“I Can Live Without Money, But I Cannot Live Without E-Wallet”: Comparing Business Models of E-Wallet
The case study is designed to make students aware about the e-wallets in the industry. The case study puts students in the shoes of Chief Technology Officer (CTO) of a company, who is responsible for the start of e-wallet for his company. The case study helps discuss the e-commerce industry in India, boom of e-wallet as means to cashless transactions and two illustration of ICICI pockets and Paytm. The two studies of ICICI Pockets and Paytm are two different kinds of model, their advantages and disadvantages are discussed. Finally, analyzing the industry and taking decisions regarding the new proposal of e-wallet project to be started by their company.
Expected Learning Outcomes
- • Advantages of new technology and barriers to technology adoption
- • Business models for new technology companies starting e-wallet services
- • Marketing approaches for changing the mindsets of consumers towards new technology
Case Positioning and Setting
The case study is suited for MBA Program in E-Commerce, Strategy, Marketing and Information Technology course. Moreover, it can also be brought into the coursework as a business models suitable for new technology companies.
I. Which business model would best suit a new e-wallet company?
• Different e-wallet model like bank owned model and telecom based model should be highlighted
- • Advantages and disadvantages of open, semi-closed and closed models should be discussed
• Importance of service differentiation through e-wallet and its benefits should be highlighted. Service differentiation can be the key to competitive advantage by providing value added services and improving its quality. The main components of service differentiation includeordering ease, delivery, installation, customer training, customer consultation, maintenance and repair and returns
• Reliable, resilience and innovativeness by having low error rate, high uptime, emergency handling, payment channel issue handling, etc., should be modeled properly.
II. What are the criteria to decide the market segment via segmentation, targeting and positioning of e-wallet?
• Need for STP as users vary in requirement according to the demographic, psychographic and behavioral differences
• Targeting early adopters who can communicate the advantages of e-wallet service though positive work of mouth though weak and strong ties in their group