E-WALLETS IN INDIA

Submitted to:Prof. Bijal Mehta

WHAT IS E-WALLET Refers to an electronic device that allows

an individual to make electronic transactions.

Purchasing product or payment for service online using…

ComputerSmartphone

BIG PLAYERS IN INDIA

For better understanding of “E-Wallet in India” we will take “PayTM” as a example.

PayTM is an Indian electronic commerce and payment system company headquartered in Noida, Uttar Pradesh. It was launched in 2010.

We will discuss only about “PayTM E-Wallet Service”

There are three types of model.

1] Market Place Model:- Keeping zero inventory on hand and perform as a mediator only.

2] Inventory Led Model:- Keeping Inventory of physical goods and payment.

3] Hybrid Model:-Adaption of both Market place and Inventory led model.

PAYTM IS FOLLOWING Inventory led Model PayTM holds the payment for seven days and thereafter

release it to the seller or service provider.

Assume Your due date for payment of electricity bill is 1st of Month- you pay it by that date, PayTM will release the same money to the vendor by 8th of the month. (Your electricity will not discontinued because PayTM has given confirmation to the vendor)

AliPay (by Alibaba) uses the same system.

However some E-Wallets like SBI Buddy ICICI Pockets HDFC Pay ZipAirtel Money

follows Market place model.

As these E-wallets services are owned and operated by service providers itself.

ONLINE POSITIONING PayTM, Freecharge and some other payment systems

are following Affiliate positioning. They are charges some percentage to sellers and

service providers. They also charge 1 % to the seller incase of transferring

the amount from wallet to bank. While some E-wallets like SBI Buddy and ICICI pockets

are falling under Support positioning. They are owned by service provider itself so there no

question of charging.

Customer Bank Payment Gateway

Client A/C

Seller A/C

PaymentGateway

Bank A/C(seller)

Seller

Online Procurement

DIVERSIFICATION Some E-Wallets are diversifying their business.

PayTM is into E- Commerce segment from 2014.

Here it serves as a mediator keeping zero inventory.

They are also purchasing warehouses to keep an Inventory of the goods with higher demand and higher margin.

PayTM is also get the license to start the Bank, now it charge 0 percent on transferring the amount from wallet to bank.

Submitted by,

Sohil Ghoghari (B-22) Krishna Karia (B31)

Ramya Kurup (B-33) Vinit Meghani (B-34)

Mehta Krutesh (B-35) Parth Rajyaguru (B-51)

Dipak Savaliya (B-53) Dharmik shah (B-56)

And

Namankumar Yagnik (B-77)

THANK YOU!