Gl bajaj institute of

management and research

,greater Noida
(PGDM 2019-21)

MINOR PROJECT
COMPANY- PAYTM

Submitted to-Dr. harsh pratap singh

Submitted by- swati priya

Roll no- Gm19219

Adm no-19192

Sec-C
Paytm is an Indian e-commerce payment system
and digital wallet company, based out of NOIDA
SEZ, India.
CEO: Renu Satti (23 May 2017–)
Founder: Vijay Shekhar Sharma
Founded: 2010
Revenue: 3,314 crores INR (US$480 million,
2018)
Headquarters location: Noida
Parent organization: One97 Communications

Company
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 payme

Background and Funding

Paytm was originally launched in 2010 as prepaid
online mobile recharge website. It can be accessed
from a browser or the Paytm app is available on
mobiles compatible with Android, Windows and iOS
operating systems.
Paytm wallet was launched in 2014. As of November
2016, over 150 million wallets and 75 million
Android-based apps were downloaded of Paytm
wallet, making it Indian’s largest mobile payment
service platform. The credit for the surge in its usage
obviously goes to demonetization of the 1000 and 500
currency notesThe huge success of Paytm attracted
many investors as well. Renowned Indian
Industrialist, Ratan Tata, made the personal
investment in March 2015. Apart from this, Alibaba
Group
history
Paytm was founded in August 2010 with an initial
investment of $2 million by its founder Vijay Shekhar
Sharma in NOIDA, a region adjacent to India's capital
New Delhi. It started off as a prepaid mobile and DTH
recharge platform, and later added data card, postpaid
mobile and landline bill payments in 2013.

Success and Awards

Paytm is enjoying unprecedented success; it has won accolades

across the globe for work in the field of digital payment and e-
commerce developers. Here is a list of awards and recognition
bagged by Paytm in 2017:
1. The Diamond SABRE Award in Company of the Year at SABRE
Awards 2017
2. The Diamond SABRE Award in Superior Achievement In
Reputation Management at SABRE Awards 2017
3. The Gold SABRE Award in Financial Professional Services at
SABRE Awards 2017
4. Vijay Shekhar Sharma was recognized among the 50 Most
Influential Young Indians by GQ
5. Vijay Shekhar Sharma won at Entrepreneur India Awards
2017
6. Vijay Shekhar Sharma was listed in the 2017 Time 100 List of
Most Influential People in the World
7. Vijay Shekhar Sharma was recognized as the Entrepreneur of
the Year at The Entrepreneur’s Moneytech Awards 2017
 8. Vijay Shekhar Sharma was announced Data Quest IT Person
of the Year
9. Vijay Shekhar Sharma won the Forbes Top 40 Under 40
Award
10. The Best Digital Wallet award at the 11th IAMAI India
Digital Summit
11. The Best Consumer Mobile Service award at the 11th IAMAI
India Digital Summit

PAYTM MISSION, VISION &

VALUES

Mission Statement
Platform that leverages our capabilities and value
propositions for our customers, while allowing us
to enhance the effectiveness of our efforts to
expand and consolidate our market position in
the growing and underpenetrated Peruvian
financial system.
Vision Statement
Our goal is to perue digital excellence,increase
earning growth and to perdure cross selling
opportunity.

TECHNICAL ARCHITECTURE OF PAYTM: 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.

WORKING AND TECHNOLOGIES OF PAYTM 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. SCM of paytm
TECHNICAL ARCHITECTURE OF PAYTM: 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.

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.
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.
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

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
revenue.it 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.

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.
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.

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.

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:

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.

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. 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 .

Seller Opportunity In Paytm: SELLER

OPPORTUNITY IN PAYTM A consumer can also sell or do
business with the help of paytm Partner With Paytm:
E-COMMERCE SECURITY & PAYTM 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. 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

Confidentiality: protection against unauthorized

data disclosure Privacy: provision of data control
and disclosure Availability: prevention against data
delays or removal 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. 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.

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.

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.

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 www.PAYTM.com
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.

Paytm’s growth in India as a digital

payment platform
Paytm a digital payment platform was launched in 2010 by
One97 communication. It allows to transfer 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 also jumped into M-
commerce too which allow small business owners to list their
products on its website.

High growth after demonetization

Paytm has focused towards building its brand image more
concrete in the running competition. Recently it has appeared
to be ahead of its rivals mobikwik, freecharge and others. As
per the records, it was found that currently around 177 million
of the users use Paytm in their day to day life and make a total
of 7 million transactions in a day (Joshi 2017). After
demonetization, it has achieved a total of 75 million unique
users per month. Among all users around 40% users belong to
small cities, 67 million population belong to 56 big cities and
the rest from small towns.
After demonetization paytm made it easier to pay with its
digital payment option. There was around 1000% growth in
the money added to its wallet, 300% rise in app download and
a gain of 20 million new users was recorded within 2 months
(BI intelligence 2016

Market reach and future investments

Paytm is planning to disburse small loans to 500 million of
the population by 2020 in its marketplace. It has been also
seen that last year it has captured 26% of all the e-payment
industry. Other major contributors were debit or credit card at
40%, National Electronic Fund Transfer (NEFT) at 25% and
Unified payment interface (UPI) at 9% (Gupta 2016).

Shifu known for consumer behavior prediction platform and Near.in

have been acquired by Paytm in 2016. Whereas, Shifu has been
acquired to enhance consumer experience on its platform (Mishra
2016). On the other hand Near.in has been undertaken to strengthen
up its online to offline platform (Gooptu 2015).

For the coming year it has planned to add some new features and
services, to have around 5 million merchants to make and accept
digital payment in its platform. It is also planning to make the sales
and distribution companies to integrate in .
Major competitor
Flipkart
Paypal
Phone pay
Freecharge
Mobilewik

Strengths in the SWOT analysis of Paytm :

Strengths are defined as what each business does best in its gamut of
operations which can give it an upper hand over its competitors. The
following are the strengths of Paytm:

 First mover advantage: Paytm was the first online payment

company to set up operations in India. Their timing was perfect
since they started operations at around the same time when
smartphones started becoming popular.
 Convenience options: Paytm is an epitome of convenience since
it is operational round the clock and facilitates easy payment or
transfer of funds anytime, anywhere. This makes it increasingly
accepted by an urban population who rely on online shopping for
even daily use items.
 Tie-ups with merchants: Paytm can be used to transact with more
than 3 million merchants across India and the number is said to
be growing every day. This makes Paytm an easy shopping
option for most customers irrespective of their economic
background or education.
 Bucket of services: Most of what one desires to do online can be
done through Paytm.In addition to the Paytm Wallet, today the
brand has online reservation facilities, online retail, and online
 recharge and there is also no need to go through payment
gateways of you are using paytm.
 Offers: Paytm has been able to grab and hold the attention of
customers primarily because of the never-ending offer stream it
has been announcing.these are custom designed with the Indian
mindset in the frame and thus works like magic for zooming
sales.

Weaknesses in the SWOT analysis of Paytm :

Weaknesses are used to refer to areas where the business or the brand
needs improvement. Some of the key weaknesses of Paytm are:

 Need for IT infrastructure: If Paytm functions have to be robust

there has to be good bandwidth and speed. This may be there in
most cities in India but may not the case in remote locations or
even tier 2 towns.
 Lack of awareness amongst users: Most users are unaware of
what Paytm can do for them and confused about how the app
needs to be used. The level of awareness of technology tools and
the inherent fear of making erroneous transactions is making
things worse.
 Fear of going cashless: Most Indians are used to transacting on
cahs and are yet to get used to being used to cashless
transactions. However, with digitization and demonetization,
things are expected to pick up and this will help online wallet
services.
 Poor customer care: One criticism leveled against Paytm is its
poor customer service. The app and the portal cater to a wide
variety of customers whose concerns may be minor.It is alleged
that the call center executives are often rude and unable to handle
many of the queries,
Opportunities in the SWOT analysis of Paytm
Opportunities refer to those avenues in the environment that
surrounds the business on which it can capitalize to increase
its returns. Some of the opportunities include:

 Growing demand for aggregators: Aggregators and

middlemen are in demand everywhere today.With
growing technology usage people prefer to make most
payments from the convenience of their homes.This has
increased the role of payment aggregators in India.
 Demonetisation: One of the services that benefitted
heavily from the Indian government’s demonetization
drive was online payment services and Paytm was one of
the biggest beneficiaries. In a move to digitize the
country, such services will have more opportunities
coming their way.
 The surge in the number of working professionals: The
number of working professionals are increasing profusely.
This means that for most couple’s time is scarce making
them rely more on home delivery services for their
sustenance. When the demand for online shopping
increases there will be a corresponding increase in the
payment portals as well.
Threats in the SWOT analysis of Paytm:
Threats are those factors in the environment which can be
detrimental to the growth of the business. Some of the threats
include:

 Competition: With lowered barriers to entry, every new

entrepreneur is looking at aggregating services. There are
a lot of online portals like pay charge, mobikwik etc and
even telecom service providers like Airtel and Vodafone
are providing online payment gateways.
 Growing concerns about safety: Today there is negative
imagery of information security and tracking of shopping
habits. There is also growing concerns about how safe the
information submitted to payment portals are and the
level to which such portals or payments made through
them are monitored.