Paytm; the diverging Journey, inclusion of crisis communications; the 2 controversies discussed. | Startup Bazaar
case study of paytm

Paytm; the diverging Journey, inclusion of crisis communications; the 2 controversies discussed.

                                                                                                                                              

                   Journey of Paytm: A Case Study

Although our country has been enlightened with electronic banking facilities from the year 1998, do you think those were the years? Internet was in-process. The answer is No, so what did change the existing perception?

The label: Paytm, occurrence, and origin?

Paytm; a label that has got the major population of India shifted towards the online money banking procedures because they recognized the wants in the market. The era it began, had previously been in use with many of the e-commerce websites, and the utilities of money being relocated through the digital platforms. And if it’s specifically Paytm, it has a lot more than money transferring, Paytm is today available with the utilities from paying your mobile bills, electricity bills, gas bills, water bills online, and what to ask more.

Paytm has brought an immense evolution in digitalization before demonetization. This is your home bank which is anytime recommendable for loans, insurances, or credit cards approval.

Why should you go for Paytm?

What is the unique selling preposition it has come up with? There is a checkbox to tick in whenever pondering on its usage, it “Save more with Paytm”, the cashback facility is phenomenal in case the company wants to engage more audience per their needs and they are even making available different sales coupons, discounts offers and gift cards which are even not provided by the original brands.

Planning a fun trip with the family? Open your Paytm and book your flight tickets, bus tickets, or train tickets.  Planning a movie night? Book your tickets on Paytm.

Paytm: known through it’s founder

‘Paytm Karo!’ is the catchiest tagline of an online service provider application founded by Vijay Shekhar Sharma. Paytm; the ‘pay through mobile ‘amenity is now not just an app, it is the brand with up to more than 16 million transactions daily and 60 crores plus operative users. The brand from its commencement till the date has been upgrading itself unlike most of the other Fintech companies. Fintech is a rarely used terminology but not that laborious to take on board, Fintech is rooting up your company from the financial as well as technological assets.

 The competitors in the game! how did Paytm rule?

The company took a step in the market in the year 2010, and today holds a valuation of 16 Billion dollars. If looking at the competitors such as Bharat Pe, free charge, Phone Pe, Jio money, Ola money, the number of more equivalent Fintech companies have evolved gradually, but still Paytm has not misplaced its appeal and engaged.

The first mover in the ring has always the advantage of being the only ruler, but here is the point and the period where the inaccuracies are pierced out too. Correspondingly, it happened with Paytm too at the start the app used to ask for multiple login attempts for the transactions, which appeared a little hectic to the users, and the issue was reported to the company.

As you know the companies who are ever ready to revise their policies with the customer acquisitions, are the victorious ones. Resolving this issue Vijay Shekhar Sharma CEO and founder of the company started up with the Preloaded wallet system replacing the ask for one-time passwords and multi-logins.

A company gets profitable with the innovations and techniques of their revenue model, deeply if talking about Fintech companies they should never acquire the pre-revenue stage as technology means hiring the précised officials for the confirmations, but in case of a pre-revenue business, we can expect the quality which would not be attainable. We are aware that Paytm does not charge from their customers; rather provides them with other additional services. So what’s their revenue model?

Paytm for business is the primary source here, in case you are to heave with massive transactions on the application, 1.5 percent of the finance is being invoiced from the supplier inclusive of all the taxes. Businesses need to keep track of their digital marketing tools such as advertisements on the platforms which already have enormous engagement.

Paytm is such a platform, and recognized by others as well. Therefore, the advertisements you are familiar with which are shown on the application also pay to the company through pay per click or annual subscription, for operating their audience. The foremost derivation of its revenue is the fixed deposits without the user’s presence, which describes that the money in your Paytm wallet is being converted to the fixed deposits by the company plus the interests are being derivated too, but no level of in- assurity or defacement is done to the users.

Paytm is not a single venture, the online money transactions do not charge from the customers as such but there are the other commodities they have come across including e-commerce which has a definable revenue structure. These are the strategic planning techniques to engross more public and reach out to improved target market and target audience.

The competitor monitoring in the span has almost been filled up by the date, so what is the differentiator which is letting the company govern even still?

They started when there was not a first mover, and financial staff at online modes were just working on the e-banking services, for which bank account was a necessitate. The vendor’s on-street, or such pals who did not have one, faced difficulties. But then came Paytm, which is now available even in the smallest shops, without the shopkeeper’s need to have a bank account. They solved the problem of receiving money from the purchasers plus they could payout in the same manner from their Paytm wallet.

The invention and evolution in bringing out the formulated QR codes, now seen at almost every nearest market shop are exaggeratedly interesting, which benefitted the sender and the beneficiary at the utmost levels, keeping parallel the cause of our country being a ‘developing’ one.

The Paytm controversies?

Their expansion and reach were the maxima after demonetization, they had crossed the set limits and the users were thankful to the application for being there. But, when the audience expands out of the reach, which was even not expected from the bran itself, the activity being performed is defined as a non-executed and non-planned one. The same happened here, the company’s official number did not match with the catching audience, and ‘crisis communication’ began. People were not answered and the agony kept on enlarging.

Paytm did not lose hope, and began with their improvement and furtherance revolution internally. Even many fraud cases from CBI were filled against the ex-employees of the company, but Vijay Shekhar Sharma hustled to be fixed and secured in the market.

The ad campaign initially started up by the company also gave the founder a situation of crisis, when they used the phrase “Didi Drama mat Karo, Paytm Karo”, by which women were offended, but he was the fastest to retain his customers and changed it to “Chinta mat Karo, Paytm Karo”, meant do not be tensed, rather use the application for your money processes and many more such musical appeals were used.

The next plight faced by the company was the similarities of their logo with the logo of PayPal, made in the same color sequence of light and dark blue. This was the most catastrophic phase where the founder was headed by a legal notice by the international brand, “PayPal”. The case is still in court and judged upon.

The company’s shares are also stocked by one of the major personalities, such as Jack Ma of ‘Ali Baba’ Warren Buffet, Ratan Tata, that is not a child’s play, so you may imagine the success and the struggle behind this success, this brand Paytm has gone through till date.

 

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