STRATAGEMS FOR EZETAP:

(Team Ramblers: PRITHVI BISHT & JAYANT SIDHU)IIM ROHTAK

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Table of Contents
I)
II)
III)
IV)
V)
VI)

UPI WORKING.2
INTERNET2
SEGMENTATION..3
STRATEGIES..5
SYNERGIES: YES BANK & EZETAP..7
EXHIBITS...9

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UPI Working:

Internet Users:
A country where high speed internet
penetration (check Exhibit 1) is still very
low - 130 million according to CSLA - it
is necessary to segment market according
to internet penetration. Moreover only
240 million people have smartphones out
of which more than 50% users arent
exposed to internet usage beyond
Whatsapp and Facebook.
Though this is estimated to improve but
numerous m-pos devices wont be of any
use unless high speed uninterrupted
internet connection and handset
compatibility is not guaranteed firstly to
retailers and then to consumers.

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Segmentation:

Good Internet is at the crux of M-pos

technology. A country where high
speed internet (3G) penetration
(check Exhibit 1) is still very low - 120
million according to CSLA - it is
necessary to segment market
according to internet penetration.
Though this is estimated to grow but
numerous m-pos devices wont be of
any use unless high speed
uninterrupted internet connection is
not guaranteed firstly to retailers
and then to consumers.
We have segmented market
accordingly, considering this fact

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Figure 1: 3G device Vs 3G Connections

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Table 1

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STRATEGIES

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Strategies:

1- Disrupt the already established POS market and target these POS device
owners to get to use m-POS technology. Also for any new installation tie up
with banks - focusing on banks with maximum installation rate (Check image
above) - to install cheap m-pos devices instead of costly POS terminals.

Figure 2: New ATM/POS/Card installation in March 2016 (Source: RBI)

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2- To tap in existing POS users, Ezetap can start an exchange offer, where retailers
can exchange their old costly POS devices to the new small free mpos terminal
(which can easily be attached to their phones).This will be encouraged by different
attractive exchange schemes with cash-backs.
3- Tie ups with mobile operators. This will serve multiple purposes:
For marketing, these tie ups will be significant, since they have a very high
penetration that too at right places i.e payment portals and customer correspondence
material for advertisement of mobile payment. They have their presence in almost
every potential Ezetaps customers phone. Moreover they themselves will benefit
from marketing this technology, as it will increase their user base and increase mobile
internet usage by a significant amount, increasing dependency for high speed internet.
Thus to rope in more users of this technology at a rapid rate, telecom operators can
play a major role.

Ezetap can develop a roadmap for schemes like - telecom service providers give free
high speed internet services for m-pos transactions to retailers and in return for each
device he/she will have to take two extra free phone connections (SIM) of that
particular player. Win-Win situation for everyone.

These service providers with their vast distribution network can work in tandem with
banks and Ezetap to distribute these mpos devices. In return, again theyll get a
chance to develop long lasting relationship with the retailer.
4- Also integrate data Analytics in Ezetap m-pos devices so that not only the device could be
used for payments and cashless transactions, but also help the vendors by providing
Value added services like inventory management in their shops for different time periods
across the year.
5- Sales team should tell benefits of m-pos to retailers. Like how it reduces cost due to low
maintenance, requires no monthly visit of technician and how it can generate bar code
for collecting payment from customers who have forgotten their debit/credit card but
have e-wallets. They will also be educated about the how the increasing internet
penetration will lead this technology to be the future of all payments.
6- Start a referral program whereby for each referral to a fellow merchant for integration of
m-POS technology in their respective business, the merchant gets free subscription for
one month. Similarly during the initial few months the merchant who used the referral get
free subscription. Only the device and software cost which is very low is charged.

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7- Tie up with different big mobile wallets and ecommerce service aggregators. The m-pos and
bar/QR code generated by it can be used for COD
purposes. As almost 60-70% of people prefer to pay
on delivery this could be a huge market to market. Ecommerce is growing industry which can grow to 80
million USD in 2 years. Can further expanded to
include taxi service aggregators and even local auto
rickshaws. M-pos also have a future in the locker
system suggested for storing parcels in e-commerce.
M-pos can be attached to lockers and used for
payments.

Figure 3 Use of QR code in COD

Specifics for Segment 2 & 3:

Regional approach and cultural differences will come more into picture. Tie-Ups with
regional bank is must. Since POS device penetration is less. All new devices installed
can instead be mpos device.
Local dealer network should be focused on rather than a generalized strategy for the
whole city/town. Use of mpos by a big local wholesaler will lead all the retailers under
to him to gradually accept this technology over time since in small cities/towns
normative influence play a major role, especially with concern to people above in
hierarchy.

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SYNERGIES

Yes bank & Ezetap:

Merchant acquiring banks have often refrained to take on micro-merchants because of their
unpredictable transaction volumes, the risks associated with underwriting very small businesses,
and the cost and long payback period related to installing payment card processing terminals.
The low cost of the m-pos gives Yes bank an opportunity to target this market and facilitate
credit card acceptance among them. Most banks are arriving late to the m-POS market and need
to move quickly, but they also need to consider very carefully the models they use. The easiest
route is for banks to partner with an established m-POS product provider and focus on merchant
acquiring and servicing rather than on technology.
An alternative is for banks to source and provide their own m POS solution. Launching a bank
own-brand m POS service is clearly a challenging strategy for banks. It requires banks to reengineer their merchant sign-up process and risk-management models (merchant onboarding) to
suit the requirements and constraints of micro-merchants. This is a major undertaking, and the
effort required should not be underestimated.
So this where Ezetap steps in with its already developed structure it can provide Yes bank with
the much needed assistance to tap in to the new market and expand its horizons. Yes bank on the
other hand can sell their m-Pos of Ezetap to the large retailers and distributors with whom. Yes
bank already has a relation. Use of m-POS will make settlement of credit card payment
settlement easier for Yes bank as it did for Bank of America. The sales force and contacts of Yes
bank and the financial and Value added services provided by Ezetap are the synergetic forces
which will aid them in conquering the emerging market.

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EXHIBITS
S

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Exhibit 1: 3G Penetration in India (till June 15)

Exhibit 2: ATM vs POS

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