A COMPARATIVE STUDY OF GOOGLE PAY
AND PAYTM SERVICES IN IMPHAL:
INTRODUCTION
The world is getting digitalized in every field over time with advancement in
technologies. One of the best examples is many countries in the world are moving
towards a cashless society through use of digital payments. There are various
countries in the world which have more than 50% of their transaction through
cashless economy.
The term ‘Digital Payments’ refer to using electronic means to pay for products
and services online. This is referred to as a cashless economy since it avoids the
use of physical cash. These Digital transactions help to lower the transactions
while also speeding up the process of one transaction cycle. It lowers the risk of
handling with cash. The digital payment history can also be easily recorded. These
digital transactions also help the government as transactions can be tracked easily
which will help to reduce black money and help in the growth of economy.
Electronic wallet or e-wallet is an online service that allows users to conduct
electronic transactions. An individual bank’s account can also be linked to the
digital wallet. Through QR codes, the e-wallet capability can be utilized in smart
phones, PCs and several other electronic gadgets at stores.
The Indian government, in co operation with the Indian Reserve Bank of India has
been taking initiatives like the Digital India Program, introduction of e-rupee, etc
to move towards a cashless economy and increase the use of digital transactions.
The main motto of the Indian Government is to make the Indian economy
‘Cashless, Faceless, Paperless’. There are different mobile payments apps
available in India; out of which Google Pay, Paytm and PhonePe are dominant.
In India, the use of digital transactions increased after demonetization in
November, 2016.Morever, it increased due to the Covid-19 pandemic when
overall activities was restricted. According to a report from RBI, NPCI and banks,
digital payment transactions in India have increased from 2,071 crore transactions
in Financial year, 2017-18 to 8,840 crore transactions in Financial year 2021-22.
GOOGLE PAY:
BACKGROUND:
Google pay, often referred as G-pay is founded on May 26, 2011. Initially it started
as Google wallet then changed its name to Android Pay on September 11, 2015.
The app was then launched as Tez on September 18, 2017 and finally, it settled on
the name Google Pay on August 28, 2018.
Google Pay-Company Highlights:
Start up name Google Pay
Headquarters Google, US
Sector Fintech
Founders Sujit Narayan and Sumit Gwalani
Founded September 11, 2015 and then renewed on January,2018
Website pay.google.com
Google Pay serves as a digital wallet cum online payment system developed by
Google. It is a mobile application app which enables users to make contactless
payments and purchases online.
Currently, Google Pay can be used to send money in 3 countries: India, Singapore
and United States.
Country Release Date
India August 28, 2018
Singapore September 24, 2020
United States November 18, 2020
Google Pay hit 67 million monthly active users in just 2 years since it made its
debut in India. It had contributed 59% in digital transactions in 2019 and is the
second most popular UPI platform in India after PhonePe.
Google Pay’s tagline is “Money made simple”
Some prominent Google Pay Partnerships:
Partnerships Date Function
SBI General Insurance October 29, 2021 To purchase SBI’s General
Insurance plan directly via the
app
Visa September 21,2020 To help the visa card users to tap
to pay , thereby securing the
transactions made via the app
90 banking institutions September 20,2021
from 9 nations
India’s financial ecosystem September 3, 2021
Leumi(an Israel based September 2, 2021 To enable the bank’s users to use
bank) the Google Pay digital wallet
Product and Services offered by Google Pay:
1. Send Money: By using UPI id or scanning QR, we can send or receive
money. We can even send money directly to a bank account by using the
account details.
2. Pay Bills: We can pay electricity bills, DTH/ Cable TV bills, credit card bill
payment, etc. But this service is however limited; eg: We cannot pay our
electricity bills in Manipur with Gpay.
3. Mobile recharge: We can also recharge our mobile bills with Gpay without
having to visit a shop.
Competitors of Gpay:
1. AmazonPay
2. PhonePe
3. Paytm
4. Stripe
PAYTM:
BACKGROUND
Paytm is an Indian MNC which specializes in various domains such as digital
payment system, e commerce and financial services. It started its inception in
Noida and is available in 11 Indian languages.
The paytm company was founded by Vijay Shekhar Sharma in 2010 which is based
in Noida, Uttar Pradesh. This was initially designed to cater to the merchants and
the customers to help them send and receive money online. The company rapidly
grew popular and expanded to include wallet services, banking facilities, e
commerce facilities and more to make life easier for the Indians.
The parent organization of paytm is One97 Communications and their tagline is
“Paytm Karo”.
Paytm Company Highlights:
Headquarters Noida, Uttar Pradesh
Sector Fintech
Founder Vijay Shekhar Sharma
Founded 2010
Total Funding 3.5 Billion dollar
Revenue/Turnover 1100 crore(approx in 2021)
Parent Organization One97 Communications
Website www.paytm.com
Story of Paytm:
2000 One97 starts as a value added services firm
2010 The inception of Paytm
2012 Launch of Paytm Payments Gateway
2014 Launch of Paytm Wallet and paytm Labs
2015 Launch of Paytm QR
2018 Launch of Paytm First Games
2019 Launch of Paytm Cloud all-in-one QR/ PoS/ Gateway
2020 Enters into credit card businesses
2021 Enters lending business in partnerships with banks,
NBFCs
2021 Launches IPO
Products and Services offered by Paytm:
Products:
1. Paytm Wallet
2. Paytm App
3. Paytm Money
4. Paytm Payments Bank
5. Paytm Insurance
6. Paytm First Credit Card
7. Paytm First Games
Services:
1. Send money: We can send money online to our contacts, UPI id , to bank
account or by scanning QR code. Similarly, we can receive money.
2. Recharge and bill payments: We can recharge our mobile, pay electricity
bills, recharge DTH, pay credit card bills, etc.
3. Ticket booking: We can book flight tickets, bus tickets, movie tickets and
metro tickets.
4. Paytm Payments Bank: This platform is for sale of purchase of shares,
Mutual funds, Digital Gold.
Competitors of Paytm:
1. PhonePe
2. Gpay
3. PayPal
4. Flipkart
5. Razorpay
6. MobiKwik
7. Amazon
Benefits of Digital Transactions:
1. It allows users to make payments at anytime and anywhere and is quick
and easy.
2. The records of the digital payments history can also be readily kept track of.
3. Mostly, there is no additional cost of usage.
4. There are discounts and freebies in the form of cashbacks or coupons.
5. There is reduced risk of using money.
Disadvantages of Digital Transactions:
1. There is increased risk of identity theft.
2. There are high chances of overspending.
3. Losing phone can sometimes lead to losing all your money.
Objective of Study:
1. To study the factors that influence people to use Google Pay and Paytm.
2. To analyze the satisfaction of customers in the usage of Google Pay and
Paytm.
3. To determine the various facilities provided by Google Pay and Paytm
4. To study the effectiveness of the promotional activities taken by Google Pay
and Paytm.
5. To study difficulties faced by the users in using these payment applications.
6. To identify the preference of users and their reasons.
Scope of Study:
The study aims to find out what percentage of sample population is using
Google and Paytm applications. It focuses on the growth and challenges of e-
payments and how it evolved over the last decade. It includes a comparative
study analysis of the top two e-payment apps in India, Google Pay and Paytm.
And a little bit of comparative research between the two which is analyzed
with the help of people’s preferences towards each. The study is done with
special reference to Imphal by taking survey in the form of questionnaire.
Limitations of Study:
1. The time for the study was limited.
2. Since sampling method is used for data collection, it is restricted to a
few people.
3. The study could not cover different categories of people. (Eg: People
with different financial status, etc).
