INTRODUCTION

Paytm is India’s largest mobile commerce platform. Paytm started by offering

mobile recharge and utility bill payments and today it offers a full marketplace to

consumers on its mobile apps. We have over 100mn registered users. In a short

span of time Paytm has scaled to more than 60 Million orders per month.Paytm is

the consumer brand of India’s leading mobile internet company One97

Communications. One97 investors include Ant Financial (AliPay), SAIF Partners,

Sapphire Venture and Silicon Valley Bank.We strive to maintain an open culture

where everyone is a hands-on contributor and feels comfortable sharing ideas and

opinions. Our team spends hours designing each new feature and obsesses about

the smallest of details. Our approach is simple – to design something we’d LOVE

to use ourselves. Therefore we listen and take the time to understand our users and

take their reactions most seriously.

Making stuff easy and intuitive is not our only goal. In addition to usability, we

strive to create accessibility, convenience and credibility. Simplicity reflects in our

home page design and this mantra has been followed throughout the site and our

apps.

The world is increasingly mobile: people want access from wherever they are,

whenever they need it. At Paytm, you have the option of recharging and shopping
from whenever, anywhere and are equipped with a secure online wallet called

Paytm Cash.

At team Paytm we set high goals and achieve them. And it’s all to provide YOU,

the user, an experience that’s nothing short of awesome!

 SWOT ANALYSIS OF PAYTM

Strengths Data:-

 labor costs data available

 location and geographical data available

 growth rate data available

 profitability and revenue data available

 resources, assets, people data available

 business units data available

 accreditations, qualifications, certifications data available

Opportunities Data:-

 niche target markets data available

 capital data available

 industry or lifestyle trends data available

 global influences data available

 partnerships, agencies, distribution data available

 Threats Data:-

 government regulations data available

 competition and profitability data available

 increasing rates of interest data available

 price changes data available

 legislative effects data available

 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 step they can

avail the facility of paytm chat facility. This screen shot define how a

customer bargain to the seller.

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 loading consumer internet

companies such as uber, bookmyshow, makemytrip.

Founding :- Paytm got a major boost by equity participating by Ratan Tata

in march 2015. Alibaba group recently invested 575$ million after Ant
Financial Services Group, an Alibaba Group affiliate, took 25% stake in

on97 as part of a strategic partnership.

Term and conditions:-

. Institutions can choose one or more mode of payment

. No integration fee

. No fixed cost. Institutions only pay for transactions carried out on paytm

. Paytm released on a T+2 basis

. Service Tax applicable on all commissions

. All payment shall be subject to withholding tax laws

. Transaction history will be provided on weekly basis 24/7 customer

support
 Achivements of Paytm:-

2016 – Paytm is gold winner at the MMA smarties in the mobile app

category.

2015 – Paytm is silver winner at the MMA smarties in the mCommerce

category.

2014 – Paytm wins the best mobile money product at the 4 th India Digital

Awards.

2013 – Paytm wins knowledge Feber Best Mobile Wallet program Award.

2012 – Paytm wins a special mention in m Billionth Awards in

ecommerce/mBusiness category.

2013 – Paytm is Gold Winner at the MMA smarties for E-commerce.

2012 – Paytm is recognized as the Most Innovative startup of the year at the

Enterpreneur India event organized by Franchise India.

 Technical Architecture of Paytm:-

There are three components to this architecture, the Internet, a firewall and

your organization. The Internet is where you will interect electronically with

your customers. Your firewall will provide you with reasonable protection

against people who wish you harm and your organizations systems will

process the business transactions generated on the WWW by your

customers.

Fig;- Technical Archetecture of Paytm

 WORKING AND TECHNOLOGY OF PAYTM

 Paytm - (Pay Through Mobile)

Founder of Paytm :- Mr. Vijay Shekhar Sharma (CEO) .

Founded in 2010 and Headquarters in Noida.

Paytm is india’s largest mobile commerce plateform. Paytm started by offering

mobile recharge and utility bill payments and today it offers a full marketplace

to consumers on its mobile apps. We have over 100mn registered users. In a

short span of time paytm has scaled to more than 60 million order per month.

Paytm is the consumer brand of india’s leading mobile internet company on97

communication. On97 investers include and financial (alipay),SAIF partners,

sapphire venture and silicon valley bank. We strive to maintain an open culture

where everyone is a hands-on contributor and feels comfortable sharing ideas

and opinions. Our team spends hours designing each new future and obsesses

about the smallest of details. Our approach is simple to design something we’d

LOVE to use ourselves. Therefore we listen and take the time to understand our

users and take their reactions most seriously.

Making stuff easy and intuitive is not our goal. In addition to usability, we

strive to create accessibility, convenience and credibility. Simplicity reflects in

our home page design and this mantra has been followed throughout the site

and our apps.

The world is increasingly mobile because people want access from wherever

they need it. At paytm, you have the option of recharging and shopping from

whenever, anywhere and are equipped with a secure online wallet called paytm

cash.

The team of paytm and set high goals and achieve them. And it’s all to provide

YOU, the user, an experience that’s nothing short of awesome!. In simple word

Paytm is the app which continuously help in any payment and it is the method

of online payment and through it’s we can buy any product and any service of

any company.

When PAYTM was launched?

Unfortunately the domain Paytm.com was unavailable, so we registered the

domain paytmonline.com. The first version of our prepaid recharge website was

launched inAugust 2010 with the address www.paytmonline.com. It was a

thrilling feeling for me to see users coming to our site and buying prepaid

recharge from us.

"Payment is one event of a consumer relationship and we can grow this through

the deposits," said Vijay Shekhar Sharma, founder of Paytm.

What is the PAYTM cash?

The All New Paytm Cash Wallet, as you may know, is where your instant re-

usable refunds are parked safely. You can also add money to it for an on-the-go

recharge or bill payment through the Paytm app, phone call or SMS. You can

add money to it too using your credit or debit cards or Net Banking.

 How does Paytm Work :-

Paytm is a mobile e-commerce company which has carved its name within

short span of time. Initially the company provided simple service of mobile

recharge and utility bill payments and today it offers a full marketplace to

consumers on its mobile apps.

Paytm acts as a virtual wallet where you can store money online and and can be

used instead of debit/credit or net banking. However, to transfer the amount to

the wallet, you may need any of them.

Paytm app is best for individuals who find it difficult to make payment of DTH,

mobile recharge, or send money to friends, pay or purchases across various

brands and services like uber, makemytrip, bookmyshow etc.

The reserve bank of india has set a basic monthly limit. Individuals cannot keep

or spend more than rs 10,000 in your wallet in a month. While, anyone looking
to upgrade the limit to rs 1 lakh, you can get the account verified using the

KYC process.

How to use paytm ----- All you have to do is registered & start using it.

1. Registered & verify account

2. Add money to paytm wallet

3. Pay using paytm wallet

The stored money in your virtual wallet on paytm is called as paytm cash. The

cash can be used to make mobile, DTH, data card or smart tag recharge or bill

payments. The paytm cash can be used for all the transactions on all paytm apps

and mobile site as well.

Paytm Transaction - “Transaction” means Person-to-person transfer or

purchase of goods or services at Merchant establishments or equivalent amount

of money-in Paytm Wallet, if goods or services not available. “Person-to-bank

transfer” refers to a facility to transfer funds from a Paytm Wallet to any Bank

Account

Cashless transaction:-

Digital payments and electronic wallet startup Paytm has introduced QR code-

based payments on the Paytm Wallet app. Meant to be used at small stores and
service providers, the feature is part of the company's bid to drive acceptance of

digital payments in the Bareilly through paytm app and done the online

payment.

Paytm says the QR code can be used by the shopkeeper or service provider to

start accepting digital payments, with customers paying via the Paytm Wallet

app - either via wallet balance or a saved card.

In the case of the pre-printed QR codes, Paytm says the only information they

will contain are the Paytm account details of the merchants. After scanning the

QR code of the merchant, the buyer has to enter the payment amount and

approve the payment. The merchant does not need a data connection for the

transaction to complete, and will receive a transaction confirmation through

SMS.

The company adds that merchants will also be able to generate dynamic QR

codes which will contain the amount to be paid as well, in addition to the

merchant's Paytm details. Currently, the Paytm method to make payments at

physical stores generates a one-time password after the customer's mobile

number is received. With the new QR code-based system, Paytm says it hopes

to play host to more merchants.

On the addition of the new capability, Nitin Misra, Vice President - Payment

Products, said, "The existing 10,000 merchants, who enable top-up of Paytm
wallets with cash, will also be encouraged to start accepting QR code-based

payments as many of them are kirana stores. We see high applicability of this

solution with local retailers & service providers like handyman, autos, small

restaurants & kirana stores. The benefits for merchants are freedom from

handling cash, instant payments & much lower operational costs. Customers

can now pay exact amount & don't have to carry cash around. Shortly, we will

also launch a payment merchant application that will give retailers a wider

range of functionality".

 Offers and benefits:-

Paytm offers many exciting coupons that give you great discounts on a wide

range of sites and products. On every, successful recharge, coupons are

delivered on mail Ids. Customers to benefits are the ones who have a promo

code and can avail discounts by entering the code on the payment mode screen.

Paytm online transactions are considered safe as million of users transact on

paytm’s secure payment platform every month.

 Function of paytm:-

1. Mobile Recharge- Vodafone Recharge, Airtel Recharge, Aircel

Recharge, Idea Recharge, BSNL Recharge, Reliance GSM & CDMA,

Tata Docomo Recharge CDMA & GSM etc.

 2. DTH Recharge- Airtel DTH Recharge, Videocon D2H Recharge,

DishTV Recharge, TataSky Recharge, Reliance DTH Recharge, Sun

Direct etc.

3. Data card Recharge- BSNL Data card, Reliance Netconnect, Tata

fothon plus, Tata photos whiz, MTS Data card, MTS Blaze, MTNL

Data card etc.

4. Landing Bill Payment- Airtel Landline Bill Payment Delhi.

5. Data card Bill Payment- Reliance Netconnect Bill Payment, Tata

Photon Bill Payment, Tata photon Whiz Bill Payment etc.

6. Electricity Bill Payment- Reliance energy BSES Rajdhani Dakshin

Gujarat, vitran company limited Madhya Gujarat vij company limited

(PGVCL) Uttar Gujarat vij company limited (UGVCL).

7. Mobile Bill Payment- Airtel Bill Payment, BSNL Bill Payment, Idea

Bill Payment, Vodafone Bill Payment, Tata Docomo GSM, Tata

Docomo CDMA, Reliance CDMA, Reliance GSM Bill Payment.

8. Gas Bill Payment- Mahanagar Gas Bill Payments.

 Why is the KYC is important to a businessman:-

The KYC(Know Your Customer) refers to the wallet limits of money which

make a payment and this very important to a businessman and through the

KYC form and its related all clear and truth information like- Name,
address, mobile number, Aadhar number, registered number city and many

more and old wallet limit. In persent time the craze of online payment and

this is done by the paytm and KYC (Know Your Customer). It help to

increase the wallet limit of paytm transactions and money and it help to

make the small and big payment . the steps of KYC is following :-

1. Name of the user

2. Mobile number registered

3. E-mail Id registered

4. Present business details of the user

5. Business type

6. Wallet details

7. Identity details

8. Address details

9. Signature etc.
Note- Provide these all clear information to paytm branch merchants increase

the paytm wallet demand easily.

 what is the paytm payments and how is it different from the usual

payment gateways in the industry.?

it is a normal PG (payment Gateway there seems to be Mobile Support, it’s

like Aircel money.

1. Number of company but banks can give you a payment gateway in India.

Everyone else has written router based on best logic to route for success and

protecting frauds. Paytm payments is incredibility good in this much less

issue of timeout or redireds and so-on.

2. PCI certificate https page to take credit/debit card details is made and hosted

by paytm.

3. Mobile support has capabilities and support to accept payments on mobile

sites in an app, IVRand even SMS.

4. Reconciliation and support Boutique feel, every PG customer gets 24*7

monitoring of their business process and fall phone call and e-mail supports.

5. Airtel money is a mobile wallet where you can store money and transactions

it. Its cash is also the same and so are few more wallets. We support them so

this is aggregated support of mobile payments method.

6. Real differentiators truth is that above is MPV and we think it should be

taken as granted in industry.

 Terms And Conditions Of Paytm:-

1. Eligibility:- the services are not available to person under the age of is or to

anyone previously suspended or removed from the services by Paytm. By

accepting these term and conditions or by otherwise using the services or the

site. You represent that you are at least 18 years of age and have not been

previously suspended or removed from the services.

2. Paytm Recharge:- we are a reseller only, Paytm does not provide mobile

services and is only a reseller of prepaid mobile services by

telecommunications services providers or the providers of such as prepaid

recharge only.

3. Bills Payments:- In order to use the service you may need to obtain access

to the World Wide Web, either directly or through devices that access Web-

based contents and pay any service fees associated with such access. In

addition you must have all equipment neccessory to make such connection

to the world wide web including a computer and modem or other access

device.

4. Bus Tickets:- Paytm is only a bus ticket agent, it does not operate bus

services of its own. Paytm’s advice to customers is to choose bus operators

they are aware of and whose services they are comfortable with them.
5. Coupon Redemption:- Coupon Redmption is purely subjected to standard

and specified terms and conditions mentioned by the respective retailer.

Note :- Any damage injuries, losses incurred by the end user by using the coupon is

not the responsibility of Paytm. Total cash back for a user cannot be more than 50%

of his payments.

6. Communication Policy:- By accepting the term and conditions the

customers accepts that paytm may send the alerts to the mobile phone

number provided by the customers while the registering for the service or to

any such number replaced and informed by the customer. The customer

acknowledges that the alerts will be received only if the mobile fone “on” if

mobile fone is “off” then not.

 Governing Law and Forum for Disputes:-

Except as otherwise agreed by the parties or as described in the Arbitration

section above, you agree that any claim or dispute you may have against

paytm must be resolved by a court located in New Delhi, India. You agree to

submit to the personal jurisdiction of the courts located within New Delhi,

India for the purpose of litigating all such claims or disputes. This agreement

shall be governed by the laws of 20301 India.

1. Severability:- if any previous of this agreement is held to be unlawful, void,

invalid or otherwise unenforceable, then that provision will be limited or

 eliminated from this agreement to the minimum extend required, and the

remain valid and enforceable.

2. Assignment:- This Agreement, and any rights granted hereunder, may not

be transferred or assigned by you without our prior written consent which

may be withheld in our sole discretion, but may be assigned by us without

restriction. Any assignment attempted to be made in violation of this

provision shall be void and of no effect.

3. Survival:- Upon termination of this Agreement, any provision which, by its

nature or express term should survive, will survive such termination or

expiration applied to transfers and relationship prior to such termination or

expiration.

4. Heading:- the heading references herein are for convenience purposes only,

do not constitute a part of these terms and conditions, and will not be

deemed to limit or affect any of the provisions hereof.

5. Entire Agreement:- This is the entire agreement between you and Paytm

relating to the subject matter hereof and will not be modified except in

writing, signed by both parties, or by a change to entire team work.

 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.

Fig;- Supply chain management of Paytm

 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.

 Server Hardware:-

A merchant should think carefully when making a decision on the Web

server computer. The decision depends on the 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

mange 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

laege, 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 show 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.

 Benchmarking Web server Hardware and Software:-

A benchmark test considers several factors such as:-

 The computer hardware

 The Web server software

 Network connection: A Web server on a T3 connection can deliver Web

pages to clients much faster than it could on a TI connection.

 Throughput : It is the number of HTTP requests that a particular hardware

and software combination can process in a unit of time.

 Response time : It is the amount of time that a server requires to process one

request.

 Type of Web page : A server that delivers mostly static Web pages will

perform better than the same server that delivers dynamic Web pages. A

dynamic page is a Web page whose content is shaped by a program in

response to user request ( such as a database query ), versus a static page,

which is just a plain HTML page.

 Web Server Software Feature Sets :-

All Web server software provides some basic features which can be classified

as :-

Core capabilities

Site management

Application construction

Electronic commerce

 Core Capabilities :-

IP-Sharing or virtual server

Logical file

Security

FTP

Site Analysis

Searching

 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 Dovelopement :-

Application development includes Web editors and extensions to produce Web

pages either static or dynamic, these include HTML, editors such as front page

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

page.

 Electronic Commerce:-

Some Web server 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

cart, and credit card processing.

 Registration Process For Merchants In Paytm Website :-

Paytm provide market place for merchants, this is a registration process for

merchants to register themselves in paytm website. They provide simple

registration for merchants to sign up in the site, the mandatory fill up are show

red star (*) they must fill up by merchants. The form process is very simple you

fill up are some necessary things like- name, email-id , mobile number, city,

business name, category (business), business address. And all completion you

press the submit button and after you can business in the paytm website, this is

a activity of paytm to earn their revenue through the merchants.

Fig-2:- After completion this process paytm offer to merchants choose the

subscription plan this is the way paytm earn the revenue from the merchants,

through the subscription model. This is the part of subscription model of paytm.
  Overview: How merchants Sell Their products Through Paytm site:-

The screenshot shows the seller name, product description that is filled by the

seller, product image, and the price of the product that all this filled are set by

the seller. If the buyer buy this product from the site so seller paid commission

to paytm on every sell.

Fig-3 ; This is the activity the paytm can revenue from the seller as a commission

when seller products are sokl in this site. This is the best strategy for paytm to earn

their revenue part.

  The Subscription Charges From The Merchants:-

This is the annually subscription plan they charge by paytm from their seller. They

divided their subscription charges into four category :-

Silver plan

Gold plan

Platinum plan

Budget (zero setup plan)

This plan have own their benefits, highest plan platinum plan give more benefits to

seller to sell their product in site. In other hand silver plan give less benefits as

comparative to platinum or gold plan. This all the plan are change by the seller one

time in the annually.

Fig;- The subscription charges of paytm management.

The paytm charge also additional charges through the seller like- annual

maintinance charge (ADM) that is 2500 annually, and 12.38% charges if its

applicable. It’s a part of paytm subscription model to generate their revenue.

In this strategy paytm give the more opportunity (plan) to its merchant and give the

different benefits to the seller.

Top Merchants They Use Paytm Wallet :-

This all are merchants with paytm wallet, this merchants are contribute revenue for

to provide paytm wallet facility to buyer. This is also the way the paytm earn the

revenue from the buyers. All this are big e-business site they are done huze

transaction daily. This merchants avail the facility paytm wallet which is

provided by paytm. The famous merchants in the paytm are – dominos,

jabong.com, book my show, ebay, uber, and haldiram.

Fig;- top merchants of paytm wallet.
 REVENUE MODEL OF PAYTM

Paytm earn their through the market place model. They work on market place

model and they believe 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.

Note :- That’s believe also purely marketing strategy, they get earning 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

cash back. So they attract more visitors as well as get more sponsors, ultimately

making them profitable, it’s most profitable strategy of paytm.

 Fig-1 : Screen shot of paytm market place : they give the opportunity to sell their product

on paytm Web site.

They are some model they are adopted by the paytm to generate their revenue they

model are shown below-

ADVERTISING REVENUE MODEL

SUBSCRIPTION REVENUE MODEL

ADVANCE PAYMENT MODEL

COMMISION REVENUE MODEL

TRANSACTION REVENUE MODEL

Fig;- Revenue Model Adopted By Paytm.

  Advertising Revenue Model :-

In this model paytm allow to merchants shows their advertisement on paytm

websites and charges some amount for this advertisement, this is the way the

paytm used to generate their revenue. This method for generate revenue are

covered under the advertising revenue model.

This model is more beneficial for paytm to generate their revenue, the charges

are charger by them they advertised their product on paytm site.

The yippee noodles show their advertisement on the paytm site and that paid

some money to paytm. This is a way paytm generate the revenue from the

advertisement revenue ,model.

Fig-6; it’s a screen shot shows how yippee noodles show their advertisement on paytm site.
 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 chargea 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.
The table shows that what charges paytm charges when the buyer are

transact through paytm wallet.

Nature of transactions Charges

Loading money in to wallet Nil

Purchase at merchant site Nil

Wallet to wallet transfer Nil

Wallet to bank transfer 4%

If you loading your money into the wallet, paytm charges nothing amount in

this transaction. If you purchase any product at merchant site the paytm also

charge nothingin this transaction.

If you transfer the money in to one wallet to other person wallet, on this

transaction paytm also not charges any amount, but if you transfer the money

from paytm wallet to bank paytm charge 4% of the amount that you are transfer

into bank, this is the transaction revenue model of paytm.

 Advance Paytm Revenue Model:-

In this model paytm received the interest on the payment of customer until they

are not transfer the money into seller account. When the paytm received amount

from the customer they are not instantly transfer on seller account. They hold

the amount and gain and the interest on this amount. Through this process

paytm generate their revenue from the advance payment revenue model.

This model is very beneficial for paytm to generate the revenue this all process

is also called escrow account process.

 Commission Revenue Model:-

In this model Paytm commission from the seller for their listed product in

paytm Website. And they charge commission on every sale on the site of paytm

from the seller. This commission is totally based on the sell of the product if

buyer buy the product from the paytm site so paytm charge the commission

from the seller for each sell in their website. Through this process paytm

generate their revenue. The commission based model are also beneficial for

generate the revenue. The commission based model are also trend in ever e-

business site, paytm also adopt this revenue model to generate their

revenue.
 They Are Some Other Activity The Paytm Earn The Revenue:-

 Paytm escrow:- through escrow account paytm received interest, when

buyer payment to their purchase that amount hold by paytm until customer

not confirm it, if customer not confirm in next 7 days paytm expect buyer

satisfied with the product and they transfer the money to seller account.

 paytm earn by advertising other product on website.

 Paytm charges annual subscription fees to the seller who list their product 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 service like- Uber,

makemytrip, bookmyshow, & many more.

 Why people attract toward paytm:-

Easy Accessible:-

The paytm side easy to accessible they are much easy as computer 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 problems.

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 facility of

paytm 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 Paytm:-

Paytm uses many trusted software for their security purpose they used many

security application they provided best security when any transactionare

done, they uses 256 bit of encryption for their security purpose.

Fig:- This are the application and software of paytm use for security purpose

RBI Approved Degital Wallet:-

Their digital wallet are approved 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

Gateway in India).

 You can also Rs 1 lakh plus money transfer (follow the KY

 C (know your customer) rule and regulation) otherwise its RS 10,000.

Seller Opportunity In Paytm:- A seller can sell and buy the product and

make a payment through online and through paytm and paytm also helped of

seller and buyer to buy and sell a product and payment and this very

important opportunity have on the seller and buyer.

Fig;- A consumer can also sell or do business with the help of paytm.

Partner With Paytm:-

A seller can be a partner of Paytm if the seller foolow the Paytm rules and

regulations and which is define in the rules of paytm and this is very

important to a seller which want to make a partner of paytm then the

important things is that follow the all rules and regulations and then he can

make a partnership with paytm.

 E-COMMERCE SECURITY & PAYTM

 What is E-Commerce Security:-

Computer security refers to the technology and managerial procedures applied

to computer system to ensure the availability, integrity, and confidentiality of

information managed by the computer system against unauthorized, 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 program to cause destruction and breach privacy. Security expert

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 unauthorized access.

It involves the measures and controls that ensure confidentiality, integrity, and

availability of the information, processed and stored by a computer. These three

aspect are responsible for effective computer security.

With an increasing amount of people getting connected network, 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 in to

network 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 notification

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 like- 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 DDosS 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 can replicate without being

executive by a user or program like virus.

 Unwanted Programmes Installed Without User’s Informed :-\

Browser parasites :- can monitor and change setting 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. And 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 “pharing” redirecting a web link to another IP address different from

the real one threatens integrity (steal business from true site, or alter orders

and and send to true site), and authenticity (difficult to distinguish between

true and fake web address) carried out by hacking local DNS service.

Denial-of-service (DOS) Attack :- Hackers flood web site with useless

traffic to inundate and over whelm network. Use of bot networks built from

hundreds of compromised workstations.

Distributed Denial Of Service (Ddos) Attack :- Hackers use multiple

computers to attack target network from numerous launch points Microsoft

and yahoo have experienced such attacks.

 Fig:- Denial of Service

Hacking :- hackers are those individual who intends to gain unauthorized

access to computer system. Where as crackers are those Hackers with

criminal intent types of hackers:-

 White hats- hired by comporate to find weakness in the firm’s computer

system.

 Black hats- hackers with intention of cousing harm.

 Gray hats- hackers breaking in and revealing system flaws without

disrupting site or attempting to profit from their finds.

Cybervandalism:- Intentionally disrupting, defacing, destroying web site.

Data Breach:- When organizations lose control over corporate information

to outsiders.
 Credit Card Fraud :- Fear of stolen credit card information deters online

purchases,

 US’s federal law limits liability of individuals to $50 for a stolen credit card.

 Hackers target credit card files and other customer information files on

merchant server use stolen data to establish credit false identity.

 Online companies at higher risk than offline due to difficulty of guaranteeing

true identity of customers.

 E-Sign law giving digital signatures same authority as hand-written ones

applies only to large corporations, but not to B2C e-commerce.

Spoofing (Pharming):- Misrepresenting oneself by using fake e-mail

addresses or masquerading as someone else, spoofing a web site is called

“pharming” redirecting a web link to another IP address different from the

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

false web address) carried out by hacking local DNS servers.

Spam (Junk) web site :- collection of advertisement for other sites, some of

which containing maliciuse code. Appears on search results, hiding their

identities by using domain names similar to legitimate ones, and redirecting

traffic to spammer domains.

 Other Security Threats:-

Sniffing:- Eavesdropping program that monitors information traveling over

a network.

Insider Jobs:- Single largest financial threat.

Poorly Designed Server And Client Software:- Do to increase in

complexity and size of OS, application software, and browsers.

Social Network Security:- Social engineering attacks tempting visitors to

FB pages to click on “bad-behavior” links.

Mobile Plateform Threats:- Same risk as any internet device malware,

botnets, vishing/mishing.
 A procedure that recognizes reduces or eliminates a threats:-

Intellectual Property Protection

 Legislature

 Authentication

 Security Infrastructure:-

The security infrastructure is the implementation of the security police. The

security infrastructure is the technology which is chosen to secure the e-

business and the rules by which it operates. Some example of this include.

Enforcing password aging and expiration.

Enforcing the complexity of password.

Blocking prohibited outbound connections from the firewall.

Requiring digital certificates to authenticate.

Remote access connections to an organization’s network

 Client Computer Protection:-

Digital Certificates and Public Key Infrastructure( PKI):-

Still missing a way to verify identity of web sites. We can do this by using

digital document issued by a trusted third party called certificate authority

(CA).

Digital Certificate Includes:-

 Name of subject company

 Subject’s public key

 Digital certificate serial number

 Expiration date, issuance date

 Digital signature of CA

Public Key Infrastructure (PKI):-

CAs and digital certificate procedures that are accepted by all parties is good

privacy (PGP)-a widely used e-mail public key encryption software [go to

pgpi.org to download it].

 Fig;- Digital Certificates And Certification Authorities

Browser protection :-

Browser security is the application of internet security to web browsers in

order to protect networked data and computer systems from breaches of

privacy or malware. Security exploits of browsers often use javaScript –

sometimes with cross-site scriping (XSS) sometimes with a secondary

payload using Adobe Flash. Security exploits can also take advantage of

vulnerabilities (security holes) that are commonly exploits in all browsers

(including Monzilla firefox, Google Chrome, Opera, Microsoft internet

Explorer, and Safari).

 Anti-virus software:-

It is the Easiest and least expensive way to prevent threats to system

integrity. What it requires is daily updates.

 Communication Channel Protection:-

Encryption:-Transforms plain text data into cipher text readable only by

sender and receiver. Their purpose is to secures stored information and

information transmission. It provides 4 of 6 key dimensions of e-commerce

security:-

 Massage integrity- Assurance that massage has not been altered.

 Non-repudiation- prevents user from denying sending the massage.

 Authentication – verification of identity of person (computer) sending the

massage.

 Confidentiality –assurance that massage was not read by.

Secure Sockets Layer (SSL):- Establishes a secure, negotiated client-server

session in which URL of requested document, along with contents is

encrypted Designed to establish a secure connection between two

computers.
Virtual Private Network:- Allows remote user to securely access internal

network via the internet, using point-to-point.

Fig;-Secure Negotiated Sessions Using SSL.

Digital signature :-

Digital signature refers to the 4ligitized image of paper signature used to

verify the authenticity of document. In other words, digital signature play the

role of physical signature in verifying electronic documents. A signature is

not part of the substance of a transaction, but is a representation.

Fig:-digital signature

It is a mathematical technique used to validate the authenticity and integrity

of a massage, software or digital document.

Firewall:-

It is a network security system that controls the incoming and outgoing

network traffic based on an applied rule set. A firewall establishes a barrier

between a trusted, secure internal network and another network that is

assumed not to be secure and trusted. Firewall exist both as software to run

on general purpose hardware appliance. Many hardware- based firewall also

after other functionality to the internal network they protect, such as acting

as a DHCP server for that network.

Fig:-Firewall diagram.

Proxy Servers (Proxies):-

Software servers that handle all communications originating from or being

sent to the Internet. Initially for limiting access of internal clients to external

Internal servers can be used to restrict access to certain types of sites, such

as porno, auction, or stock-trading sites, or to cache frequently-accessed

Web pages to reduce download times.

 Fig;- Firewall and Proxy Servers

 Porter’s five forces:-

Porter five forces analysis is a framework to analyze level of competition

within an industry and business strategy development. It draws upon industrial

organization (IO) economics to derive five forces that determine the

competitive intensity and therefore attractiveness of an industry. Named after

Michael E, porter, this model identifies analyzes 5 competitive forces that shape

every industries, and help determine an industry’s weaknesses and strengths.

1. Bargaining power of suppliers

2. Bargaining power of customers (buyers)

3. Intensity of competitive rivalry

4. Threat of substitute products or services

5. Threat of new entrants

Fig:- PORTER’S FIVE FORES FOR ONLINE RETAILER “PAYTM”

Bargaining Power Of Suppliers:-

The bargaining power of suppliers is also described as the market of inputs.

Suppliers are the manufacturers of finished products. For any products there

are many suppliers online, so they can’t show power on online retail

companies. For example, if you take computer category, there are many

suppliers like HP, Apple, Lenevo, and Toshiba everyone wants to sell their

products through online retails like paytm, selling online saves a lot of

money for the manufacturers, and as many people now a days prefer

purchasing products through online stores, companies cannot afford to lose

this channel so in this industry the supplier power is low.

Bargaining Power Of Customers:-

The bargaining power of customers is also described as the market of

outputs. Buyers in this industry are customers who purchase product online.

Since this industry is flooded with so many players, buyers are having lot of

option to choose. With many competitor’s like amazon.com, Snapdeal,

Flipkart,shopclues, etc. customers get a wide range of choices. Customer

would prefer the one who would provide goods at reasonable price, deliver it

fast and provide them with other benefits like, COD, EMI facilities, others

offers etc. here buyers have more power.

Intensity Of Competitive Rivalry:-

For most industries the intensity of competitive rivalry is the major

determinants of the competitiveness of the industry. Competition is very

high in this industry with so many players like homeshop18,snapdeal,

Amazon, etc. many competitors means more choices for the customer to

choose from this also increase the cost incurred by the company to stay in

the customers mind that is on promotions and advertisements etc. giving the

customers better deals, making customers experience delightful and

continuous innovation can help a company to stay at top even with tons of

competitors around.
Security Awareness And Policies:-

A need for security awareness and training is required to implement

computer security in an organization. The main purpose behind security

awareness is to enhance security by improving awareness of the need to

protect system resources, developing skills, and knowledge so that computer

users can perform their jobs more securely and build knowledge needed to

design, implement, or operate security programs for organizations and

system. A security policy is a formal statement of the rules for people who

are given access to an organization’s technology and information assets. To

retain the value and genuineness of the policy, it must include these

components: computer technology purchasing guidelines, privacy policy

access policy accountability policy authentication policy, information

technology system and network maintenance policy and violations reporting

policies.
 security policy, procedures, and practices:-

A security policy Is A Formal statement Of The Rules:-

 High level description of the technical environment of the site the

legal environment (governing Laws), the authority of the policy.

 Risk analysis identifying the site’s assets, the threats existing against

those assets and the costs of assets loss.

 Guidelines for reacting to a site compromise ( whether to trace the

intruder or shutdown and rebuild the system).

Security-Related procedure:-

 Procedures address such topics as connecting to the site’s system from home

or while traveling, retrieving programs from the network, using encryption,

authentication for issuing accounts, configuration, and monitoring.

Security practices:-

 Implement a one-time password system. Ensure that all accounts have a

password and these passwords are difficult to guess.

 Use strong cryptographic techniques to ensure the integrity of system

software on a regular basis.

 Keep the systems current with upgrades and patches.

 Audit systems and networks, and regularly check logs for detecting an

intrusion.
 How to minimize security threats:-

Making Your Business Less Of A Target- consider what needs to be on

public or shared systems and where possible, remove sensitive business

information.

Increasing The Perception Of Your Business As Secure- ensure that all

aspects of security appear to be installed and well managed.

Ensuring That Warning Signs- on your website are clearly displayed to

any user who attempts to access secure parts of it.

Not Providing Any Publicity Available Information- regarding the security

systems or operating systems in use.

Making Certain That Your Employees Are Well-trained- in proper email

and internet usage, that is not opening unfamiliar attachment or clicking on

suspicious links.
 Techniques Used For Security:-

Server Security:- use firewall and proxy servers.

Massage Privacy (or confidentiality):- assure that the communication

between trading parties are not revealed to other, therefore unauthorized

party can not read or understand the massage.

Massage Integrity:- assure that the communication between trading parties

are not alerted by an enemy.

Authentication:- the term “authentication” determines the user of the

computer is actually who he/she claims the term “authentication of the

receiver”, allows the sender to be sure that the party he/she intend to get the

massage is the one who is receives it.

Authorization:- Ensure that the trading party has the authority of

transaction. And to carry on the payments through from the paytm online

and its its authorization is very important to make a payment . and

authorization refers to the trading party which has the authority of to make a

transaction or not .
Fig;-the hole security goes within for e-commerce site like paytm.
 ELECTRONIC PAYMENT SYSTEM

Electronic payment system refers to the payment which done through

mobile, laptops, computers, and tablets, and most impotents is internet and

these is possible by many mobile apps which is related from the payments.

And in present time the online payment is very important to save the time

and save the money and these all things are possible through lots of machine

and lots of payments apps.The electronic payment system provide the all

facility to sellers and buyers make the payments through online and save

their times in a some time called Electronic Payment System.

Fig;- The Electronic System Of Paytm.
Internet Banking:- Banking through bank official websites. User ID &

Password is most 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 through mode as e-Gift voucher.

Immediate Payment Service (IMPS):- 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-disit 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.

What is Itzcash Cash Card?

Itzcash is now the leading cash card provider and a holistic payments

solution company.
 Features of ItzGift Cash Card:-

Itzcash cash cards have a good number of features that make them a good

option for cashless transactions. Some of them include;-

 Secured transactions:- cash cards involve secure procedures that make the

transactions reliable and heavily secured. It is hard to make a transaction

without the card.

 Quick processing:- cash cards function similar to an ATM machine that can

transact money with a single swipe on the machine.

 Added discounts:- many brands tie up with cash card companies to come

up with exclusive limited offers on products. These apply to only cash card

users and no one else.

 Convenient and hassle free gift option:- A corporate cash card can be

used as a gifting option for employees during gifting occasions. itzGift cards

from ItzCash carry the flag for a cashless gift card.

How to do Recharge on Paytm?

We need to do a recharge through paytm the most important is your

registered no and then first we login the paytm id which is your registered

number and then follow these step:-

 Login to Paytm.com

 Enter your mobile number in the desired box.

 Select proceed to recharge.

 Select the payment option.

And after follows these above all steps we done the recharge.
 PAYTM LAUNCHES NEW E-COMMERCE PLATFORM

'PAYTM MALL'

After seeing an unmatchable success with its mobile wallet, Paytm is now

expanding its reach in the e-commerce segment. While the Paytm app itself offered

a bunch of booking, buying and renting facilities, the company has now launched a

dedicated app and website, Paytm Mall, for the online marketplace business.

Presently, the app is only available on Android, but is expected to be launched on

iOS soon.
Paytm Mall has over 1.4 million sellers on board for the platform, across categories

like fashion, electronics, consumer durables and home furnishings among others.

Also, reassuring quality standards, Paytm claims that only trusted sellers passing

strict quality guidelines and qualification criteria will be allowed on the ‘Mall’. All

products listed on the mall will also go through Paytm certified warehouse and

shipping channels ensuring guaranteed consumer trust.

Additionally, with Paytm Mall, the company aims to offer a unique combination of

the Mall and Bazaar concepts to Indian consumers. Basically, Paytm Mall will

focus on structured categories and brand authorised stores. It will also be focusing

on electronics, top fashion brands and FMCG categories, while another section

under Paytm Mall called Paytm ‘Bazaar’ will focus on fashion, home furnishing

and goods from small sellers.

Although, when you look at the Paytm Mall app, at least right now, it looks like a

replica of the Paytm app, just without the wallet access. Now you would assume

that considering the Paytm Payments Bank are soon awaiting a rollout, and just in

time for that the Paytm Mall app has been launched, it would sort of make sense to

have separate apps for payments and e-commerce. However, a Paytm

representative confirmed that the Paytm app would continue to offer the buying,

booking and renting service, while the similar service would be available on the

Paytm Mall app too. ALSO READ: Paytm registers transactions worth Rs

5,000 crore in January, 2017

Essentially, you could shop from the Paytm app and use the wallet right there, or

you could use the shopping portal as a standalone app. For payment, it eventually

asks you to login to Paytm, though it does give you options to make payments via

debit card, credit card or netbanking.

“Through Paytm Mall, our aim is to offer consumers the most trusted shopping

experience. We have defined quality criteria for sellers and are building strict

controls over warehousing and shipping for products sold on Paytm Mall.

Consumers would continue to get the largest assortment of domestic and

international products through Paytm Bazaar, which will also be featured on the

new app,” said, Saurabh Vashishtha, the Vice President of Paytm.

Besides the Paytm Mall, a an upgraded version of the simple and intuitive Paytm

Seller app is also scheduled to launch, which would be available in seven regional

languages and would allow anyone with a smartphone to set up an online shop on

Paytm Mall. ALSO READ: Paytm could soon overtake card transactions in

the country: Vijay Shekhar Sharma

Paytm’s focus on the e-commerce segment comes amid its plans to roll out its

payments bank. Vijay Shekhar Sharma had said that the company will be

launching the payments bank by this week. “We want to expand this to deposits
and current accounts. I think 2017 will be the year for us to expand into banking.

We have to build distribution, reach and customer base,” Sharma had said. The

company will most probably separate the e-commerce business from its main app,

which will make the transition to the payments bank.

 IN LINE WITH ALIBABA’S TMALL, PAYTM LAUNCHES E-

COMMERCE ARM PAYTM MALL

At a time when e-commerce market leader Flipkart is about to raise more than $1 billion and

rival Snapdeal has had to fire half its workforce to stay in the game, a churn at the top in India’s

online shopping space seems certain. While US-based online marketplace Amazon is growing

stronger by the day, e-commerce giant Alibaba has made its first major move in the Indian

market with Paytm, in which it holds a majority stake, announcing the launch of the Paytm Mall

app on Android.

Paytm founder Vijay Shekhar Sharma

Paytm, essentially a mobile wallet-focused company, recently had to separate its e-commerce

arm following new government regulations. The e-commerce arm now claims to have more than

1,40,000 sellers and 68 million SKUs. Like most horizontal marketplaces, Paytm Mall also sells

mobiles, electronics, fashion, groceries, etc.

Paytm Mall will offer consumers combined features of the mall and bazaar concepts. According

to a press release, only trusted sellers passing strict quality and eligibility criteria will be allowed

on the 'mall'. All products listed on the mall will also go through Paytm-certified warehouse and

shipping channels.

Speaking at the launch, Saurabh Vashishtha, Vice President, Paytm, said, “In our journey to

become the preferred e-commerce platform for Indians, the launch of the Paytm Mall app is an

important step as it connects consumers with trusted sellers.”

Curiously, the name Paytm Mall itself is strikingly similar to Paytm’s godfather Alibaba’s B2C

e-commerce arm, Tmall, which holds more than 50 percent share of online retail in China.
 PAYTM MALL READY TO BATTLE

Paytm, which is set to take the battle to the other e-commerce biggies, already has 17 fulfilment

centres and 40 courier partners across India. Paytm Mall’s iOS app is expected to be launched

soon. According to the statement from the company, Paytm Mall will also launch an upgraded

version of the Paytm Seller app in seven regional languages.

Paytm hit the jackpot following the government’s demonetisation move in November 2016. Now

it is in the process of building a payments bank system. Recent media reports suggest that Paytm

E-commerce is trying to raise $200 million at a valuation of $1 billion. China-based Alibaba

owns about 40 percent in it.

 CONCLUSION

 Paytm for Android is available for free on Google Play store

 In a nutshell, it is one useful app that can really come in “handy for customers”

and is definitely worth a try.

 Most importantly, it's very easy to use.

 Paytm saves customer’s time on going to separate websites for separate payments.
 RECOMMENDATIONS AND CONCLUSION

Future Prospects on Paytm

The report of the United Nations Conference on Trade and Development

(UNCTAD) on Paytm and Development makes the point that although world

economic growth has slowed, and in spite of the difficulties in which the

information technology and telecommunications sectors are mired, the rapid

growth of internet use and electronic commerce continues. Estimates show that

internet use is increasing by around 30 per cent annually, and although the rate of

growth of transactions through the internet is much slower, paytm could represent

up to 18 per cent of worldwide business-to-business (B2B) and retail transactions

in 2006. Segments such as B2B have shown rapid growth.

And in certain sectors, such as finance, travel services, software, information and

other e-services, online transactions have been growing at a much faster pace. For

instance, in the developed countries, online banking already represents between 5

and 10 per cent of total retail banking transactions. Much of the growth has

occurred in Asia.

The Report classifies India as a rising star in this regard, pointing out

that India’s IT services exports have almost doubled in two years and now account

for more than 16 percent of total exports and 8 per cent of all foreign exchange
earnings. Given the extraordinary growth rates of e-services exports, the latter

figure is expected to reach 30

per cent by 2008. Policy measures to support exporters of e-services should focus

on increasing market access in eservices for exporters from the developing

countries, as well as addressing domestic obstacles related to technology,

payments, infrastructure (telecommunications) and standards

.But the overall message of the Report is a very positive one despite

the current slowdown, the internet and online services are poised to grow, and

India will be one of the main

Beneficiaries. The paytm is one of the biggest things that has taken the business by

a storm. It is creating an entire new economy, which has a huge potential and is

fundamentally changing the way businesses are done. It has advantages for both

buyers as well as sellers and this win-win situation is at the core of its phenomenal

rise. Though there are some weak links, with improvements in technology, they

will be ironed out, making the paytm easy, convenient and secure. The paytm is

certainly here to stay.

Recommendations

The most important factor that is necessary in growing eCommerce in India –

Trust. If we look at the Indian context, I feel that there is a general lack of trust

between retailers and customers. Consumers don’t trust the retailers because they

feel that they are either being over charged or that they wouldn’t be able to get

appropriate level of customer service once the sale is complete. Retailers don’t

trust the customers because they feel that the customers will take every opportunity

to misuse the return or exchange policies. It is my opinion that this general lack of

trust is the primary barrier that is impeding the growth of eCommerce within India.

Here are some of the practical techniques that online retailers can employ to

improve this level of trust and build an environment where customers feel safe in

clicking that “Proceed to Checkout” button.

Customer Reviews

Today’s customers are putting less trust on website marketing messages and

becoming more influenced by recommendations from other people. Customer’s

trust for an online retailer will increase if the retailer offers an ability to let

customers share their positive as well as negative reviews about products or

vendors. The key is to not “moderate” the negative reviews because by allowing
customers to post negative reviews, it will actually enhance the credibility of the

retailer as well as other reviews. Obviously, any foul language needs to be

moderated but any genuine issues with the products or vendors must be posted

along with the positive reviews.

2. Clear shipping and delivery commitment

At the time of setting up products for sale, clear shipping and handling time must

be associated with the product. This information should be displayed consistently

on all product pages so that customer’s expectations around shipping timeline can

be clearly set.

Analytics & Personalization

Although personalized product recommendations and content do not directly

increase customer’s trust, they do demonstrate to the customer that the online

retailer is making a good effort in understanding the customer’s individual needs

and is acting upon them. This implicitly improves the comfort level that the retailer

is not just looking to sell products but is making an honest attempt in building

relationship with the customer.

Operational Reporting & Dashboards

Online retailers must invest in strong operational reports that provide alerts and

metrics on orders that have a risk of missing the service level that was promised to

the customers. If you have recently implemented an eCommerce platform, chances

are that at times orders will get” stuck” in various states. Therefore, it is important

to establish thresholds around how long should orders stay in various states (such

as “Processing for Payment”, “Preparing for Shipment” etc.) and then build

automated alerts when orders exceed these thresholds.

Vendor Penalties

In the Indian context, majority of the eCommerce sites work in a “drop-ship”

model. This implies that the online retailer doesn’t physically stock the goods, and

instead relies on external vendors to directly ship the merchandise to customer’s

home. In this case, it is extremely critical to set clear SLA’s on how long will it

take the vendors to ship the orders. There should be financial penalties built into

the contracts if the vendors miss the service levels. Also, there should be penalties

if the vendors receive excessive negative reviews from customers.

Price Match Guarantee

A Price Match Guarantee (PMG) is a store policy which entitles a customer to a

refund of the difference between the store’s asking price and a competitor’s price.

It can not only help build trust with the customer, it can also help reduce price

competition across online retailers. This may sound counter intuitive but it is one

of the most discussed examples in “Game Theory” and it has actually helped

retailers in US to avoid direct price wars. Take for example a firm like Circuit City

that has a price match guarantee, which looks good to a consumer. But that

guarantee really allows Circuit City to charge higher prices since competitors will

be discouraged from setting a lower price that Circuit City only will match when it

must.

Well trained call centre

I recently called Airtel customer service to add Blackberry service to my cell

phone. There was an issue with their automated messaging system that was

directing me to a wrong group within Airtel. After calling 9 times, I gave up

because every agent that I spoke to had the same scripted response that I should

call back again and press option 2. The point I am making is that although it is

important to train the call centre agents around specific customer service issues,

what is even more important is that the call centre agents be trained to have good
problem solving skills, and they should be empowered to own the problem

resolution from end to end.

8. Fraud Protection

Not only should an online retailer ensure that the appropriate security certificates

are setup to handle checkout related transactions, the sensitive customer and

payment information should be stored in an encrypted format. The messaging on

the site should clearly indicate that the checkout process is completely secure. In

addition, there are third party Fraud detection services available that help flag

potentially fraudulent transaction based upon credit card usage velocity and other

parameters. These services would not only help reduce the credit card charge-

backs for the retailers, but will also improve the sense of security and trust with

customers.

Proactive, timely communication

Are we there yet? If you have gone on a long drive with kids, chances are that you

have been asked this question. It is human nature to expect timely communication,

especially when they are waiting for something that they have already paid for.

The retailers should ensure that every single status update on the order generates an

alert for the customer. Also, if the order waits in a specific state for a timeframe

longer than what was promised to the customer, an Email should be automatically
sent to the customers to make them aware of the delay. If the delay is longer than a

few days, customer should be contacted via phone and asked for approval for the

delay or given an option to cancel the order.

Charge only after order shipment

Customers feel much more comfortable if they know that they will only get

charged once the order ships. Currently, a lot of retailers charge the customer’s

credit card immediately when customer places the order. However, they should

consider authorizing the amount at the time of order and only charge the card once

the order ships. This will also minimize any need to refund the amount back to the

customer in case the order needs to be cancelled for any reason.

elf Service Capabilities

The more online self service capabilities (e.g. order cancellation, modifications)

retailers can provide to the customers, it will not only help reduce the call centre

expense, but will also build more confidence with the customers. Customers will

feel more in control because they wouldn’t have to spend 10 minutes with a call

centre agent to explain the issue – instead, they can directly resolve the issue

online.
Real time inventory updates & safety stock

Retailers must invest in building automated capabilities that keep an up to date

record of how much inventory is available for all their products. Products must

immediately become unavailable for purchase from the site as soon as the

inventory reaches below the safety stock. Canceling customer orders due to lack of

inventory is a situation that all retailers must avoid because this not only frustrates

the customers, it drops their confidence in the retailer’s ability to keep their

promise. Paytm will see a significant growth in India. However, the chasm

between the early adopters of eCommerce and the ones who are waiting can only

be crossed by building a strong level of trust with our customers – and winning

them, one customer at a time.

Summarizing: Size of B2C and C2C Paytm Market in India

The total market size of B2C and C2C Paytm industry in India is around Rs.

7080crores at the end of 2006-07. It is expected to rise to Rs. 9210 crores by the

end of 2007-08.Following is the break up for B2C and C2C ECommerce Industry

in India for the year 2006-07 and 2007-08:

The Online Travel Industry has been driving the growth in the B2C Paytm

industry, owing to entry of low-cost airlines and increase in online bookings for

railways and hotels. With an increase in mobile subscribers across the country, the

digital downloads segment is expected to be one of the main contributors to the

Online Non-Travel Industry in future.

The Future of Paytm

Paytm is the future of shopping.

Thus, is would be apt to quote “The future is here. It’s just not widely

distributed yet”-William Gibson The Internet economy will continue to grow

robustly; Internet users would buy more product and buy more frequently online ;

both new and established companies will reap profits online; and…
• Safer Online Payment Systems: As the Internet becomes a safer place to

transact, the amount spent by the Internet Users online is bound to increase. Those

apprehensive of divulging their credit card and bank details would be active online

shoppers. The Internet users are expected to buy high-end products like

automobile, property, home durables online.

• Customization of content and offerings: As the internet users mature, the

demand for customization will increase. The content would adopt the regional

flavors. More niches will be formed, seeking for offerings made for them and

content that meets their requirements.

• More number of shoppers from Non-Metros: Currently, following the spread

of users coming from Metros and Non-Metros.

By the end of year 2007-08, the contribution from the Non-Metros is expected to

increase. This change would be bought by higher penetration of Internet in the

small towns and limited reach of physical distribution channels of the established

sellers to these towns. These factors coupled with higher disposable income would

compel the Internet users in these towns to buy online.

• Expanding User Base: Going at the current rate of growth in the Internet users

transacting online, the user base for Paytm is expected to rise expand

exponentially. A large portion of the Internet population is under the age of 35

years and is increasingly moving northwards as far as the purchasing power is

concerned. The uncanny nature of this segment” to use now and pay later” is going

to play an important part in the future growth of Way of doing things will gain

precedence.

• M Commerce: Currently Paytm is synonymous with PC and browser-based

interaction. However, in the near future GPRS-enabled mobile phones will rule the

online transactions. Today, online downloads to mobile phones is limited to low

value services like music downloads, picture message downloads and ring tone

downloads. However, as the mobile users get more familiar with buying online, the

purchase of high-involvement products is expected to rise. Certain verticals like

Banking and Finance, Travel, Entertainment, and Retail are likely to drive the

growth of m-Commerce in the country. In the recent past, Paytm and it variants

like the m-Commerce have yearned for the position of being the most important

drivers of the Internet. They are continuously evolving and upgrading to make a

consumer’s e-Spending experience hassle free and memorable. However, to attain

that position, it needs to awaken its inner beauty – simplicity and security of

transaction.
Paytm Solutions India

With the growth of paytm over the past few years, the number of e-business

solution providers in the industry has also grown drastically, especially in India.

Paytm can be compared to a 24/7 open shop or a showroom catering to its clients

and buyers. Therefore, a lot of maintenance has to go into it. This is where the

paytm solution providers step in, take things in their hands, spend time and further

enhance your business. Conducting business online may sound very easy as you

avoid a lot of unwanted hassles but a lot of skills and innovation is required to keep

it going. Paytm involves doing market research, getting qualified traffic,

converting hits to business advantages and using information to generate new

paytm from existing clients. Paytm solution providers in India with their in-depth

research and skills will provide you with tactics and strategies to make your

business profitable. The first step for them would ideally be to understand your

business and requirements. A research will follow to find out the predicted market

potential, the best keywords and phrases, competition for keywords, search engine

relevancy etc.

The next step for an e-business service provider would be to find a way

to get the visitor on your website to take steps to benefit your business. This is

done by understanding the psyche of the visitor and creating an automated website,

attractive and user-friendly for the visitor. Efficient paytm solution providers will
definitely opt for internet marketing to get more visitors to visit your website.

Launching a monthly newsletter for your customers is also a good idea. You can

send them updates about the new and the latest that has been added to the portfolio

of products on your website. The launch of your website if required is also taken

care of by the paytm service providers. Site-management and promotion is also

very important. The content, images and the layout of a website has to be

continuously improved and worked upon keeping up to date with the market.

Overall, your website should be designed to attract the first time visitors.

The usability and utility factor should also be kept in mind. This will bring them

back to your website whenever they plan to buy anything.

The web of paytm solution providers in India is vast. They offer a host

of paytm solution and consulting services to support guide and help you at each

step. Outsourcing paytm solutions will help you save time and resources while you

can focus on other important business objectives. Some paytm solution providers

also offer BPO services which can be used for telemarketing and cross-selling to

maximize profits. Paytm solutions are a big support for businesses today. The

demands and the expectations of the end-users are high and so is the level of

competition in the industry. Paytm solution providers help you streamline your

process and cover all the gaps that might have gone unseen.
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