BRM PROJECT REPORT

Shanti Business School

A Project Report
Submitted to Shanti Business School as a Part of the BRM Project
undertaken in this Institute

SUBMITTED BY: SUBMITTED TO:

ASISH MAHATAH B (07) DR. NEHA SINGH

SHIVAM KUMAR C (30)

ISHIKA GELOT B (19)

YASHIKA GADHVI B (52)

TANIYA MATA C (32)

Date: 15/02/2022
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 TOPIC

FACTORS EFFICIENCY OF ONLINE

PAYMENT APPLICATION
(PAYTM)
 UNDERTAKING

I, ASISH MAHATHA the author of the Project titled “Factors Efficiency of The
Acceptance of Online Payment Application (Paytm)”, hereby declare that this is an
independent work of mine carried out towards partial fulfilment of the requirements
for the award of the PGDM by Shanti Business School (SBS), Ahmedabad, India. All
views and opinions expressed in this report are my mine, and do not necessarily
represent those of the institute and/or Shanti Business School, Ahmedabad.

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 ACKNOWLEDGEMENT

I, ASISH MAHATHA would like to take this opportunity to express my deepest

gratitude to my faculty guide DR. NEHA SINGH, for the continuous support and
follow up during the entire process of BRM Project without which the successful
completion of this project would not have been possible.

I am also grateful to my institute Shanti Business School (SBS) and its director
DR. NEHA SHARMA for providing us with this wonderful opportunity to work in
the corporate sector and thus providing us with the first-hand experience to understand
the corporate sector by being a part of it.

Finally, we would like to thank our family, friends and peers for being a constant
source of support during the process of project leading to its effective completion.
 EXECUITIVE SUMMARY

In this project I considered the most common factors that affecting the online payment
application. It includes the factor that make to use online payment application.The
methodology adopted was descriptive research. Descriptive research is done using
factor analysis by using the survey. A standard and structured questionnaire was
prepared and used during the interviews as a tool for the research to find out the level
of importance of each factor. The response of common people was collected those
who are from different state of the Country.In agreement with the statements and
scale ranges from 1- Strongly disagree to 5 -Strongly Agree. A total of 100 samples
were collected in a period of 6 Days.

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 TABLE OF CONTENTS
Chapters Page No.
1 Introduction (Including Objectives)
2 Background Study/Literature Review
3 Research objective- Mention clearly the
specific objective(s) of the project

4 Hypothesis/ Research Model

Bibliography
Annexure

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 ACRONYMS (if any)

Acronym Full Form

SBS Shanti Business School
SWOT Strengths, Weakness, Opportunities, Threat
BCG Boston Consulting Group
BMC Business Model Canvas
 Chapter 1
Introduction

The projected smart phone users in India are estimated to reach 442 million by 2022. Shoppers are
adopting digital wallets at an incredibly rapid pace, largely due to convenience and ease of use.
Paytm is an Indian e-commerce shopping website headquartered in Noida, India launched in 2010 as
a prepaid mobile recharge website with Android, Windows, and IOS applications. Paytm is an
acronym for “Pay through Mobile”. It was founded by Vijay Shekhar Sharma, incubated and
owned by One97 Communications. Paytm is One97 Communications flagship brand. Paytm is a
leading payment solutions’ in India’s having largest mobile payment service platform with user base
of 350 million. The gross transaction value of more than $ 50 billion with more than 5.5 billion
transactions in a year Its subscription-based programme, Paytm was launched in March has attracted
half a million subscribers. Paytm First offers benefits across various categories like food, travel, and
entertainment. Paytm First subscription costs Rs 750 for one year.

Keywords: Cashless Economy, E-wallet, Paytm.

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In the customer satisfaction research, we seek the views of respondents on a spread of issues which
will show how the corporate is performing and the way it can improve. It knows cross check the
interior views with a little number of depth interviews with customers. In any customer satisfaction
survey there'll be quick fixes actions which will be taken today or tomorrow which will have
immediate effect. The purpose of customer satisfaction research is to enhance customer satisfaction.
The key to customer retention is customer delightment. A highly satisfied customer stays loyal
longer, talks favorably about the organization and its products, offers product or service ideas to the
organization and costs less to serve the new customers.

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 Chapter 2
Literature Review

We know every action is driven by some or other factors therefore this section of our
Research paper deals with explaining what are the factors that having impact on online
payment application. Demonetization has increased the growth of Paytm which is known as
the Digital payment companies.

Exploring Consumer Adoption of Mobile Payments: - A Qualitative Study” an empirical

data was collected from 6 focused group sessions from interviewees. The findings
concluded that relative advantage of mobile payments is related to the specific benefits
provided by the new mobile technology such as time and place independent payments,
remote and ubiquitous access to payment services, avoiding queues, complementing cash
payments. In case of unexpected need of payment, time pressure and lack of cash or loose
change, the access of mobile payments plays a pivotal role. Various factors such as
usefulness, alternative choice for online payment, satisfied and security and safety are the
major factors plays important role in using digital wallet. This study further suggested that
promotional programme, more discounts and reward points could increase the mobile wallet
popularity and an. Dopier.

Usage of Paytm: - Concludes that the usage of Paytm is only at a satisfactory level. The
customers face problems in ease of use, security issues and slow Paytm server in the usage
of Paytm. Paytm can establish a separate wing with trained staff to address the issues and
problems related to Paytm services. The Paytm may initiate necessary action for periodic
updating, up gradation and maintenance of both hardware and software and to prevent cases
of slow server and complete breakdown of system by having back storages. The paper
explains the importance of mobile wallet for Banks, Customers and Companies. In future
scope it talks of mobile wallets becoming a latest marketing channel in near future. And
contribute highly in a seamless shopping experience for the customers that increase their
tendency for frequent and more repurchases with delightful experiences. To summarize they
speak the importance and growth of mobile money in business, social and economic
prospective. The presence of mobile wallet spreading from urban to rural areas on a large
scale. Hence, we can say that Mobile wallets have a bright future in near time. Study
revealed on the value of different customer satisfaction and loyalty metrics in finding out
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customer retention, recommendation and share of wallet examined different customer
satisfaction and loyalty metrics and test their relationship to customer retention,
recommendation and share of wallet using micro (customer) level data. The results indicate
that recommend intention alone will not suffice as a single predictor model performs better
in predicting customer recommendations and retention.

Perception towards Paytm:-

• There is no significant relationship between age and usage of Paytm, wallet.

• There is no significant relationship between monthly income and money spent every
month for shopping to Paytm store.
• A study on the user’s perception and satisfaction towards usage of Paytm.

Customer satisfaction studies find out how products and services supplied by a company
meet or surpass customer expectation. It is seen as a key performance indicator within
business and is a component of the four of a balanced scorecard. Increasing competition
(whether for-profit or nonprofit) is forcing businesses to pay far more attention to satisfying
customers. In a cut throat competition, customer satisfaction is seen as a key differentiator
and increasingly has become a key element of business strategy. Organizations got to retain
existing customers while targeting non-customers.

 According to the Govt. reports;

Factors contributing to Success of Paytm: Number of factors contributed to the success
of Paytm.

A. Enabled with India’s largest Digital Wallet: Ride on India‘s biggest online consumer
base with Paytm Cash ‘wallet with 15Mn+ active wallet users conducting 10Mn+
transactions per month using the wallet.
B. Ease of Onboarding Merchants: Paytm provides ease to merchants sign up facility
even without having a bank account.
C. RBI approved E wallet: The user‘s money is secured under the Escrow account with a
nationalized bank. On Oct 16, 2018 RBI removed the roadblock of lack of interoperability
which restricted the segments growth.
D. Security features: Paytm uses VeriSign-certified SSL (Secure Sockets Layer) 128-bit

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encryption technology.
E. High Capacity: One of the distinguishing features of Paytm is that it can handle around
5000 transactions per second.
F. Wide range: Paytm is popular in big cities as well as in small towns and villages. G.
Easy integration: Paytm Payments integrate seamlessly into your existing system.
H. Most Trusted and Advanced Payment Platform: Processes 6L+ successful transactions per
day.
I. Demonetization: On 8 November 2016, Government of India announced the ban of all
Rs 500 and Rs 1000 notes. This helped in increasing the use of E-Wallet and Paytm.

Frequency of Paytm usage: - The frequency of usage of Paytm by the respondents has
been measured through the views of the respondents. The frequency of usage of Paytm is
classified as daily, weekly and monthly. It can be observed that, factors like useful for small
payments and acceptability of Paytm by more sellers induced the respondents to use Paytm
Purpose of using Paytm Frequency Percentage Recharge, results from the survey conducted
regarding the usage of e-wallet.

 The wallet that they use the most.

 When did they start using the e-wallet?
 Average no. of transactions in a month
 Average money in e-wallet
 Have you ever used Paytm for utility bill payments?
 Have you ever used Paytm for booking tickets (travel and entertainment both)?

The high level of satisfaction was recorded in bank transfer followed by less transaction
time, ease to download, security. The normal level of satisfaction was recorded in ease to
use followed by secure to download, less transaction time, and bank transfer. The highly
dissatisfied factor was secured transactions followed by ease to download, less transaction
time.
Customer satisfaction towards Paytm, observed the high level of satisfaction in the
following variables namely, no need to carry debit or credit card, cash back discounts,
pricing and easily return money to the same bank. The normal level of satisfaction is
observed in variables namely, Easy to Download Paytm app, Convenience, Less
Transaction Time, Privacy, Transfer Money from Paytm to Bank Account, good wallet

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limit for know your customer (KYC) & non- know your customer both and less
documentation at respondents home to upgrade Paytm wallet limit. The satisfaction level on
Paytm services are the best in convenience, safety and security, anytime and anywhere
transactions, add on services, charges of using Paytm, software issues reliable, transaction
speed and both Bank charges and Grievance handling method.

Paytm SWOT Analysis:

Strengths:-
1. Paytm possesses extremely high brand awareness across India.
2. Paytm was ready to proportion its business quickly after demonetization.
3. Offers multiple cash back options to customers.
4. Paytm is essentially accepted by merchants across India, which has helped the brand grow
5. Word of mouth of cashless transactions and simple use has been accepted well by the
people.
6. Strong investments from Ratan Tata, Alibaba group etc have strengthened Paytm
position.
Weaknesses:-
1. Audience in India is a smaller amount the savvy as majority consider cash as primary
currency.
2. Paytm has diversified too much.
Opportunities:-
1. Paytm can cater to a bigger audience with some offline presence also.
2. Paytm can educated customers on accepting cashless transactions and online payments
which might successively boost their customer base.
3. Offer more banking services alongside online payment options.
Threats:-
1. Banks offering E wallets on their saving accounts.
2. Security and privacy of user may be a concern for Paytm.

Problems:-
Few respondents are worried about lack of knowledge to use Paytm while some are
worrying about problem with barcode detection. The least difficulties in Paytm are failure in

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payment gateway. Few more factors of which customers are worried were secured
transactions followed by ease to download, less transaction time, slow Paytm server.
Suggestion:-
From the study we can be concluded that the respondents are satisfied by Paytm service. But
level of satisfaction is low within the following areas shopping, ticket booking, transaction
speed, grievance handling methods, service charges, mini statement and minimum of Rs
20,000 per day. The researcher would like to suggest Paytm to probe in to the suggestions
mentioned and take actions, if necessary, Paytm can establish a separate wing with trained
staff to deal with the problems and problems associated with Paytm services. The Paytm
may initiate necessary action for periodic updating, up gradation and maintenance of both
hardware and software and to stop cases of slow server and complete breakdown of system
by having back storages.
Conclusion:-
Thus, conclusion in our review of literature, we analyzed many things and many factors that
can influence customer behavior towards the online payment thus we need to work on this
factors or things so that they put a positive influence on customers behavior.
The digital revolution has impacted enterprises globally and companies are restructuring
their business strategies to grab the opportunities. Digital means getting more productive.
People now prefer simpler modes for acquiring brands and reaching stores, and it can be
stated that the Internet has fundamentally changed the consumers’ ideas on convenience,
speed, price, and product and service information. As a result, vendors have found a new
approach to create value for customers and build relationships with them. This paper should
contribute to better understanding of the determinants that affect customer satisfaction, so
that Paytm can better cater to the customer needs. The Paytm plus service started by the
company should help in garnering more subscribers.

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 Chapter 3
Research Objective

Research Question is:

“Which are the factors that propel or prevent the use of Paytm products and
services?”

Objectives:
 Objective 1: To study, what are the factors that influence online payments in
India?
 Objective 2: To understand the factors that influence the choice of Paytm.
 Objective 3: To study the problems faced by customers while using Paytm.

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 Chapter 4

Hypothesis/ Research Model

Independent Variable:-
Technology is an independent variable here if the technology is

Advance and durable then the consumer will be attracted more

towards the online payment or transaction.

1. Trust

2. Security

3. Benefits

4. Ease to use

Dependent Variable:-
The availability of technology will be the dependent variable if
the availability of the technology is high then it will increase the
consumer perception towards the system and also change the
consumer behavior.

The consumer perception towards the electronic payment.

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THEORITICAL FRAMEWORK:

TRUST
H0

SECURITY H1

CONSUMBER
H2 ACCEPTANCE
BENEFITS
H3

DEPENDENT
EASE TO USE
VARIABLE

INDEPENDENT VARIABLE

HYPOTHESIS:

H0 (NULL): TRUST HAS NO INFLUENCE BY CONSUMER

ACCEPTANCE.

H1 (NULL): SECURITY HAS NO INFLUENCE BY

CONSUMER ACCEPTANCE.

H2 (NULL): BENEFITS HAS NO INFLUENCE BY

CONSUMER ACCEPTANCE

H3 (NULL): EASE TO USE HAS NO INFLUENCE BY

CONSUMER ACCEPTANCE.

HA (ALTERNATIVE): CONSUMER ACCEPTANCE HAS INFLUENCE BY

TRUST, SECURITY, BENEFITS, EASE TO USE

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 Bibliography

References:-
 https://www.PayTM.com
 http://ssijmar.in/vol5no3/vol5no3.6.pdf
 http://www.gallop.com/businessjournal/183920/customers-aren-
adopting-PayTM wallets.aspx
 http://www.researchandmarkets.com/reprts/3022303
 http://allsefulinfo.com/pros-cons-of digital wallet/
 http://en.wikipedia.org/wiki/PayTM
 http://PayTM.com/blog/immediate-mobile-payment-service-imps-a-new
payment nstrument-on-PayTM/
 http://seller.PayTM.com/log.in
 https://www.financialexpress.com/economy/transfer- funds-from-
PayTM-wallettomobikwik-or-payzapp-or- even-bank-account-soon-
here-is-what-is-on- agenda/891046/ 11.
 https://www.researchgate.net/publication/338711091
 https://www.livemint.com/companies/start-ups/PayTM-looks-to-hit-12-
billiontransactions-by-end-of-fy20-1559758593578.html
 https://www.indiatoday.in/technology/news/story/PayTM-first-
launched-to-take-onamazon-flipkart-everything-you-need-to-know-
1471225-2019-03-06
 https://www.researchgate.net/publication/338711091

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 Annexure

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