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G A U R A N G I S I N K A R P T 11
M I T H I L J O L I YA Q A 1 4
G A U R AV I R A U T Q A 0 8
H I M A N S H U Z A D E Q A 1 3
SUCCESS STORY OF PAYTM- THE
OR DREAM ?
• Venture – www.indiasite.net
• Living media – www.indiadecides.com
• XS corporation
• Intersolutions India Pvt Ltd
Established in 2001.
Inspired by BSNL enquiry no 197.
3 months efforts – telecom directory
Cofounder left him
Approached Airtel – VAS as Live Astrology
Suffered loss of 11 lacs 2001-2002
• Smartphones becoming popular
• Experimenting with 3 basis internet content,
• Big eureka moment in 2010
• Piched the idea of entering payment ecosystem
in front of his board
• Launch of Paytm– online recharge portal
• Paytm – PAY THROUGH MOBILE
HOW IT STARTED..
RATAN TATA backs
Funding from Alipay
8TH NOVEMBER 2016 - DEMONETIZATION
Paytm Karo – goes viral
WITHIN 5 DAYS…
• Launched Paytm Nearby
• Introduced Paytm.com/business, and a new
Merchant Hotline where they could give a
missed call or drop a WhatsApp message.
• Made the Paytm Android app available in 10
• Hindi ,Tamil ,Telugu ,Gujarati ,Marathi ,Benjali
,Kannada ,Malayalum ,Oriya ,Punjabi
WHAT MAKES PAYTM STAND OUT ?
• Services offered by Paytm – everyone has a
distinctive taste of his own & Paytm offers what
consumers exactly needs.
• Buy & sell via Paytm.
• Larger number of parties onboard.
• Deeper penetration to lower rungs of buisness.
• Easy money transfer
ATTRACTING NEW USERS
Paytm offers – 1st time user
Tempts a person – to create a account
“Provide Meaningful Access for mobile eco-system”
“ To be the most trusted mobile commerce brand in the
PAYTM WALLET WHATS THAT ?
“ A secure digital wallets that lets you manage
your money , recharges, paybills, shop on Paytm
,send money to friends & pay for various brands
&services like Uber, Make my trip < Book my
Show and many more”
WHAT’S UP WITH BRAND NAME & LOGO?
Brand name : suggestive - of benefit
Liquid Design has been working as
communications design partner with Paytm for
more than 4 years
2014 – Paytm app is a finalist at the international
Meffys in consumer Trust category
2014 –Paytm is GoldWinner at the MMA Smarties
in the mobile App category
2014 –Paytm is SilverWiner at the MMA Smarties
in the mCommerce category
2014 –Paytm gets recognized among Delhi/NCR’s
Top 50 Brands at a celebration By Paulwriter
2014 –Paytm wins the Best Mobile Money Product
at the 4th India digital Awards
2013- Paytm Wins Knowledge Faber Best Mobile
Wallet Program awards
2013- Paytm Wins a special mention in mBillionth
Awards in mCommerce / mBusiness category
2012- Paytm is recognised as the Most Innovative
Startup of the Year
2011- Vijay Shekhar Sharma Won ‘Mobile
Entrepreneur of the Year – WAT Awards
2011- ‘Best VAS Innovative Product’ for One97’s Product
TalkMe – ET Telecom Awards
2011- Finalist in mBillionth award South Asia:
Recognised as the Top 6 Companies –Voice & Data’s
2010- ‘Company of the Year ‘by ETNow , IndiaMart
Leades of Tommorow
2009- Ranked 10th Fastest Growing Technology
Company in Indian –Deloitte Technology Fast 50 India
2009- ‘Emergency Company of the Year’ – Voice & Data’s
Telecom Awards 2009
• PayPal is one of the world's largest Internet
• Established in 1998 California-based PayPal,
founded by Silicon Valley bigwigs such as Elon
Musk and Peter Thiel
• PayPal Holdings, Inc. is a company operating a
worldwide online payments system that
supports online money transfers and serves as
an electronic alternative to traditional paper
methods like checks and money orders
• The company operates as a payment processor
for online vendors, auction sites and other
commercial users, for which it charges a fee
• The Californian-based company, PayPal, has explicitly
accused Paytm of using a logo that was "deceptively
and confusingly similar" to its own
• In addition, the notice given by PayPal states that
Paytm has slavishly adopted the two-tone blue color
scheme of the trademarked PayPal logo
• PayPal also mentioned that it has been using its
trademark logo across several countries since 1999
and is registered in all countries where it operates,
• Paytm, established in 2010, has also adopted a similar
strategy to the redesign of its logo, something that
PayPal has said amounts to taking advantage of its
• So within such grounds, PayPal has asked authorities
to refuse the trademark application as the logo can
The first syllable in each mark is in dark blue
colour and second syllable is in light blue
colour. Further both marks begin with PAY’
which consumers tend to remember more
than the second syllable, and the marks
are of similar length. These similarities
cause likelihood of confusion in the
aggregate, specially considering the fame
of the opponent’s (PayPal) earlier trade
PAYTM’S CHINESE OWNERSHIP
• This criticism over ownership, circulated widely
through instant messaging apps, sought to pick up
on sentiment of banning Chinese products.
• Swadeshi Jagran Manch (SJM), which has been
running a relentless campaign against the inflow of
Chinese goods and investments in India for some
time, has said it will now “study” the relationship
between Paytm and Chinese online retailing giant
• SJM, which has been relentlessly campaigning
against Chinese goods and investments in India,
said it wants to ensure that the “data shared by
Indians is safe”
• Paytm founder and chief executive Vijay Shekhar
Sharma has asserted that his company is "as
Indian as Maruti" and prides itself on being a
representative of the "India story".
• The once-government controlled Maruti is now
majority owned by Japanese carmaker Suzuki
Motor Corp with a 56.21 per cent stake as its sole
• Chinese e-commerce giant Alibaba pumped in
$680 million and acquired 40 percent ownership of
Paytm’s parent company One97 Communications
in the year 2015.
• After the government
announced the demonetisation
decision on November 8,
Paytm issued an
advertisement welcoming the
move as it boosted use of e-
wallets likes the one it markets
• Paytm was served with
notices by the government
for using PrimeMinister Nare
ndra Modi’s photograph in
• The Ministry of Consumer
Affairs, Food and Public
distribution has asked the
company whether they had
taken prior permission before
using the photograph.
CRITICISM FROM POLITICS
• West Bengal CM Mamata Banerjee had said,
“India’s prime minister has become a salesman
for a company(Paytm).
• Congress vice-president Rahul Gandhi referred
to Paytm— the payment gateway has seen a
huge growth in numbers since the November 8
announcement — as “Pay to Modi”. “That is the
idea behind a cashless economy. That a few
people should get maximum benefit from every
transaction. That is what is going on
WHATSAPP MESSAGE ABOUT TO STOP WORKING
FROM JANUARY 15 IS A HOAX
The message spreading states
that if you have money in your
Paytm wallet, you should either
use it or get it transferred to
your bank account before
January 15, or else forfeit it.
The hoax message also claims
since Paytm is converting into a
bank post January 15, you will
not be able to transact with your
Paytm wallet money.
Paytm MAKES THE MOST OF
DEMONETISATION, IS ON ITS WAY TO
PROCESS RS 24,000CR IN TRANSACTIONS
• Digital mobile payments company Paytm on announced
that it had touched a record five million transactions a day
while being on the way to process over Rs 24,000 crores.
• Within hours of Prime Minister making the
announcement, the company witnessed a sharp 200
percent hike in the number of app downloads and a 250
percent surge in the number of overall transactions and
KIRAN VASIREDDY, SENIOR VICE PRESIDENT
• Owing to the overwhelming response from consumers and
merchants alike, we have set bolder targets in merchant
acquisition, and are aiming to target five million merchants
by the end of the financial year.
• Since November 8, user base gone up from 15 crore and we
are now 17.2 crore.
• Currently, close to 8,50,000 offline merchants across
India accept Paytm including merchant segments
involving taxis, autos, petrol pumps, grocery shops,
restaurants, coffee shops, multiplexes, parking,
pharmacies, hospitals, kirana shops, amongst others
The hoax message claims that
since Paytm is converting into a
payments bank post January 15,
users will not be able to transact
with their Paytm wallet money, it
HERE’S WHAT WILL HAPPEN TO YOUR
PAYTM WALLET AS IT MERGES WITH ITS
"This is just a transfer of ownership of wallet to a new
company called Paytm Payments Bank Ltd. Once we
launch the bank, you will be given an option to open a
separate bank account with us.“
"Your money is absolutely safe in the Paytm Wallet. It is
always yours and you will never lose it. If you have
any balance in your current Paytm Wallet, it will
reflect in your new Paytm Payments Bank Wallet."
HOW WILL VIJAY SHEKHAR SHARMA’S
PAYMENTS BANK REALLY MAKE MONEY?
• It was reported that the Paytm founder has sold one percent of his shares
in One97 Communications for approximately Rs 325 crore. The funds will
be utilised for Paytm’s payments bank operations.
• Although the timeline for the launch of the payments bank remains a
• 1.First was the change in Paytm’s technology plans. The company was
planning to build its infrastructure internally but changed track midway.
The infrastructure and backend technology will now be powered by Infosys’
digital banking solution, EdgeVerve Finacle.
• 2.The second was that VSS was sourcing for capital. Last month, it was
reported that, along with One97 Communications, he had invested Rs 220
crore in Paytm Payments Bank (as of November 24, 2016). VSS confirmed
to Mint about having invested Rs 112 crore.
• It also announced leveraging the power of Unified Payments
Interface (UPI), which will allow Paytm Payments Bank’s
customers to add money to their Paytm wallets through any UPI-
enabled app and transfer money to any bank account from their
existing bank account through Paytm’s UPI interface.
• Uptake on UPI will not be much of a problem for Paytm either, as it
has already gathered a set base of users who transact digitally. This
is in contrast to its competitors, who are still struggling to get users
to transact digitally, let alone on their platforms.
• This essentially means that Paytm could become a marketplace (or
a third party) of sorts, providing (or deploying) wealth
management and insurance services, among other financial
products, to its customers. However, until the RBI eases up on its
regulations for payments banks, Paytm’s cross-selling will have to
be in partnership with certain banks and their products.
• Lovkesh Kapoor, Head of Investment Banking at Client
Associates, a private banking and wealth management
• Last year, Paytm suffered a huge loss on the whole. This
loss can be divided into its e-commerce and payments
business as a whole. And we know that e-commerce as
business is a capital extensive business. So, now we may
see some restructuring happening, as they hive off their e-
commerce business from their payments business. But
once their payments bank gets activated soon, there might
be light at the end of the tunnel in terms of revenues they
earn from cross-selling.
ALIBABA LIKELY TO ENTER INDIAN MARKET
SOON WITH FRESH FUNDING OF RS 1,700
CRORE TO PAYTM
• Alibaba, world's largest ecommerce company, is leading an
investment round of between Rs 1,350 crore and Rs 1,700 crore in
the online retail marketplace of Paytm.
• "The Alipay-Alibaba combine will now own over 50 per cent in the
unit," Economic Times quoting an unnamed source reported.
• For Alibaba, entering the Indian market will mark an expansion of
its global footprint and offer a chance to grab a slice of one of the
world's most attractive markets for online retail, which is estimated
to be worth $14-16 billion at the end of 2016, up from about $11
billion in 2015
PAYTM VANISHES FROM THE APPLE APP STORE
• latest instance of cracking under pressure has come in the
form of a mysterious disappearance from the Apple App
Store. Paytm clarified through a blog post that they delisted
their iPhone and iPad apps on Apple’s App Store voluntarily
after users encountered various bugs and technical issues
on the current version of their app.
• “we found a bug in our iOS App where certain app users
were not able to pay, thereby hanging their app. Soon, the
system logged them out, preventing them from further
accessing their account. We are sending an app update to
Apple immediately and requesting them to approve the
same as soon as possible. Once live, we request our users
to update their iOS app."
First: bank costs
Second: heavy advertising costs for customer acquisition
Third: not so profitable merchant business
Fourth: security concerns of customers
Fifth: poor mobile/internet connectivity issues.
TO BOOST DIGITAL TRANSACTION, NITI AAYOG
INTRODUCES DAILY, WEEKLY AND MEGA AWARDS
SCHEMES FOR USERS
• There will be 7,000 weekly prizes for consumers with a
maximum prize of Rs 1 lakh each. Other awards will be of Rs
10,000 and Rs 5,000.
• Under Digi-Dhan Vyapar Yojana, there will be 7,000 weekly
awards with a maximum prize of Rs 50,000. Other awards will
be of Rs 5,000 and Rs 2,500
“I don’t need to sleep, I am living
Lovkesh Kapoor, Head of Investment Banking at
Client Associates, says that,
There might be a slight twist to things and I would
take these claimed figures (by Paytm) with a pinch
of salt. Payments is essentially a business of
volumes. One needs to realise that Vijay and
Paytm are building a national consumer brand
with scale and trustworthiness. And we think that
once the payment banks strategy kicks in for
Paytm, there might be some more active revenue
streams for the company. But for now the focus is
on chasing the customers.