Migrating away from cash is intimidating – Stickiness of Cash Part 2

Ask any payment professional, and while they might disagree on what’s the best payment experience, they would all agree that Cash is sticky.

And one of the core reasons for the stickiness of cash is that the migration journey is intimidating for most cash-heavy users.

Too many choices

Here are some of the many questions the cash users who want to migrate away from cash, grapple with:

  • Is it safe to use a card for payments
  • Should I use a separate card for ATM withdrawals and purchases
  • What should I start using – prepaid, debit, credit , mobile wallets
  • If it’s a card, should I go for a basic, gold, platinum or some other variant
  • Should I get a product with shopping benefits or one with fuel? or the one with air-miles
  • Should I take a Visa or a MasterCard or a Rupay
  • I have accounts with multiple banks, whose product do I begin with
  • How do I apply for the card? Can I apply online, or do I go to the bank branch?
  • What is a UPI or IMPS payment? How do I do that? What is the fees on the transactions?

…….And it goes on and on.

The simple fact is that there are way too many products with different features, brands, offers,benefits and form-factors. It is a tough choice to make.

And post demonetization, most banks are  show-casing ALL their products in each of their ads. Leaving it to the consumer to pick and choose.

I have seen Mumbai buses covered with ads, that have all the digital payment instruments from that bank. Not sure if most consumers even know what those mean.

 

The famous Malcolm Gladwell research on choices, happiness and spaghetti sauce also harps on the risk of too many choices.

The migration away from cash, has to be made easier with fewer choices or a recommended path to walk on (recommendation itself coming from a trusted partner).

In the absence of this, most consumers prefer a wait-and-watch stance. And the product(s) with simpler choices and/or more brand-ambassadors will see higher adoption. No wonder, many a millennial adopted the mobile wallets. There were no variants of PayTM, Mobikwik etc.

And this brings us to the other point.

Hurdles in the migration

Ok, so you have a cash-user who is convinced about that one digital payment from your bank. How does she go about getting started?

Do you remember the forms you filled to get your first credit card.

I remember that during my Deal4Loans days, the card application forms used to have almost 50+ fields across some 4-5 stages of the online application for most banks.

While the consumer on-boarding has come a long way in the digital era, it still is complicated for many products/banks. Unless the consumer is really convinced about this migration, why would they jump through so many hoops to get the product.

The access and on-boarding has to be simpler. A convinced consumer should be active on Day 0 if not within Hour 1.

In my opinion, if we are serious about displacing cash, we need to make the transition a simpler choice for the consumers.

What do you think?


This is part 2 in a series of posts where I try to understand why Cash is sticky? What are the some of the obvious things, we may have overlooked in our zeal to digitize payments.

Here’s part 1 , where my humble submission is that Cash is not really the enemy. Atleast not in the eyes of the consumers.

Immediate reactions to the banning of Rs 500 & 1000 notes

As Anshul & I sat listening to the PMs announcement and then all the experts on CNBC, we couldnt help discussing what all must be happening around the country in the next 72 hours.

500-1000-note-banWe are surely living in interesting times.

Managing high denomination notes:

  • All secret saving places in the homes/offices/godowns will be cleaned and reviewed today.
  • Piggy banks of kids will be broken tonight. And parents will have a hard time telling the kids why they cant wait for the kids bday
  •  Many would queue up at petrol pumps to get their cars tank-fulled.
  • People with blackmoney would already be approaching hospital owners and petrol pump owners to help them convert their black money into white.

Getting cash with lower denomination:

  • Ppl would queue up infront of ATMs for withdrawing Rs 400/- . Multiple times. Confirmed.
  • People would watch their cash spends like never before.

Moving away from cash:

  • Payment apps will see a sudden spike in downloads and activation over tonight tomm.
  • Wallets will be topped up. Card activation rates will show a sudden spike, esp on the debit cards
  • Uber and Ola will have a field day as autos & kaali-peeli wont be preferred. Pls expect surge pricing.
  • Most small merchants will see a dip in transactions next 2 days. They will teach themselves how to accept cards.

Banks & Payment Providers

  • Opportunistic Banks would send SMS & emails to customers to activate their debit, credit prepaid cards.
  • The CASA books will see a sudden increase as the rate of deposits will be higher and faster as compared to rate of withdrawals from the account. Few dormant savings accounts may become active.
  • Merchant acquiring teams will suddenly be seeing incoming pull business rather than push.
  • Jandhan account activation rates will be very high.

Ripple Effects

  • Like Future Group, many merchants will be open almost till midnight tonight. Grabbing whatever opportunity that exists in this situation.
  • Zomato & food ordering apps will see a growth in business. Their market share of each partner restaurants overall revenues will increase.
  • COD rules will now need to incorporate not just pincodes but the order amount too. COD may be suspended for the next 2/3 days.
  • Property deals would be on hold till the new norm of the market emerges. Or till enough of the new notes find their way into the parallel economy.
  • Odd jobs at home will be postponed. Big hit to the daily wages skilled earner. They would be forced to ask their clients to deposit money into their Jandhan accounts.

Funny Thoughts

  • Patanjali would need a new theme for their campaigns. Kaala-dhan (black money) story would just not fly
  • Marriage season gifting needs more innovative ideas. Envelopes don’t cut it any more.
  • How will the rich temple trusts manage the shift towards less-cash?

Payments are a critical piece – Digital Banking ToolKit

In India, digital and mobile Payments is a really HOT space right now.

  • HDFC Bank introduced PayZapp which intends to be the gateway for all m-commerce transactions, with incremental offers as the initial incentive
  • ICICI bank introduced “Pockets” – a way for even non-ICICI Bank customers to have access to mobile payments
  • Axis bank launched Ping Pay and Lime
  • 11 new Payment Bank Licences have been issued. This not only includes some of the bigger telecom players but also the likes of PayTm.

All this action is triggered by multiple factors including a huge opportunity to move transactions away from cash. In the fact that ecommerce is booming and so is the comfort that consumers have in paying online or through mobile. Mobile, smartphone and 3G penetration is booming etc etc.

But from a bank’s perspective, payments are critical.

Why?

Payments are high-frequency use case

You would probably take 3.5 loans in your life.

Your salary gets credited into the account once a month. If you have a SIP instruction, the investments may also happen once a month.

You withdraw cash probably once a week.

But you make maybe multiple payment transactions everyday. And in most cases, banks do not have an idea of the payments we make.

More transactions allow banks to have more interactions with their consumers and hence move a step closer to being an Everyday Bank (Accenture coined this interesting term to bring banking into consumer’s day-to-day activities).

Payments provide rich-context

During my brief stint in the Life Insurance industry, the key challenge was that post acquisition, there is not much context to go back and start a dialogue with the customer.

The same is true (or will soon be true) for banks that miss out on the payments. Access to payment level data gives so much deeper insights into the consumer.

The bank understands where do you spend (which markets, which segments), when do you spend, your typical ticket size etc. This is really powerful data, which can help generate insights into customer segments and their needs. E.g. a banking customer who pays school fees (for her kids) online has told the bank that she might be a good target to be pitched Children Plans (life insurance).

It can also help the bank design better products that resonate more with the consumers.

Payments will see sticky behavior

In the early days of Digital Banking, it was said that the bank which manages to get Bill Payments on to its account will be a sticky account. If you can get the customer to map his utility payments etc, you were on a path to be the preferred banking account.

Why ?

Because these are important transactions yet not something customer wants to spend a lot of time on. Hence if he gets used to a specific platform/UI – until and unless something changes drastically, the customer would not move. Same reason why I am so loyal to PayTm ever since they made it so easy to pay bills and do set-top box recharges.

The bank or service provider, which onboards customers to a frictionless platform will be tough to unseat.

Marshmallow Test and Insurance Marketing

I spent the last week reading up “The Marshmallow Test by Walter Mischel”. And while the book is a fascinating summary of key findings (and some of its applications) from Walters more than three decades of research, I found some of it is relevant for how we look at Insurance Marketing and Sales.

What is the Marshmallow Test

Walter’s team designed a test for pre-schoolers where the kids were asked to pick their favourite treats from Oreos, marshmallows etc. One of the treats was placed in a tray in front of the kid on a table. The table had a bell, which the kid could ring to bring back the researcher. There was another tray which had two of the same treats, on the same table. The kid was told, that the researcher needs to step out. If the kid wants to bring back the researcher she can just ring the bell, but then he/she gets just one treat. On the other hand, if the kid waits for the researcher to return on her own, she could have two treats.

As one would expect, there were all sorts of experiences that were witnessed in this experiment – from kids who waited easily, to those who found it very painful, to even those who ate the cream from all three Oreos and kept it back as if they had not been touched at all :-).

Walters team ran these tests and tried to understand how the human mind manages self-control, Takes decisions which can postpone instant gratification. What techniques work and which ones fail, consistently. And in all of these interesting findings, I found these as most relevant for Insurance Marketing.

Me Vs Them, Now Vs Future – HOT & COOL Minds

In multiple versions of the tests it was discovered that when asked, whats the logical thing to do for someone who is given the option of 1 treat now vs 2 in the near future. Every kid said that any smart one would wait. And interestingly when the same kids were asked, what would you do – most of them responded by saying “I would take the one treat”. Walter believes that this is due to what he calls the HOT and COOL brain system getting activated. When its a hypothetical situation that involves someone else, the cool mind takes over – it is good at coming up with rational and logical answers and hence every one knows that we should wait. But when the situation involves us and in the present, the hot mind takes over. This is where it becomes tough to manage the temptation.

The book talks about another experiment conducted by Hershfield, where in participants (in their mid twenties) were asked to create a digital avatar of themselves. For one set of participants, they were shown their regular avatar and asked how much would they invest in retirement planning. And the other group was shown their own aged avatar (aged mid-sixties) and asked the same question. Surprise surprise, those who saw their future self said they would save 30% more than those who saw their normal self.

marshmallow test insurance marketing
Source: HBR (link below)

Read about this interesting study on how we make better retirement planning decisions here on HBR.

This tells me few things (& I would love to hear what you read into the findings)

  1. Insurance purchase decisions are very similar to the Marshmallow test conditions. You forego immediate spends for deferred benefits.
  2. Walter discovered that the specific tactics that were adopted by each kid who waited (for the better rewards) fell into a generic category – Cool the now, heat the future. Which means, reduce the temptations of the immediate future and build temptations around the choice of waiting. Sounds logical, and there are good insights for Insurance sales and especially renewals. Buying on monthly installments is easier as the psychological barrier is 12 times higher than when buying an annual policy. Auto-renewal (Standing Instructions or Auto Debit) is better for persistency, as the consumer is not subjected to the same choices every year.
  3. Personalization – Creating Insurance ads that showcase a happy retired life may not trigger purchase decisions, because the consumer may or may see himself in the lead actor of the TV ad. If he doesn’t, chances are he understands the theory of why insurance is needed, but when presented by a choice to buy, he would forego. And this infact has been the experience of most life insurance products. We have only moved a step in this direction with calculators and personalized models for generating scenarios. But they are far from effective in building a true connect with the future self of the user. Calculators and models talk to the cool mind, what we need are ways to get the buyer involved actively in the future self. And decide now in favor of the future self or future selves of his/her dependents.
  4. I see a bright future for digital in Insurance marketing – we have been going at it in the wrong way. Cheaper term plans is not the only opportunity here. Disintermediation and cost-saves is just one slice. The Insurance agent was selling successfully not only coz of the trust & proximity he has with customers. Maybe he can narrate stories from closer home, talk to the customer by giving vivid examples and building scenarios where the customer can easily imagine himself and his family.

Like all interesting studies on behavioral economics and psychology, I feel Marshmallow Test is a great set of hypotheses to bring into the marketing themes and design of campaigns.

Thin Mobile App or a Fat one – Digital banking toolkit

Mobile is the new frontier and banks know this well.

Amongst the various choices to make as part of the bank’s overall mobile initiative, is the decision around the structuring of mobile app(s).

Thin App Vs a Fat App.

These might sound strange terms especially in reference to mobile apps and no, we are not talking about the size of the app in MBs.

A Thin Mobile App is a niche solution available for select instances or customers, which allows a small subset of activities to be handled.

On the contrary, a Fat app is one where all the possible features and functionalities are available in the single app.

Banks have chosen to tread either of the paths. E.g. ICICI Bank has multiple apps in the playstore and HDFC Bank has just one main app.

Bank Mobile App - Fat or Thin

As one would expect, there are pros and cons of both, and I am listing a few here that come to my mind.

Attribute Thin App Fat App
 Clean UI  Easy to deliver  Needs design assistance
 User Engagement  Higher – as less distractions  Lower as many features irrelevant
 App Marketing  App adoption slows as marketing dollars split across multiple apps  Overall downloads look better as one single app
 App Development  Becomes complicated with multiple apps in market  Easier since tracking just one app
 Channel Migration  Depends on how the bank approaches it   Depends on how the bank approaches it

I personally feel, more than the final choice, it is the reasons that drive the choice which are important e.g.

  • It makes more sense to have a separate thin mobile app, if there is a unique customer segment that seems to have very different transaction or enquiry profile as compared to the others. E.g. Retail bank customers vs SME business owners
  • Building Traction. Many banks want to keep their mobile banking app for transactions only and do not see value in building any pre-login use-case. This makes the mobile adoption target so much tougher as there has to be a very precise value that the customer foresees in using the mobile platform for transacting. Plus its a two stage goal, get downloads and then get usage. It might be useful to break it down into easier goals, get downloads by providing a use-case even if its a pre-login e.g. offers on debit and credit cards. And then get the customer who already has your app to start using it for transactions.

What do you think?

3 tips for New To Bank Acquisitions – Digital Banking Toolkit

Why Online Acquisitions

Acquiring New To Bank (NTB) customers is a key agenda for most Digital Heads at Banks.

Its only logical that online acquisition budgets are getting bigger, given the following:

  • Consumers are spending more and more time online. Digital is the best channel to start a dialogue
  • Digital channels are tracked exhaustively. You can measure the return on each dollar spent.
  • Digital channels allow data to flow at higher speeds. This could translate into better context, targeted products, straight-through-processing, upfront checking of applications etc etc.
  • Tablets have provided the ideal form-factor to do an assisted digital sourcing, as has been proven by the success of ICICI Bank
  • Regulatory changes are also making it easier to acquire online – Aadhar database, eKYC, wet signatures to go away in some instances etc.

Here are 3 seemingly simple tips for anyone who is doing NTB acquisitions today at a banking set-up.

Choose the right on-boarding product

choose-productWhich product will you focus on to get more customers into the bank?

Many would say, we do not have a choice as each business line would be relying on the support of digital channels. Be as it may, it might be prudent to take a step back and understand the advantages of choosing a particular product for consumer on-boarding vs another.

  • Do we reject a lot of applicants for this product. Typically in case of credit cards and most loan products, the rejection rates are high and hence we need to sieve upfront to reduce the cost per lead or cost per account. Are there other products in the portfolio which have lower rejection rates e.g. most liability products may fall in this category
  • Does the product start giving me more data and insights about the customer? Can I build strong contexts to pitch the next product. Any payment product would be a good bet as it starts building a lot of relevant data points about the customer.
  • Is this being sold or the customer has a well articulated need? Loans should see a higher conversion as against credit cards because the customer has a need. But the scenario may change if the card is free and loaded with offers.
  • Is the process straight-through? If not, how many steps are there? The higher the number of steps, lower would be the conversion rates.
  • Competition – given that you are not the only bank trying to talk to the customer, the kind of marketing money it takes to interrupt a customer would increase for the segment with higher competition. Back in 2007 the bid rates for Personal Loan keywords moved almost 100% in less than 6 months. Every bank in India was focusing on acquiring Personal Loan customers.

Manage the Drop-out funnel

With all the tools available for tracking, doing A/B testing it is so much easier than before to manage the drop-outs in the acquisition channel. Over the years, industry has also learnt and created a best-practices library. Use it. E.g.

  • Acquiring through partners who have data on customers is more efficient and reliable. This is why most banks are exploring SME financing through ecommerce platforms.
  • Allow applicants to save applications and continue later. Across channels.
  • Build for a true OmniChannel experience. As the customer journey will definitely toggle devices
  • Provide for assisted filling of forms. What might sound simple & easy to you may be confusing to others
  • Authenticate the communication fields upfront (email, mobile). This allows you to follow-up on leads more proactively.
  • There are no permanent rejections – a customer who is not eligible today may be eligible tomm. Except may be those who are already over age :-).

Build data-led acquisition platforms

Data - Led AcqisitionsWhat has changed significantly in the last decade is the amount of data prospects and customers are generating across various channels and touch-points. The future (if its not already upon us) of digital acquisitions is data-led.

E.g. acquiring SMEs for working capital financing can happen in multiple ways:

  • Bidding on search engines for loan keywords
  • Putting up banners on B2B portals
  • Showing banners to specific SMEs on a B2B portal basis some cuts
  • Deep integration with portals to get fresh data about SME’s transaction, reputation, growth trajectory etc.
  • And so on.

Its easy to see that as the richness of data improves and also its freshness, the credit decisioning becomes better.

But this is not easy to do. It requires bringing together credit , product and digital teams into a room and understanding clearly the opportunities ahead of us.

Some banks are already working hard to evaluate the new data-points available and calculate their influence on the traditional credit models. Its a matter of time before this becomes the new normal.

 

Digital India – its already here

Today’s the launch of the Digital India initiative and quite a coincidence that I had an experience which makes me believe that Digital India is already here.

Digital India

Here’s what happened.

I was in Mumbai and called for an Uber. I started talking to the cabbie to understand the target market for a specific use case for mTuzo . We are pitching to banks that with mTuzo we can help move their debit card customer from an ATM only to ATM + POS relationship.

So I asked him which bank account he gets his Uber payments in – it was a SBI account and it was his choice. Uber gives him complete freedom to choose the banking partner.

Next I asked him if he had a debit card for that account . Turned out he did.

I asked him if he’s been using that card at ATM or for shopping also. As expected he had been using it only for cash withdrawals.

Probing further I asked him what if he got 15-20% discount if he shopped using his debit card, would he consider switching from cash to card. And his response just stumped me.

He said he’s already used his card for online purchases at SnapDeal. He did his first purchase using COD (cash on delivery) but once he was sure that they delivered just fine, his next transaction was through his debit card,

Let me repeat that – a 30 something male who has been driving a cab in Mumbai for last 10 years, is only schooled till class 10th, who uses his debit card only for cash withdrawal, has used it online at SnapDeal.

And what really really shocked me was his first purchase on SnapDeal. I can bet you will never be able to guess it.

 

 

Take a few guesses…..

 

 

 

…….

He bought a selfie stick for Rs 300 (after a 66% discount). A selfie stick !!!!

I rest my case, Digital India is here.

Maybe we need a Digital Bharat initiative.

 

Play to your strengths – Digital Banking Toolkit

Nadal is the king of clay. Given a choice of surface, I guess he would choose clay 9 out of 10.

We all get it – one should play to one’s own strength. Its obvious in sports, but most of us fail to apply the same rule(s) in business.

keep-calm-and-play-to-your-strengths

As most banks embrace digital, this is one rule we should not forget.

Look at the bigger PSU banks in India – it’s fair to assume that they have a big list of areas to focus on when it comes to going digital:

  • Channel migration of customers onto internet banking and mobile banking
  • Higher activation and spends on their credit cards
  • Straight Through X-sell campaigns
  • Improving the customer on-boarding experience
  • Reducing TAT for customer transactions and queries
  • …..and so on

It sure can be overwhelming to look at such a big list. One might also be tempted to look at the success stories of the likes of ICICI, Citi or HDFC Bank and try to replicate their strategies.

Will that work? Chances are it won’t !

Why? Because those banks are different. Different in terms of their customer profiles, their capabilities and their partner eco-systems.

When I look at the RBI’s data on ATMs, POS, Credit and Debit cards for Nov 2014 – its clear to me that for PSU banks, ATM presents a unique opportunity.

Digital experience starts from a conversation, an interaction or a transaction – and for PSU banks these are happening in plenty on their debit card portfolio at the ATMs.

SBI has 23.6K onsite and 22K offsite ATMs.And they had 2.4 crore ATM transactions !

Their digital strategy should have a clear ATM story:

  • What opportunity does the ATM transaction present ? E.g. the bank knows where the customer is at that point of time. Using solutions like mTuzo they can share Offers-near the ATM and migrate customers from ATM to ATM+POS.
  • Citibank has just launched Funds Transfer functionality through ATMs. Or one could do mobile recharges.
  • PSU banks do not have an aggressive sales culture. This could be used to their advantage at the ATM, where its not a warm body pushing a product but maybe the thank-you screen which is “suggesting” a product basis past behavior of the customer.

Hence, for any bank embarking on a digital journey, its imperative to ask – What is our strength?

And align the roadmap to play to these strengths!

Why is Financial Inclusion important?

Financial Inclusion is a common theme across multiple initiatives both by governments and private sectors across economies. Especially in the developing world, it would be safe to say that Financial Inclusion must be in the top 5 priorities of the respective governments.

But why exactly is Financial Inclusion important ?

 

Financial Inclusion takes an economy towards more equal opportunities

Financial access is a key component towards providing equal opportunities and equal access for growth for various segments of the society. Just like education, nutrition and healthcare access are critical in driving growth of a population, so is access to finance and payment instruments. The Better Than Cash Alliance (Bill & Mellinda Gates Foundation) says in its 2014 report for the Australian Presidency

Studies show that broader access to and participation in the financial system can reduce income inequality, boost job creation, accelerate consumption, increase investments in human capital, and directly help poor people manage risk and absorb financial shocks

And why exactly do we need to work on removing inequality?  As Christine Lagarde (MD, IMF) said in her  June 26, 2014 speech at Mexico, the need for removing inequality goes beyond moral principles. It is a key ingredient for sustainable growth.

Inequality is not just a moral issue—it is a macroeconomic issue. Our research tells us that countries with higher inequality tend to have lower and less durable growth. Inequality chokes the prospects for individuals to realize their full potential and contribute to society. Whether it is through personal experience or empirical evidence, one thing is clear—growth has to be more inclusive, and for this finance has to be more inclusive

Financial Access can increase investments

Whether it is individuals or small/medium firms, access to finance, builds the environment and comfort for savings and investments. This could be because of multiple factors:

  • Access to credit
  • Access to easy, safe, reliable means of savings and investments
  • Triggers and reinforcements (social, system-driven) that induce a culture of saving and/or risk-taking, investing etc

Financial Access provides security/insurance

The impact of negative scenarios is significantly high for those who have no financial security or insurance. The ability of an individual or a community to bounce-back from a calamity is directly related to the access of funds made available during such times of need. Insurance has the other advantage of providing mental peace and a mindset where the poor are not constantly worried about basic sustenance.

Why I use Paytm for all bill payments except Airtel

Consumer behavior used to be a course that marketing folks took in 2nd year of Bschool.

I stayed away , like most other marketing courses.

But over the years, time and again I have seen the importance of understanding the consumer behavior – why do consumers behave a specific way, why and how are habits formed, are all habits sticky, what would prompt a habit change and so on.

My Online Bill Payments Behaviour

Recently I just noticed something interesting about how I pay my bills. It brought up the importance of consumer behavior yet again.

So here’s what happened.

Every month I end up paying some 5-6 different mobile/landline and a couple of DTH bills.

A few years back I started paying the Airtel bills online – the process was easy and it was the same interface for all Airtel Payments – mobile or landline.

Just one drawback – there was no “Make another transaction” button.

One had to go back to home page, and start the flow again. I shared this with my friends at Airtel Money and quite a coincidence that this button was added on their web page (they confirmed that my raising it with them had nothing to do with the feature going live).

Since then its been how I have paid all my Airtel bills.

PayTm bill payment
On the other hand, my experience with TATA Sky’s online payment was horrible to say the least.

During one such failed attempt, I remembered about Paytm and decided to use it.

And boy was it an amazingly designed service.

  • The UI was really neat and intuitive.
  • Credit Cards were masked and stored for easy subsequent payments. One just needs to repunch the CVV and the Verified by VISA passwords.
  • Old payments were stored and it was super easy to bring up an old payment and make a fresh one against the same DTH/mobile account.
  • In case of a failed payment to the service provider, the amount is kept in a Paytm virtual wallet that is “automatically”(this is true customer delight) picked up first during any subsequent payments and only the delta amount is required to be paid by the card.

Needless to say my bill payments have migrated to Paytm .

But not all.

I suddenly realized that my de-facto reaction when making the Airtel payments was still to go to the Airtel website and not PayTm. This was strange because from a rational perspective I had no reason to not switch my Airtel payments also to PayTm.

And this got me wondering.

  • I am not really loyal to the Airtel website, its just a question of habit I guess. Its not a strong habit to the extent that one can explain it through muscle memory. But the reality is that I followed the above steps without thinking much – picked up the bill, went to the Airtel site, paid and got it done with.
  • Is my behavior sticky with Airtel because they managed to get to me first and delivered a decent experience? If yes, then the first-mover-advantage for consumer services should be the possible stickiness-hurdle it creates for new entrants.
  • Has PayTm got me as a dedicated customer for their wallet services? Would I choose to pay at lets say Myntra (flipkart has its own wallet and Snapdeal is working on one) through a PayTm wallet? I am not too sure.
  • Although I am an avid Android user with a lot of apps that I use regularly but I still don’t have the PayTm app on my phone. Why? I am not sure. But I remember seeing their messages online and have seen their app in the Google Playstore also. Again no logic to explain this behavior. Wouldn’t the guy in charge of Data Analytics at PayTm be looking at my profile and thinking this guy probably doesn’t have a smartphone or a 3G connection.
  • Now that I have spent some time thinking about my strange behavior, would I go back to the Airtel site or migrate to PayTm? What do you think?

UPDATE

I have long since downloaded the PayTm app and it is now the default way to make ALL bill payments including the Airtel one(s). I no longer wait (or bother) for the bill to be delivered – PayTm manages my bill presentment and payment experience end to end.