t give importance to Paytm in their day to day
life.
H0: Paytm plays an important role in making India Digital
H1: Paytm does not play any role in making India Digital.
38

Results & Discussions 

Percentage Analysis 
 
Interpreting of 1, 2, 3 & 4 

● Majority of the people agree to the fact that Paytm is one

st ​
of best technological innovation in 21​ century
● Majority of the people agree that Paytm is an alternative
to cash transactions and supports Cashless economy​.
● Larger part of the general population concurs that Paytm
helps customers and vendors in changing to versatile
installments.
39

Interpreting of 5, 6, 7, 8, 9, 10 & 11 

● Majority of the people give importance to Paytm in their day to

day life.
● Majority of the people agree to the fact that Paytm offers a
flexible service.
● Larger part of the general population concurs that Paytm helps
customers and vendors in changing to versatile installments.
● Larger part of the general population concurs prefer Paytm
mainly because of its services
● Larger part of the general population agree that Paytm gives
importance to safety
● People agree to the fact that Paytm created a balance between
cost and efficiency.
● Majority of the general population agree that Paytm supports
Pay through mobile.
● Majority of the people disagree to the fact that Demonetization
lessened growth of Paytm.
● Majority of the people agree that Paytm supports Make India
Digital campaign
40

Interpreting of 12, 13,14 & 15 

● Majority of the people agree that Paytm is one of the

solution to the Indian Demonetization.
● Majority of the people agree that Paytm is way ahead
when compared with its competitors.
● Majority of the people agrees that Paytm is one among the
quickly developing organizations in the e-wallet space in
India
41

Correlation Analysis based on Questionnaier 

 
Correlation of 1 & 2 0.966 tc 6.8 Degree of freedom
35 and p = 0.05
Correlation of 1 & 3 0.962 tc 3.11 Degree of freedom
11 and p = 0.01
Correlation of 1 & 4 0.8124027 tc 4.48 Degree of freedom is
1
11 and p = 0.001
Correlation of 2 & 1 0.8289812 tc 4.78 Degree of freedom 5
9
and p = 0.001
Correlation of 2 & 3 0.9344507 tc 5.89 Degree of freedom 6
9
and p = 0.001
Correlation of 2 & 4 0.9959174 tc 3.11 Degree of freedom
9
11 and p = 0.001
Correlation 3 & 1 0.9520398 tc 4.78 Degree of Freedom 5
3
and p =0.001
Correlation 3& 2 0.9520398 tc 5.52 Degree of Freedom 6
3
and p =0.001
Correlation 3 & 4 0.9520398 tc 9.93 Degree of Freedom 2
3
and p =0.001
Correlation 3& 4 0.899 tc 3.92 Degree of Freedom
18 and p =0.001
42

Chi-square Test​ ​based on Questionnaire

Range Chi-square Degree P - value P– Hypothesi

value of value<0.05 s
Freedo or P- Validation
m value>0.05
1 to 2 0.06 165 1 P-value>0.0 H0
5 accepted
3 to 4 0.289 22 1 P-value>0.0 H0
5 accepted
5 to 6 0.5165 160 1 P-value>0.0 H0
5 accepted
12 to 13 0.066 55 1 P-value>0.0 H0
5 accepted
14 to 15 1.237 6 1 P-value>0.0 H0
5 accepted

● H0: There is an acceptance level for Paytm as an

alternative to the cash transactions among people.
● H1: There is no acceptance level for Paytm as an
alternative to the cash transactions among people.
● The above Correlation Results and Scatter Diagram states
that H0 is accepted.
● H0: Services offered by Paytm are flexible in supporting
the Cashless Economy H1: Services offered by Paytm are
43

not flexible Services in supporting the Cashless Economy.

● The above Correlation Results and Scatter Diagram states
that H0 is accepted.
● H0: Paytm is a solution to the India Demonetization. H1:
● Paytm is a solution to the India Demonetization
● The above Correlation Results and Scatter Diagram states
that H0 is accepted​. H0: People give importance to Paytm
in their day to day life.
● H1: People don’t give importance to Paytm in their day to
day life.
● The above Correlation Results and Scatter Diagram states
that H0 is accepted​. H0: Paytm plays an important role in
making India Digital.
● H1: Paytm does not play any role in making India Digital.

ANALYSIS 
The analysis of the collected data is done based upon the
parameters as shown below [Sample size = 151]

Age

Majority of the sample population i.e. 124 respondents were

from the age group of 18 – 25 and contributed 82% of the total
sample size. 16% of the population was between the age group
of 25-35 and 2% of population i.e. 3 respondents were above
the age group of 35.
44

Frequency of Paytm usage

Out of total 151 respondents, 30 respondents (20%) use Paytm

daily for various reasons such as recharge, bill payment and
shopping while 68 (45%) use weekly and 53 (35%) use monthly
or rarely.
45

Purpose of using Paytm

Majority of the respondents (nearly 80%) use Paytm for

recharge since it is very convenient to recharge your phone
anytime anywhere without being dependent on the recharge
shops. Nearly 50 % of the respondents pay their bills through
Paytm as it prevents time and also it prevents the respondents
from standing in long queues. Mainly people use Paytm for
Recharge, Ticket booking, Bill payment and Shopping.

Devices on which Paytm is used

Since the world is shifting towards mobile applications because

everything can be done just using a click and also people want
services to be available in all the conditions and at all times so
almost all of the respondent use Paytm mobile app.
46

Average monthly Spending on Paytm

Since people are using Paytm for various purpose such as

Recharge, Ticket booking and Payment of bills so majority of
respondents (around 87.5%) spend an amount above 100 on
Paytm monthly. 35.8
% people spend an amount between 500 to 1000 monthly and
12.6 % people spend an amount greater than 1000.
47

Failure in Paytm transaction

Around 51% people claimed that they faced some problem

during their Paytm transaction. This failure could be due to
various reasons such as Payment gateway failure, Problem
with acceptance of Debit/Credit card, Failure of Paytm App,
etc.
48

Major problems faced during Paytm transactions

Out of 77 respondents who face problem during Paytm

transaction, nearly 69% i.e. majority of respondents faced
problem due to the Payment gateway failure. And around 40%
respondents faced problem due to delay in confirmation of
order.

Some other problems which were seen are-

● Paytm was not accepting Debit cards from some of the

banks (State Bank of India) for some days
● New update of Paytm was not available on Appstore (iOS)
due to which iPhone users were not able to access Paytm
for 2 days.
49

Out of the 51% people who faced problem with the Paytm
transaction, majority of respondents (i.e. 84.4%) claimed that
they faced less than 2 fails per 10 transactions and only 2.6%
claimed to have faced more than 5 fails per 10 transactions.
Around 53% respondents faced 1-2 fails per 10 transactions.

Due to failure in transactions people tried to connect to the

customer care (Customer support) to solve their problems with
the transaction. Only 5% people claim to have got assistance
every time they had a failure which is very small percentage.
24.7 % people never got any assistance from the customer
care.28.6% claim to have got assistance very few times. Others
(41.6 %) have claimed that they got assistance most of the
times
50

Average ratings based on different parameters

Looking at the average ratings given by respondents it can be

claimed that people are strongly satisfied with the privacy
which Paytm gives to its users because the customer data is
not shared with other firms. People are satisfied the most by
the App user interface because of the user friendly Paytm App.
Around 13% respondents are dissatisfied by the transaction
time taken by Paytm and believe that a lot of time is wasted
during the transactions which could be reduced​.
51

Overall rating

Around 50% of respondents are satisfied with the overall

service of Paytm but claim that there is some room for
improvement in the customer service and innovation. 18%
respondents are strongly satisfied with current services by
Paytm. Still some people are dissatisfied with the Paytm service
due to failure at various points during, before or after the
transaction. Some of these problems are Payment gateway
failure, Customer care service failure, lack of discounts and
offers, lengthy transaction time, etc.
52

 
 
 
SUGGESTIONS 

Following are the suggestions.

● The digital payment companies should create awareness
among their users regarding the multiple uses of apps
through various sales promotion techniques and
advertisements.
● Provide more facilities and add more features will enhance
the utilization of PAYTM app among more peoples.
 
Conclusion (1) 

Paytm is one among the best mechanical advancement in the

present century and the administrations offered by Paytm
helps in Time utilization and furthermore it is anything but
difficult to utilize. What's more, for the up and coming business
visionary's Paytm example of overcoming adversity would be
extremely motivational and a lesson to learn before beginning
another wander. Achievement of Paytm could be it was a plan
of action presented in the wake of concentrate the current
circumstance winning in our nation and that is the reason
it went ahead to wind up outstanding amongst other
arrangement after demonetization. Can get consideration in
the general public as it centers around making mindfulness
among individuals. Instructing individuals about its
administrations. Fruitful treatment of Paytm by purchasers and
shippers is the best case of its positive effect in the general
53

public. Paytm is the best case of an organization which used

online business advertise better.

CONCLUSION (2) 

Paytm supports their customers to transfer their payments

with the usage of their mobile phones in the easiest way.
Paytm is a good app to download due to its wide network of
partners which makes it convenient whether you're taking a
cab ride with Uber, or ordering a meal via Food panda. Paytm
has to work upon the Payment gateway to improve the
transaction efficiency as 70% people faced problem with
payment gateway. Only 5% people claim to have got assistance
every time they had a failure so the service could be improved
to cater the needs of maximum customers. Paytm is
currently performing well in terms of privacy but it has to work
upon discounts/offers, transaction time and bring about
innovation to increase customer satisfaction.

Limitations 
 
● Limited of previous research studies on the topic
● Strict prohibition on the privacy policy of Paytm so that it
limits our analysation and observations
● People are insecure while sharing their views.
● Due to pandemic situation limited access to people
physically.
● Problem faced in selection of method of analysation and
result interpretation.
● Difficulty in maintaining mathematical and graphical
54

interpretation Technical error​.

 
Scope of Study 
 
Paytm will play a significant role in day to day life as an
increase in use of smart phone can be seen and people are
relying on digital lifestyle to make things convenient and fast
the study is made taking consideration of whole of Paytm
services to know its usage by the customers and its
accessibility.
This research focuses on Paytm service user in general. The
scope of research will describe the relationship between Paytm
services on safety and security , transaction speed,
convenience, recharge, tickets, booking, shopping, booking
hotels, insurance premium and transfer of funds. Which can
directly influence on the customer satisfaction level on
intention to use in further. Moreover, the respondent of this
research will randomly select the business people and
educational group who are normally use Paytm services in
different district or state.

REFFERENCE
 
www.iamwire.com/2015/04/mobile-wallets-what-scope-india/
114860
http://www.techprevue.com/e-wallets-importance-indian-scen
ario/
https://paytm.com/care/customer-care-number/
55

http://dsim.in/blog/2015/05/08/case-study-paytm-journey-fro
m-mobile-recharge-to-ecommerce-market/

http://timesofindia.indiatimes.com/business/india-business/Pa
ytm-app-crosses-50-Milliondownloads-on-Google-Play-Store/ar
ticleshow/55422680.cms
https://paytm.com/press
http://www.geekdashboard.com/stores-accepting-paytm-wall
et/
https://scroll.in/article/824991/after-demonetisation-dream-r
un-paytm-is-paying-a-price-forits-sudden-stardom 8
http://indianexpress.com/article/technology/tech-news-techn
ology/paytm-registers-over-7-
million-transactions-in-a-day-demonetisation-effect-4387573/
https://www.sumhr.com/digital-wallets-india-list-online-paym
ent-gateway/
http://www.hdfcbank.com/htdocs/common/MobileBanking/c
hillr-app/index.htm
http://www.hdfcbank.com/personal/making-payments/pay-wi
th-payzapp/payzapp
https://www.sbi.co.in/buddy

Appendix 
 
▪
Statement Strongly Agree Disagree Strongly Agree
Disagree
56

Paytm is one of
best
technological
innovation in
st ​
21​ century.
Paytm is an
alternative to
cash transactions
and supports
Cashless
economy.
Paytm helps
consumers and
vendors in
switching to
mobile
payments.
People give more
importance to
money “Paytm
gained
importance in
day to day life of
people”
Paytm offers a
flexible service.

People prefer
Paytm mainly
because of its
services.

Paytm offers a
safe and a secure
transaction
57

 
58