A Comparative study of consumer

perception payment Apps in India”

(Study included Paytm, Google
Pay, and PhonePe)

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 TABLE OF CONTENTS
Sr. No. Contents Page
No.
1. Introduction 4
2. Organizations Details 5-7
3. Review Of Literature 8-9
4. Objectives 9
5. Rationaly 10
6. Research Methodology 10-11
Research Design
Nature and sources of data
Sample and Sampling Techniques
Tool and techniques of Data Collection
Data Analysis techniques

7. Questionnaire 11-15

8. References 15

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INTRODUCTION
The Indian economy is largely based on cash based transactions. As per the Reserve
Bank of India, 86 per cent of the Indian bank notes are in 500 and 1,000 rupees
denominations (RBI Annual reports 2016). Though 2,000 rupees currency notes were
introduced by Govt. of India to replace the old notes, still the economy witnessed a
massive cash crunch. There were long queues in front of the banks, and automated teller
machines (ATMs) were closed as the supply of cash was limited. One of the important
solutions to this problem is the alternate modes of digital payment systems. Govt. of India
notified the citizens regarding the introduction of cash withdrawal limits. Scarcity of cash
fueled faster adoption of alternate methods of digital payment systems.
As per the Indian Payment and Settlement Act 2007,
Digital payment refers to paying for goods and services online with the help of electronic
mediums. This is called as cashless economy which avoids use of money in physical
form. These digital transactions help to reduce the cost of making transactions and also
speedup the process involving one transaction cycle. It reduces the risk of handling cash.
The record of digital payment can also be maintained easily. Digital transactions also
help government as transactions can be tracked easily which will help to reduce black
money and thus help in growth of economy. The government is taking initiatives to
move the country towards a less-cash economy and increase the use of digital
transactions.
The main motto of the Indian government is to make the Indian economy ‘Cashless,
Faceless, Paperless’.

The different apps are available that allow users to make payments online. These are very
convenient to use and provides flexibility to the users as they allow users to make
payments anytime and from anywhere. Some of the apps used for online payments
are: PhonePe, Google Pay and Paytm is a digital wallet company and is the first app
built on Unified Payment Interface. It is a UPI based app that allows users to make
transactions using PhonePe wallet, credit/debit card or UPI.

Data released by the national payment corporation of India revealed that transaction on
UPI platform rose to rupee 4.16 lakh crore in December with the total of 223.41 crore
payments processed.

Transaction on the immediate payment service (IMPS) rose to 35.56 crore in December.
This was higher than the 33.91 crore payments worth rupees 2.76 lakh crore processed on
IMPS in November.

RBI also launched the Digital Payment index (RBI-DPI), Which aims to capture the

extend of digitization of payments across the country.

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PROFILE OF PAYTM

Paytm is one of the Indian e-commerce Payment

Company and digital wallet system which was
Launched in August 2010 and whose headquarters is in Noida, India. In 2010, the
scenario was different as they mostly carried cash and used cash payment system and
online payment was lesser than cash payment. Paytm Company came up with a unique
feature i.e. Money pays through mobile to the seller that indirectly affected the growth
rate of online payment. It had step to step changes in the features of Paytm. In 2010, it
started as only prepaid mobile and DTH recharge platform. The features were added time
to time as people face inconvenience in day to day banking transaction and online
payment system. Later in 2013, it added data card, postpaid mobile and landline bill
payments. The journey of Paytm wallet began in January 2014, company launched the e-
wallets and Indian railways and Uber added Paytm as a payment option. The new e-
wallets system launched by Paytm was turned into mobile commerce with online deals
and bus ticketing. People faced some problems related to day to day cash transaction and
it discovered more uses like education fees, metro recharges, electricity, gas, and water
bill payments and it also started powering the payment gateway for Indian Railways in
2015. In 2016, Paytm launched ticket bookings of not only movies, events and
amusement parks ticketing but also the flight ticket, rail bookings and gift cards. Our
honorable Prime Minister Narendra Singh Modi announced the demonetization of five
hundred and one thousand rupees bank notes which gave boost to online payment system.
At the end of the year 2016, Paytm was available in nine languages and also offered uses
like mobile recharges, electricity bills, travel, movies, as well as payments at grocery
stores, fruits and vegetable vendors, restaurants, parking, tolls, medicine shops etc. The
percentage of Paytm users highly increased from 2010 to 2016, and the demonetization
was one of the reasons behind the maximum Paytm users
In financial year 19-2020, Paytm has reported a marginal 1 per cent fall in its revenue and
a 28 per cent decline in losses for the financial year 2019-2020. While its revenue were
down from RS 3350 crore in FY 2020, losses fell from Rs.3954 to 2833 crore during the
this period according to the regulatory filling sourced from business intelligence platform
Toffler.
Owner: - One97 Communication Limited
Founder: - Vijay Shekhar Sharma
HQ: - B-121, sector 5, Noida, Uttar Pradesh
Founded: - August 2010
Product: - Paytm Mall
Paytm Payment Bank
Paytm money
Paytm Smart retail

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Profile of Google Pay
Google Pay (stylized as G Pay; formerly Pay with Google and Android Pay) is a digital
wallet platform and online payment system developed by Google to power in-app, online,
and in-person contactless purchases on mobile devices, enabling users to make payments
with Android phones, tablets, or watches. Users in the United States and India can also
use an iOS device, albeit with limited functionality. In addition to this, the service also
supports passes such as coupons, boarding passes, student ID cards, event tickets, movie
tickets, public transportation tickets, store cards, and loyalty cards.
As of January 8, 2018, the old Android Pay and Google Wallet have unified into a single
pay system called Google Pay. Android Pay was rebranded and renamed as Google Pay.
It also took over the branding of Google Chrome's auto fill. Google Pay adopts the
features of both Android Pay and Google Wallet through its in-store, peer-to-peer, and
online payments services.
The rebranded service provided a new API that allows merchants to add the payment
service to websites, apps, Stripe, Braintree, and Google Assistant. The service allows
users to use the payment cards they have on file in their Google Account.
Google Pay India’s annual results look stellar as the company managed to achieve a 6.5X
growth in its profits for the year which grew from Rs 5.1 crore in FY19 to nearly Rs 33
crore in FY20 while also improving its EBITDA margin from 3.49% in the previous
fiscal to 5.02% this year.

These numbers look impressive for any company operating in India as the second largest
UPI payment platform controlling 39.5% of the market, but there’s more to it as we look
closer.

While the company’s total income grew 34.2% from Rs 1,119 crore in FY19 to Rs
1,501.7 crore in FY20, 80.5% of the top line i.e. Rs 1,173.4 crore was actually
reimbursements received from the holding entity Google Asia Pacific recorded as
revenues.
Developer: - Google
Type: - Wallet
Google HQ: - Mountain View, California, United States.
Founded: - January 8, 2018

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Profile of PhonePe
PhonePe is an Indian digital wallet platform and online payment company headquartered
in Bangalore, India. PhonePe was founded in December 2015, by Sameer Nigam, Rahul
Chari and Burzin Engineer. The PhonePe app, based on the Unified Payments
Interface (UPI), went live in August 2016.
The PhonePe app is available in over 11 Indian languages. Using PhonePe, users can
send and receive money, recharge mobile, DTH, data cards, make utility payments, pay at
shops, invest in tax saving funds, liquid Funds, buy insurance and mutual funds and
gold. In addition PhonePe also allows users to book Ola rides, pay for Redbus tickets, and
book flights and hotels on Goibibo through the Switch platform.
PhonePe is accepted as a payment option at over 10 million offline and online merchant
outlets across 400 cities in India covering food, travel, groceries, medicines, movie
tickets etc. The app crossed 100 million user mark in June 2018 and also crossed 5 billion
transactions in December 2019. It currently has over 200 million users. The company
launched the PhonePe ATM in January 2020. The PhonePe ATM allows
neighborhood Kirana stores to dispense cash in real-time to customers.
PhonePe is licensed by the Reserve Bank of India for issuance and operation of a Semi
Closed Prepaid Payment system with Authorization Number: 75/2014 dated 22 August
2014.
PhonePe saw a seven percent decline in net loss from Rs 1,904 crore in FY19 to Rs 1,771
crore in FY20, according to the regulatory filings sourced from business intelligence
platform Toffler. From Rs 4.06 crore in FY16, the losses expanded to Rs 129 crore in
FY17, and further to Rs 791 crore in FY18.
For FY20, PhonePe earned Rs 427 crore in total revenue, up 74 percent from Rs 245
crore in FY19. Since Rs 273 crore revenue in FY16, the jump in four years has been over
156 times. On the other hand, PhonePe expenses were also up, though marginally, by 2.3
percent to Rs 2,202 crore in FY20 from Rs 2,153 crore in FY19.

Details:

Founder: - Sameer Nigam (Founder & CEO)

And Rahul Chari (Co- Founder & CTO)
Founded: - Dec. 2015
Headquarter: - Ashford Park View, Bangalore, and India
Parent: - Flipkart

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REVIEW OF LITERATURE

A lot of studies have been conducted on the payment apps and methods worldwide. Some
of these studies have been reviewed as follows:

Vidyashree DV, Yamuna N, Nithya Shree G (2015) concluded that People are more
aware about the online payments through mobile applications and there is a wider
increase in growth rate. Pay tm and Pay u Money is giving 2 level security authentication
to safeguard our payment details. The digital payment system has to take necessary steps
to overcome delay in processing of payments.

ZlatkoBezhovski [2016] discussed about different online payment methods and the
adoption of electronic and Mobile payment systems by the consumer. It was concluded
that the future of this payment system can be secured by using latest technology like
use of radio bar-codes with the help of which radio signals could be sent out to find
out the location of the products. The various factors were also discussed that put
positive and negative effect on the adoption of this payment system. The main concerning
factor was found to be the risk of security, data theft, fraud etc. that need to be taken care
of in order to increase the usage of mobile payment methods.

Pawan Kalyani (2016) found that Digital wallets which are popular and associate to the
online business company are more popular and those with the banks are doing fine,
mobile companies' e-wallet is restricted to the mobile users. People are using a few
services mostly for recharging the DTH and paying bills, Shopping etc. The awareness
and practical Usability of the e-wallet is low, that should be increased by adding more
value added services to it.

Shamsher Singh (2017) discussed about the digital payment modes in India. The main
focus was on the customer perception and the factor that put a great impact on the
adoption of digital payment system. It was found that the adoption of digital payment
system is mostly affected by the education level of the customer. If the education of a
person is higher, he will know the benefits of this system and its usage will be higher. But
some other factors like age, gender, annual income do not put affect the use of digital
payment system.

Meena Sanchi, [2017] M Sanchi try to compare the mobile payment

applications available in India with those used in countries which have more than 50% of
their transactions carried out through cashless means. ... While already existing mobile
payment applications gained popularity, the country still lacks in variety of these apps.

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Sarika Raj [Dec 2017]discussed about the digital payment systems in India that
promotes cashless transactions and also the growth of customers using these methods
was shown with the help of graph. It was concluded that demonetization helped in
increasing the use of digital payment systems a lot as a large no. Of users started using
digital methods of making payments instead of using plastic money. Also, the major
issue of concern mentioned was security so, more security features need to be added in
order to gain trust of customers and for the growth of this system.

Prof. Sana Khan, Ms. Shreya Jain (April 2018) did a survey in which 100 people
participated. This was done to know about the reasons that are attracting consumers
to buy products online and which type of goods or services are purchased more by
the consumers and which payment gateway is used more by the people for making
online payments. It was concluded that more security features need to be added like
biometric verification with the help of fingerprint or retina scan Artificial intelligence
etc. This will increases confidence and trust of more and more consumers in this
industry.

Satinder Bal Gupta [2020] discussed about three most popular Payment apps have been
studied by the authors and have found that all the three apps have more or less the same
features. They all differ on some parameters such as Wallet Facility, Security and
Languages Supported etc. Different Payment apps provide various options and features
and they vary from one payment app to other payment app. Each Payment app has its
own strengths and weaknesses.

OBJECTIVES
There are following objectives are:-
 To check people are aware about the mobile payment apps.
 To check which Factor force to customer to use mobile payment.
 To check the customers satisfaction level about the mobile payment apps.

Rationale
The main Reasons to conduct the study on Paytm, Google pay or PhonePe is growing
popularity in India, after Demonitisation and covid-19 Paytm, Google pay, PhonePe
growing continuously.
There are some reasons to conduct the study
1. To check the Preference about service into the customer
2. To check the satisfaction level of the customer
3. To check services provider provide better services to their customer
4. To check the level of the failure at the time of transit.
5. To check the reasons of the popularity

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RESEARCH METHODOLOGY

RESEARCH DESIGN
In this project report I will use the following research Design
1. Conclusive research design
2. Descriptive Research Design

NATURE AND SOURCES OF THE DATA

In this research project I used the primary data and secondary data that relevant of the
study and the data collected into the internal and external sources. Primary data will be
collected through questionnaire.

SAMPLING
Sampling is the process of selecting representative, subset of a total population for
obtaining data for the study of the whole population, the subset is known as sample. In
this sample size, the researcher decides how many elements of the target population to be
chosen for this study. The Random sampling method will be adopted in this study.

Sample Size The sample size of the study is 100 respondents.

SAMPLING TECHNIQUES
In sampling techniques I used Random sampling method
Random sampling is a type of non probability sampling method where the
sample is taken from a group of people easy to conduct or to reach.

TOOL AND TECHNIQUES OF DATA COLLECTION

In this research work used primary and secondary data. Primary Data collected through
Questionnaire, the questionnaire contain Following Questions that important for study
purpose.

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DATA ANALYSIS TECHNIQUE
Data analysis will be analyzed through using Excel the statistical and graphical tools
from SPSS. The data collected from there respondents and analyzed by using the
statistical tools from SPSS and Excel applied on it to come up with better results.

QUESTIONNAIRE
Questionnaire of growing popularity of Mobile payment apps in india
(Include Paytm, Google Pay, PhonePe)

Q1 Name of the Respondent?

Ans. --------------------------------------

Q2 Age Group of the Respondent?

Ans:
o 18-22
o 23-26
o 27-30
o 30-35
o Above
Q3. Gender of the Respondent?
Ans.
o Male
o Female

Q4. Occupation of the Respondent?

Ans.
o Student
o Salaried Person
o Business Man
o Professional
o House Wife
o Managerial
o Others

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Q5. Monthly Income of the respondent?
Ans.
o Up to 10,000
o 10,001-15,000
o 15,001-20,000
o 20,001-25,000
o 25,001-30,000
o 30,001-Above

Q6. Are you aware for mobile payments app?

Ans.
o Yes
o No
o Maybe
Q7.Which App do you prefer?
Ans.
o Paytm
o Google pay
o PhonePe
o Others

Q8.What is your Purpose to use e Wallets ?

Ans:
□ Money transfer
□ Recharge
□ Utility and bill payment
□ All of the Above
Q9.What you keep in mind when you use E Wallets?
Ans
□ Available Discount
□ Shopping voucher
□ Premium offers
□ Easy for Payment
□ Secure transaction
□ Balance information
□ Cashback

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 □ Others

Q10. How much money do you transfer through e Wallets on the monthly basis?
Ans.
o Less then 5000
o 5000-10000
o More than 10,000

Q11. How long have you been using e wallets app?

Ans.
o Less then 3 months
o 3 to 6 months
o 7 to 12 months
o 13 months to 2 years
o More then 2 years

Q12. How often do you use e Wallets?

Ans.
o Rarely
o Sometime
o Often
o Regularly

Q13. Which Factor force you to use the e Wallets app ?

Ans.
□ Reduce Time of transaction
□ Cost effective
□ New technology
□ ease of use
□ Balance checking facility
□ All of above

Q14. Do you Perceive e wallets apps is secured?

Ans.
o Highly agree
o Agree
o Neutral
o Disagree
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 o Highly disagree

Q15. What you think about the balance enquiry facilities provided by e wallets app?
Ans
o Good
o Average
o Poor

Q16 Are you facing any error at the time of transaction?

Ans.
o Yes
o No
o Maybe

Q17. If you facing any error, tick the option?

Ans.
o Sever connectivity
o Network connectivity
o Payment limits
o Technology upgrades
o Others

Q18.how Would you rate your experience with your e wallet apps?
Very satisfied
o Very Satisfied
o Satisfied
o Neutral
o Dissatisfied
o Very dissatisfied

Q19 Do you believe your transaction is safe?

Ans
o Strongly agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

Q20.Would you like to prefer your friends to use e wallets?

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Ans.
o Yes
o No
o Maybe

Q21 Do you believe your information is safe that given by you to company?
Ans.
o Highly agree
o Agree
o Neutral
o Disagree
o Highly Disagree

REFERENCES:-

1. Satinder Bal and raj Kumar Yadav : Study of growing popularity of payment apps
in india
https://www.researchgate.net/publication/341734798_Study_of_Growing_Popula
rity_of_Payment_Apps_in_India
2. Pawan Kalyani : An Empirical Study about the Awareness of Paperless E-
Currency Transaction like E-Wallet Using ICT in the Youth of India
https://www.researchgate.net/publication/304697020_An_Empirical_Study_about
_the_Awareness_of_Paperless_E-Currency_Transaction_like_E-
Wallet_Using_ICT_in_the_Youth_of_India

3. Prof. Sana Khan & Ms. Shreya Jain: A Study on Usage of epayment for
Sustainable Growth of Online Business
http://www.iosrjournals.org/iosr-jbm/papers/Conf.18011-2018/Volume-
2/Marketing/10.%2074-81.pdf
4. Shamsher Singh and Ravish Rana: study-of-consumer-perception-of-digital-
payment-mode
https://www.icommercecentral.com/open-access/study-of-consumer-perception-
of-digital-payment-mode.php?aid=86419
5. Sanchi Meena: Comparative Analysis of Mobile Payment Applications
https://www.ijariit.com/manuscripts/v3i4/V3I4-1320.pdf

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