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Paytm Strategic Diaries

Paytm enabled five million merchants to accept digital payments by 2017 through its app. It localized the app in 10 regional languages and provided security features. This allowed even small merchants like vegetable vendors to use digital payments. Paytm identified opportunities to skip traditional development stages by leveraging proven technologies. It enabled merchants to pay suppliers digitally and integrated technology to create a digital payment ecosystem. This approach helped Paytm grow rapidly to become India's leading digital payment platform.

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Dishant Khaneja
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337 views1 page

Paytm Strategic Diaries

Paytm enabled five million merchants to accept digital payments by 2017 through its app. It localized the app in 10 regional languages and provided security features. This allowed even small merchants like vegetable vendors to use digital payments. Paytm identified opportunities to skip traditional development stages by leveraging proven technologies. It enabled merchants to pay suppliers digitally and integrated technology to create a digital payment ecosystem. This approach helped Paytm grow rapidly to become India's leading digital payment platform.

Uploaded by

Dishant Khaneja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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“Paytm to enable five million merchants to leapfrog into digital payments by 2017” read the

news back in 2017 when this disruptive technology company took a step towards digitization to
enable every Indian to accept and pay using Paytm. From Kirana to vegetable vendors, Paytm
pervaded its invincibility by enhancing the app’s features and increasing its usability thereby
beginning a digital revolution in the mobile payments industry in India.

Paytm identified the need to localize their app that could be used across tier II and tier III towns
in India and launched their android app in 10 regional languages and also provided for the
necessary security features. Furthermore, it enabled backward integration through its
technology landscape to enable merchants who accept Paytm do business with their suppliers
as part of the distribution network. We have come a long way to see these disruptive steps in
action now that Paytm has become the order of the day while making digital payments. Paytm
has since launched Payments Bank, partnered with Citibank to launch credit cards and also
launched a retail broking platform in 2020.

What was unique in their approach? – Paytm enabled the people, who had never used a phone
before, jump directly to a mobile phone without having to make a transition through a landline.
This is what leapfrogging is. According to Wikipedia, the main idea behind leapfrogging is that
small and incremental innovations lead the dominant firm to stay ahead or a new firm to
leapfrog a dominant one. This concept has enabled the emerging economies to skip the stages
of the path taken by leaders and establish a leading position in prosperity-sustaining value
chains. This concept enabled Paytm to skip the traditional means of tech development and
resort to implementing the proven technologies after identifying the opportunities. Paytm’s
cashless nudge has helped, digital payment capability, technology compatibility, online wallet
system, and localized offering has enabled the platform to leapfrog from a traditional means of
mobile recharge to a digital payment ecosystem. Think back about the demonetization and
you’ll realize why Paytm registered as a success in the following years. The saga of
demonetization resulted in Paytm witnessing daily transactions jump from 2.5M to 5M with a
700% increase in Overall Traffic and a 1000% increase in value add. It’s business model and
prospective growth potential has attracted the likes of Oracle of Omaha’s $10B worth of
investment in the technology company back in 2018. In 2017, Paytm was India’s first payment
app to cross over 100M app downloads. Paytm had a value add of $10B by January 2018. It also
registered 7M merchants by March 2018. The simple step towards leapfrogging and its bare
understanding has resulted in Paytm growing leaps and bounds.

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