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Paytm - Research Summary

Research about the company Paytm in the Fintech Space

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Derivatives and Risk Management (Options, Futures and Derivatives)

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Executive Summary .............................................................................................................................
Introduction to FinTech ......................................................................................................................
Global Fintech Industry ......................................................................................................................
Indian Fintech Industry ......................................................................................................................
Challenges in Fintech ..........................................................................................................................
History and Origin Of Paytm .............................................................................................................
What distinguished PayTM ................................................................................................................
Business Model Canvas of PayTM .....................................................................................................
Business Model of PayTM and Revenue Generation of Paytm ........................................................
Different Businesses of PayTm .........................................................................................................
Indian Competitive Scenario: ...........................................................................................................
SWOT Analysis: .................................................................................................................................
PayTm during Demonetization .........................................................................................................
Impact of Covid-19 on Paytm ...........................................................................................................
Challenges: .........................................................................................................................................
Recommending future implementations ..........................................................................................
References ..........................................................................................................................................

Executive Summary .............................................................................................................................

The two words which got imprinted in everyone’s mind after demonetisation are “PayTM karo.” Paytm has brought a paradigm shift in the retail industry by completely transforming the payment methodology. It was initially launched as a website on which a person could do mobile recharge, but it has slowly created an ecosystem of digital services for an increasingly digital-savvy population.

PayTM’s ideology was to solve problems. They identified pain points for customers and then solved them really well. Customers used to go to the shop and buy a top up card with a long password. PayTM alleviated the pain point with its Pre-paid mobile top ups. This trend continued and scope was expanded. It has brought about anything and everything under the ambit of its operations. Customers now can recharge their metro card, pay bills for utilities like electricity and water, transfer funds to other bank accounts, book flight/train/bus tickets, make hotel reservations, etc. PayTM has expanded into e-commerce and m-retail where sellers can list their products on the website. It has launched PayTM Payments Bank which is transforming the banking industry in India and is making the industry more inclusive by helping the unbanked population.

The question arises how did they do it? Their story is a mix of brilliant ideas, long term planning, new technological solutions and circumstantial incidents which provided a major push to the idea of digital money in the hearts of the Indian population.

Introduction to FinTech ......................................................................................................................

Financial technology (Fintech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services. At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones. Fintech, the word, is a combination of "financial technology".

When fintech emerged in the 21st Century, the term was initially applied to the technology employed at the back-end systems of established financial institutions. Since then, however, there has been a shift to more consumer-oriented services and therefore a more consumer- oriented definition. Fintech now includes different sectors and industries such as education, retail banking, fundraising and nonprofit, and investment management to name a few.

Fintech also includes the development and use of crypto-currencies such as bitcoin. That segment of fintech may see the most headlines, the big money still lies in the traditional global banking industry and its multi-trillion-dollar market capitalization.

Indian Fintech Industry ......................................................................................................................

The Indian fintech market was estimated at Rs. 1,920 Bn in 2019 and is projected to hit Rs. 6,207 Bn by 2025, increasing during the 2020-2025 forecast period at a compound annual growth rate (CAGR) of 22 percent. As of March 2020, of all emerging markets worldwide, India and China had the highest fintech adoption rate of 87 percent each, while the global average adoption rate was 64 percent. Due to the government's digital drive through Jan Dhan Yojana, Aadhaar, Unified Payment Interface (UPI) and government’s digital push through demonetization, the Indian fintech industry has experienced exponential growth. The rapid adoption of the internet, the boom in e-commerce and the increased usage of smartphones in both rural and urban areas of the country are the key reasons for growth. The growth of the industry was also driven by increased funding support under the Start-up India initiative, increasing financial inclusion and enabling, tax and surcharge relief and support for internet protocol facilitation. In addition, the Indian government's social distancing mandate (to minimize the spread of COVID-19) has contributed to an increase in contactless transaction modes, but the value of online transactions has decreased significantly. (Netscribes, 2020b)

There has been an increase in the country's number of NeoBanks. It is anticipated that the government's emphasis on digitizing small and medium-sized enterprises (SMEs) would create a favorable growth climate for the Indian fintech industry.(Singh et al., 2017)

Challenges in Fintech

Does the large amount of investments in fintech startups mean they don't go through any hurdles? Well, this is not the case. A fintech startup brings its own set of challenges and problems which need to be addressed before becoming a success. (n.-b)

Legal and licensing issues: US itself has 10 regulating bodies which do stringent checks and each state may impose different regulations at their level. Further, there are fees for applying for licenses to be able to take people’s deposits.
Expansion challenges: Each financial solution may not be a perfect fit for every country. Once we shape or develop a product, it has to be robust and agile enough to be able to change with changing regulations from one country to another. This involves large costs in terms of licensing, development, marketing and customer acquisition.
Risk of cybersecurity and financial attacks: Many startups have shut shop when a talented individual leaves for some reason. Finding the right talent who can protect your startup from highly skilled financial electronic frauds is not easy. Building trust among people takes time and talent who believes strongly in the foundations and vision of a company. ( CONDUCTING BUSINESS POST COVID-19 | Blog | Paytm For Business App , n.)

History and Origin Of Paytm .............................................................................................................

Paytm was established in August 2010 with underlying speculation of $2 million by its originator Vijay Shekhar Sharma in Noida, an area nearby India's capital New Delhi. It began as a prepaid portable and DTH energize stage, and later included information card, postpaid versatile and landline charge installments in 2013.

In 2013, data card, DTH recharge, postpaid mobile and landline bill payments were added to the platform.

In 2014, the Paytm Wallet was launched, and the users could book their tickets on Indian Railways or pay for Uber rides via the wallets. The registered users of Paytm were 11. million in August 2014.(“Paytm Case Study,” 2020)

In 2015, In an ambitious step, Paytm’s parent company, One97 Communications acquired the rights to every national and international cricket matches taking place at the home ground for four years starting from August 2015. It is also the official partner for IPL Mumbai Indian team. The user base increased to 104 million in August 2015. The travel business exponentially and crossed $500 million for GMV run rate annually. The portal had a record booking of over two million tickets per month. The rights made Paytm a sponsor brand for a series, designating it as the title sponsor and giving it the broadcast sponsorship rights. The sponsorship rights for domestic, local cricket matches such as Duleep Trophy and Ranji Trophy were also included in this deal. Ant Financial Service Group, an affiliate of Chinese e-commerce company Alibaba Group, bought twenty-five per cent stakes in One97. This agreement raised $200 million for the commerce venture. The Business for Paytm was launched in ten regional languages. The Reserve Bank of India sanctioned an ‘in-principal’ approval for Paytm Bank.

In 2016, Movie tickets, event bookings, amusement park tickets and flight tickets could be booked on the platform. Paytm QR was also launched later that year along with gift cards.

In 2017, The Paytm Payment Bank was launched in November to reach out to rural and tier- 3 cities in India where banking and financial services are yet to make a mark. It would go on to serve almost half a billion Indians and make their life easy with financial services that are easy, smooth and risk-free. The bank doesn’t charge any account or minimum fee either. The registration and account opening process is happening online, and there is no paperwork. RuPay and Visa debit cards are issued to the account holders.

February 2017, Paytm launched its B2C Paytm Mall which rolled the payments network as m-commerce. The users could browse through and shop the products from registered 1 lakh sellers. It has tied up with over forty logistics partners and has more than seventeen fulfilment centres all over India.

The fintech unicorn also initiated, ‘Inbox,’ an in-app chat messaging platform that enables faster resolution of complaints and 24/7 support. The portal also launched Paytm Gold in

knowledge to the users to empower them. They could store their money in small denominations in the e wallets. (Admin, 2020; CONDUCTING BUSINESS POST COVID- | Blog | Paytm For Business App , n.)

Business Model Canvas of PayTM .....................................................................................................

PayTm is a platform business and functions as a marketplace where buyers and sellers meet. The sellers list their products and services and buyers use their money which wis saved in the paytm wallet to make payments.

Customer Segments – The customer segment of Paytm is essentially all smartphone users. Indians who use smartphones and are willing to trust digital wallets and use these wallets to make payments. As the government is pushing for a cashless economy, the people got familiar with PayTM. The customer segment also includes the various merchants. These merchants can be small business owners like kiranawala, tea stalls, etc or big businesses which list themselves on the Paytm mall. Companies are using PaytM payments bank to pay salaries. Companies like Uber was using only PayTm to receive payments as it was a secure way to receive money.
Value Propositions – PayTm offers easy solutions to its customers. It offers recharge services like mobile and DTH top up. Its platform has made it easy to book tickets for railways, airlines, movies, hotels, etc. The PayTM mall works as a marketplace where buyers and seller meet each other. They can offer flexible pricing and talk to each other. The Paytm payments bank is where people can store money in small denominations and is essentially helping the unbanked to be included in the banking system. PayTM money is providing wealth management solutions.
Customer Relationships- PayTM app is a self-service platform. It is made in a manner which is easy to use and users can carry out their desired operations by reading instructions in a different language and take an intuitive approach in the app. There are customer service centres where the customers can contact in case of any assistance required. Offline PaytM banks was an initiative started by PayTM where they set up offline banks.
Channels - PayTm is accessible via its website and mobile applications. It can also be accessed via vendor websites and client websites. Day-to-day customers can use QR codes to make payments.
Key Activities – As it is a technological platform, security and fraud protection is one of the top priorities. The app transfers the funds of the users and also helps users store its funds.
Key Resources PayTM acquired the license to function as a payments bank with some restrictions. This license is of the utmost importance to sustain and grow as an organisation. Paytm Payment Bank could not have delivered its vision without a modern core banking platform. Infosys Finacle is a robust, scalable, and flexible platform, and through open

APIs paves the way for PPB’s collaboration with industry players in banking and non- banking space. PayTm also has its own proprietary technology and key knowledge which helps make the platform run and make their services world class. 7. Key Partners- PayTm uses the money deposited by customers in the e-wallet to invest in government bills and earn interest. This is a key source of revenue. So, it has relationships with established banks whose escrow services it uses. Other partners are Infosys Finacle. Partners like Uber, IRCTC are important as they directly use the paytm wallet to make payments. Other partners are where customers can make payments, recharge services, etc. The advertisers on the Paytm website are also key partners. 8. Cost Structure – The costs incurred by PayTm are to acquire customers and enhance its platform. The customer acquisition costs are high as people need to trust the digital platforms. Thus, marketing spends are large. Rewards like cash backs and other discounts also cut margins and thus Paytm currently is a loss making venture. 9. Revenue Structure- There are 3 ways Paytm generates revenue via commissions, advertisers and interest on escrow accounts. (lapaas, 2019)

Business Model of PayTM and Revenue Generation of Paytm ........................................................

Paytm business can be essentially divided in 3 businesses

Deposit Business – The money which is deposited by users in the e-wallet which is then transferred to the escrow account to earn interest.
Money Transfer Business – The different business services offered by the Paytm Payments bank which are chargeable and the rate charged by Paytm toits users for transferring money from the wallet to their bank account.
Retail Business – This is the retail side of things which acts as a marketplace. Users can buy/slel goods, make payments, etc.

The revenue generating model of Paytm are:

Interest received from Paytm escrow account
 Subscription Model: Subscription fees from vendors for listing the products
Commission Revenue Model: Commission from the seller of the products listed on Paytm
Commission Revenue Model: Commission from different partners when recharge/ticket booking/bill payment is made
Advertising Revenue Model: Advertising of products on the website by selling banner ads, etc

People deposit money from their bank accounts to their paytm e-wallet and paytm bank accounts. This money is used by Paytm to transfer money in an escrow account where it earns interest at 4-6% in government treasury bills.

 Paytm Money

“Paytm wants to make wealth management products available to all. The company believes that to truly deliver financial inclusion, people should be able to access wealth management products, irrespective of their wealth — even for as low as INR 1 ($0). Therefore, Paytm is partnering with various institutions to be able to offer fixed deposits and simple mutual funds to customers. Such on-demand, micro wealth management products help consumers move away from chit funds2 and other savings products in the unstructured economy, and act as a vehicle for their wealth generation. It also helps bridge the digital and economic divide in the country. Paytm Money is an investment platform offering direct plans of mutual fund schemes with zero fees and charges. With a unified login through the Paytm app, customers can easily open an investment account for free and get to benefit from commission-free investing, analytics to identify the most ideal fund to invest in based on objectives, and investment advice on the fly to rookie investors. Minimum investment amounts start at as little as INR 100 (~$1). The company has partnered with 25 asset management companies covering 90% of industry’s assets under management. Paytm Money has also tied up with various rating services, such as MorningStar, CRISIL, and Value Research, to ease the investment decision-making process. To drive wider adoption in smaller towns and cities, Paytm Money supports investing from over 190+ banks through auto-pay e-mandates, physical mandates, and online banking. The company plans to invest further in product, design, data science, and machine learning to analyse user’s risk assessment, recommend advisory portfolios, and make investment recommendations that best suit the individual.”

 Paytm Gamepind

“Paytm Gamepind targets the Indian audience who are increasingly taking to mobile gaming as an entertainment option. Gamepind currently offers a host of social and casual games with exclusive loyalty rewards to millions of users within the Paytm app. It further aims to expand its portfolio of games along with attractive coupons and products as rewards to mobile shoppers and casual gamers. The games are currently free for users, and the company has no immediate plans to monetize the platform, which largely remains free of advertisements. Gamepind plans to make money through brand partnerships.”

 PayTm Gold

“Inferable from its organization with MMTC-PAMP, the outstanding gold purifier, Paytm has propelled "Computerized Gold." This model enables clients to sell, purchase, or store gold in an advanced stage. Presently, clients need to pay at a rate just to get their gold conveyed to their families. Paytm is very much aware of how much gold is put as resources in India and is completely arranged to develop from this chance. The organization has made eminent arrangements to urge its clients to get their own Gold Bank Accounts individually. This record separated from empowering clients to purchase their gold will likewise furnish clients with simple access to other Paytm administrations.”

 PayTM Payments Bank

“In August 2015, Paytm received a license from Reserve Bank of India to launch a payments bank. Paytm Payments Bank (PPB) is India’s only mobile-first bank with zero balance and zero digital transaction charge accounts and has become one of the most popular payments banks in the country. Paytm Payments Bank infrastructure services a customer base of over 42 million savings accounts. This exemplary growth has been the outcome of the bank’s vision, philosophy, and its flagship product — the PPB savings account. Paytm Payments bank has success fully engaged the digitally savvy millennial population by weaving banking seamlessly into customers’ primary journeys. In just 18 months, the bank opened 42 million savings accounts, many of them for customers who haven’t been exposed to financial services before. Now, those customers can save, make and receive payments, and build a transaction history which enables them to apply for credit.

PPB set out to create the most accessible banking product possible: the savings account. The product had to be better than the similar savings accounts available and extremely easy to use.

The PPB savings account has several features that differentiates it from others in the market:

Zero minimum balance. Based on extensive surveys and market assessment, PPB realised that a minimum account balance is one of the biggest barriers that the unbanked and underbanked face. INR 5,000–10,000 ($70–140) can be a very big amount to maintain, while the fees charged for not maintaining it are also too big for this segment. Lowering the entry barrier of access to banking promotes and gives confidence to previously excluded citizens to start microsavings. As their confidence grows, customers then start using other banking products. PPB believes this habit forming can only happen if a customer can save even the smallest amount with no penalty for not maintaining a minimum balance.
Free digital transactions on the PPB banking ecosystem, forever. Customers from PPB’s target segment are extremely price-conscious — charging even a rupee for a payment transaction would act as a huge barrier for adoption. By making digital transactions free, PPB wanted to make banking as frictionless as possible for the unbanked and create a level playing field for all customers irrespective of their social and economic strata.
A large network of Business Correspondents. Geographical proximity to a bank branch is a significant factor in deciding which bank to choose. PPB’s target segment needs assisted banking flows, even more so than the average banked customer. PPB is committed to building a network of over 100,000 physical outlets across the country.
Always-on banking. A major hassle in operating a bank account is admin work that needs to be done every so often. For a traditional bank, that means standing in queues to withdraw money, or to use other banking products. PPB believes in empowering customers to have access to their bank account and to be able to do banking any time of the day (24x7x365), at any place they want, in a language of their choice, through the mobile and web application. Real-time account statements can be generated on the fly without the need to visit a physical outlet.

In November 2016, the Reserve Bank of India (RBI) announced a shooting growth of digital payment companies such as Paytm, Mobiwik & FreeCharge stimulated by demonetisation, witnessing PPI payments worth a whopping INR 13 billion in value across 59 million transactions. It was crucial for Paytm to stand firm in the pressing challenge placed by the

demonetisation drive to pave the way to 29 marketing successes. With rivals waiting for the right opportunity to take the leap, in this respect, Paytm was quick enough to gain the first- mover advantage.

Let us a make an overall comparative analysis between Paytm, FreeCharge and Mobiwik:

PayTm:

Paytm began as just a website for mobile recharging. As an e-commerce site now known as Paytm Mall (with 1000 brand stores and 15000 brand-authorized retailers offering 32 over 65 million products), Paytm not only provided a shop interface for categories such as apparel, electronics, shoes, home furnishings, accessories and the like but also offered movie booking facilities, flight bookings, festivals, amusement parks, hotels, etc. In order to make bill payments and transfer money, the paytm wallet allows a user to transfer money from his bank account to his paytm account. The Digital Gold facility, which allows a customer to buy, sell or store gold at no transaction cost except for a small fee to be paid for making or delivery charges, was an attractive feature developed by Paytm. Paytm has now achieved the status of being a Payments Bank authorised by RBI, from its negotiating feature to allowing users to make payments in offline mode. The Digital Gold facility, which allows a customer to purchase, sell or store gold at no transaction cost except a small fee to be charged for making or delivery charges, was a recent and very attractive feature introduced by Paytm. It is important to mention that, due to its aggressive marketing strategies, Paytm has built itself a few steps ahead of its rivals within hours of the Prime Minister's decision to eliminate INR 500 and INR 1000 denomination currency notes. #AbAtmNahiPayTmKaro became a popular tagline for consumers to associate with the fact that in the middle of this severe cash crunch with ATMs running out of cash, Paytm had come to their rescue to make transactions more convenient. In an effort to hit even the lowest level of retail stores and retailers such as the Puchkawalas, Sabziwalas and even school/college/office cafeterias, the QR Code Scanner facility was introduced to accept payments through Paytm. The goal was to gain popularity around money transactions that would include person-to-person transfers, payments of gas pump bills, payments at kirana stores and tickets for movies. Because of the INR 600 crore budget set aside for its marketing campaigns for its financial year ending March 2017, a minimum 40 percent jump is expected for all these categories. Post demonetisation In all types of marketing media i. print, web and television advertisements, Paytm increased its 33 advertisement budget by three times, with around INR 50 crores set aside for only television campaigns.

FreeCharge:

FreeCharge tends to gain an advantage over Paytm with features very similar to Paytm in terms of ease of use, pace and its auto-pay option, which has been covered up by its absence of tie-ups compared to a large number of Paytm partnerships. Though Paytm tends to have a chunky interface due to its wide range of services, FreeCharge differentiates itself through a user-friendly interface that is clutter-free. Also in the form of freebies such as iPhone7 for merchants to get them on to their site, FreeCharge has been using different channels to reach out to many merchants. Though not quick enough to exploit the opportunity following

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

The following are the strengths of Paytm:

 First mover advantage: Paytm was the first online payment company to set up operations in India. Their timing was perfect since they started operations at around the same time when smartphones started becoming popular.

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

Weaknesses:

Weaknesses are used to refer to areas where the business or the brand needs improvement.

Some of the key weaknesses of Paytm are:

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

Opportunities:

Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns.

Some of the opportunities include:

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

Threats:

Threats are those factors in the environment which can be detrimental to the growth of the business.

Some of the threats include:

 Competition: With lowered barriers to entry, every new entrepreneur is looking at aggregating services. There are a lot of online portals like pay charge, Mobikwik etc and even telecom service providers like Airtel and Vodafone are providing online payment gateways.  Growing concerns about safety: Today there is negative imagery of information security and tracking of shopping habits. There is also growing concerns about how safe the information submitted to payment portals are and the level to which such portals or payments made through them are monitored.( Financial Sector in India - Indian Fintech Industry Trends , n.)

PayTm during Demonetization .........................................................................................................

The push for demonetization in 2016 has been one of the nation's most important economic events by far. In a nation where liquid cash accounted for about 96 percent of monetary transactions prior to this sudden announcement, the liquidity crisis that followed badly affected a large section of India's population. The upward trend in the amount of digital payments arising from the ongoing efforts of the Prime Minister to turn the country into a cashless economy can be observed. Mobile wallet (m-wallet) platforms found themselves to be in a lucrative position while exploiting the underlying opportunities in the midst of this

rivals with a large base of 60 million wallet users and collaborating with major companies.

Hence, due to a 300 percent increase in app downloads, a growth of about 6 times in the amount of transactions per user per week over a three week period and a 1000 percent increase in money added to its m-wallet, Paytm was heavily rewarded with immediate growth after demonetisation. Since demonetisation was announced on November 8, 2017, Paytm has reported 30 out of 5 million users with a total user base of 150 million.

Impact of Covid-19 on Paytm ...........................................................................................................

As we come to terms with the COVID-19 virus pandemic, the planet as we know it is going to change in more than one way. Our lives have been affected in several ways in the past few weeks. World economies are plummeting, unemployment is rising and in one way or another, all businesses are affected.

In the midst of the COVID-19 pandemic and the resulting lockdown, the business is experiencing up to 3 growth in transactions on its network as consumers turn to digital payments to securely make payments. Customers who are used to digital are getting more interested and new customers are coming on the site. The number of customers on the platform and making more purchases has grown phenomenally. We find out that it is easy to gain customers and get back customers by handing over cash back in the monetisation process. This country has consumers who are aware of importance. So, we tried to find out who are the consumers who are loyal to their service on a website, not necessarily for the cashback... we have actually expanded the customer base over the previous year without having a cashback and active, DAU (daily active users), MAU (monthly active users).

How did Paytm tackle the impact of Covid-19?(Admin, 2020; CONDUCTING BUSINESS POST COVID-19 | Blog | Paytm For Business App , n.)

With over 15 million payment partners, Paytm has taken it upon itself to develop business solutions that will aid merchants in these tough times. The following business solutions have been developed by Paytm, which is synonymous with technology and digital solutions to help its payment partners work during and after COVID-19:

Introduction of Paytm payouts : Paytm noticed during the ongoing lockdown that more organisations rely on digital money transfers to pay their staff, suppliers, and business partners wages and other benefits. So, they came out with a new feature call PAYTM PAYOUTS. Paytm Payouts is a distinctive product that minimizes the monitoring and reconciliation activities of various payments. Now all payments for all payouts from the single network can be handled. Paytm will continue to work closely with its partners to recognise their needs in the future and provide them with a more personalised solution. By the end of this fiscal year, they foresee a 100 percent rise in both the amount of transactions and volume.

Paytm Payouts is driven by a powerful API that can be incorporated with any platform, removing the need for businesses to spend time and money in developing their own platform. The service, combined with the advantages of the Paytm ecosystem, allows businesses with current accounts, collections, payouts and business expenses to handle their entire business. It also provides the industry's highest performance ratio for transactions. 2. Paytm Link and Business Khata : The secret to battling the coronavirus has been described as social distancing. In order to control the flow of clients at the supermarket, the government is encouraging shopkeepers to start home delivery. Paytm has fitted its payment partners with features such as payment connect and company khata to enable smoother operations for home delivery. These characteristics allow the merchant to record a transaction and also accept payments via a connection from customers sitting at home. Paytm Business Khata enables merchants to hold all of their purchases, including udhaar, cash and card sales, as a digital ledger. Merchants can set payment due date for credit transactions with Paytm Business Khata and send automated reminders to their customers. Customers will receive a billing history update and will also be able to make payments to merchants via that unique link. 3. Promote Your Shop : This feature allows merchants via SMS and Paytm alerts to send promotions to nearby/potential customers. It enabled shops that fall under the category of "essential services" to alert nearby customers via SMS during lockdown that their shop is open for operation. This has helped to alleviate consumer panic and provide them with valuable details on where their essentials come from.

Paytm is also building products for the Post-Covid-19 era. One such product that will revolutionize the food industry is its “Contactless Ordering” feature for restaurants. Using this, customers can simply scan a QR code to see digital menus, order their meals and make payment at their favourite restaurants, that too without making any physical contact.

Challenges: .........................................................................................................................................

Amid Paytm’s success, certain challenges emerged, including one that involved the new competitor to traditional taxi companies,

Uber: Uber was the developer and operator of the Uber mobile app, which enabled consumers with smartphones to submit a ride request that was then routed to Uber drivers who used their own vehicles to pick up and deliver consumers to their destinations. In December 2014, Paytm had collaborated with Uber to make the Paytm wallet the only mode of payment for Uber rides. As a result, Uber emerged as one of Paytm’s largest clients in India.( Delhiites Can Now Pay for Uber Rides by Cash , 2015) Since July 2015, however, as part of its own expansion and marketing plans, Uber had added cash, credit cards, and debit cards as payment options, in addition to offering payment through Bharti’s Airtel Money. These strategic moves and partnerships infringed on Paytm’s business, since many consumers

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