Paypal Distribution Case Study

1469 Words6 Pages
2. Viral Distribution When PayPal launched in the late 1990s, it encouraged existing users to send money to non users. When users sent money to their friends and family members (that were not on PayPal), PayPal sent them an email saying “Collect $$ by signing up for PayPal". This give non-users a far more compelling reason to join PayPal than any direct advertising or PR efforts could have and generated a massive amount of viral distribution for PayPal. PayTm has copied this approach and has probably reaped the rich rewards à la PayPal. Surprisingly, PayTm’s competitors haven't followed this approach. They insist that payments can be made only to people that have already signed up to their e-wallets. They probably think sending money to a non-user…show more content…
Even if they’re tech-savvy, crazy busy merchants simply don’t have the time to shop for terminals and learn how to make them work - especially when they’re getting pampered by the nation's #1 mobile wallet company! As a result, most micro-merchants I’ve quizzed are not even aware of UPI, BHIM and other competing e-wallets. 4. Frictionless Payments By design or default, the Sign Out link in PayTm’s mobile app is buried deep inside the app. As a result, many users have never seen it and stay logged into their app all the time. This means they're able to make a payment without a password or PIN. This creates significant security vulnerability in PayTm. But it also makes PayTm's CX that much more frictionless, which makes a lot of difference when people use it many times a day. Security is a hygiene factor. Convenience trumps security, everytime. Even in India. PayTm has understood and capitalized on this element of consumer behaviour. Its competitors have totally missed it. 5. Miscellaneous PayTm is very well funded and is able to spend big bucks on advertising as also absorb losses on virtually every…show more content…
The scam involved 15 customers who had colluded with some of PayTm’s executives, costing the company around Rs 6 lakh. Though the incidents occurred on PayTm’s e-commerce portal, not its payment app, the news prompted increased scrutiny of the startup. Technical woes PayTm has also been struggling to manage the sudden spike in traffic on its mobile app. On December 20, the app faced a technical outage that prevented customers from making transactions. “At the evening peak hour today, we witnessed three times the traffic of the last peak that we handled,” a company spokesperson told the Press Trust of India. “As we continue to route the traffic to new servers and install additional capacity, certain customers are facing (a) time-out.” But things only got worse. On December 21, PayTm’s app reportedly disappeared from the Apple Store for several hours. The company said it had de-listed the app due to technical issues and was waiting for the updated version to be approved by Apple. Advertising

More about Paypal Distribution Case Study

Open Document