Demonetisation has triggered a fundamental shift in the consumer pattern in India and Paytm makes the best of it by using differentiated media for different segments.
On its way to cross two billion transactions, surpassing its own expectations that too before time, the digital payments platform Paytm now aims to become universal payments app across every bank account. This would be possible, once RBI approves Paytm’s connectivity with UPI (Unified Payment Interface) app/gateway. While banks are busy with rupee disbursement process, UPI will make Paytm – the payment layer on top of bank account. Additionally, with zero percent transfer charges to the bank account, the company sees its crawling baby grown up to stride longer and jump even higher.
The recent surge for Paytm gaining attention is the outcome of the government’s decision to ban high denomination notes i.e. Rs. 500 and Rs. 1000 in order to combat black money by restricting more than 85% currency from being in circulation. In the meantime, the flow of smaller currencies wasn’t enough to meet bare daily needs bringing numerous inconveniences to the people across the length and breadth of the country. The currency crunch was aptly noticed as an untapped opportunity by Paytm, which emerged as one-stop-solution and went on to the extent that even small vendors like tea sellers, pan-shops, kirana stores, shoe menders, etc. started using it as a platform to accept payments.
Paytm Develops First-of-Its-Kind QR-based POS Solution
It won’t be wrong to mention that at a time when ATMs are running out of cash leading to serpentine queues, Paytm emerged as a breather for both customers and local shop owners when it developed a zero-cost QR Code-based POS solution as the replacement of those rented POS machine. It worked as the ultimate POP for all the vendors/merchants, who gave their nod to use Paytm as a platform to transact cashless. The first POS of its kind that restricted or rather eliminated the need to invest in a POS machine. With Paytm, all the merchants, small or large can now accept mobile payments at zero transaction fee or TDR. The best part is that one can go live instantly. This is why, Paytm is pretty visible even in the wholesale market of signage at Paharganj in New Delhi.
Guaranteed Fail-proof Branding
Making good use of the opportunity, Paytm devised its promotional plan in quite an aggressive manner to win over all the odds within the stipulated 50 days of demonetisation so as to creep in to the groove of this rather imposed cashless transaction system, and accordingly jumped on to the bandwagon with well-prepared fail-proof strategies and tools decorated with a pair of blue colour with white base to become the talk of the time. Here is what Paytm used for its quite varied but specific target audiences:
Acrylic Counter Stands
Paytm’s visibility was noticed the most because of its zero-cost Acrylic Counter Stand that the company distributed to all the vendors/merchants to be kept at the counter to be scanned with cell phone as a tool for accepting cashless payments. This particular stand comes with a unique QR code, which is issued by Paytm in the name of the shop-owner, and the transacted money directly goes to his personal Paytm account from where he can transfer the same to his bank account at zero percent charges.
Sunboards
Paytm used Sunboard Signage for its branding at places where it didn’t find apt to stick bills but to hang either with the help of a nail or a string. It was also used to make the merchants (vegetable sellers, Vadapao Sellers, Tea Sllers, etc) feel special while offering e-payment solution at times when cash is facing a crunch and not every person was offering the service to its customers.
Stickers
Paytm used Stickers – one of the easiest and the most convenient ways of promotion with guaranteed longevity, of course, depending on the quality of gum and media used in stickers. The life of such stickers also depends on the printed matter, which Paytm has used very wisely and precisely.
Standee
For enhanced visibility from far, Paytm chose standee with a comparatively bigger size as a means to make people aware of its use as a platform to accept payments. It was preferred at places with expanded open areas like petrol pumps. Making push to the digital payment post demonetisation, petrol pumps across the country have installed infrastructure to accept not just credit and debit cards but e-wallets and mobile wallets like Paytm as an alternative to cash.
POP – The Brand Maker
POP expenditures are of increasing significance to marketers for three reasons. First, they often prove more productive than advertising and promotion expenditures. Second, the decline in sales support at the store level is stimulating interest among retailers in manufacturers’ POP programs. Third, changes in consumers’ shopping patterns and expectations, along with an upsurge in impulse buying, mean that the point of purchase is playing a more important role in consumers’ decision making than ever before.
What makes retailers/merchants opt for Paytm?
Retailers are becoming increasingly receptive to manufacturers’ offers of POP merchandising programs to materialise consumers’ impulse buying behavior to the most of its capabilities by giving them options to spend even if they do not have ready cash in their pockets. This tendency is about to go up as retailers will keep enjoying POP like this, particularly at a time when its importance is growing. Moreover, the pressure on retailers to carve out distinctive positioning to survive heightens their determination to control store layouts, space allocations, and POP merchandising.
Why customers prefer to use Paytm?
The foremost reason is the ease of use – something that today’s mobile users look for. It eliminates spending a fair bit of time in typing the credit or debit card detailsevery single time when it comes to make a payment.
A Brief about Paytm
Founded in 2010, Paytm started as a prepaid mobile recharge website. The area of operation is now expanded as online payment platform including mobile recharges, utility bill payment, wallet payment and wallet to wallet & wallet to bank transfers for many leading internet-based companies like Bookmyshow, Makemytrip, FoodPanda, IRCTC and the like. Owned by One97 Communications, the Paytm flagged off its operations under the implemented idea of Vijay Shekhar Sharma and got the first mover advantage in the mobile industry. The company has been backed up by Alibaba Group and Ratan Tata. The firm raised $575 million from Alibaba Group for a share of 25% in the company.
The Idea of E-Wallet
Paytm keeps the idea of ‘Mobile’ first and having wallets on mobile was the ice-breaker service.E-wallet will have lesser use of money cases instead of debiting from ATM’s and this behaviour of consumer helps them to keep their money in wallets. Banks will have longer understanding with e-commerce websites and government regulations on number of times of charge-less withdrawal from ATM’s will drive this business ahead. The company executed this idea of payment in an existing business model, but introduction of small creative elements made the difference along the way. The business model clearly depicts that Payment along with Marketing creates a marketplace of digital goods.
Conclusion
Keeping in view the nature of the trade, POP programs can be tailored to meet the needs of local markets or classes of trade in response to marketers’ increasing emphasis on region-by-region marketing programs and on account management of key retail customers. In addition, particular consumer segments can be precisely targeted with differentiated presentation of the promotional tools.
CASE STUDIES
Amid the ongoing nationwide cash crunch, Chaurasia, a pan-shop keeper in New Delhi’s New Friends Colony is happily accepting Paytm money for selling pan and cigarettes. “I have been using Paytm since three weeks now, and a lot of people are making their payments through it. Initially, there were problems in getting customers but the number increased with time.” He now has considerable number of customers both from the locality and from among the office goers in that area, who pay him through Paytm daily.
Rajesh Kumar, a tea-seller in Noida (UP), looked satisfied with his unique way of serving people. “I had a bit of confusion in using Paytm as how the money will come since there wasn’t anything tangible or rather visible. But following my fellow kirana store’s foot steps, I thought to go with it so as to help my customers enjoy the tea without worrying about the change.” He maintained that there were only 2 to 3 people when he had started using Paytm, 20 days ago. Now, more than 25 customers are paying through Paytm.
Anil Goyal, who runs a kirana store named ‘Milan Dairy’ in South Delhi, was so much under its groove that he started counting the benefits accrued to Paytm, and these were beyond accepting payments through this platform. “We are not only accepting but also making the payments through Paytm. It has actually saved us from keeping the change while our customers are happy paying us the amount in full without sacrificing the change. Besides, there are other payments for which we are making use of Paytm like DTH Recharge, Metro Card Recharge, paying utilities bill, etc.” he said.
Md. Waseem, an electric shop-owner in the outskirts of Noida, shared an overwhelming experience with Paytm, when he said, “In the time, when banks are not disbursing cash even to an extent that we can be able to meet our daily expenses, the rest of the other things take the back seat. But business has to run as we do need to survive. At this juncture, Paytm came as a ray of hope to keep the activities going.” He added that the sudden jerk out of the demonetisation was felt for around a week when there seemed no option available but to shut down. “Now the cash has started rolling, though to some extent, we are hopeful to be back on the track.”
Lokesh, who runs his medical shop, in Jaitpur, New Delhi, shared a different version when he said that he was forced by the customers to get installed Paytm.“Quite a few of my customers are having their Paytm account existing and pretty operational. For the medicines, they wanted to pay me through that only. This makes me call the Paytm team to issue me a QR Code for myself to be back in the trade without maintaining the credit register.” He said that the business for him was never on the back seat as health is always on the priority list of our customers and even minor ailments can’t be avoided to restrict any future anomalies. “Of course, Paytm made my payment accepting mode visible, and helped me transacting.”