Real-World Business Analytics and Management



Choice of Technology:

Business model:

Data driven solution:



Introduction to Business Analytics Report

The organization that will be evaluated and analyzed is called one97 communication. However it is more popularly known as Paytm, a brand name under which it operates. In this report the organization will be regarded as Paytm as it is more popularly known. It is basically a digital wallet that was developed with an eye on the enormous potential for digital transaction in India. Since then it has become the premier digital wallet in India and has morphed into online retail which is another lucrative sector in India being eyed by global corporations like walmart (Blake, 2019). This report will take a critical look at the scope of efficient data analytics to enhance the revenue and business model it will also analyze in depth the mistake and the wrong decisions it took because it did not take into account the opportunities that were available. It will evaluate the different scenarios that can create opportunities for paytm, and if these scenarios are ignored, it will affect long term macroeconomic outlook of the company. India is a lucrative market for digitl payment and online retail. Hence all the major players are paying attention to it (Ethan, badal, Keith, & Carly, 2019). It is vital for Paytm to take advantage of the first mover advantage as an indigenous organization with huge name recall value. Hence it should utilize the concrete suggestions and factors discussed here with valid data driven approach, Paytm can be successful as an organization. This report will provide a scientific data driven pathway for Paytm to address its drawbacks and inefficient business model.

Choice of Technology

Paytm has spent huge amount of money to convince Indian to utilize wallets in its effort to dominate the digital payment space. However this technology is being challenged severely challenged by UPI based payment services (Mihir, 2020). UPI stands for unified payment interface. In case of wallets, the money is sent from one wallet to another, with indirect involvement of bank account. The user has to transfer money from bank account to the wallet, before a payment can be made made or transaction may occur. Hence use of wallet creates a complicated transactional process. In case of UPI, the money is transferred from one bank account to another. UPI may be thought of as an easier way of accessing one’s bank account (Shaikh, 2018). Hence it has been observed that wallets are losing out to UPI based digital payment services. This has caused other bigger players like googlepay moving in and dominating the market using UPI based digital service offering. This may be observed from the market share of the different payment services and their comparative analysis provides a frightening scenario for Paytm. However Paytm is late in adopting UPI based system despite being a first mover in the Indian digital payment domain. The result has been that is being outpaced by googlepay. As it can be observed by the image below, googlepay dominates the market and has more than double the market share of Paytm. This has resulted into significant loss of revenue for Paytm. This scenario needs to change and improve for Paytm to sustain its operation.

The net loss posted by Paytm is approximately USD 549 million for the financial year that ended in March 2019. The loss was one hundred and sixty five percent more than the previous financial year ending March 2018 (Manish, Paytm’s annual loss doubles to $549M, 2019). The problem that has been troubling Paytm is the fact that it has not been able to offer unified payment interface to all its users. This has affected the performance of its business and a major drawback of its business model (Soumiti, 2018). It has resulted in the company being overtaken by late entrants into the Indian digital payment market like google pay or Phone pe. As it can be observed from the figures, google pay and Phonepe is dominating the market which was at one time monopolized by Paytm (Manish, Google and Walmart establish dominance in India’s mobile payments market , 2020).

This is like giving away revenue that could have been taken advantage of by Paytm. It has raised considerable amount of money from different sources like Softbank and Alibaba in both equity and debt adoption approach. The loss of revenue is a cause for concern to its investors (Danny & Arman, 2018). Paytm has a glorious past as a trailblazer in the digital market. However that was a digital wallet provider in a market where it was the first mover and digital payment was an innovative concept. However since the Indian government allowed unified payment interface, the market started becoming crowded with players with deep pocket like amazon pay , google pay ad Flipkart’s Phone pe, which were all unified payment interface based digital payment service providers. Paytm was extremely late in this technology adoption.

Business Model

Due to its flawed approach of delayed unified payment interface technology adoption it could not tap into the lucrative tier two and tier three cities that was a major problem in its business model that affected revenue generation (IANS, 2019). The demonetization event in 2016 created a major jolt to the Indian payment scenario. The government sucked out ninety percent cash out of the economy overnight and started promoting digital payment (Sharda, 2017). This was the time when it approved unified payment interface. Seventy percent of Indian population lives in villages and taking tier two and tier three cities the population is approximately eighty five percent (John, 2019). The zero balance account scheme through the jan dhan yojana, and the enormous mobile penetration created an huge market for digital payment using unified payment interface. This was the time when Paytm should have migrated its technology from digital wallet to unified payment interface payment service. This was not done with the agility that was necessary (USAID). This has cost Paytm in rural and tier two and tier three cities which are nw dominated by other players. This intelligence from its data that is obtained by market research should drive its technology adoption and marketing strategy. Paytm still has enormous name recall value and that should be capitalized to ensure that its business model is revised and a data driven marketing strategy adopted.

The marketing strategy should focus on the number of mobile users in the Indian hinterland that should be the next focus of expansion and consolidation. The business model that has so far been focused on urban merchants and retailers should be revised to include businesses that are not urban centric. Since unified payment interface allows bank to bank services, should be customized for agriculture based merchants and their ancillaries. Paytm does not have digital payment service that may be adopted by the farming community. Agriculture employs more than fifty percent of work force and contributes approximately twenty percent of Indian gross domestic product (Anjum, 2007). This coupled with the communities of tier two and tier three cities should be a major target of Paytm’s marketing and outreach campaign. The urban landscape is reaching saturation, and paytm is losing it to phonepe, googlepay, and amazon pay. This needs to be handled with appropriate data drive customer survey and market analysis. This report will provide an insight and this intelligence may help Paytm regain some of the ground it has lost. There needs to be a coordinated and well researched approach that includes a shift in business model that diversifies the customer base of paytm. As mentioned in the previous section, digital wallet is a complicated process unified payment interface is somewhat simpler. This simplicity should be adopted by Paytm and rolled out for all its consumers, and this simple and agile approach should be reflected in its marketing strategy and business operations.

Data Driven Solution

The solution to the problems, drawbacks and inefficiencies will be discussed in this section. It can be observed from figure 3 and 4, in the hypothetical dashboard the expense pattern of a typical paytm consumer. This is considered a digital tracker dashboard that is a tool for business intelligence and analytics. The good thing about Paytm is that it allows extracting your own wallet data; however it does not allow access to all data. This data however may be scraped from their website. This requires advanced technical and data processing skills. As the hypothetical data from the dashboard above reflects, this intelligence may be a valuable tool to analyze and address the issues mentioned in the previous sections. The data shows the spending pattern of the customers and may be used to create mathematical and statistical models that may be used to drive marketing and operational strategies that will enrich governance of Paytm. One of the main drawbacks of Paytm has been its personality driven governance. This was acceptable to investors as long as Paytm was the market leader and had a major share of the Indian market. However from personality driven governance, Paytm should transition to data and strategy driven governance (KPMG, 2019). The dashboard depicts the spending pattern of a hypothetical consumer. The key stakeholders as identified from analysis of data are the small merchants who are the drivers of Paytm, its vendors and its consumers. the focus should be ease of transaction and enhanced onboard of vendors and merchants. 

As can be observed from figure four, there is immense intelligence that can be generated from the data generated by average visitor to paytm website, the transaction they processed and revenue. These revenue and spending patterns are to be clustered and segregated in order to create a strategic marketing campaign focused specifically on these clusters. The clusters will be created based on the parameters and data generated from figure three. The pattern of clustering will be like figure four that will drive marketing and corporate governance strategies. The first strategy that should be adopted should be first and foremost , the adoption of universal UPI based payment mechanism. This is necessary to enhance the adoption of Paytm by customers who are beneficiaries of jan dhan yojana and other financial inclusion policies of the government who is promoting digital payment along with financial inclusion of the population beyond the urban crowd. This particular technology adoption should be simultaneous with change in governance structure. The managing director, who plans to go public in two years cannot run the company as a personal firm, which it is not anymore. The governance structure should be democratized with input from marketing and other strategic departments which will take Paytm to the masses. This will lead to data driven revision of the business model . the goodwill of Paytm should be leveraged as it moves into the hinterland. The product offering should be customized based on customer segregation based on behavioral pattern and economic activities.

Conclusion on Business Analytics Report

Paytm has been a success story in the initial days of digital payment in India. However since the adoption of UPI based payment by the government it is losing its market share to bigger players like google pay, amazon pay and flipkart’s phone pe. This is because Paytm was slow to adopt to a UPI based payment method. This form of payment method is also not available to all its customers. This should be rectified as soon as possible. The UPI based payment should be available as soon as possible. It will allow Paytm to move from its urban focus to tier two and tier three cities and the rural area. Its offering should be customized based on user data and its analysis. The pivot of the company should be now towards rural and semi urban population. Also the governance structure should evolve from current personality driven approach to data driven strategy. The stake holders of the company, especially the merchants, customers and vendors should be prioritized in this push for change in strategy.

Bibliography for Business Analytics Report

Anjum, S. (2007). India and South Asia: Economic Developments in the Age of Globalization. london: M.E.Sharp.

Blake, M. (2019). 7 Ways Amazon and Walmart Compete -A Look At The Numbers. Forbes.

Danny, C., & Arman, T. (2018). Recapping a year of highs and lows for SoftBank. Tech crunch.

Ethan, L., badal, M., Keith, S., & Carly, T. (2019). What explains low adoption of digital payment technologies? Evidence from small-scale merchants in Jaipur, India. Plos One .

IANS. (2019). Sluggish digital payment growth in small town India''. IANS.

John, D. (2019). Cashless payments are growing faster in India than just about anywhere else. qz.

KPMG. (2019). India's digital future. KPMG.

Manish, S. (2020). Google and Walmart establish dominance in India’s mobile payments market . tech crunch.

Manish, S. (2019). Paytm’s annual loss doubles to $549M. tech crunch.

Mihir, D. (2020). And now, Paytm faces its moment of truth. Livemint.

Sangeeta, T. (2019). The Indian government can thank Google for the popularity of its digital payment system. qz.

Shaikh, Z. (2018). 4 reasons why UPI may overtake mobile wallets soon. livemint.


Soumiti, G. (2018). The problem that has been troubling Paytm is the fact that it has not been able to offer unified payment interface to all its users. PAYMENTS OVERVIEW – INDIA. Finance FInland.

USAID. India Digital Financial Inclusin. Washington,DC: USAID.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Business Analytics Assignment Help

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