❖ Payment companies
Wallet and payment companies are energizing their campaigns to secure their market shares:
India had been a country where over 90% of the transactions were cash-based. Only 5% of personal consumption expenditure took place digitally. The demonetization initiative has set a new phenomenon in the country’s financial history and led to cashless transactions. There has been sharp rise in digital transactions using debit/credit cards, mobile banking, Aadhaar Enabled Payment System and Unified Payment Interface.
PAYMENT GATEWAYS & WALLET MARKET
Adoption of mobile wallets as a medium of financial transaction resulted by compulsion of circumstances. The size of the wallet industry is more than $20 billion in India. After demonetization, conditions have improved, but most of the customers in India prefer cash on delivery option for making payments for online shopping.
Harshil Mathur, CEO & cofounder, Razorpay, says: “We aim to democratize payments across India. So, businesses from anywhere in India can collect payments and truly have a global reach. For online retailers, we provide a powerful platform for collection and control over their payments infrastructure. With offline companies, there are various smart offline to online solutions we offer like ECOD and EPOS to help them to go cashless.”
Apart from start-ups and e-commerce, Razorpay is seeing a lot of thrust coming from the OTA (travel agents) and aviation segment. This year, it is also exploring partnering with new verticals such as education, government and logistics. “We expect a 10x growth this year in terms of volume with the number of merchants also doubling. We will expand into newer verticals like government and education. The company will run lean setup with a lot of focus on automation of internal processes which will help us towards our goal of sustainability,” says Mathur.
Razorpay focuses on metros and other tier 1 cities. It has found large scale adoption in these cities. It has also found lot of interest generating from tier 2 & 3 cities, in line with the vision of digital India. The company expects a large contribution from them towards its next phase of growth along with the consistent increase from tier 1 geographies.
Mathur also has plans for international expansion: “South East Asia and Middle East will be our next markets because our technology is directly scalable to these markets. We have chosen these regions as the problems there are very like India’s. In some of the overseas geographies, we will go independently while in others we will look at entry through strategic partnerships. But, we are not shifting our focus away from India, as demonetization has opened a huge opportunity. India will be a key and primary market for us.”
Sunil Kulkarni, Joint MD, Oxigen Services, says Oxigen wallets receive a major chunk of business from states like UP, Orrisa, Rajasthan and Bihar. The company is planning to introduce 50,000 micro ATM’S across India. These micro ATM will be one-stop solution for all payments transactions.
Harshil Mathur has vision to democratise payments across India
There has been potential rise in the digital payments in the rural areas. The wallet companies have special strategies to target the rural market. This market has been key for Oxigen. The company organizes health camps, women employment, promote hygiene factors like use of sanitary pads by women. It has appointed Sachin Tendulkar as its brand ambassador to create trust among the customers.
Meher Sarid, group president, Corporate Affairs - HR, Brand & Marketing of the company, shares the strategies to target rural customers: “We use several offline and point of sale technique to promote the sale of our products through leaflets, posters, and banners. We use user guides to guide the rural customers on how to use our micro ATMS. We believe in face to face interaction with the people. We offer cataract surgery to aged people, so they became influencer for our products and services. Word of mouth provides most of the customer for us. We show Bhojpuri movies to the rural customers by using projectors, and distribute chai and samosa to maintain the relationships with them.”
MERCHANT, B2B PAYMENTS
B2B payments are the key focus for the payments companies. The companies are coming up with a complete suite of B2B oriented products which would help solve issues like invoice collection, multiple vendor disbursements, payment tracking, etc. The payments companies have also received good customer feedback for existing solutions like ECOD, an online payment collection system at the time of delivery, which is used by logistics and e-commerce businesses to replace cash tedious and costly cash collection systems.
Paytm has unveiled a new digital campaign. It is using a film to promote its online travel business. It is intended to create overall awareness about wide range of travel (ticket booking) related offerings from Paytm. The convenience of finding the complete bouquet of air, rail and road travel booking options under one roof combined with the ease of payment has enabled the company to be a one-stop destination for everyone’s travel needs.
Oxigen had adopted ‘Playing Host’ theme in its marketing campaign. In 2015, the company had sponsored South African cricket team’s dress for its tour of India. In 2016, it sponsored New Zealand T-shirts during the India tour. “We are also the T-shirt sponsors of the Gujarat Lions in the IPL 2017. We also use print media to inform our customers about the important notices, etc. Apart from that, we also used social media channels to reach our customers,” says Meher Sarid.
Karan Sarin, chief marketing officer, Razorpay, says the company had launched a series of events called Revup, which is targeted at early stage start-ups. The events are part of the company’s attempt to help the future generation of entrepreneurs by creating a platform that helps them collaborate with industry experts and learn from their experiences along with ours. The campaign intends to build a complete support ecosystem. The company has also introduced Razorpay Zero Plan, that helps entrepreneurs put behind the hassles of finding right business solutions needed to kickstart their business. This plan offers zero-charge services from Razorpay and its partners such as Exotel, Lendingkart, and Zoho among others, help them get started.
Content marketing is effective when content is precisely mapped with the various stages of the buyer’s journey. Most of the time, before becoming a customer, a prospect will first go through what’s called the sales funnel. The sales funnel consists of different stages a customer goes through leading up to their purchase - from awareness (top of the funnel), to consideration (middle of the funnel), to conversion (bottom of the funnel).
Says Sarin: “Our content strategy is to provide most relevant content at each stage
Karan Sarin focuses on helping future generation of entrepreneurs
of the customer journey. From more toplevel awareness generating content like blog posts, articles, and social content at the top of the funnel, we offer more educational content like case studies or webinars during the consideration stage, and finally more detailed content like case studies, testimonials, and product demos that aids selection and purchase at the bottom of the funnel.”
Earlier, marketing depended on ‘spray and pray’ push models. But, now a datadriven approach empowers to understand our customers and deliver an extremely personalized experience.
Meher Sarid of Oxigen says the company is the only one in India that provide cash to digital transactions. He adds that the company is now focusing on the north-east market for growth. It uses AI for chatbot, user influence and predictive analysis for defining population.”
Sarin shares the example about the use of marketing technology to target customers: “We gather lots of data about our users during the onboarding process. Then, we put all this information together and crystallize our messages into a campaign around various buyer personas. The emotion of the campaign’s messages and graphics are derived from the insights we gained from the data we collected. I absolutely believe that data and more importantly, the insight derived from data fuels creativity and inspires better initiatives and campaigns.”
Paytm has allotted an advertising budget of `50-60 crore for the next few months. In June, the company had already shared its plans of spending `600 crore on branding, marketing in 2016-17.
Mobikwik on the other hand, has earmarked `30 crore to be spent in mass media campaigns by January next year. Upasana Taku, co-founder, Mobikwik, says: “In the wake of the immense opportunity that demonetization has presented to the digital payment companies, we have begun a `30 crore campaign across channels, which will continue till January next year. Cash crunch has impacted masses at large and being a major player in the industry, it is our responsibility to educate masses about wallet payments to make their lives easier and help them overcome the challenges being faced due to the shortage of physical currency.”
Oxigen is spending around `100 crore in marketing. It is planning to increase its digital marketing budget.
Sarin of Razorpay says the company has spent conservatively on marketing. Most of the company’s growth has been organic and word of mouth has been the most effective channel. “We brought a fast, affordable and secure way for merchants, schools, e-commerce and other companies to accept payments online. Our initial users loved our product because it solved a real problem and in return, they spread the word. We just ensured that marketing is tied to the product and it represents what the product delivers. Our marketing efforts continue to be as innovative as the product they serve,” he adds.
The payment and wallets companies have diverse audiences and the goal is to engage with them in the most relevant way. For large companies, they organize events that are more contextual to their domain and functions. For targeting small companies, product awareness events are organized. To give different messages to different audiences, and to address their unique needs the events are often tailor-made.
There will be potential growth for Indian e-payments companies in the coming years. The recent changes in the regulatory framework are driven by the need to facilitate payment systems that combine the much-valued attributes of safety, security and universal reach with technological solutions that enable faster processing and enhanced convenience and inter-operability, without compromising on robust regulation for systemically important players. It will be interesting to see the how the framework evolves and keeps pace in this space over the coming years and match steps with technological innovations.
Sunil Kulkarni projects micro ATM as a one-stop solution for all payments transactions
Meher Sarid emphasizes building strong relations with rural customers