Managing Retailing,Whole selling and Logistics

As we understood that channel management is an important part of success of organisation as a whole it is necessary to make members of the channels as partners and share the objectives and needs across these different channel partners.
Companies are trying to move from conventional chains to value chains networks which can further pass on to the customers Companies are looking forward to moving away from the conventional supply chain and moving towards value network.The entire marketing channel is designed such that each partners role,responsibilities,need and importance is given due consideration.

So we can understand these as follows

Retailing

Retailing involves activities which involves selling of goods to the customer who does not buy it for selling further but for ultimate consumption.
The persons who makes the products available are known as retailers.They are of various types like  Specialty store,Department store,Supermarket,Convenience store,Discount store,Off-price retailer,Superstore,Catalog showroom etc.
They includes the small stores which comes into direct contact with the customer.

 Retail organizations are divided into three categories store retailers, non-store retailers and retail organization. 

Store retailing involves Departmental stores. Store retailers are further divided on the service level with self service, self selection, limited service and full service stores. 90% of products reach the customers is trough stores.

Nowadays we have seen that the non retail stores like the online sites are gaining momentum and captured a significant market share.Non-store retailing includes direct selling, direct marketing, automatic vending and buying service. Internet retail giant Amazon.com is an example of direct marketing. Soft drink vending machines are a form of automatic vending.

Retail organizations are retailing stores under direct ownership of corporate. Customer satisfaction and brand management becomes easier through retail organizations. Corporate chain store like Old Navy and Franchises like McDonald’s are good examples of retail organizations.

For a successful marketing strategy analyzing the target market is necessary and look for what are the customers opting for -direct selling or in store selling as take decisions accordingly.
 Services form a big part of retailing business, so retailers have to finalize level of service. Services include pre-purchase, post purchase and supporting services.

With the advent of technology and unprecedented economic growth, retailing has changed in many ways.

Wholesaling

The act of purchasing goods for consumer and industry for further resale is referred to as wholesaling. Here, manufactures and farmers are not considered as wholesalers and the channel members are known as customers. It includes B2B marketing dealings.

Wholesaler is an important part of the marketing channel. Wholesaler increase reach of the company products and the risk of selling to the customers. Wholesaler can store inventory of various locations of product thus increasing cost for company and time for customers. Wholesaler can serve as ears and eyes for the company in understanding competition and customer.

Marketing Logistics

The supply chain management is essential for companies to improve the productivity and reduce costs of the company. The purpose of marketing logistics is to design and implement optimum infrastructure which can deliver goods from the point of origin to point of sell in an effective and least cost manner.
This objective mix of high customer satisfaction and lowest cost possible does not go hand in hand. The major decision involved with logistics relates to order processing, warehousing, inventory,transportation etc.

Companies looks for shortening order to payment cycle. A long cycle will lead to decrease in customer satisfaction and company’s profit. Companies have to set benchmarks at each level from sales people receiving orders to receiving payment from creditors.

Warehousing for finished goods is another important hub for companies. There has to be a right balance between sales order and quantity of finished goods. Warehousing at strategic locations increases timely delivery of goods and reducing in inventory. Technology has helped in improving warehousing standards.

Piled up inventory is not a good sign for the company. Inventory management involves making decision with time and quantity of raw materials for matching customer requirements. Management principle like Just In Time (JIT) are used for better inventory management. In JIT focus is to develop well time flow of raw materials and finished goods.

Transportation and freight cost plays an important role in final pricing, delivery and condition of raw materials as well as finished products. Here companies need to make the decision, whether to use a private carrier (company ownership), contractual (Outside agency) or common carrier (service shared at standard rates).

Retailing, wholesaling and logistic decision are very important to deliver value to end customers.

Designing and managing Integrated Marketing Channels

The main aim of Channel Management

Channel Management is a communication process between all the people involved from the sellers side i.e. all members who helps to get the product into existence and ready for selling purpose till the last customer which helps the consumer  to get value from the product.

So, the main aim of Channel Management is to maximize the value gained by the consumer be in terms of quality,quantity,timeliness,packaging,services,after sale services and also now a days services like sending messages via SMS,mails about recent developments.

All these comprises of Channel Management.

As it is a very complex and looped process it needs to managed very delicately across various point of contact or across various functions and channel partners.

There are two parts of Channel Management-

1. Marketing channels 
2. Value Chains

Marketing channels comprises of different organisation which helps in making the product available to the customer whereas value chain comprises of the relations like partnership,alliances etc which helps in sourcing,processing and delivering of the product.

There are two types of strategies

1)Pull Strategy

2)Push Strategy

Push Strategies are when the producers induces the intermediaries to promote and sell the product by using its sales force and trade promotions etc. It is beneficial if the brand loyalty of the product is high,it is a product which is required frequently and benefits of it is well understood.

Pull Strategies are the strategies in which involves use of advertising and other promotional techniques so that it creates demand from the customers side which will induce the intermediaries to demand product from time to time.It happens in case where the brands are kept at priority and brand differentiation is present.

Channel Design Decision

It  depends upon:

• Customer Service Expectation

Lot size.waiting period.spatial convenience,product variety, service back up etc.

• Objectives and Constraints of the Organisation-targeted output level,product characteristics,environmental factors like-competitors channel,economic conditions and legal regulations and restrictions
• Channel Alternatives

                      Types of intermediaries
                                   Merchants
                                   Facilitators
                     Number of intermediaries
                                   Exclusive
                                   Selective
                                   Intensive

                   Terms and responsibilities of channel members

                                 Price policy

                                Conditions of sale

                                Distributors’ territorial rights

                               Mutual services and responsibilities

• Major Alternatives

Check out various alternatives like weather we can sell at a lower cost or sales agency

or estimating the cost of selling products through various channels.

Consumer and industrial marketing channels

CHANNEL MANAGEMENT DECISION

Channel Management involves taking on various decisions like,

deciding the channel members

Having conversation with them so that there is an exchange of priorities between the channel and the producer

Training and motivating them

Evaluating them

Making changes if any is required in the channel arrangements.

CHANNEL INTEGRATION SYSTEM

This comprises of three methods:

1. Vertical Marketing System
2. Horizontal Marketing System
3. Multi Channel Marketing Systems

Vertical Marketing System

It comprises of three systems-

    a) corporate VMS- whole sellers-sponsored voluntary chain,retailers cooperatives and franchises organisation

    b)Administered VMS 

    c)Contractual VMS 

Horizontal Marketing Systems

When Two or more unrelated companies put together their resources or programs to exploit an emerging marketing opportunity.

Multi Channel Marketing Systems

Multi channel marketing Occurs when a single firm uses two or more marketing channels to reach one or more customer segments.

Multi Channel Marketing Systems

Strategies and tactics of selling through one channel reflect the strategies and tactics of selling through other channels.

CONFLICTS IN AN ORGANISATION

As it involves so many organisation or individuals conflicts are sure to arise.
There are two types of conflicts-

1. vertical conflict 
2. Multi channel Conflict

The various causes for Channel Conflicts are-

• Goal Incompatibility-when any one or more members have a different goal which does not match with the goal of the channel it leads to conflicts between them.
• Unclear goals and rights-When one channel partner is not clear of the overall goals of the channel then it leads to wrong decisions and the compatibility between various channel partners gets diluted.
• Differences and Preferences-Differences arising between partners and change in preference will lead to conflict.
• Dependence-The channel is a complete process which moves from one person to another and so when one person is not able to provide the material demanded by the ultimate customer because of negligence upper channel partners it leads to conflict between persons.

Strategies for Managing Channel Conflict

• Adoption of superordinate goals
• Exchange of employees
• Joint membership in trade associations
• Co-optation
• Diplomacy, mediation, or arbitration
• Legal recourse

Channel Management

Channel management is a term which has been revolutionized in the last decade. It has become the the nerves of the business through which the blood i.e. proper functioning flows. no business can now be imagined without managing the channels through which your product goes through and reach the ultimate consumer.
The last partner of your channel is the face of your product and thus satisfying your channel partners is very important for success of your product in the market.The ultimate goal of any organisation is to develop long term relations with the customers which will ultimately lead to success.
Channel Management forms an important part of sales as well as marketing.It is a process which forms a base to develop different marketing strategies to meets its target.It comprises of different individuals or companies which helps you in making you reach your product to the customers.

When a specific channel is formed with formatted path it makes selling and servicing customers easy.If any default arises it is easy to streamline communication between customers and the business managers.This can be done by segmenting your customers based on their needs,preferences,buying patterns etc.When all this is compiled together it leads to formation of process which can be customized according to the goals,policies,sales target,costs,marketing program etc.

There are two goals of channel management
1) to make the channel an open channel so that the customers can have a direct communication in each channel.
this goal is very important as it leads to better understanding of the market and can in real terms decide upon the various channels through which it can reach the customers.
2)   It gives a framework of the channel which can be used efficiently for desired results.When the channel and the segment gets matched it leads to determination of the products which can be best put through these channels.


Components of Channel..

It can include many of the following channel partners: ODMs (original design manufacturers), contract manufacturers, distributors, wholesalers, manufacturer's reps, re sellers, VARs and traditional retailers.

 Manufacturers are adopting specific software and solutions to help gain control over complex channel relationships,marketing programs and sales activities, and also to optimize inventory levels.

It helps to maximize revenues and reduce costs and cycle times.
Optimizing distribution channels helps you build stronger and more profitable relationships while ensuring that revenue leaks are plugged.

Price Adjustment

What is Price adjustments?
 Price Adjustments are often referred to as price protection as it allows customers to obtain refund of the price charge to them if they can show that the price of the product has fallen within a time period. It is practiced in USA.
 The retailers will then do “price adjustment,” by refunding the extra amount that has been charged to the customer because of the fall in price.

Many credit card companies also offer price protection as a standard benefit.
 there is no restrictions on retailers to make this an attractive option.
But remember,Price adjustments are not equivalent to return policies.There is a difference between the two. In price adjustments, retailers' refund the gap in cost even if the item has been used.
While on the other hand,Returns needs to be in an unused condition.
 There are different policies adopted by retailers for in-store purchase and online purchases. Several items are excluded from such adjustments and policies like for items which are on sale.

Price adjustments is different from price matching policies because in Price matching retailer gives you  refund  if thee is a difference between his price and a competing retailers price i.e.If a retailer charges higher price he will pay the gap in amount of his price and competitors lower price whereas in Price Adjustments the price difference occurs with the same retailer.

There are various companies which provide Price adjustment facility.
Some of these are-
Walmart

In case a purchase is made online , Walmart and the price of the product decreases a notice of such decrease will be shown in the website within 7 days of the order date.Walmart will refund the difference amount if there is a request for refund put up from the customers side.

 If the purchase is made in-store and there is a price reduction then it cannot be claimed online and vice versa.
 Some items like sale item,clearance item,Special Buy etc are excluded from such adjustments.


Amazon

Amazon provides price adjustment facility only on TVs .A customer can within 14 days find any other lowest price either on site or from different retailers to claim the price adjustment refund.For other products it says that its price fluctuated a lot and any price which was charged was the lowest of all which could be provided at that time.

Best Buy

Best Buy's price adjustment policy states that if any of the purchases is made and the customer finds lower price of the same product at any local Best Buy store then it will refund the amount provided it occurs within the return and exchange period.

However  items not eligible for refund are; Mail-in offers,limited quantity offer,free items, out of stock items, open box, clearance,Midnight sales,special hours sales,or any special day offer etc. items which are purchased online are adjusted over phones only and not in any of its stores.

Kohl's

Kohl's refunds the difference if any item's price drops within 14 days of the purchase date, but clearance goods and BOGO (buy one, get one) items are not eligible for price adjustments.Items in store as well as online purchases are eligible for such price adjustments.






Other tips:
 You can ask for the adjustment as no store will automatically issue refunds for goods whose price decreases post purchases. When you request an adjustment, you'll need your original receipt, the credit card or debit card you paid with and possibly a photo ID and also a  proof of the new, lower price.

Some stores do not advertise whether they have a price adjustment policy, so in these cases talk to a store manager. If a store does not have a price adjustment policy, in some cases you can give yourself the price adjustment by doing a little extra work. Buy the identical item at the new, lower price and then return it with the old receipt that shows the higher price. This process takes extra work, but may be worth your trouble for higher priced items and at stores you frequent. But you cannot employ this strategy with purchases that fall outside the store's return time frame or with items that can't be returned.

Finally, stores that marks some special days deals on such date shall not be considered for price adjustments.

Conclusion
It is not possible to keep an eye for lower prices for every purchase;but check out for expensive items as it can really pay off.

how to fight a low cost rival..

How to fight a low cost rival??

If a competitor enters your market with a similar product priced at a fraction of what you currently charge it is equivalent to a nightmare. You need a strategy to beat these low cost rivals.

On one hand you can lower your prices below the competitors, and buyers will be at your door. On the other hand, this will land you in a price war, and there are no winners in a price war — only survivors;chances are you may not have much of a business left when the battle is over.

 it is possible to beat a lower-priced competitor without foregoing your profits. The bad news is that you'll need to make major operational changes, and rethink how you communicate with customers. The changes are better than the alternatives. So it embarks on one of the biggest strategy challenges.

Select a Value Strategy.
Goal: Lay the framework to reposition the product.

When customers prefer the lower priced of two items, it's usually because they believe the cheaper item is a better value. To compete, you need to get the customer to value your product more than the competition's,regardless of the price.
According to Michael Treacy,  there are four market strategies that accomplish this:

Lower your prices. Yes, this is an option but the challenge is to do it without destroying your profits.margins. The danger here is it ends up with a price war.

Build a uniquely superior product. 
Customers are willing to pay more if they're convinced your product is better than the competitors. It can be "rational", "emotional", or a combination of both.
Create a hassle-free experience.
 if your product is easier to buy and use then the customers will automatically pay more. happy customers pay more for the convenience even though the price is higher than competitors product..
Take ownership of the customer's results. 
If you take responsibility for ensuring that the product generates the results the customer seeks the customers will pay more.
Big Idea
Where Do You Fit In..

Think of product value as a grid. The left axis defines what you sell: Does your firm offer stand-alone products, or do you specialize in offering an ongoing set of services? The top axis is about your core value proposition: Does your offering compete largely on the basis of how much it costs, or does it offer features that make it unique? The more sophisticated your product gets, the more you can charge for it relative to the competition. Similarly, the more value your services provide, the more you can charge for them.

Costs                                                        
Benefits
Products: "What we sell"
Price
Uniquely better product
Service:"How we do business"
Hassle-free purchase experience
Owning customer results
Source: GEN3 Partners, 2007

Reposition, Readjust, and Reallocate
Goal: Make the internal changes necessary to support your strategy.
Lower prices by making changes in manufacturing and distribution.
To beat low-price competitors along with remaining profitable,needs you to squeeze every last drop of inefficiency and cost from your manufacturing and distribution system.
Building a uniquely better product 
 Determining what features or design will prompt customers to see your product as being uniquely superior to the competition will help in better designing and engeneering of products.
Creating a hassle-free experience
Changing sales and marketing. Check out why it's difficult to buy and use your competitor's product, and then make it easy to buy and use yours.

Checklist
Self-Assessment: Your Firm's Core Competence
 rate the following aspects of your company's operations:

5=Best in the industry

4=Better than average

3=We're OK

2=We stink at this

1=Say what?

Controlling our supply chain.

• Setting up channel partnerships.
• Designing great products.
• Basic research and development.
• Creating marketing materials.
• Building customer relationships.
• Keeping existing customers happy.
• Getting customers to refer prospects.

Total each pair. The highest numbered pair indicates your core competency.
Match that with the strategy you should embrace, below.

First pair is highest:  lower your price strategy.
Second pair is highest: uniquely better product strategy.
Third pair is highest:  hassle-free experience strategy.
Fourth pair is highest: ownership of results strategy.
Warning: if no pair adds up to more than 6, your company may not be a viable competitor.



Promote the New You

Goal: Communicate new value strategy to potential customers.
Once you've implemented all the operational changes required to reposition your product in the marketplace,  tell the world why your firm offers superior value. That means adopting a communications strategy that matches your market strategy, as follows:

If you offer lower prices, mimic the competition's go-to-market strategy. Ensure that whenever a customer sees a competitor's product, your product is right next to it — at a lower price.

If you build a uniquely better product, target your advertising. Reach customer groups that are most likely to believe your product is superior by selecting venues that the competition neglects.

If you create a hassle-free experience, generate positive word of mouth. Make it easy for your customers to sell for you. Consider "tell a friend" coupons or offer referral fees.

Prepare a Plan B
Goal: Secure long-term competitive advantage with a secondary market strategy.
 a new pricing strategy and a new way to market it to customers.  Just as you are responding to your competitor's pricing moves, they will do the same in response to you. If you make things easy for customers, your rival could make things even easier. To prevent this, it's important to simultaneously execute a secondary market strategy that supports the first. Here's how it's done:

The challenge in executing a secondary strategy is that the four basic market strategies are, to a  extent are mutually exclusive. Better products typically cost more to make.

Nevertheless, having a secondary strategy in place — even if you can't make it fully effective — is a great way to keep competitors at bay because it makes it far more difficult for your rivals to beat you in your areas.

Six Sigma Pricing

Many factors contribute to defects in evaluation processes. the elemental causes area unit poorly designed or maybe unspecified  processes. however though the processes area unit acknowledged and clear, controls might not be effective. Either way, the Six sigma approach for rising processes will facilitate.

The Six sigma philosophy, mistreatment knowledge and applied mathematics tools to consistently improve methods and sustain process enhancements, will be applied to the evaluation method with a spotlight on eliminating the "defects" of excessive discounts or excessive costs. Six sigma could be a methodology historically utilized in producing to boost quality. Six sigma evaluation, or the applying of Six sigma to evaluation, permits systematic elimination of process-related defects by exposing the sources of those defects.

The 5 stages of Six sigma evaluation area unit identical as that of Six sigma except that they're custom-made for evaluation processes:

Define the pricing-related "defect" in operational-, transaction-, or contract-specific evaluation processes and also the extent of the defect.
Measure the extent of the defect along side parameters of the evaluation processes further because the invoice, say by analyzing past invoices.
Analyze the info collected in live to infer however the scale or incidence of defects varies with completely different aspects of the evaluation methodes further as brainstorm on the opposite causes of defects associated with the prevailing process.
Improve {the method|the method} by creating process amendment recommendations along side quantitative estimates of what proportion improvement in connected costs or different metrics would occur following implementation of those changes.
Control the projected method. as an example, advocate controls to make sure that folks area unit following the agreed-upon modifications which the calculable edges area unit achieved.
Benifits from Six sigma evaluation

• The Six sigma methodology uses knowledge, measurements and statistics to spot method inefficiencies and so applies strategic tools to eliminate defects by decreasing method variation. 
• The name Six sigma comes from the applied mathematics term that refers to a method that permits for no quite three.4 errors per one thousand thousand opportunities.
• Organizations that have used the Six sigma methodology have reduced waste, enlarged profit and increased stockholder price. as an example, General electrical used Six sigma techniques to extend profits by $2 billion in an exceedingly annual amount.
• Investing in Six sigma coaching for workers in the slightest degree levels at intervals a corporation will be a catalyst to increasing productivity and profitableness. 
• the inspiration of a roaring Six sigma program could be a completely trained base of authorized  staff. Once the quantity of staff with Six sigma coaching reaches a vital mass within the company, productivity will begin to boost while not increasing capital prices.
• A company edges from Six sigma the foremost once a big range of its staff area unit trained within the methodology. once staff have adequate 
• Six sigma coaching they become far better downside solvers and may still increase the company’s productivity for the rest of their careers. As additional staff area unit trained within the Six sigma method, the corporate gains additional professionals to assist alleviate problems, additional minds to unravel issues and additional hands to assist execute the answer.

CONCLUSION
Pricing is vital to a company's success, and realizing a rather higher worth overall across all transactions includes a tremendous impact on rock bottom line for any company. As such, rising costs and preventing worth erosion in transactions or contracts ought to be the primary priority for a corporation seeking to boost its profits.
The heart of the matter is that the absence of well-defined processes or the absence of functioning controls though the processes area unit neat and well intentioned. Six sigma is associate approach that has done wonders for producing and for services in rising processes to scale back defects.

The real purpose of Six sigma evaluation is to assist the chief operating officer develop a shared understanding and explanation for improved management and so manage amendment to improved evaluation processes.

THE BHIM APP

Bharat Interface for Money (BHIM) is an initiative to enable fast, secure, reliable cashless payments through your mobile phone. BHIM is interoperable with other Unified Payment Interface (UPI) applications, and bank accounts. BHIM is developed by the National Payment Corporation of India (NPCI). BHIM is made in India and dedicated to the service of the nation.

How does it work?
Register your bank account with BHIM, and set a UPI PIN for the bank account. Your mobile number is your payment address (PA), and you can simply start transacting. Yes! It is that simple.

Send / Receive Money: Send money to or receive money from friends, family and customers through a mobile number or payment address. Money can also be sent to non UPI supported banks using IFSC and MMID. You can also collect money by sending a request and reverse payments if required.

Check Balance: You can check your bank balance and transactions details on the go.

Custom Payment Address: You can create a custom payment address in addition to your phone number.

QR Code: You can scan a QR code for faster entry of payment addresses. Merchants can easily print their QR Code for display.

Transaction Limits: Maximum of Rs. 10,000 per transaction and Rs. 20,000 within 24 hours.

Language supported: Hindi and English. More languages coming soon!

BHIM requires permission to your Phone Calls & SMS to verify your phone number.

Updated

January 4, 2017

Installs

5,000,000 -16,50,000 (approx)

Current Version

1.1

Offered By

National Payments Corporation of India (NPCI)

Supported Banks: 
- Allahabad Bank 
- Andhra Bank
- Axis Bank 
- Bank of Baroda
- Bank of India 
- Bank of Maharashtra
- Canara Bank
- Catholic Syrian Bank 
- Central Bank of India
- DCB Bank 
- Dena Bank
- Federal Bank 
- HDFC Bank
- ICICI Bank 
- IDBI Bank 
- IDFC Bank 
- Indian Bank 
- Indian Overseas Bank 
- IndusInd Bank
- Karnataka Bank 
- Karur Vysya Bank 
- Kotak Mahindra Bank 
- Oriental Bank of Commerce 
- Punjab National Bank 
- RBL Bank 
- South Indian Bank 
- Standard Chartered Bank
- State Bank of India 
- Syndicate Bank 
- TJSB
- UCO Bank
- Union Bank of India 
- United Bank of India
- Vijaya Bank
- Yes Bank Ltd

The app is a rebranded version of UPI (Unified Payment Interface) and USSD (Unstructured Supplementary Service Data).

The app will eliminate fee payments for service providers like card companies such as Mastercard or Visa was widely seen as a big stumbling block for merchants switching to digital payments. This app is expected to make it affordable for merchants in remote villages.

The BHIM app is supposed to support Aadhaar-based payments, where transactions will be possible with just a fingerprint impression

3 million customers in just 5 days.

Not just another mobile wallet

HOW IS IT POSING THREAT TO PAYTM

The app takes on the likes of Paytm, Mobikwik, Freecharge and other mobile payment apps which have become hugely popular since the government announced banning of Rs 500 and Rs 1000 notes on November 8.

The new app is expected to minimise the role of plastic cards and the point of sale (PoS) machines said to be the essential tools for a cashless society.

You can store a limited amount of money in a mobile wallet like Paytm or MobiKwik, which you can send only to someone who is using the same wallet. But BHIM is UPI-based, and thus linked directly to a bank account. All the payee needs is a bank account. If this account is UPI activated, you can just ask for the payee’s VPA or virtual payment address, and make the payment to that account.

The advantage is there’s no need to remember an account number, or to share it with anyone. The VPA is all that is needed. Up to Rs 10,000 can be sent per transaction, and up to Rs 20,000 in any 24 hours.

verified your mobile number. You get an SMS, so it’s best to use the same number as the one that’s linked to the bank account.

BHIM will ask you to set a 4-digit passcode.(easy to remember).

If your account is UPI activated, it will reflect the relevant number. You’ll see options to send and receive money, and transact via IFSC. If UPI is not activated, you can put in six digits of your debit card number, and the expiry date, after which the app will let you use it.

the release of UPI would be bitter for mobile wallets. This is due to UPI being an open payments platform, where money can directly be transferred from one bank account to the another without any switching charges.

It also removes the fuss of pulling your money from your bank account to your mobile wallet and vice versa as mobile wallets are semi-closed payment systems. Further, bank-to-bank transfer makes the system more widely accepted, as opposed to the pain of tying up from merchant to merchant.

One app for all bank accounts:

BHIM leverages the power of UPI and USSD into one, which enables the user to optimally utilize single platform for all his cashless needs. Thus, if a user has bank accounts in three UPI enabled banks, then BHIM will converge all his banking activities, and enable him to conduct cashless transactions without hassles. The single @UPI payment address will protect his identity and personal details. The interoperability aspect makes it a big deal, compared to other e-wallets, which basically  replaces your physical wallet with a digital one. But BHIM directly connects the bank accounts with a safe platform, thereby saving you time and hassles of maintaining multiple wallets.

2. Internet Is Not Required:

One of the master-strokes of BHIM is that, it can be used without Internet. *99# program for conducting cashless transactions is being supported by BHIM, which makes it a deal-clencher. Only Paytm provides Internet-less cashless transactions, but that feature is not that robust, considering that you need Internet to link the bank accounts, and to infuse funds. But with BHIM, a non-smartphone user can transact from the word go.

3. Finger-print based cashless transactions:

Once the merchant connects a bio-metric device with his smartphone (after installing BHIM app), then he can easily accept payments from buyers by using their finger-print. The Aadhaar protocol kicks in here, as the fingerprint is directly matched from the main server, and the payment is done. This facility is right now not available on any e-wallet, which makes BHIM a superior technological product, compared to any other e-wallet. Rural citizens who are don’t even know how to read and write can easily, seamlessly pay via BHIM, using their bank account.

In a way, BHIM effortlessly connects the Aadhaar card, mobile phone and UPI/USSD technologies to provide a digital platform for making and receiving payments.

Till now, BHIM can be described as the Govt. biggest, most ambiguous project for promoting cashless payments.

In the coming days, it would be really interesting to observe how BHIM makes a dent in the market of Paytm, and other e-wallets.

While BHIM has all the benefits provided by other mobile wallets, the one big advantage is that the transactions happen directly from the bank accounts and there are no charges associated with transfers.

during peak times, users have been left stranded, unable to confirm payments made to the merchants. Users have found queries sent to update passbook to track transactions taking inordiantely long. Apart Paytm traced some of the flaws in its iOS app, used by less than 10% of its users, which impacted the platform at large. A new bug-free app has been released.

The problem at the retail end is mainly with small merchants: corner cigarette shops, fruit vendors, kirana stores. Regulations don’t allow merchants to take out more than ` 20,000 per month, while they need money to manage daily cash flows. Says one merchant in Bajrang market, Greater Noida, “I sold `2 lakh worth of goods in one week. But I can withdraw only `20,000 a month. And that after standing hours in long queues. It’s impacted my business and now I don’t accept Paytm.”

​from the spike in fraud, some users reported money disappearing at the time of loading wallets.