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A Study On Paytm Services In Promoting Cashless Economy After

Demonetization In IndiaAnd An Outline On Its Support Towards MakingIndia
Digital

Article  in  International Journal of Pure and Applied Mathematics · May 2018

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International Journal of Pure and Applied Mathematics
Volume 119 No. 7 2018, 263-278
ISSN: 1311-8080 (printed version); ISSN: 1314-3395 (on-line version)
url: http://www.ijpam.eu
Special Issue
ijpam.eu

A Study On Paytm Services In Promoting Cashless Economy After

Demonetization In IndiaAnd An Outline On Its Support Towards
MakingIndia Digital

S. NazimSha*, Dr. M. Rajeswari**

* Research Scholar, School of Management, Hindustan Institute of
Technology and Science, Padur, Chennai India. –
nazimsha.s1992@rediffmail.com
**Associate Professor, School of Management, Hindustan Institute of
Technology and Science, Padur, Chennai India. –
mrajeswari@hindustanuniv.ac.in
Abstract: Strategy structure which was offered by our Indian Government are towards
innovation are Make in India, Startup India and Skill India. And Paytm was one among such
innovation which came as an alternative to the cash transactions. Demonetization has given
Paytm an elevate in the India's money exchange economy and constrained individuals, and
specifically the little vendors to look for alternatives. The shoppers started utilizing computerized
installment modes and Paytm is currently enrolled as a safe versatile wallet and is slowly
expanding its relationship with more providers.It is a changeover to a digital model according to
the marketplace. In India Paytm is constantly growing to be the top platform for mobile, e wallet
and commerce. After demonetizing the 500 and 1000 rupees notes Paytm understood that it can
successful only by offering services towards Cashless Economy. Paytm is a successful
technological innovation which has created a balance between cost and efficiency. The main aim
is to study the importance given to Paytm by people in their daily routine life and success of
Paytm in motivating the Cashless economy. The aim is also to study the flexible services offered
by Paytm promoting the Cashless economy and also supporting the Digital India.

Introduction

The development and the ascent of versatile innovation all through the world among individuals
has extended to a great extent in light of the prepaid model. Because of this all classes of society
approach the budgetary administrations and have turned out to be exceptionally comfortable with

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the versatile cash framework. For the Banks a newer possibility has been opened for the middle
class and the poor people using the new innovation. With the presentation of advanced wallets in
mid-90's spearheaded by Sam Pitroda with the vision, fundamental the necessities of the clients a
simple to utilize interface, capacity to safely execute in the virtual and certifiable, in came
application-based wallets, for example, Paytm. The buyer brand of India's driving portable web
organization, for example, One 97 Communications. One 97 speculators incorporate Ant
Financial (Ali Pay), SAIF Partners, Mediatek, Sapphire Venture and Silicon Valley Bank. Paytm
comprehended the significance of a contrasting option to the current money exchanges and
presented an exceptionally basic versatile Mobile application based secure medium of advanced
method of exchange which is the place where the future untruths. A commercial center model
and a Revenue based show which gives clients an opportunity to save money choice, energizes,
charge installments, Cashbacks when things are acquired, installment arrangements, Digital
Gold, Paytm Bank and e-wallet. With a helpful commercial center for dealers and Paytm is the
first organization in India who took the reception of a Mobile Wallet currently having 120
million purchasers and 2 million every day exchanges. For adjusted class of items Revenue from
this subcategory is produced as expenses and commissions from the dealers. Paytm has focused
more on Digital currency thus it can increase its brand preference through the better distribution,
promotional and better marketing strategies.Wallet which can be utilized to store money in
computerized shape and consequently can be utilized to purchase merchandise and ventures from
shops or foundations which have a particular contract with the organization to acknowledge
these installment instruments. Paytm wallet doesn't allow money withdrawal. Clients deposits
cash in the Paytm Wallet is saved by Paytm in an Escrow account, based on the RBI rules and
Paytm gets premium and this is considered as an agreement between bank and Paytm.Accepts
Deposits and gives out loans for the money deposited. Paytm cannot give loans. Here QR codes
are used for payment

which is nowadays available in each shop both in Rural and Urban areas. Debit cards are also
available for Paytm.Online Payments are accepted and the option for payment comes with no
maintenance charge but there is a commission cut on each transaction.Initially Paytm had only
Recharge services and mindset of the people been that Paytm was only for Recharge, but now
things have changed using Paytm we can even pay educational fees and bills. For both buyers
and sellers Paytm is still serving as alternative means of cash transaction and offers a convenient,

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International Journal of Pure and Applied Mathematics Special Issue

safer and secure use on mobile applications for both consumers and marketers. Achievement of
an innovation is the point at which a customer acknowledges an item and administration over a
market depends on another heap of advantage traded at a price or a value. Paytm gained
attention, importance in day to day life.

 Myersin (1969) stated that the vast majority of the innovation are essentially advertise
driven and is acquainted as an answer with the particular needs of the customer. Lynn
(1966) states that more development is presented in Consumer Market when contrasted
with mechanical markets.Galbraith (1970).
 Madur Deora, CFO and senior VP of Paytm, expressed that an installment bank offers an
essential store connection with the clients at first and also Paytm is building this
relationship utilizing the cash by spending, sparing and acquiring. To him the
installments bank permit isa colossal obligation.
 Dr. Poonam Painuly, Shalu Rathi in their paper “Mobile Wallet: An upcoming mode of
business transactions” (May 2016) clearly explains about the mobile wallet, it’s types and
latest trends. At that point examined about Role of portable wallet in different divisions
like Banks, Retail and Hospitality. The paper clarifies the significance of versatile wallet
for Banks, Customers and Companies. In future extension it also discusses on the
versatile wallets turning into a trend of advertising channel in not so distant future. Also,
contributing exceedingly in a consistent shopping knowledge for the clients that
expansion their inclination for regular and more repurchases with delightful encounters.
They additionally talk on the significance and development of portable cash in business,
social and monetary planned. The nearness of versatile wallet spreading from urban to
country territories on a huge scale. Henceforth, wallet cash sees a high splendid future in
close time
 Rajesh Krishna Balan, Narayan Ramasubbu, Giri Kumar Tayi studied in their paper
“Digital Wallet: Requirements and Challenges” (2006) that the prerequisites and
difficulties of sending money across the country using computerized wallet arrangement
in Singapore. Advance, they examined why Singapore is prepared for a computerized
wallet and recognize the key difficulties in building and sending a computerized wallet
and at that point the exchange was on the difficulties confronted when utilized with

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International Journal of Pure and Applied Mathematics Special Issue

Digital Wallet framework in real money exchange and more detail and end the paper with
their proposed arrangement.
 Prof Trilok Nath Shukla in his paper “Mobile Wallet: Present and the Future” (June
2016) has discussed about mobile wallet, working, types and its advantages and
disadvantages. His investigation included impression of customers and retailers about
portable wallets. He reasoned that portable wallets will be utilized to draw in with the
client by the advertisers and advanced organizations. Independent of the market status of
these versatile wallets, advertisers should exploit the developing openings.
 FE Bureau (2017) states that According to the RBI: Demonetization has increased the
growth of Paytm & Mobikwik which is known as the Digital payment companies.
“ANewspaper Article in Financial Express”.
 Shwetu Kumar, Vijay Yadav,Atiqu-Ur-Rahman, Aditi Bansal(2014),did a study on
“Paytm”. They examined on Paytm achievements, particular in designing, working and
developments of Paytm which consolidated an examination on organizing a store, web
progression, online gadget and also depicted about electronic portion system.
 Brawn et al., (1999) stated that the ads do support a typical experience. The promotion
through Paytm guarantees that that it is a cordial and a fast-well-ordered process which is
secured toward the finish of buyers and advertisers. The utilization of Paytm application
conveyed the guarantee in this manner Paytm increased better selection in contrast with
other portable wallets.
 Haugtvedt et al., (1994). Paytm featured that brand reposition is based on aligned belief.
Here customers where helping the administration to battle dark cash. The shoppers
needed to be a dynamic help to this preface along these lines they starred utilizing
computerized installment modes.
Research Methodology
 Sample design: -. The study is done by using Convenience sampling method with 95%
confidence and 5% margin of error. A sample of 50 employees have been taken across
India. The data gathered was analyzed using Percentage Analysis, Correlation Test and
Chi-square Test.
 Data Collection: In view of this questionnaires were sent to 50 respondents and the
inquiries were asked where their responses are noted. Respondents are mainly college

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International Journal of Pure and Applied Mathematics Special Issue

students, employed and non-employed youths, middle aged people both employed and
non-employed and the merchants.
 Data Analysis Tool:Microsoft Excel program.

Research Objectives

 To study the acceptance level of Paytm in India as an alternative to the cash transactions
 To study the flexible services offered by the Paytm
 To study the opinion among people in adopting Paytm as a solution to the Indian
Demonetization.
 To examine the importance of Paytm in day to day life.
 To study the role played by Paytm in making India Digital.

Hypothesis
 H0:There is an acknowledgment level for Paytm as another option to the money
exchanges among individuals
 H1: There is an acknowledgment level for Paytm as another option to the money
exchanges among individuals.
 H0: Services offered by Paytm are adaptable in supporting the Cashless Economy
 H1: Services offered by Paytm are not adaptable in supporting the Cashless Economy
 H0: Paytm is a solution to the India Demonetization.
 H1: Paytm is not a solution to the India Demonetization.
 H0: People give importance to Paytm in their day to day life.
 H1: People don’t give importance to Paytm in their day to day life.
 H0: Paytm plays an important role in making India Digital.
 H1: Paytm does not play any role in making India Digital.

Results & Discussions

Percentage Analysis

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International Journal of Pure and Applied Mathematics Special Issue

Interpreting Q1, Q2, Q3& Q4

Q1, Q2, Q3 & Q4

30

25

20

15

10

0
Strongly Disagree Agree Disagree Strongly Agree

Series1 Series2 Series3 Series4 Series5 Series6 Series7 Series8

 Majority of the people agree to the fact that Paytm is one of best technological innovation
in 21st century
 Majority of the people agree that Paytm is an alternative to cash transactions and supports
Cashless economy.
 Larger part of the general population concurs that Paytm helps customers and vendors in
changing to versatile installments.

Interpreting Q5, Q6, Q7, Q8,Q9,Q10 & Q11

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International Journal of Pure and Applied Mathematics Special Issue

Q5, Q6, Q7, Q8,Q9,Q10 & Q11

25

20

15

10

0
1 2 3 4 5 6 7

Strongly Disagree Agree Disagree Strongly Agree

 Majority of the people give importance to Paytm in their day to day life.
 Majority of the people agree to the fact that Paytm offers a flexible service.
 Larger part of the general population concurs that Paytm helps customers and vendors in
changing to versatile installments.
 Larger part of the general population concurs prefer Paytm mainly because of its services
 Larger part of the general population agree that Paytm gives importance to safety
 People agree to the fact that Paytmcreated a balance between cost and efficiency.
 Majority of the general population agree that Paytm supports Pay through mobile.
 Majority of the people disagree to the fact that Demonetization lessened growth of
Paytm.
 Majority of the people agree that Paytm supports Make India Digital campaign

Interpreting Q12, Q13, Q14 & Q15

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International Journal of Pure and Applied Mathematics Special Issue

Q12, Q13, Q14 & Q15

25

20

15

10

0
1 2 3 4 5 6 7

Strongly Disagree Agree Disagree Strongly Agree

 Majority of the people agree that Paytm is one of the solution to the Indian
Demonetization.
 Majority of the people agree that Paytm is way ahead when compared with its
competitors.
 Majority of the people agrees that Paytm is one among the quickly developing
organizations in the e-wallet space in India

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International Journal of Pure and Applied Mathematics Special Issue

Correlation Analysis

Correlation 0.966 tc 6.8 Degree of freedom 35

of Q1 &Q2 and p = 0.05

Correlation 0.962 tc 3.11 Degree of freedom 11

of Q1 &Q3 and p = 0.01

Correlation 0.81240271 tc 4.48 Degree of freedom is 11

of Q1 &Q4 and p = 0.001

Correlation 0.82898129 tc 4.78 Degree of freedom 5 and

of Q2 &Q1 p = 0.001

Correlation 0.93445079 tc 5.89 Degree of freedom 6 and

of Q2 &Q3 p = 0.001

Correlation 0.99591749 tc 3.11 Degree of freedom 11

of Q2 &Q4 and p = 0.001

Correlation 0.95203983 tc 4.78 Degree of Freedom 5 and

Q3& Q1 p =0.001

Correlation 0.95203983 tc 5.52 Degree of Freedom 6 and

Q3& Q2 p =0.001

Correlation 0.95203983 tc 9.93 Degree of Freedom 2 and

Q3& Q4 p =0.001

Correlation 0.899 tc 3.92 Degree of Freedom 18

Q3& Q4 and p =0.001

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International Journal of Pure and Applied Mathematics Special Issue

Scatter Diagram
1

0.98

0.96

0.94

0.92

0.9

0.88

0.86
0 2 4 6 8 10 12 14

Chi-square Test:

Range Chi-square Degree of P - value P – value<0.05 Hypothesis

value Freedom or P- Validation
value>0.05
Q1 to Q2 0.06 165 1 P-value>0.05 H0 accepted
Q3 to Q4 0.289 22 1 P-value>0.05 H0 accepted
Q5 to Q6 0.5165 160 1 P-value>0.05 H0 accepted
Q12 to Q13 0.066 55 1 P-value>0.05 H0 accepted
Q14 to Q15 1.237 6 1 P-value>0.05 H0 accepted

H0: There is an acceptance level for Paytm as an alternative to the cash transactions
among people.

H1: There is no acceptance level for Paytm as an alternative to the cash transactions
among people.

The above Correlation Results and Scatter Diagram states that H0 is accepted.

H0: Services offered by Paytm are flexible in supporting the Cashless Economy
H1: Services offered by Paytm are not flexible Services in supporting
the Cashless Economy.

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International Journal of Pure and Applied Mathematics Special Issue

The above Correlation Results and Scatter Diagram states that H0 is accepted.
H0: Paytm is a solution to the India Demonetization.
H1: Paytm is a solution to the India Demonetization
The above Correlation Results and Scatter Diagram states that H0 is accepted.
H0: People give importance to Paytm in their day to day life.
H1: People don’t give importance to Paytm in their day to day life.
The above Correlation Results and Scatter Diagram states that H0 is accepted.
H0: Paytm plays an important role in making India Digital.
H1: Paytm does not play any role in making India Digital.

Conclusion

Paytm is one among the best mechanical advancement in the present century and the
administrations offered by Paytm helps in Time utilization and furthermore it is anything but
difficult to utilize. What's more, for the up and coming business visionary's Paytm example of
overcoming adversity would be extremely motivational and a lesson to learn before beginning
another wander. Achievement of Paytm could be it was a plan of action presented in the wake of
concentrate the current circumstance winning in our nation and that is the reason it went ahead to
wind up outstanding amongst other arrangement after demonetization. Can get consideration in
the general public as it centers around making mindfulness among individuals. Instructing
individuals about its administrations. Fruitful treatment of Paytm by purchasers and shippers is
the best case of its positive effect in the general public. Paytm is the best case of an organization
which used online business advertise better.

Appendix

Statement Strongly Disagree Agree Disagree Strongly Agree

Paytm is one of

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International Journal of Pure and Applied Mathematics Special Issue

best technological
innovation in 21st
century.

Paytm is an
alternative to cash
transactions and
supports Cashless
economy.

Paytm helps
consumers and
vendors in
switching to mobile
payments.

People give more

importance to
money “Paytm
gained importance
in day to day life of
people”

Paytm offers a
flexible service.

People prefer
Paytm mainly
because of its
services.

Paytm offers a safe

and a secure

274
International Journal of Pure and Applied Mathematics Special Issue

transaction

Paytm created a
balance between
cost and efficiency
in India

Paytm is Pay
through Mobile

Nowadays Paytm
usage has become
frequent.

Paytm is way
ahead of its
competitors

Paytm is a solution
to theIndian
Demonetization.

Paytm campaign
supports “Make
India Digital”.

Demonetization
lessened growth of
Paytm.

Paytm is one

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International Journal of Pure and Applied Mathematics Special Issue

among the quickly

developing
organizations in
the e-wallet space
in India

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