Project/Report submission

Cover page of report should contain following information, in the order as mentioned

Project Title: GROUP PROJECT

Comparative Study of Paytm with Phonepe & Bharatpe

Course: PGCHRM-32

Name of the faculty: Dr. Ashis K Pani

Subject: Digital Transformation

Details: Group 10

Name Roll No.

Priyanka Kedar More TH21091

Neharika Dawar

Paru

Nithin

Ritu Agnihotri

BRIEF INTRODUCTION:
ABSTRACT: Two words that come to almost every Indian’s mind while Shopping, Post
demonetization, are “Paytm karo.” Paytm has brought a paradigm shift in the retail industry
by completely transforming the payment methodology. Initially, this online wallet cum e-
commerce website was used to make payments for limited utilities like mobile and DTH
recharge and shopping bills. Over the years, this portal has expanded its scope and has
brought about anything and everything under the ambit of its operations. Customers now
can recharge their metro card, pay bills for utilities like electricity and water, transfer funds
to other bank accounts, book flight/train/bus tickets, make hotel reservations, etc. Now the
latest Paytm Success Story is ever expanding with the addition of e-retail and m-commerce
stores. This gives the option to small vendors to list their products on the website and allows
them to expand their customer base. Keywords: Pay tm, Digital Payment, Digital Wallets, E-
Commerce.
INTRODUCTION: One97 Communications Ltd established “Pay through Mobile” which is
popularly known as PayTM in August 2010 as a prepaid mobile recharge website. Vijay
Shekhar Sharma is the CEO of PayTM. PayTM was launched as a mobile recharge website
but today it is India’s leader in e-commerce. . It allows transferring money into its integrated
wallet by debit card, credit card and net banking. This wallet can be further used to make
payments for recharge, bill payments and shopping (Unicorn 2016). In the last 6 years, it has
evolved over and has become the first choice of the users among all the existing payment
platforms in India. It started by allowing the recharges for mobile phones, but soon it started
providing payment options for other utilities such as metro card, Direct To Home (DTH),
data cards, electricity and water bills, flight and bus tickets. Additionally, it gives advantage
of buying goods from its e-retail platform. After capturing the e-commerce market it has
jumped into M-commerce too which allow small business owners to list their products on its
website. The PayTM mobile wallet was launched in the year [Link] are various other
payment platforms like PayTM but PayTM has managed to dominate the market with its
high security features, it is highly secured because it is approved wallet by Reserve Bank of
India.

LITERATURE:

The marketers and digital businesses will use mobile wallets to engage with the customer.
Irrespective of the market status of these mobile wallets, marketers should take advantage
of the emerging opportunities. FE Bureau (2017) states that According to the RBI:
Demonetization has increased the growth of Paytm&Mobikwik, which is known as the
Digital payment companies. Vijay Shekhar Sharma. (Paytm founder) Oct 23, 2018 China’s
Alibaba and Japan’s Softbank-backed Paytm Mall is stepping up focus on categories like
grocery and fashion, which can increase repeat customer transactions as it looks to compete
with Walmart-backed Flipkart and Amazon India, which control over 80% of the online retail
market. Paytm Mall wants to differentiate itself, with online to offline (O2O) push to deliver
50% of the orders in 24 hours from 33% right now, Kiran Vasireddy, COO – Paytm,
December 12, 2018said, and “Paytm has become the preferred payment choice amongst
customers for in-store payments in India. Today, Paytm is accepted at the largest variety of
stores ranging from large brand outlets to online platforms as well as small retailers across
India. With ‘Paytm Cashback Days’, we celebrate our customers choosing Paytm as their
preferred mode for payments at offline or online merchants by rewarding them with the
best deals & cashback of the year. This will be a significant part of our efforts to push the
adoption of mobile payments in the country & also help our Merchant partners
significantly.”

COMPARATIVE STUDY BETWEEN Paytm v/s PhonePe v/s Bharatpe :

PhonePe is an Indian digital payments and financial

technology company head quartered
in Bengaluru, Karnataka, India. Flipkart owned PhonePe
launched India’s First app. PhonePe UPI app is a payment system that allows money transfer
between any two bank accounts via smartphone. PhonePe works on the Unified Payment
Interface system and all you need is to feed in your bank account details and create a UPI ID.
Using PhonePe, users can send and receive money, recharge mobile, DTH, data cards, make
utility payments, pay at shops, invest in tax saving funds, liquid Funds, buy
insurance, mutual funds, gold, and silver. In addition, PhonePe also allows users to book
their Ola rides, pay for Redbus tickets, book flights and hotels on Goibibo through the Switch
platform.
PhonePe is accepted as a payment option at over 2.5 crore offline and online merchant
outlets across 15,700 towns and villages. The app crossed 10 crore user mark in June 2018
and crossed 500 crore transactions in December 2019. It currently has over 35 crore
registered users with over 15 crore monthly active users.

Key Drivers

 Convenience to pay
 Ever-growing smartphone penetration
 Rise of non-banking payment solutions
 Progressively regulatory policies
 Increasing consumer readiness to the digital payment platform
 Helps businesses go cashless
 Enable fast, simple and secure online
Business Model:

Basic analysis of components of PhonePe’s business model:

Commissions *Sustainability
Customer
Phonepe received from strategy : Focus
facilitates Market theRevenue
transactions
Value *Business : Growth
on speed Model
and
online Segments Model
done and convenience
Proposition
transactions Retail outlets, services
which are online shopping provided, *Aim : To
secure and fast platforms hence create
in compared to dependant on platforms for
*Individuals
traditional no. of SME's to have
methods transactions digital
made footprints

Hyperlocal strategy to boost stickiness

PhonePe is relying on a hyperlocal strategy with an aim to not just increase its offline
transaction volume, but also to keep its users engaged. To achieve this, it is aggressively
going after categories and stores with higher payment value, including lifestyle and
consumer electronics. The company is also planning to release its CRM solution, ‘PhonePe
for Business’ app, which will allow offline merchants to get a digital view of their earnings
and also add additional services like credit and insurance in the future which is another
reason why the company is focussed on the offline retail sector. “Recently, PhonePe made
an announcement that its offline merchant base in India has crossed the one million mark.
This is six months after the company started doubling down on the sector. The company has
employed nearly 4000 people as its feet-on-street team to manage its offline expansion and
plans to double this headcount by the end of three months. At present PhonePe’s offline,
merchants are concentrated in metro cities including Bengaluru, Mumbai and New Delhi

Strategies to become profitable

The current revenue generation model of PhonePe is based on Commissions. The digital
payment system is expanding exponentially with more number of people preferring digital
payment systems over traditional methods. In addition, there is high customer loyalty in this
ecosystem. Hence, the focus of the Digital wallets is currently on gaining market share
through which they can collect the consumer data to analyse the buying behaviour and
patterns of their customers.

PhonePe can adopt the following strategies to generate profits:

Business services – Phonepe can collaborate with businesses to provide them a platform for
hassle less transactions. PhonePe should develop an ecosystem for business services where
they can earn commissions from the transactions performed. PhonePe should target SME’s
for partnership and bring them aboard. PhonePe can also create a premium segment where
they can also include additional services like paying on credit to premium customers and
charge premium for registration and additional interest for the credit provided.

Partnerships with retail chains – PhonePe should collaborate with retail outlet chains.
Credit card and debit cards are the most used non-traditional mode of payments. With the
rise of digital wallets, consumers are more inclined towards using digital payment systems
than credit/debit cards. PhonePe should use this to its advantage by collaborating with
multi-brand retail outlets, which will boost its revenue.

PhonePe can also collaborate with other websites that provide services like travel, leisure,
ecommerce etc., For example, they can collaborate with ticket booking service providers like
Ixigo where a majority of transactions is done through credit/debit cards. This will enable
PhonePe to generate revenue by replacing the dominant methods of transactions.

PhonePe should also look into emerging technologies like NFC payments through POS
machines. Though this technology are still in nascent stage in India, they are dominantly
used in developed countries. In a matter of years, these will also be adopted in India. NFC’s
provide even faster payment transfer compared to QR code that is currently used. This can
provide a competitive edge to Phonepe in future if they start investing in this technology.
The fintech start-ups, launched in March 2018 by Ashneer Grover and Shashvat Nakrani,
offers a product portfolio to help merchants accept digital payments through
interoperable QR codes that promote the infrastructure for government-backed UPI
payments. Throughout the process, BharatPe has also integrated technology – from loan
requisition, KYC, and risk calculation, to loan disbursement. It also provides products to
address merchants’ other financial needs, such as insurance and bill payments. The startup
asserts to have managed to reach more than four million companies with its QR codes as of
August 2020. BharatPe had more than two lakh merchants in August 2018, with 5 million
merchants on the platform as of now 
Bhavik Koladiya is the Group Head of Product and Technology at BharatPe; he says that
there were neither investors nor technicians when the team first created the BharatPe app.
The team used tools such as IFTTT, Google Sheets, and Twilio and depended solely on the
BHIM app’s payments. They only started to believe that the product would work after they
began out and added 100 vendors. The startup delivered new features and updates daily in
the first year and a half and continuously got merchants’ responses. To offer vendors an
easy and seamless experience, the team also updated the app.

 In 2020, the company launched a new product, Digital Gold, which allows the users
to transact for 24-carat gold containing 99.5% purity
  In August 2020, it introduced BharatSwipe, India’s first zero-fee point-of-sale (POS)
machine that required only an upfront payment
 The company, which provides shopkeepers and merchants with digital payment
solutions, entered the lending business and distributed around 140 crore rupees
until the lockdown period started in the third week of March. Grover said there was
no growth in loans during the lockdown period as only 20 percent of the shop
owners under BharatPe’s fold were available. The need for capital investments, such
as stockpiling for inventory and rental payments, is expected to grow in the future,
he added. BharatPe then announced two additional features, Paisa Bolega and
BharatPe Balance, for the merchants on its app.
Shopkeepers would recognize aloud-instant confirmation of all payments made through
their BharatPe QR with Paisa Bolega without having to touch the phone. This minimizes the
merchant’s need to check his phone constantly to see if the money came in, adding that no
specialized software will need to be acquired. Through deposits, loans, and daily collections
through QR, BharatPe Balance will provide information about the total money available to
the shopkeeper. The company saw business per merchant go up substantially during the
lockdown, as both customers and shopkeepers prefer contactless QR payments, BharatPe 

The payment app is the start-up progress of individuals who aim to smoothen the e-pay
game even better. BharatPe is the name. BharatPe has seen tremendous growth, and their
success is what many admire.
BharatPe is a start-ups in financial technology that offers merchants a one-stop solution for
collecting UPI payments through multiple payment apps in India. Once they sign up for this
simple, quick response code, merchants can instantly start receiving payments to their bank
accounts instantly through For UPI apps like free charge, True Caller, Google Pay,
Paytm, Mobikwik. So on, BharatPe makes the payment system simple. This utility app is
implemented to monitor settlements and transactions, collect UPI QR Code payments,
accumulate regular cashback, and control and evaluate sales. In India, BharatPe is aiming to
reach one crore plus offline merchants.
Some of the benefits that BharatPe offers are almost like a dream. BharatPedoes do not ask
for any setup fees or any transaction fees. After the payment has been made from the
customer side, the amount immediately is deposited into the vendor’s bank accounts
without any hassle of fees or lag. The setup of a BharatPe account is very easy and
affordable, and is so secure. Unlike physical copies of payment cards, BharatPe offers e-
cards that do not expire, so you can use the same card for a lifetime unless you want to
change it. It offers the fastest payment experience even under server issues; it takes care of
any transactions that have failed in the process. Bharat is truly revolutionizing the payment
game in India. 

BharatPe has developed an artificial intelligence (A.I.)-based algorithm that picks up various
signals—the kind of transactions a shopkeeper does, their usage of other products on the
platform, etc.—which gives them an insight into the business’s cash flow. This is then
analysed in tandem with the merchant’s loan history and credit score to make a loan offer.
For a willing shopkeeper, the fintech firm’s NBFC partner processes the loan and credits the
merchant’s account in a few days. All digital, hassle-free, and, perhaps most importantly for
the shopkeeper, collateral-free.
BharatPe issued this statement –
“We compete with the top five companies in the world by cash reserves: Walmart backed
PhonePe; Alibaba-backed Paytm; Facebookbacked WhatsApp Pay; Amazon-backed Amazon
Pay; and Google-backed Google Pay. You can’t win by capital; you can only win by
innovation, proposition, execution on the ground, and servicing of the merchant”.
There are 5 key technologies that has been in the focal point of discussion by fintech are
“B.A.S.I.C” where B is stands for blockchain, A is AI, S is security, I is IoT and C is for cloud.

 AI will deliver new kinds of value – Pervasive Impact

  Artificial intelligence is a suite of technologies, enabled by adaptive predictive power
and exhibiting some degree of autonomous learning, that dramatically advance our
ability to:
• Recognize and detect pattern
• Anticipate and forecast future events
• Create rule to optimize outcome
• Make good decisions by apply rules
• Communicate with other people thru digital or analog mediums.

In fact, many applications of AI-driven technology use a combination of these abilities. AI is

enabling financial institutions of every kind to drive new efficiencies and deliver new kinds
of value as range from ‘Doing the same thing, better’ to ‘doing something radically different’

 Blockchain will disrupt established financial protocols

 Technologies such as smart contracts, zero- knowledge proof, and distributed data
storage and exchange, which are key to existing fintech innovations such as digital
wallets, digital assets, decentralized finance (DeFi), and non-fungible tokens (NFT),
will continue to play a prominent role.
 Cloud computing will liberate financial services players. Development of the edge
cloud is accelerating as 5G communication drives new interactions and synergy
across the internet of things (IoT), cloud computing, AI and other technologies in
areas like new retail, healthcare, industrial parks, smart cities, and industrial IoT.
 Open source, SaaS and serverless will lower barriers to entry
DATA INTERPETATION & FINDINGS:
 
 
   

BharthPe Paytm Phonepe

Description Platforms Supported Platforms Supported Platforms Supported
Windows      
Mac      
Linux      
SaaS    
iPhone   
iPad   
Android   
Businesses and Organizations of all Anyone who wants
companies searching sizes a mobile payments
for a business app that allows you
Audience
application to accept to transfer money
and process with a mobile
payments number
Customer Support      
Business Hours   
24/7 Live Support     
Online    
Pricing Free Version Free Version Free Version
Company Informatio Founded:2018 India Founded:2010 India Founded: 2015
n India
BharatBills Amazon Pay Mobile Payment
Solutions
PhonePe Cashfree Verse
Alternatives Generix Smart 5paisa QFPay
Financial Suite
Payfast India Adyen Samsung Pay
HUD LITE PayPal EziPay
Categories      
Payment Processing
  
B2B Payment    
Payment Gateways   
Mobile Payment    
Integrations      
Accesstype     
Accom Click     
AxisRooms     
Browntape     
[Link]    
G-data     
Google Pay     
PhonePe     
RECOMMENDATIONS:

1. User Experience - Information Architecture needs improvement 

Paytm tries to help us with many options and features, you name any payment or
reservations, PAYTM  has it. Because of too many distinct options, information
overloaded on the landing page, and it is challenging to find when we look for something.
There is a significant opportunity to improve the Information Architecture; it should be easy
to use for a returning customer and a new customer.

2. Order Info – Use PULL system instead of PUSH method

After successful completion of any transactions – ticket booking or shopping, where to find
the order info. Once one booked bus tickets no clue where to find tickets, and one needs
had to search online to check where to find order info, but Paytm does not provide:

1. Confirmation message
2. Order information was not updated
3. Money deductions are not in the passbook

There is no customer care phone number, which is handy for a user to ring, and then there
should be other options to retrieve the information what the user needs.

If you are unable to push to customer mobile and preload, then give an option to search and
download what customer needs - PULL system.

3. Paytm Mall - Better Search Indexing is required

 Paytm mall is not looking for profitability, as customer service is the motive. There is plenty
of product lines added and tried to display right on the landing page itself. Are they serving
the customer need? Or trying to push as many as products to the customer. If it was just
"Shopping Mall" then it was okay to add all products information right in front of the app.
When the user filters, it does not happen the way we expect. Price is being just par with
Amazon or Flipkart or more.
4. Localize More
Paytm is trying to be very close to the individual, and help them support their daily
household payments, utility bills, prepaid recharges and quick cash transactions. is it
customized for the local use?
It is good if supports multi-language and customizes the payments.

Many global companies are giving more importance to the local communities and design the
app based on customer need; even they have advertisement targeting the smallest target
persona group.
CONCLUSION:

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 public as it centres 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 public. Paytm is the best case of an organization, which used online business,
advertise better.

REFERENCES:
1. BI intelligence, 2016. Paytm wants 5 million digital merchants – Business Insider. Business
insider.
2. Gooptu, B., 2015. Paytm acquires [Link] to strengthen its presence in online-to-offline
space. The economics Times.
3. Gupta, H., 2016. Digital payments see robust growth in 2016. The Financial Express.
4. IndiaStack, 2016. how paytm is using Aadhaar ekyc to upgrade. IndiaStack.
5. Joshi, A., 2017. Paytm Records 1 Billion Transactions & 147M Wallet Users in 2016! [Link].
8. Mishra, D., 2016. Paytm acquires Shifu in a deal worth $8 million. Et Tech.
6. paytm, 2016. Know more about your Wallet: Security Features, Various Fees, Refunds.
paytm.