In India, the use of digital transactions has significantly increased since 2016, with everyone using them, from chai shops to five-star restaurants using them. Let's take a look at how we used to transact business by exchanging goods and services face to face. By simply pressing a button, we can send money to anyone in the country within seconds, which is crazy. Now, let's get down to business. In India, the two most widely used payment apps are Paytm and PhonePe. In this article, we'll go over some of the key details of how Paytm secretly surpass phone in India
The two most competitive and rival companies in the fintech sector are Phonepe and Paytm, with Phonepe having the largest market share and translation volumes. Paytm has been losing money for the past three years, and as a result, its stock price has dropped dramatically, hitting an all-time low and falling 80% from when it was first issued. Even though the majority of those involved in the situation were also involved, I had strangely learned that Paytm had made some remarkable progress over the past two years, defying the perception that it was just another startup that wouldn't last long. Paytm has developed a solution to an issue for an Indian living in the last mile of the nation. Since new unicorns have been raised and both businesses are now offering more cashback to encourage users to quickly switch to new applications, the cost of acquiring a customer has increased by almost Rs. 1000.
PhonePe and Paytm provide three different types of products: entry products, retainers, and upsells—to build an impenetrable ecosystem for their users. From these three types, two categories—retail customers and merchants—are produced.
Customers can tap on scan and scan the code to pay merchants where the entry point is QR code scanning. You might wonder, if every brand is doing it, what's new about it. By conducting research and focusing on the practical application of their product benefit, Paytm has developed a game-changing idea in the retention type that will help them succeed in the long-term process of building a sound box.
Think of yourself as a small business owner where there is a high volume of customers who continue to pay by scanning QR, A retailer may find it challenging to keep track of every receipt, Where the sound box concept is crucial, it announces a voice such as "So and so money has been paid via Paytm," making it easier for the merchant to complete their task and Merchant would have been used to the feature who doesn’t have a mindset to switch even if the high level of cashback provided by competitor companies where the soundbox concept doesn’t exist. the same way that an iPhone user would never switch to an Android
Paytm introduced the sound box idea in 2020, but Phonepe didn't use it until July 2022, lagging behind Paytm by two years. With over 30 lakh devices distributed as of September 2022, Paytm is currently ten times more advanced than Phonepe. Unlike PhonePe, which only distributed 1 lakh devices
For instance, you might be interested in knowing what this tiny, insignificant box contributes to the market and how it helps Paytm pay off its debt. The simple user interface makes it essential for Paytm to maintain its merchant clientele, and as a result, customer acquisition costs will gradually decline. In the final draught of the blog, upselling will be covered.
Due to a lack of information, Indian banks are hesitant to provide financing to the MSME and small business sectors. Enter Paytm, whose algorithm evaluates a person's creditworthiness and determines how risky it is to extend credit using a variety of criteria and metrics. Consider a situation where Person A, who has a cash flow of Rs 3 lakh, requests a loan of Rs 30,000. Paytm determines that this request has a low-risk profile and immediately approves it. Where person B whose income is 2 Lakh and asked for a 40k loan means Paytm can lend him a loan with zero paperwork, Paytm can assist a customer with loan payment history and credit score based on the data it holds, due to this upselling method paytm has able to disburse 320 percent of its loan in January 2023
Conclusion :
Customer retention is always more important than customer acquisition, as demonstrated by Paytm's strategy, and as a result, the company has taken a few steps forward by identifying a customer need and introducing a small device to keep customers in a highly competitive market and to begin climbing towards the top of the hill in the Payment market in the coming years.
Also, read our article: https://blog.skillsafari.in/how-to-become-a-front-end-developer-in-2023