BUSINESS SITUATION

Two of India’s nationalized private sector banks were asked by Regulatory Authorities to conduct a proof of concept and validation test for a new payment gateway platform. Divergent Insights was approached by the Banks to carry this study on their behalf under the guidance from Regulators. The end users for this payment gateway application test included a specified number of customers and merchants who had to be recruited across multiple cities in India, encompassing a diverse range of demographic & environments. Given the innovative nature of the platform, it had to be tested in non-connected settings. The entire process adhered to strictly comply with all regulatory guidelines and meeting all KYC compliance norms.

FINDING FACTS

Divergent Insights was tasked to achieve the following research objectives and gathering pertinent data:

1. Usage & Behaviour: Evaluate the adoption and usage patterns of the new digital payment app by both customers and merchants in a non-connected environment.
2. Parameter Mapping: Assess factors such as ease of understanding, usage, safety, and convenience.
3. Issue Analysis: Identify challenges faced by users during online and offline transactions and provide recommendations for future app improvements.
4. Expectation Analysis: Understand the expectations of customers and merchants from the payment app.
5. Adoption Willingness: Determine the willingness of merchants and customers to adopt the app for digital payments.

PRODUCT TEST SOLUTIONS SUGGESTED

A comprehensive qualitative study was suggested and conducted in the field with targeted end users. The sample size was determined based on the population of each tier city / location. The following six-step methodology was adopted:

1. User Selection and Awareness: Select end users, including both merchants and customers, who were willing to participate in the product app tests. Create awareness about the application across different tier cities in India.
2. Engagement and Acquisition: Ensure KYC compliance, register, and download the test application. Gather evidence for the pilot project from both merchants and customers.
3. User Guidance: Advise and guide users on how to activate transactions and monitor their activities over a 16-week period.
4. Transaction Monitoring: Conduct pilot tests and monitor transactions, including app loading, transaction completion, and reverse refunds.
5. Feedback Collection: Collect valuable feedback from merchants and consumers to validate the app’s success and identify areas for improvement.
6. Reporting: Provide daily and weekly project updates to the banks, including inferences and insights drawn from the activities

OUTCOME

1. Project Success: The project was a significant success, leading to the official market launch of the product after obtaining all regulatory clearances.
2. Adoption Rates: XX% of participants completed at least one transaction during the proof-of-concept phase. XX% of the recruited sample continued to use the app, completing between X and XX transactions each over the 16-week pilot period.
3. Opt-Out Rates: The test phase saw a X% opt-out rate among merchants and a XX% opt-out rate among customers.