Enterprise Architecture
Group Project Report
Submitted on 16-02-2016

Enterprise Architecture for
PayTM

T - 007 y12uc035 Ankit Kumar

y12uc097 Gupta Kapil y12uc134 Kumar Govind Jha

y12uc213

Ronak Modi

Introduction
Paytm is the consumer brand of India’s leading mobile internet company
One97
Communications It is India’s largest mobile commerce platform launched in 2010 and
.
headquartered in Noida, India, . Paytm started by offering mobile recharge and utility bill payments. In 2014, the company launched Paytm Wallet, India's largest mobile payment service platform. The service became the preferred mode of payment across leading consumer internet companies such as Uber, Bookmyshow, Makemytrip. Today it offers a full marketplace to consumers on its mobile app. In a short span of time Paytm has scaled to more than 60 Million orders per month. In The company has already created a user base of 100 million wallets & 25 million app downloads. The time to enter the market was perfect. Customers are already comfortable with buying online.
This paradigm shift was already done by Flipkart and Snapdeal. PayTM entered e­commerce sector at a time when all other players had exhausted the USPs. They all were having a nice website. They all were giving CoDs, they all had massive inventories and all of them were giving equal discounts of 5­10%. PayTM enters the market with not 5, not 10, not 20, not 30 but whopping 50% discount on products. If you apply the coupon codes properly, you can see that the discounts on PayTM were massive. This is clearly visible in clothing, recharges, cycles and bus tickets among many other segments. This was a critical reason behind PayTM success.
PayTM spent less on customer retention but more on giving customer discounts.
PayTM has introduced third form of commercial transaction after B2B and B2C i.e. D2C
Direct­to­consumer. To understand how PayTM earn money, first you need to know about this new business model . PayTM is actually a mobile wallet, this wallet is preferred by the customers over online card payment or internet banking.

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A wallet is prepaid financial instrument ,which allows its customers to store money in a 'virtual wallet'. The money kept in a virtual wallet is actually stored in an escrow account of the wallet service provider with a bank and, on average, generates interest income as good as in the case of
Fixed Deposits. However, the interest income is not passed on the customer nor does it figure as the primary revenue source for the wallet company. Its revenue accrues from the commission paid by the merchants, whose transactions are conducted by people using the wallet. Similar to credit cards, It is a mode of payment and it charges commission which ranges between 1­2 percent of the transaction values.
The primary revenue source is commissions from Telcos which ranges from 2%(for large &
Established operators) to as high as 5% (for new & small operators). Since the large operators contribute to the bulk of the txn volume, the average commission earned per txn would typically be in the 2.5­3% range. The average payment gateway charges are typically in the 1.8­2% range
(will be lower now after the recent 1% cap on debit card MDR by RBI). The net revenue per txn would therefore be around 0.5­1%. And that's the revenue (not profit) a recharge site makes. To compensate for the low margin they introduced marketplace items where a seller is charged up to
7% per sale. Other than that they earn commission from coupons and more.
So, PayTM like many other awesome companies on planet started with doing one thing and perfected in only that. Online Bill Payments.They ensured that they so

lve the problem of

online bill payments. They were not the first company in India to do so but they perfected their system to the extent that the entire transaction was extremely smooth for the user. They tied up with multiple telecom operators, government bodies for electricity, water and gas. Customers found that PayTM was their goto site for any kind of payments.
Paytm seemingly is trying to plug a big hole in the banks­dominated payment solutions market.
On the one hand, it is attempting to make online shopping possible even for humblest of shoppers without credit cards, by offering many other ways to pay, with high levels of security; it

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also has the potential of making mobile commerce a bigger phenomenon in India, thanks to this convenience factor.
While paytm transactions are fast, and refunds too are swift, as there are no reasons for bank­type delays, it's still debatable that airtel wallet or paytm will be payment­solutions vendors for sellers of high value goods, any soon The absence of a regulatory cover backing up paytm kinds of companies does make it difficult for the latter to hit it bigger, faster. But of course, with increase in mobile commerce, the volume of demand for paytm is on the rise, and so are it's commission earnings.
One97, and it's investors SAP Partners and others will not be complaining yet, because the commission/ fee earnings are growing and there does appear to be futurity to this business.
Tomorrow, we may even expect other forms of money like bitcoins adding to the paytm platform. This payment solution space was indeed a blue ocean, and One97 took the plunge at the right time.

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Operating Model and Core Diagram
The Coordination Operating Model Core Diagram is designed by first considering the key customers shared among the business units in the enterprise. The business units in this case offer different products and services but all depend upon a set of shared data to deliver value to the customer segments. Business processes in the Coordination Operating Model are highly integrated since those products and services may involve transactions that span business units.
The key objective is for each customer segment to have a cohesive experience across all the channels and relationships. These autonomous business units have a high degree of control over business process design to adapt to its specific operations.
Our company fall into the category of coordination type of operating model. PayTM initially provided only bill payment and mobile recharge services, but today they also offer services like
Marketplace and e­wallet. This company has multiple divisions, responsible for a set of products and services; however, there are common customers across each of the business units. The core
Diagram of the company is as follows,

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Processes involved in the coordination operating model. Major Business Processes of PayTM are : PayTM Wallet : A mobile wallet is the digital equivalent of the physical wallet. Like a physical wallet, it stores valuables, only in a digitized form. What it needs though is effective security and permissions to access this material. These may take the form of a password, a QR code, an image or some such authentication code linked to the owner’s specific and sensitive personal information.
For customers, mobile wallets refer to technologies that enable the customers to use their smartphones to do the following:
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How a typical Mobile Wallet transaction works:

PayTM Recharge and Bill Payment :
Paytm offers a simple way to pay for Mobile, DTH, Datacard and Household recharges and bills.
It offer a hassle free experience so anyone can pay their bills around the clock from the comfort of one's mobile or personal computer.All services on Paytm are free.Paytm supports recharges and bill payments for all major operators across India, so no one is left out.

PayTM Marketplace :
We know smartphone penetration is on the rise. We know mobile shopping is becoming more

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popular with customers. We know major marketplaces like Flipkart and Snapdeal already have their mobile shopping apps with claims of 20­40% orders from them. We know everyone is talking about mobile commerce and its spiraling popularity.
While everyone is awaiting a majority shift in desktop usage to mobile traffic, Paytm decided to take the leap and throw its doors open to connect sellers and buyers. In February this year,
PayTM’s mobile shopping marketplace was launched to tap into the fast­growing
230+ million smartphone users in India
.
PayTM provides a large variety of products in all the department of commerce to buy online.PayTM Marketplace is one of the best ecommerce site for buying items for daily purposes. PayTM Marketplace has 30 million users and 2 million Transaction per day. PayTM has 30000+ registered sellers and 4000+ brands in various departments providing wide variety of products for customers to buy for.

PayTM Buy and Sell
:
PayTM Buy and Sell is a channel where people can connect with each other to buy or sell goods and services. PayTM is constantly innovating so that users can buy and sell in the easiest and most convenient way possible.

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