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With the increase internet literacy, the prospect of online purchasing or marketing in India is increasing day by day. This Study focuses on the satisfaction level of customers in Bangalore, time perspective quality of the product and discount factors etc. are some of the factors which comes under the satisfaction on online purchasing.

Internet is changing the way consumers shop and buys goods and services, and has rapidly evolved into a global phenomenon. Many companies have started using the Internet with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive markets. Companies also use the Internet to convey, communicate and disseminate information, to sell the product, to take feed back and also to conduct satisfaction surveys with customers.  

Customers use the Internet not only to buy the product online, but also to compare prices, product features and after sale service facilities they will receive if they purchase the product from a particular store. Many experts are optimistic about the prospect of online business.

In addition to the tremendous potential of the E-commerce market, the Internet provides a unique opportunity for companies to more efficiently reach existing and potential customers. Although most of the revenue of online transactions comes from business-to-business commerce, the practitioners of business-to-consumer commerce should not lose confidence.

     

It has been more than a decade since business-to-consumer E-commerce first evolved. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyberspace. Along with the development of E-retailing, researchers continue to explain E-consumers' behavior from different perspectives. Many of their studies have posited new emergent factors or assumptions that are based on the traditional models of consumer behavior, and then examine their validity in the Internet context.

CHAPTER 2

REVIEW OF LITERATURE

Review of literature

    The critical importance of customer satisfaction in online purchasing has been recognized in academic research ands its literature, in particular. However studies in this area remain broad and to some extend fragmented. Therefore, purpose of this study is to test imperially the integrated model of customer satisfaction with online shopping that has been developed by Lee and Joshi .The analysis of this survey reveals that attitude towards online purchasing and the intention to shop online in the UAE are not only affected by ease of use, selflessness, and enjoyment, but also some other factors such as perceived web-store, traits, channel traits and customer traits. The journal: “Institute of advance media and communication 2010 volume- 4  

no -3 PP235/257”

Vyas and Sriniwas[ 2002] in their paper stated that majority of internet users where having positive attitude towards online buying of product, services. There exist a need for developing awareness about consumers rights and cyber laws. They also emphasized on better distribution system for online products.

This classic five stage model comprises the essence of consumer behavior under most contexts. Nevertheless, the management of marketing issues at each stage in the virtual environment has to be resolved by individual E-marketers. Peterson et al. [1997] commented that it is an early stage in Internet development in terms of building an appropriate dedicated model of consumer buying behavior. Decision sequences will be influenced by the starting point of the consumer, the relevant market structures and the characteristics of the product in question. Consumers' attitude towards online shopping is a prominent factor affecting actual buying behavior. (Source: Jarvenpaa Journal of Electronic Commerce Research, VOL. 6, and NO.2, 2005)

     

Other discriminating factors were; control over, and convenience of, the shopping process, affordability of merchandise, customer service and ease of use of the shopping site. In another study, Jarvenpaa et al. [2000] tested a model of consumer attitude towards specific webbase stores, in which perceptions of the store's reputation and size were assumed to affect consumer trust of the retailer. The level of trust was positively related to the attitude toward the store, and inversely related to the perception of the risks involved in buying from that store. Jarvenpaa et al. [2000] concluded that the attitude and the risk perception affected the consumer's intention to buy from the store.

Mayer et al. [1995] developed a model which combines traditional marketing philosophy on consumer motivation to buy and the trust model. In this model, trust propensity; which is a personality trait possessed by buyers; is an important antecedent of trust. In Internet shopping, there is not much information available to the buyer regarding the seller, prior to purchase. A buyer with a high propensity to trust will more likely be a potential customer than a buyer with a lower propensity. Mayer et al. [1995] proposed that ability, benevolence and integrity constitute the main elements of trustworthiness. Ability refers to skills, competencies and characteristics that a seller has in a specific domain. In this context, sellers need to convince buyers of the competence of their companies in the Internet shopping business. Benevolence is the extent to which the seller is perceived by the buyer as wanting to ‘do well'. Sellers have to convince buyers that they genuinely want to do good things for buyers, rather than just maximize profit.

Statement of the problem

With the rapid growth of e –commerce, customer in retail shops have gradually gone down that means many started purchasing online to save time and money in this context satisfaction level of online purchase seems relevant and also with the coming of digital wallet payment procedure it is necessary to check the satisfaction level of secured payment system.

Objective

• To measure the satisfaction level of  customers on online purchasing.

• To find out the timely delivery satisfaction.

• To measure safe and secure payment method.

Hypothesis

Ho:   The level of satisfaction of Customer regarding online purchasing is equal to  average.

Ho: There is no significant difference between the  level of customer satisfaction among male and female

Ho: There is no significant difference between the  level of customer satisfaction among different age group.

RESEARCH METHODOLOGY

Both secondary and primary data sources were used for the study. The secondary data were accessed from the journals, and websites. Primary Data were collected from 30 customers using online purchasing,   .The responses were obtained using questionnaire  .Responses on various measures used in the study were obtained on a  five point scale-Strongly agree(5),Agree (4),Neutral (3), Disagree (4), Strongly Disagree(5).The collected data was analyzed using statistical tools like arithmetic mean, one sample t test ,independent sample t test  and one way ANOVA.

Scope of the Study

As the trend of purchasing being changed it seems necessary to analyze the the satisfaction level of customers buying online and also to find any new areas to be touched or cleared by paytm for their  future safe  growth.

Limitations

• The data collected from the customers may not be accurate.

• Limited Geographic area of Bangalore only need not give the perfection of satisfaction level.

CHAPTER-3

PROFILES

Industry profile

1. ONLINE SHOPPING IN INDIA

The birth and growth of Internet has been the biggest event of the century. E-commerce in India has come a long way from a timid beginning in the 1999-2000 to a period where one can sell and find all sorts of stuff from a high end product to a meager peanut online. Most corporations are using Internet to represent their product range and services so that it is accessible to the global market and to reach out to a larger range of their audience.

Computers and the Internet have completely changed the way one handles day-to-day transactions; online shopping is one of them. The Internet has brought about sweeping changes in the purchasing habits of the people. In the comfort of one's home, office or cyber cafe or anywhere across the globe, one can log on and buy just about anything from apparel, books, music and diamond jewellery to digital cameras, mobile phones, MP3 players, video

     

games, movie tickets, rail and air tickets. Ease, simplicity, convenience and security are the key factors turning the users to buy online.

E-commerce revenues in the country are projected to reach Rs 2,300 crore in the year 2006-07, growing at 95 per cent over 2004-05(Source: Internet and Mobile Association of India, IAMAI). This pertains to the business-to-consumer (B2C) segment. It may be too early to do a comparison with the e-commerce scenes in countries such as the US where billions of dollars are spent online but the business in India is growing exponentially every year, albeit from a smaller base, the total revenues have reached a respectful size.

1.1 Recent Developments

The number of users logging on to the Internet is growing by leaps and bounds. The number of Indians who are online is expected to touch to 100 million by 2007-08, from the present 38.5 million according to the research conducted by IAMAI. The numbers indicate a growing sense of comfort with the use of Internet for shopping. Accompanying this growth, there is an increasing maturity in the way people use the Internet. It's a classical curve. Online users typically start by using e-mail, gradually move on to browsing for news, information and entertainment, and finally graduate to shopping and conducting business online. Online sales have registered a huge jump and what was a concept five years ago is now beginning to hit the mainstream levels. Roughly 10 percent of the world's population more than 627 million people have shopped online at least once, in India it is just

      

sprouted and beginning to perish. Internet is now going beyond the simple exchange of information to a shopping paradise. This medium is far bigger than expected, but many retailers and marketers are not using it to its full potential.

Indian customers are increasingly getting comfortable with online shopping, and there is a higher acceptability for the concept. India has 25 million Internet users and more is now

turning to online shopping. There has been an influx of online shopping sites in India with many companies hitching onto the Internet bandwagon. The revenues from online shopping are expected to more than double by 2006-07. According to IAMAI, the average number of transactions per month in India has gone up from 2 lakh in 2003-04 to 4.4 lakh in 2004-05 and has doubled to 7.95 lakh transactions per month in the year 2005-06. The online sales during the festival season had increased rapidly especially during Diwali and Ramzan which recorded a sales of Rs115 crore, a 117 per cent increase from the Rs53 crore in the year 2004-05(source IAMAI). These figures clearly show that online shopping has truly come of age and consumers are keen to shop on the net. Effective customer communication on products plus reduced shipping costs and timely delivery has helped online marketers to seize a slice of the Rs 115 crore sales.

Online shopping has become the latest trend among shoppers. Indians are becoming more comfortable with e-commerce. The consumer's attitude has been evolving towards online purchases. It has become increasingly positive over the years. The attitudes that drive people to shop online, such as

convenience, price comparison and choice are improving tremendously in India.

Though a miniscule amount in the global context, the Indian online shoppers' population would make its presence felt quite remarkably. The potential of the Indian e-market can be gauged from the fact that 16 percent of Indian consumers want to buy online in the next six months, making it the third most online-potential country after Korea (28 percent) and Australia (26 percent) (Source:IMRB). This is an indication of a growing breed of Indian consumers who are not only better equipped but also more confident of the online

transactions. Indian businesses have also grown mature enough to move up the IT curve and they are considering Business to consumer (B2C) e-commerce a viable revenue model. Some

of the companies that have benefited are baazee.com, indiatimes.com, rediff.com, indiamart.com, fabmart.com, traveljini.com and sifymall.com.

Indiamart.com has witnessed a growth of more than ten times in just two years in its online gifts domain. In the online travel domain, the company was able to generate an average $8,000 worth of room bookings/month for its premium client. It is expected to touch $15-20,000/month/client by the year-end, which is over 100 percent growth (Source:Indiamart). Brick-and-mortar businesses are also building up e-commerce revenues. In the year 2005-06 Samsung India recorded a 120 percent jump in online buying from its site over the year 2004-05 (Source: Samsung). Nirula's witnessed more than double growth in its B2C e-commerce revenues in the year 2005-06 and is positive for the next one to two years (Source: Nirula's). Companies like eBay India have seen a large increase in the number of sellers and buyers from B and C cities and in a year the eBay community (buyers and sellers) base has increased to 1.7 million users, which shows that more Indians are shopping online (Source: eBay). Online sales are currently marked by a single digit growth, but the leading garment retailers like Pantaloon, Shoppers' Stop and Globus have already made business strategies to enter into the world of e-retailing. Famous apparel brand Zodiac has already started online stores. The main motive of these retailers through online sales is to reach the global markets and the small towns where they do not have the outlets. Thus the India's Internet shopping sector is preparing for a massive growth, which is fuelled by increasing broadband usage and growing e-commerce.

1.2 Online Activities

The Internet has entered the mainstream consciousness over the past decade. This has happened primarily because the web has got a graphical interface and Internet has moved from governmental control to private hands. The activities which are happening on the Internet are email and instant messaging, general web surfing or browsing, reading news, hobby searches, entertainment searches, shopping and buying online, medical information searches, travel information searches, tracking credit cards, and playing games.

Communication i.e. email, chat or instant message is the basic activity for which Internet is used. It is the single most important reason for people to go online. E-mail provides the opportunity to communicate more often with a much broader circle of people than one can reach by telephone or by mail in a convenient way. In India too email constitutes the major activity on the Internet. It was found that more elderly people are increasingly using email as compared to the younger generations.  

In India the top five online activities are e-mail, surfing, chatting, search and job search.  Some of the sites, which are commonly used for these particular activities, are:

 Yahoo -Most preferred communication portal, tops for email and chat

 Indiatimes –Best event and sports news provider.

 Naukri-Best recruitment portal

 Google-Best information domain

 Shaadi-Best for matrimonial services

 eBay-Best online shopping portal

(Source:IAMAI)

In India online trading, travel, recruitment, ticketing, real estate, classifieds and social networking are a few spheres ripe for investment.

1.3 Employment

Today online job search market is expanding tremendously. According to IAMAI the number of online job seekers had reached 6.5 million in 2005-06 and is expected to across 9.2 million in the year 2006-07. The market size of the Indian online recruitment industry in 2005-06 was 145 crore and it is estimated to reach Rs 241 crore for 2006-07 (source IAMAI) this is mainly because of the increase in the internet penetration which has lead to an increase in the users for whom net has become a convenient way to meet their needs. Every year thousands of graduates pass out and look for employment opportunities, for these job seekers Internet is the most convenient (24 hour a day) and the comprehensive medium to research and look for jobs. Internet is advantageous to both the job seekers (saves time and cost) and to the recruiters (easy access to the best talent pool) as a result there is a win a win situation.

1.4 Banking & Trading

The net banking is increasing and it is estimated that 4.6 million Internet users are using Internet for banking purposes and it is expected to grow to 16 million plus by 2007-08 (Source IAMAI). Trading stocks is also becoming a fast booming activity amongst the Indians. The traders feel that trading through Internet is not that cheap but the convenience provided by online trading is worth the costs involved. Traders can keep a regular check on various stocks and it is easier to compare them. They can not only buy and sell stocks but can also find the track record of various stocks, do technical analysis, can access live news from international news agencies such as Reuters, CNBC and can find opinions from other leading brokers which help them do decide whether to buy or sell. More and more traders today are making the immense use of these services, which shows that there is a huge potential in this sector.

1.5 Matrimonial

As the popular adage goes, "Marriages are made in heaven" but today with so many matrimonial portals in the market they help one find the best match for themselves. Some of the popular marriage portals are shaadi.com, bharatmatrimony.com, Yahoo India matrimony, MrnMrs.com, Matricorp.com and jeevansaathi.com.

These marriage portals have increased because there is a rise in the career orientation among youngsters and increasing work pressures have resulted in less time for socializing. These youngsters are becoming more independent and are now making their own decision in respect of choosing their life partners. The marriage portals provide them the medium to interact with the people who match their required profiles. These portals not only help in finding a better match but also provide with services of astrologers, decorators, wedding planners and caterers thus providing a whole lot of services in one basket. More Indians are registering to these matrimonial portals and there seems to be a huge growth in the coming years.

1.6 Online Ticketing

The growth in the online travel business today is phenomenal. The Indian online travel business is worth $350-400 million and is growing at 40-50 per cent year by year, as the online population of the country is estimated to be 25 millions (Source:IMRB). There has been a significant increase in online ticket booking in India with a double-digit growth, which has also lead to an increase in Indian tourism. This growth in the travel industry has definitely leaded to the increase in the travel portals. The scope for growth is immense in this sector as more Indians are using the Internet.

Travel sites like MakeMyTrip.com (MMT) has been growing at about 20 per cent month-on-month, for the last four months, selling 1,400 tickets a day on an average (Source: MakeMyTrip.com). The online bookings in India was mainly stared because of the low cost carriers like Air Deccan which sells most of it tickets online. The revenue of the Indian Railway Catering and Tourism Corporation (IRCTC) has also increased phenomenally because of the online ticketing. The advantages of online ticketing are both for providers and for consumers as the providers benefit from infrastructure cost while for users it is a convenient way to book tickets.

Thus Internet has become an indispensable part of life and has reduced the world to a global village. Many corporates are getting into this bandwagon, as there seem to be a humongous growth in the coming years. Airline, cinema, hotel bookings, etc are all increasingly going online. The future of online business is bright therefore companies are providing more convenient services to the consumers and thereby changing their mindsets and attitudes towards life.

It is a fact that a great online shopping revolution is expected in India in the coming years. There is a huge purchasing power of a youth population aged 18-40 in the urban area.

If we observe the growth of Indian online transactions (Info by: IAMAI), it is getting doubled year by year.

The usage of internet in India is only 4% of the total population. This is also getting increased day by day as the costs of computers are decreasing and net penetration is increasing. The cost of internet usage is also getting lower, with good competition among the providers. Wi-Fi & Wimax is also getting tested in Bangalore and other cities in India. This will increase the usage as it goes more on wireless internet.

Indians are proving every time that they can beat the world when it comes to figures of online shopping. More and more Indians are going to online shopping and the frequency of India's online buying is crossing the overall global averages.

1.7 Factors That Boost Online Shopping in India

• Rapid growth of cybercafés across India

• Access to Information

• The increase in number of computer users

• Reach to net services through broadband

• Middle-class population with spending power is growing. There are about 200 million of middle-class population good spending powers. These people have very little time to spend for shopping. Many of them have started to depend on internet to satisfy their shopping desires.

1.8 Few Facts about Online Shopping

 The figures from IAMAI show that the internet users in India will grow to 200 million by 2010. Around 25% of regular shoppers in India are in the 18-25 age groups, and 46% are in the 26-35-year range.

• Indian online matrimonial sector is worth around $230 million.

• Worldwide e-commerce is only growing at the rate of 28%, since India being a younger market, the growth of e-commerce is expected at 51% in the coming years.

• In line with global trends finally India has also started shopping online these days. As per the study by IAMAI online shopping in India has rose from $11million in 1999-2000 to $522 million in 2008 and it is expected to rise above $700 million by end March 2010.

• Indians are also Shopaholics like other Asians. There is a strong booming young adult population in India with good levels of disposable income.

1.9 In India

Over $50 Billion and growing rapidly - Most popular online shopping products include: books (45%), electronic gadgets (42%), railway tickets (38%), accessories apparel (35%), apparel (35%), gifts (34%), computer and peripherals (32%), airline tickets (28%), music downloads (21%), movie downloads (21%), hotel rooms (22%), magazines (18%), tools (16%), home appliances (16%), toys (16%), jewelry (17%), movie ticket (15%), etc.

Payments

Online shoppers commonly use a credit card to make payments, however some systems enable users to create accounts and pay by alternative means, such as:

• Billing to mobile phones and landlines

• Cash on delivery (C.O.D., offered by very few online stores)

• Cheque/ Check

• Digital Wallet

• Debit card

• Direct debit in some countries

• Electronic money of various types

• Gift cards

• Postal money order

• Wire transfer/delivery on payment

Some sites will not accept international credit cards, some require both the purchaser's billing address and shipping address to be in the same country in which site does its business, and still other sites allow customers from anywhere to send gifts anywhere. The financial part of a transaction might be processed in real time (for example, letting the consumer know their credit card was declined before they log off), or might be done later as part of the fulfillment process.

ADVANTAGES

 Convenience

Online stores are usually available 24 hours a day, and many consumers have Internet access both at work and at home. Other establishments such as internet cafes and schools provide access as well. A visit to a conventional retail store requires travel and must take place during business hours.

In the event of a problem with the item it is not what the consumer ordered, or it is not what they expected—consumers are concerned with the ease with which they can return an item for the correct one or for a refund. Consumers may need to contact the retailer, visit the post office and pay return shipping, and then wait for a replacement or refund. Some online companies have more generous return policies to compensate for the traditional advantage of physical stores. For example, the online shoe retailer Zappos.com includes labels for free return shipping, and does not charge a restocking fee, even for returns which are not the result of merchant error. (Note: In the United Kingdom, online shops are prohibited from charging a restocking fee if the consumer cancels their order in accordance with the Consumer Protection (Distance Selling) Act 2000).

DISADVANTAGES

Fraud and security concerns

Given the lack of ability to inspect merchandise before purchase, consumers are at higher risk of fraud on the part of the merchant than in a physical store. Merchants also risk fraudulent  purchases using stolen credit cards or fraudulent repudiation of the online purchase. With a warehouse instead of a retail storefront, merchants face less risk from physical theft.

Secure Sockets Layer (SSL) encryption has generally solved the problem of credit card numbers being intercepted in transit between the consumer and the merchant. Identity theft is still a concern for consumers when hackers break into a merchant's web site and steal names, addresses and credit card numbers. A number of high-profile break-ins in the 2000s has prompted some U.S. states to require disclosure to consumers when this happens. Computer security has thus become a major concern for merchants and e-commerce service providers, who deploy countermeasures such as firewalls and anti-virus software to protect their networks.

Phishing is another danger, where consumers are fooled into thinking they are dealing with a reputable retailer, when they have actually been manipulated into feeding private information to a system operated by a malicious party. Denial of service attacks are a minor risk for merchants, as are server and network outages.

Quality seals can be placed on the Shop web page if it has undergone an independent assessment and meets all requirements of the company issuing the seal. The purpose of these seals is to increase the confidence of the online shoppers; the existence of many different seals, or seals unfamiliar to consumers, may foil this effort to a certain extent. A number of resources offer advice on how consumers can protect themselves when using online retailer services. These include:

• Sticking with known stores, or attempting to find independent consumer reviews of their experiences; also ensuring that there is comprehensive contact information on the website before using the service, and noting if the retailer has enrolled in industry oversight programs such as trust mark or trust seal.

• Before buying from a new company, evaluate the website by considering issues such as: the professionalism and user-friendliness of the site; whether or not the company lists a telephone number and/or street address along with e-contact information; whether a fair and reasonable refund and return policy is clearly stated; and whether there are hidden price inflators, such as excessive shipping and handling charges.

• Ensuring that the retailer has an acceptable privacy policy posted. For example note if the retailer does not explicitly state that it will not share private information with others without consent.

• Ensuring that the vendor address is protected with SSL (see above) when entering credit card information. If it does the address on the credit card information entry screen will start with "HTTPS".

• Using strong passwords, without personal information. Another option is a "pass phrase," which might be something along the lines: "I shop 4 good a buy!!" These are difficult to hack, and provides a variety of upper, lower, and special characters and could be site specific and easy to remember.

Although the benefits of online shopping are considerable, when the process goes poorly it can create a thorny situation. A few problems that shoppers potentially face include identity theft, faulty products, and the accumulation of spyware. Whenever you purchase a product, you are going to be required to put in your credit card information and billing/shipping address. If the website is not secure a customers information can be accessible to anyone who knows how to obtain it. Most large online corporations are inventing new ways to make fraud

more difficult, however, the criminals are constantly responding to these developments with new ways to manipulate the system. Even though these efforts are making it easier to protect yourself online, it is a constant fight to maintain the lead. It is advisable to be aware of the most current technology and scams out there to fully protect yourself and your finances.One of the hardest areas to deal with in online shopping is the delivery of the products. Most companies offer shipping insurance in case the product is lost or damaged; however, if the buyer opts not to purchase insurance on their products, they are generally out of luck. Some shipping companies will offer refunds or compensation for the damage, but it is up to their discretion if this will happen. It is important to realize that once the product leaves the hands of the seller, they have no responsibility (provided the product is what the buyer ordered and is in the specified condition).

Lack of full cost disclosure

The lack of full disclosure with regards to the total cost of purchase is one of the concerns of online shopping. While it may be easy to compare the base price of an item online, it may not be easy to see the total cost up front as additional fees such as shipping are often not be visible until the final step in the checkout process. The problem is especially evident with cross-border purchases, where the cost indicated at the final checkout screen may not include additional fees that must be paid upon delivery such as duties and brokerage. Some services such as the Canadian based Wishabi attempts to include estimates of these additional cost,[but nevertheless, the lack of general full cost disclosure remains a concern.

Privacy

Privacy of personal information is a significant issue for some consumers. Different legal jurisdictions have different laws concerning consumer privacy, and different levels of enforcement. Many consumers wish to avoid spam and telemarketing which could result from supplying contact information to an online merchant. In response, many merchants promise not to use consumer information for these purposes, or provide a mechanism to opt-out of such contacts.

Many websites keep track of consumers shopping habits in order to suggest items and other websites to view. Brick-and-mortar stores also collect consumer information. Some ask for address and phone number at checkout, though consumers may refuse to provide it. Many larger stores use the address information encoded on consumers' credit cards (often without their knowledge) to add them to a catalog mailing list. This information is obviously not accessible to the merchant when paying in cash.

 Hands-on inspection

Typically, only simple pictures and or descriptions of the item are all a customer can rely on when shopping on online stores. If the customer does not have prior exposure to the item's handling qualities, they will not have a full understanding of the item they are buying. However, Written and Video Reviews are readily available from consumers who have purchased similar items in the past. These can be helpful for prospective customers, but these reviews can be sometimes subjective and based on personal preferences that may not reflect end-user satisfaction once the item has been received.

Because of this, many consumers have begun going to real-world stores to view a product, before purchasing online. To combat the process, Target has requested distributors give them equally low prices, or alternatively, exclusive products available at their store only   

Company profile

1.1 ABOUT PAYTM:

Paytm means “Pay through Mobile”. It is one of the largest is one of the fastest growing Indian e-commerce shopping websites launched in 2010. The name of the company who launched the Paytm is One97 communication. Initially it is focused on Mobile and DTH recharging. The Company headquartered in Noida, India. It gradually provided recharging and bill payment of various portals including electricity bills, gas bills as well as telephone bills.

In 2014 Paytm has started the business same like as the facilities are getting from the other E-Commerce company such as Flipkart, Amazon, and Snapdeal. Today, it is India's most popular online destination for prepaid mobile & DTH recharges and shopping, and its Android and iOS apps have been ranked among the most popular apps. In only 3 years since the founding, the company created a user base of 25 million wallet users and 10 million app downloads.

SERVICE: In 2014, the company launched Paytm Wallet, India's largest mobile payment service platform with over 40 million wallets. The service became the preferred mode of payment across leading consumer internet companies such as Uber, Bookmyshow, Makemytrip.

FUNDING: Paytm got a major boost in e-commerce when Indian industrialist RatanTata made personal investment in the firm in March 2015.In the same month, the company received a $575 million investment from Chinese e-commerce company AlibabaGroup, after Ant Financial Services Group, an Alibaba Group affiliate, took 25% stake in One97 as part of a strategic agreement.

PARTNER: Paytm works with all mobile operators in all states in India for prepaid mobile, DTH and Data card recharges and postpaid mobile, landline and Data card bill payments. Its partners with the multiple national banks, for credit card, debit card and net banking payments. Pay tm also works with various billers for utility bill payments.

with its mobile-based marketplace Paytm, One97 Communication's incubated startup has reportedly become the country's largest digital company. Going by the volume, the Noida- based startup processes close to 300,000 transactions on a daily basis.

“In terms of growth, the company has grown to a whopping 350% in 2013 when compared to previous calendar year,” says Deepak Abbot, AVP, Paytm. According to our estimate, 75 to 80% of its revenue comes from mobile recharge followed by DTH and retail.

The company has also forayed into two new categories — mobile phones and cameras, besides 15 other categories. All popular mobile brands, from entry level to premier ones, are available on the platform, including brands like Samsung, Apple, and Nokia etc.

Speaking about category expansion, Deepak adds, “Paytm's mobile marketplace has been doing exceedingly well since its very inception in February this year. The idea behind introducing the two new categories is to offer more choices for our consumers. We will continue to add more products in the mobile and camera category to make it a comprehensive catalogue on a single platform.”

Paytm mobile marketplace brings over 250 merchants with over 1,00,000  items for users with an interesting feature of allowing bargaining between the merchant and buyer through a text messenger.

At present, the company gets little over 50% orders via phone and has six million app installs with 4.5 million installs reported in 2013. Importantly, its average transaction size has grown to Rs.145 from Rs.120.

“On the marketplace side, we have over 15 main categories and several sub-categories selling over three lakh products. While mobile and DTH recharge contributes almost 90% of our business, fashion is the biggest category followed by electronics on the retail front,” reveals Deepak.

The SAIF Partners, Intel Capital and SAP Ventures funded company has over 4.5 million RBI approved prepaid wallets, three million saved credit card numbers and 13 million registered user base.

As per industry estimates, there are about 60 million smartphone users in India out of which six million are registered on Paytm. The company has crossed Rs.1,000 crore in the current fiscal and plans to achieve Rs. 2,000 crore by the end of this year.

If we look at the e-commerce space, mobile becomes the prime focus for the heavily funded ventures. Recently, Snapdeal reported that 50% of its order comes via devices on the go. Meanwhile, Flipkart CEO Sachin Bansal has also revealed his company's intention of becoming a mobile centric entity.

Having said that, the new phase of growth for e-commerce companies will come from mobile, and Paytm's marketplace is all set to give them a tough competition.

Revenue Model

Paytm earn their revenue through the market place model. They work on market place model and they belive in the market place model for their revenue, they give to opportunity to vendors to sell or listed their products on paytm webside, so the buyer are comes and buy the products. In this activity paytm charge commission from the seller so this is a some part how they generate their revenue. They do also some more activity to generate their revenue.  

Paytm knows that Revenue model is framework of revenue.it is a description  How a business generate income, profit,or an average earning in a business.and they fully concentration their revenue model.

That's belive also purely marketing strategy, they get earnings from sponsored advertisers, showing ads, they give coupons (from sponsors), so inorder to gain some popularity and to bare the competition they are giving the cashback.  So they attract   more visitors as well as get more sponsors, ultimately making them profitable. its a most profitable strategy of paytm.

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