A Project Report

On
“Consumer Behaviour Towards Adoption of Digital
Payment Modes”

Submitted in Partial Fulfillment of the Requirements for the

Post Graduate Diploma in Management (PGDM)

GURU NANAK INSTITUTE OF MANAGEMENT

ROAD NO. 75, PUNJABI BAGH, NEW DELHI
(APPROVED BY AICTE, MINISTRY OF HRD GOVT. OF INDIA)

Session: 2019-2021

SUBMITTED TO: SUBMITTED BY:

DR. SEEMA GIRDHAR ANKSHIT SINGHAL

(Associate Professor) PGDM. (2019-2021)

Roll No.:7090

[1]
 ACKNOWLEDGEMENT

The present work is an effort to throw some light on “Consumer Behaviour Towards Adoption of
Digital Payment Modes”. The work would not have been possible to come to the present shape
without the able guidance, supervision and help to me by number of people.

This thesis is great source of learning, a good experience as it made me aware of professional culture
and conducts that exist in the industry.

Though at the onset of any ambitious thesis one always encounters certain difficulties in the
beginning, however, overcoming these difficulties, completing the thesis as well as making it a
success greatly depends on the encouragement, inspiration. For completion of this thesis various
people have put lot of efforts.

With deep sense of gratitude, I acknowledged the encouragement and guidance received by
Dr. Seema Girdhar (Associate Professor). GNIM Punjabi Bagh, New Delhi, who helped and
supported me during the course, for completion of my project.

Dr. Seema Girdhar Ankshit Singhal

PGDM (2019-2021)

Roll No.:7090

[2]
 DECLARATION

I, Ankshit Singhal, declare that the project in the fulfillment of Post Graduate Diploma in
Management entitled “Consumer Behaviour Towards Adoption of Digital Payment Modes” is
completed and submitted by me to Guru Nanak Institute of Management, Punjabi Bagh, New Delhi
and under overall supervision of Dr. Seema Girdhar, Associate Professor, GURU NANAK
INSTITUTE OF MANAGEMENT.

Name: Ankshit Singhal

PGDM (2019-2021)
Roll No.: 7090

[3]
 CERTIFICATE

This is to certify that Report entitled “Consumer Behaviour Towards Adoption of Digital
Payment Modes” which is submitted by MR. ANKSHIT SINGHAL in partial fulfillment of the
requirements for the Post Graduate Diploma in Management to Guru Nanak Institute of
Management, Punjabi Bagh, New Delhi is a record of the candidate own work carried out by him
under my supervision. The matter embodied in this thesis is original and has not been submitted for
the award of any other degree.

DATE: SUPERVISOR SIGNATURE

[4]
 TABLE OF CONTENT

Contents
INTRODUCTION ......................................................................................................................7
NEED OF STUDY ................................................................................................................... 16
OBJECTIVE OF STUDY ........................................................................................................... 16
RESEARCH DESIGN ............................................................................................................... 17
RESEARCH METHODOLOGY .................................................................................................. 23
LITERATURE REVIEW ............................................................................................................ 26
ANALYSIS ............................................................................................................................. 29
FINDINGS ............................................................................................................................. 42
SUGGESTIONS ...................................................................................................................... 44
CONCLUSION........................................................................................................................ 49
QUESTIONNAIRE .................................................................................................................. 50
BIBLIOGRAPHY ..................................................................................................................... 58

[5]
INTRODUCTION OF THE TOPIC

[6]
 INTRODUCTION

Digital payment means an electronic payment system for payment of goods and
services, instead of using cash or cheque, in person or by mail. Digital payment is a
manner of payment which is made through digital modes. No hard cash is engaged in
digital payments. All the transactions in digital payments are concluded online. It is a
quick, speedy and convenient way to make payments.

There are many reasons behind the people’s choice to do cashless transactions like
convenience, improved and trusted digital technology, need to acquire things faster
and cheaper along with maintaining a track record for the taxation purposes. The
credit and Debit cards were the most common for cashless transactions in India like
other countries but a shift in the demand and after the historical decision of
demonetization taken by the Hon’ble Prime Minister of India “Mr. Narendra Modi”
boosted other methods of cashless transaction. The shifting paradigm gave a new
height to the cashless transactions in the country and also influenced consumers and
their perception towards these methods of transaction.

In the world right now, digital payment has been replacing cash and the companies
providing this have been growing and succeeding in a very high pace. India is one of
the countries that have been seen growing very fast when it comes to cashless
payment. In 2018, it has increased in 55%, compared to China 48% and Indonesia
23%. India has a large population with users of phones and most people are not
satisfied with the services provided by the existing banking sector. There are several
modes of digital payment available in India. These are;

[7]
Banking Cards
Banking cards offer consumers more security, convenience, and control than any other
payment method. The wide variety of cards available – including credit, debit and
prepaid offers enormous flexibility, as well. These cards provide 2 factor
authentication for secure payments e.g., secure PIN and OTP.

USSD
The innovative payment service *99# works on Unstructured Supplementary Service
Data (USSD) channel. This service allows mobile banking transactions using basic
feature mobile phone, there is no need to have mobile internet data facility for using
USSD based mobile banking. It is envisioned to provide financial deepening and
inclusion of under banked society in the mainstream banking services.

AEPS
AEPS (Aadhar Enabled Payment System) is a bank led model which allows online
interoperable financial transaction at PoS (Point of Sale / Micro ATM) through the
Business Correspondent (BC)/Bank Mitra of any bank using the Aadhaar
authentication.

[8]
UPI
Unified Payments Interface (UPI) is a system that powers multiple bank accounts into
a single mobile application (of any participating bank), merging several banking
features, seamless fund routing & merchant payments into one hood. It also caters to
the “Peer to Peer” collect request which can be scheduled and paid as per requirement
and convenience. Each Bank provides its own UPI App for Android, Windows and
iOS mobile platform(s).

Mobile Payments
A mobile wallet is a way to carry cash in digital format. You can link your credit card
or debit card information in mobile device to mobile wallet application or you can
transfer money online to mobile wallet. Instead of using your physical plastic card to
make purchases, you can pay with your smartphone, tablet, or smart watch. An
individual's account is required to be linked to the digital wallet to load money in it.
Most banks have their e-wallets and some private companies. e.g. Paytm, Freecharge,
Mobikwik, Oxigen, mRuppee, Airtel Money, Jio Money, SBI Buddy, itz Cash, Citrus
Pay, Vodafone M-Pesa, Axis Bank Lime, ICICI Pockets, SpeedPay etc.

[9]
Point of Sale
A point of sale (POS) is the place where sales are made. On a macro level, a POS may
be a mall, a market or a city. On a micro level, retailers consider a POS to be the area
where a customer completes a transaction, such as a checkout counter.

Internet Banking
Internet banking, also known as online banking, e-banking or virtual banking, is an
electronic payment system that enables customers of a bank or other financial
institution to conduct a range of financial transactions through the financial
institution's website.

[10]
Mobile Banking
Mobile banking is a service provided by a bank or other financial institution that
allows its customers to conduct different types of financial transactions remotely using
a mobile device such as a mobile phone or tablet. It uses software, usually called an
app, provided by the banks or financial institution for the purpose. Each Bank
provides its own mobile banking App for Android, Windows and iOS mobile
platform(s).

Micro ATMs
Micro ATM is a device that is used by a million Business Correspondents (BC) to
deliver basic banking services. The platform enables Business Correspondents (who
could be a local kirana shop owner and acts as ‘micro ATM’) to conduct instant
transactions.

[11]
Although now a lot of people are opting for the digital payment methods, the
transformation hasn’t been easy, in 2016 the government banned certain notes from
the bank. This method rose a lot of digital payment companies. Now India is
accepting digital payment in almost 10 million location across the country.
Competition then has become very stiff among the companies which include; Paytm,
Phonepe, Gpay, Google Pay, Free Charge and others. Paytm and Phonepe owned by
the Walmart are seen as the biggest players as of to date but the Google Pay is seen
dominant in the UPI transactions.

[12]
Among the cities in India that has a tremendous growth of usage when it comes to
digital payment is Delhi NCR. In 2018 to 2019 the digital transactions grew 235% that
is from January to December. In 2019, the region was the third most digitized state
while Karnataka was the highest and the second was Maharashtra. The top three
sectors for digital payment adoption in 2019 were F&B (26%), financial services
(12.5) and transportation (8%).

Digital payment is also been accepted by small scale vendors, stall owners and auto
drivers who are a very large population in the country.

According to Hindustani Times, the approach has also transformed the local
commuting in Delhi NCR, especially in Noida and Gurgaon. Ola riding service has
introduced its digital paying system, Ola Money and has been able to register more
20,000 Ola drivers while Paytm has been able to cover more than 7000 auto drivers in
Delhi- NCR. Other apps are also not falling behind on this service, like Jugnoo which
records 11,000 transactions daily in the nation capital region where most customers
prefer digital payment.

[13]
Mobile Wallets
A mobile wallet is a virtual wallet that allows the user to carry their credit card or
debit card information electronically on their mobile devices. A smartphone or
browser can be used to make purchases goods or even make merchant payments.

[14]
OBJECTIVE AND METHODOLOGY

[15]
 NEED OF STUDY

With the increase in the modes of digital payments and more emphasis being laid on
cashless economy, it is important to understand the consumers’ view on these digital
payment methods. Through this paper an attempt is made to understand the consumer
behaviour towards adoption of digital payments in Delhi-NCR.

OBJECTIVE OF STUDY

The objective of the paper is to understand the Consumer Behaviour towards

Adoption of Digital Payments Modes and their views about the various attributes of
digital payments.

➢ To understand the overall adoption of respondents about digital payment modes.

➢ To understand the level of convenience faced by respondents
➢ To understand the perception about the security of digital payment modes.
➢ To understand the frequency of digital payment usage of the respondents.
➢ To understand the level of satisfaction, consumer have from using the digital payment
methods.

[16]
 RESEARCH DESIGN

Exploratory research:
The perception of users is very difficult to evaluate from a standard set of
questionnaire and it is extremely difficult to compare the perception of users of digital
payment, and other parameters. A simplified and modified view of analyse is used for
this survey as it involves kinds of financial tools.

This is an information systems theory that models how users come to accept and use a
technology in the case of digital payment. It helps us to understand why the digital
payment is adopted and why. It is most successfully used for IT and technology and
that is why this was used for this survey.

Description research:
What the people think about digital payment?

There are the people that says digital payment is safe nowadays, but India can't go
100% cashless because of its rigid undeniable facts. Answer: hey can go for digital
payments as there is no such good time to go cashless.

Transparency and accountability are harder to achieve with cash payments because
they are anonymous and difficult to trace. Digital payments increase accountability
and tracking, lessening the risk of corruption and theft.

They convert a traditional cash operation to a cashless one. All transactions are
completed online. Lower risk. Digital transactions are much more secure than
traditional transactions because they are processed by secure gateways which are hard
to tamper with.

Who uses the digital payment, when, where, why, how?

The people use digital payment when they want to buy something, its’s used in online,
for avoided to have always the cash so its’s the best way for save the money digital
payment platforms, also known as digital wallets, are linked to the user’s credit card
or bank account. This allows users to make electronic transactions from any mobile or
desktop device with just a few clicks.

[17]
 For example

Imagine you’re at dinner with friends, and the check arrives.

Traditionally, someone divvies up the bill, and everyone reaches for their preferred
payment method. Some combination of cash is exchanged, and credit cards are thrown
onto the table.

Now you don’t need to go to the ATM for withdraw, you can just give your credit
card or can pay by google pay, Paytm, PayPal, or also by payroll its’s very easy.

So, the people must to turn to money transfer apps to simplify payments online, in-
store, and among peers.

You can know about digital payment

The rise of digital payment methods reflects a global shift toward digital commerce,
due largely to the widespread use of smartphones and the prevalence of online
shopping.

In turn, merchants are adopting digital payment services to deliver the streamlined
shopping experience consumers expect.

Most people say the main reason they use money transfer apps is convenience (55%),
followed by efficiency (50%).

But there are some reasons why many people still don't use digital payments:

▪ Lack of trust

Many people still don't trust digital payments. They feel it is not safe to use digital
payments, as they don't trust the internet and fear security risks. There is a common
perception among people, that someone else has access to your bank account, which
has stopped many people from adopting digital payments. People in this category are
not much aware of the online World and how it works.

▪ Old Habits die hard

As we all know, Indians love cash transactions and they are used to them. In many
places, businesses are done only through cash transactions and digital payments are
not adopted. People who are not aware of the benefits of digital payments, always
carry cash and think that it is the safest mode of payment.

[18]
▪ Transparency

It is known that every transaction made online is recorded. As each and every
transaction can be tracked, people assume that this will lead to more scrutiny or higher
taxes. As cash transactions can't be tracked easily, consumers prefer it to digital
payments.

▪ Acceptance
Cash is accepted in all places, but digital payments are accepted only in some places.
This has made people depend more on cash payments rather than digital payments.

▪ Time involved
Making payments through cash does not take much time. You just have to open your
wallet and pay the money. But, digital payments involve some steps when compared
to the exchange of cash. Because of this reason, many people have restricted
themselves from adopting digital payments.

While many people do not use digital payments because of various reasons, there
some benefits which digital payments offer.

1. Time-saving:

Sometimes, digital payments save your time. For instance: If you have to pay money
to someone, you don't have to travel to hand over the cash. You can just transfer the
amount sitting in your home.

2. The complete record of your transactions

If you transact online, there will be a record of each and every transaction made by
you. This helps you to keep a track of your spending and manage your money well.

3. Safety

In case of an online fraud, you can report it to the bank within a specified period of
time and get the amount back, if you have been wronged.

Have a complaint against any company? Indian Money.com's complaint portal

Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge
your complaint.

[19]
Causal Research (Hypothesis Testing)

The consumer perception of digital payment has a significant and positive impact on
adoption of digital payment. The structured questionnaire was used as research tool
for understanding consumer perception of digital payment.

Some examples of digital payment:

Causal versus Correlational

Does digital payment are linked to buying (Causal)

Are digital payment and to buy related? (Correlational)

Some answers with certain activities.

Companies that are processing these digital payments have such transactions surge
even as spend-heavy sectors such as aviation, hospitality, fuel and e-commerce have
caused overall volumes to plunge.

Over 50% of all debit and credit card transactions both at point-of-sale machines used
by local stores and online checkouts at merchant sites in the two weeks of the
shutdown were for food and grocery-related purchases, up from 12% prior to the
announcement, those monitoring daily volumes on these channels told ET
(Entertainment Tonight).

[20]
The surge in payment volumes is in line with demand experienced by aggregators as
well as a push from their side to avoid accepting cash. Cash pick-up by banks are also
very infrequent," said Hari Menon, CEO, and Big Basket.

Amazon, BigBasket, Swiggy, 1MG, Zomato, Grofers and FirstCry have stopped
accepting cash on delivery, which made up at least 40% of their business volumes
earlier. They have moved to digital modes to fulfil transactions. Even Dunzo asks for
pre-payment before delivery.

Types of Digital Payment Methods in India

Banking cards USSD

Aadhaar Enabled Payment System (AEPS)

UPI

Mobile Wallets

Bank pre-paid cards

Point of Sale (PoS)

Internet Banking

Mobile Banking

Bharat Interface for Money (BHIM) app

Significant positive and negative correlation would mean that is democracy factors are
interrelated either positive or negative way. It's such a correlation exist it.

Would probably be possible to draw for the predictive mechanism for digital payment.

[21]
Digital payment its influence on the various Demographic and user variables is
studied using Test. This test is used extensively in the survey to find out or test the
hypothesis and arrive at results any significant value can be used to determine if a
hypothesis is true or false both in digital payment. This test is carried out for digital
payment.

Test sample variance

Test sample variance is calculated on data set to arrive at equal and unequal variance
values for the data set. This method is used to find out if the data

Collected has equal unequal variance. The variance is calculated for digital payment.
Helps further analysis using Technology test.

Principal component analysis

Principal component analysis is a statistical procedure that uses an orthogonal

transformation to convert a set of observations of possibly correlated variables into a
set of values of linearly uncorrelated variables called principal components. Principal
component analysis Principal component analysis (PCA) is a statistical way to
transform and reduce the number of dimensions through orthogonal transformation.
This helps in the identification of top contributing factors and data set that stands apart
from the rest of the data.

[22]
 RESEARCH METHODOLOGY
The research will be conducted with objective to find out the extent towards e-
payment. This study is based on both primary data and secondary data. The study
focuses on extensive study based on primary data.

Primary data- which have been collected through means of well-structured

questionnaire. And the questionnaire is structured with the help of Google Forms.

Secondary data -The data has been collected with help of e-books magazines,
newspapers, research article, research journal, e-journals.

Research tool

With the help of google form tools, I structured questionnaires for this research and
able to collect the necessary information.

Sample design

I made a questionnaire and distributed via Emails, WhatsApp groups and LinkedIn
posts. We collected data from about 400 people out of 500 people.

A well-structured questionnaire was designed to collect the information from the

respondents the questionnaire was designed to study perception of customer towards
adoption of digital payment mode. Likert five point scales were used for obtaining
responses. The responses have been collected by means of face-to-face.

Sampling unit: This call is for defining the target population to be surveyed. In this
research the sampling unit was the customers who have been using the digital
payment modes.

Sample size: The research is based on the data collected of 360 respondents from
various localities of Delhi NCR city. In this survey, the sample size we decided 500,
out of which 400 responses we got and we considered 360 from them.

Data collection

The data collection exercise was carried over a period of 15 days, in various localities
of the city. Over a period of 15 days the data was collected and then all the data was
very carefully studied and the results were found.

[23]
Scaling techniques used in questionnaire

Q.no Primary Scale Secondary scale Nature of information

1 Interval Multiple choice Age
2 Nominal Multiple choice Sex of respondent
3 Nominal Multiple choice Profession
4 Nominal Multiple choice Internet access (e-readiness)
5 Nominal Multiple choice E-wallet(e-readiness)
6 Nominal Multiple choice Government portals(e-readiness)
7 Nominal Checkbox Mobile payment app (e-readiness)
8 Ordinal Linear scale Knowledge about e-payment 1
(perception)
9 Ordinal Linear scale Knowledge about e-payment 2
(perception)
10 Ordinal Linear scale Knowledge about e-payment 4
(perception)
11 Ordinal Linear scale Knowledge about e-payment 1
(perception)
12 Ordinal Linear scale Usefulness 1 (perception)
13 Ordinal Linear scale Usefulness 2 (perception)
14 Ordinal Linear scale Usefulness 3 (perception)
15 Ordinal Linear scale Usefulness 4 (perception)
16 Ordinal Linear scale Satisfaction 1 (perception)
17 Ordinal Linear scale Satisfaction 2 (perception)
18 Ordinal Linear scale Satisfaction 3 (perception)
19 Ordinal Linear scale Perceived 1 (perception)
20 Ordinal Linear scale Perceived 2 (perception)
21 Ordinal Linear scale Perceived 3 (perception)
22 Ordinal Linear scale Continuous intention 1 (perception)
23 Ordinal Linear scale Continuous intention 2 (perception)
24 Ordinal Linear scale Continuous intention 3 (perception)

[24]
LITERATURE REVIEW

[25]
 REVIEW OF LITERATURE

According to Lokvir Kapoor, chief executive officer at PineLabs “the card transaction
post demonization saw huge growth because of infrastructure for the acceptance of
card at different merchant location.” PineLabs has helped this growth by deploying a
significant number of Pos at retailers across the country. Also the number of initiative
such as cash back, no transaction charge up to certain limit with further help in growth
of digital transactions. The government put pressure on banks to deploy one million
addition Pos terminal in three months boost the availability of PoS and by January
2017, their number rose to 2.52 million

Sanghita Roy, Dr. Indrajit Sinha (2014) stated that E- payment system in India, has
shown tremendous growth, but still there has lot to be done to increase its usage. Still
90% of the transactions are cash based. Technology Acceptance Model used for the
purpose of study. They found Innovation, incentive, customer convenience and legal
framework are the four factors which contribute to strengthen the E- payment system.

Nitsure (2014) in his paper observed that the problem being faced by developing
countries like India in the adoption of E-banking initiatives due to low dissemination
of Information Technology. The paper highlighted the problems such as security
concerns, rules, regulation and management. In India there is a major risk of the
emergence of a digital split as the poor are excluded from the internet and so from the
financial system.

Balazs Vinnai, general manager, Digital Channels, Misys(April 25, 2016), says that It
is critical for banks to consider new digital channels as part of an integrated strategy
and evolve from first to second generation digital banking: switching digital from a
supporting role, to the primary sales and communication channel for banks, says
Vinnai. Reengineering processes around the customer is not easy, but banks must
embrace digital banking to remain competitive and relevant.

[26]
Mohammad Salman, Imran Saleem (2017) in the paper “Role of Digital Competence
in Cashless Economy” talk about the role of digital literacy as an essential element for
cashless economy. They found out theoretical supports and evidences to understand
the relationship between digital literacy and use of digital payment modes.

As per Ministry of Finance Report (December 2016) on Digital payment, financial

inclusion is one of the foremost challenge facing India. 53 percent of India population
had access to formal financial services. In this context, digital payment can act as
accelerator to financial inclusion. Increasing availability of mobile phone, availability
of data network infrastructure, rollout of 3G and 4G networks and large merchant eco
system are the critical enablers of digital payment in India. It is further supported by
the coordinated efforts of industry, regulator and government. As per RBI’s report
‘Vision 2018’ four pronged strategy focusing on regulation, robust infrastructure,
effective supervisory mechanism and customer centricity has been adopted to push
adoption of digital payment in India.

Dr. Hitesh Kapoor (2016), in his research paper titled” Consumer satisfaction and E-
Banking” has attempted to identify the factors that contribute to the consumer
satisfaction with internet banking. Banking sector is one of the first sectors to make
global presence. With the change in technologies adopted by banks, strategies used by
the banks are also changing. Dimension of service quality like tangibility, reliability,
responsiveness, assurance and empathy have shown more or less a great impact on
customer satisfaction with internet banking services.

[27]
DATA COLLECTION, ANALYSIS
& INTERPRETATION

[28]
 ANALYSIS

The area that was chosen for the research is Delhi NCR which has an estimated
population of 2.8 crores. The questionnaire was circulated to 500 people out of which
400 responses we got. Out of 400 responses, 360 responses are acceptable and
reliable. So, this study is done on the basis of 360 samples.

Gender and Age

Figure no. 1

The sample is divided into 6 age-groups (less than 20, 21-30, 91-40, 41-50, 51-60, 60
above). The maximum response was given by the people of age group 21-30 i.e. as
65% of respondents belongs to this group. (Figure no. 1)

[29]
Figure no. 2

Here, responses came in the ratio of 6:4 approx., where 60% are male and 40% are
female. (Figure no. 2)

Figure no. 3

Here, it divides the sample through occupation. We can see the most part is covered
by students which are 44%. (Figure no. 3)

[30]
Figure no. 4

Most respondents are having internet access and only 6.4% of respondents don’t have
internet access. (Figure no. 4)

Figure no. 5

Here, we can clearly see that the approx. 80% of respondents are using E-wallets.
(Figure no. 5)

[31]
Figure no. 6

This graph shows the interest towards the government portal like BHIM app, Mygov
app. And over research says that the approx. 60% of sample is using government
portals. (Figure no. 6)

Figure no. 7

Here, we come to know that 80% of people are currently using Paytm App with other
apps also. Paytm have the most market share in Delhi NCR. (Figure no. 7)

[32]
Perception towards e-payment

Knowledge about e-payment

Figure no. 8

If we calculate the average response then we got 1512/360 = 4.2, which means most
respondents are agree with this question. (Figure no. 8)

Figure no. 9

If we calculate the average response then we got 1400/360 = 3.8, which means most
respondents are agree with this question. (Figure no. 9)

[33]
Figure no. 10

If we calculate the average response then we got 1509/360 = 4.2, which means most
respondents are agree with this question.(Figure no. 10)

Figure no. 11

If we calculate the average response then we got 1402/360 = 3.9, which means most
respondents are agree with this question. (Figure no. 11)

If we calculate combine average of all knowledge question (figure no. 8, 9, 10 and

11), then we got 16.175/4 = 4.04. The result came 4.04 which represents that
maximum people have knowledge about E-payment.

[34]
Usefulness

Figure no. 12

If we calculate the average response then we got 1514/360 = 4.2, which means most
respondents are agree with this question. (Figure no. 12)

Figure no. 13

If we calculate the average response then we got 1515/360 = 4.2, which means most
respondents are agree with this question. (Figure no. 13)

[35]
Figure no. 14

If we calculate the average response then we got 1558/360 = 4.3, which means most
respondents are agree with this question. (Figure no. 14)

Figure no. 15

If we calculate the average response then we got 1507/360 = 4.18, which means most
respondents are agree with this question. (Figure no. 15)

If we calculate combine average of all ‘usefulness’ question (figure no. 12, 13, 14 and
15), then we got 16.927/4 = 4.23. The result came 4.23 which represents that
maximum people found E-payment is useful.

[36]
Satisfaction

Figure no. 16

If we calculate the average response then we got 1516/360 = 4.21, which means most
respondents are agree with this question. (Figure no. 16)

Figure no. 17

If we calculate the average response then we got 1472/360 = 4.08, which means most
respondents are agree with this question. (Figure no. 17)

[37]
Figure no. 18

If we calculate the average response then we got 1513/360 = 4.20, which means most
respondents are agree with this question.(Figure no. 18)

If we calculate combine average of all ‘satisfaction’ question (figure no. 16, 17, and
18), then we got 12.50/3 = 4.16. The result came 4.23 which represents that maximum
people are satisfied with E-payment services.

Perceived Risk (PR)

Figure no. 19

If we calculate the average response then we got 1084/360 = 3.01, which means most
respondents are neither agree and disagree with this question. (Figure no. 19)

[38]
Figure no. 20

If we calculate the average response then we got 1083/360 = 3.00, which means most
respondents are neither agree and disagree with this question. (Figure no. 20)

Figure no. 21

If we calculate the average response then we got 1050/360 = 2.91, which means most
respondents are neither agree and disagree with this question. (Figure no. 18)

If we calculate combine average of all ‘satisfaction’ question (figure no. 19, 20, and
21), then we got 8.9/3 = 2.94. The result came 2.94 which represents that maximum
people are neither agree nor disagree with security of E-payment .

[39]
 Continuous intention

Figure no. 22

If we calculate the average response then we got 1461/360 = 4.05, which means most
respondents are agree with this question. (Figure no. 22)

Figure no. 23

If we calculate the average response then we got 1419/360 = 3.94, which means most
respondents are agree with this question. (Figure no. 23)

If we calculate combine average of all ‘Satisfaction’ question (Figure no. 22, and 23),
then we got 8/2 = 4. The result came 4 which represents that maximum people ready
to continuous to use E-payment service.

[40]
FINDINGS AND SUGGESTIONS

[41]
 FINDINGS

• As per our survey more than 75 to 80 percent of population of target area uses the e-
wallet payment which is quite large and clearly specify the usage and how digital
payment captured a mandatory spot in most of the people lives and also the
importance with frequently usage of digital payment.

• As per the research through survey more than half of the population of our target area
uses government certified application which also specify that government certified
applications is more trusted than other private applications which are available as
alternative for digital transactions.

• The third most specific finding which the research hinted at is the some of the specific
applications are used widely and on the top is paytm which also include different
payment option with BHIM UPI option which is more trusted because of government
certification. Thus, one can say that the application users are exceedingly trust
perceptive which they have on government launched apps and it make work easy for
paytm users because they don’t have to add money all the time to e-wallet to do
money transfer from bank account to account.

• The research also witnessed acceptance level of the e-payment users that all who are
using a digital payment application they have sufficient knowledge of mobile payment
services but they cannot handle or solve the problem arises during the use of mobile
payment service. Sometime it can be quite difficult to understand the problem which
occurred during a transaction which can only be answered or solved through
application in itself.

• The survey also outlines the fact that the mobile payment service provides users a
real-life convenience for personal transactions and can manage all their transactions
fast with all required records accurately which shows the usefulness of mobile
payment service in users day to day life.

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• The most important factor is satisfaction level of the users and especially for those
who all are using mobile payment frequently which is comes out that 80 percent users
of our target area are fully satisfied with the mobile payment services.

• Apart from the benefits that mobile payment are providing to its users. There is a
perceived risk of money stolen which is true because there are so many sites that can’t
be trusted and if user don’t have the correct knowledge that can happen with the user
and as per our survey people are not sure about the risk which state yes money can be
stolen but people out there don’t know about it how that can be done so they lend with
the mix reaction.

• Yes, even with the risk factor which can influence the application using behavior of
the user. They still continuously going to use the mobile payment because of the
convenience, anytime and anywhere use ability or the comfort of money transaction
experience they are having will hold all the users within the same transaction easiest
process for now with all their acceptance. And it is better and easy way of payment
then Traditional payment service.

• Last but not the least, as per our findings people don't want to discontinue these
services. They are now dependent on these services as it is easily accessible. They are
stick with this new easily usable service and also with the mode of payment and fast
money transaction platform which give all exclusive and new better experience to
every user and these services constantly emerged in people life though cannot be
neglected now and if someone indulge the back pattern of money transaction then
surely will affect the transaction process and may find it difficult to work with before
payment system as per now trend.

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 SUGGESTIONS

In order to make rest of the community to adopt digital payment, we need to consider
some points to make digital payment easier and accessible to everyone.

• Digital Payment Literacy Programme: The purpose of this programme is to make

people know how to use digital payments. We can see most of the population
nowadays have smart phones and many people know about these applications but they
don't know how to access it properly. It could be due to two reasons that they are not
educated or they don't know how to operate the application. So, the digital literacy
programme would help the population to learn about digital payment.

-Digital Payments Infrastructure to allow digital transactions between Merchants and

Consumers.

Creating possibilities and avenues for customers (consumer using the service or
merchant providing the service) is the key to ensuring that citizens of digital economy
to transact digitally as effortlessly and without barriers.

-Assisting less-cash behavior shift.

-Incentivizing less-cash behavior.

The most effective method in introducing trial and creating a habit is incentives,
carefully timed to an individual’s progress in usage of a product with periodic
interventions to ensure instant gratification and drive habit change. Monetary
incentives such as lotteries, cash backs and prizes will certainly motivate individuals
to first try and later stick to paying digitally.

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• Rural Opportunity

Growing mobile phone penetration in rural regions will lead to the next wave of
growth in the adoption of digital technology. The opportunity is ripe for designing
early-level interventions to help rural communities discover the power of the digital
medium and the internet in a structured and guided manner. More than 66 per cent of
India’s population lives in rural areas, of which close to 70 per cent depends on
agriculture for its livelihood. They have little or no access to education, transport,
financial services and the Internet. This is a huge barrier to encouraging rural
entrepreneurship, implementing digital and financial inclusion, and building rural
capacities and livelihoods. Enhancing the scope of digital penetration to rural
communities would help in expanding the scope of the various initiatives that are
already in place to help develop greater prosperity for all.

Under the goal of digital literacy, it helps users discover information that is most
useful and relevant to their life – information that will eventually decrease the current
information gap faced in the region. Rural areas always have a huge impact on the
overall economic development of any country. In the same remote are you find that
most people do not have bank accounts. By using mobile wallets people can
conveniently create bank accounts without physically going to a bank branch. Mobile
wallets also present transparency in a business transaction in the rural area. The
increasing number of mobile and internet users in the rural area will pave ways for the
use of better digital payment solution over time.

• Awareness Program

Program would help to spread awareness over digital payment benefits and its security
aspects. Various payments channels such as UPI, Credit & Debit Card, Digital Wallet
and Online & Mobile Banking have been chosen as the mediums to spread awareness.
Several digital content artefacts like awareness films, posters, brochures can be
developed and are being disseminated over digital broadcast mediums. Awareness
program on benefits of digital payment via tv, newspaper, radio, social media, posters,
banners etc. Help in promoting digital payment.

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 Some benefits of digital payments include, it is convenient and easy to transact and is
more secure compared to making transactions involving cash withdrawal.

▪ Drive the development and modernization of the payment system, promote

transparency and accountability, and reduce transaction costs, and decrease the size of
the grey or informal economy.

▪ Help business people grow their customer base and resource pool, far beyond the
limitations of their immediate geographic area.

▪ Adds up to environment as no tree will be cut for printing paper money.

▪ Reduces Corruption as all transaction are recorded online and been tracked by the
professionals and give revert back benefits to all not to specific people only.

Convenience:

Pay from anywhere in the world where you have Internet access, it is especially
important if you manage finances for someone else like your parents or other
dependents.

Saves time:

No need to leave your home, office, car, parents' house or whatever you are doing to
make a journey to hand cash over to someone. It also means no need to stand in a
queue or wait for someone to get change for you either.

Detailed records:

Especially important where you manage money on behalf of someone else such as a
spouse, parent or other dependents.

Track your spending:

Use your records for budgeting to get control of your spending. It's difficult to go back
over a month to track from memory where your cash has gone.

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Security:

In the event of fraud, you can address with your bank and make a claim.

Reduced theft risk:

It's simple to block a digital wallet that has been compromised whereas it is almost
impossible to retrieve physical cash that has been stolen from you.

Discounts, rewards, and prizes:

You may be eligible to accrue points, obtain discounts or even get freebies when you
use your digital wallet.

Secure trusted transaction:

Government should ensure consumers a committed, secure and highly reliable

payment network to boost digital transaction.

Digital payments are safe, inexpensive, convenient, efficient, and there is transparency
for governments, companies, and citizens alike.

Transparency and accountability are harder to achieve with cash payments because
they are anonymous and difficult to trace. Digital payments increase accountability
and tracking, lessening the risk of corruption and theft.

Digital transactions are much more secure than traditional transactions because they
are processed by secure gateways which are hard to tamper with payment providers
offer some level of fraud protection to the consumers.

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Transaction fee

Government should ensure that there is no transaction fee while doing digital payment
as it helps to attract more customers. Transaction fee ensure that there is no
transaction fee while doing digital payment as it helps to attract more customers.

Secondly all the money users have in their particular mobile payment wallet. On that
money a good interest rate will be provided to customer so they can generate a good
interest & don’t hesitate put back extra money in there e-wallets and not feel urge with
left over money have in e-wallet because of the good amount of interest will be
provided to them. Which is no different of having a money in the bank account.

As per details the number of smart phone users and internet connection is reaching
almost to every part of NCR and increasing though the number of mobile payment
users so all these three things work with each other and it almost reach in every part as
per our research and also it is capturing the remaining population. Who all are not so
much familiar with this upcoming and advance technology & method which is leading
towards cashless payment which is a part digital India incentive?

[48]
 CONCLUSION

I want to conclude that the electronic payment system has grown increasingly over
the last decades due to the growing spread of internet-based banking and shopping.
As the world advances more with technology, we can see the rise of electronic
payment systems and payment processing devices. As this system provides more
secure online transactions.

The most convenient & usable mode of digital payment is through cell
phone/mobile because one can do the payment anytime from any place.

Cell phones can have different applications with e-wallet which is a form of
prepaid account that stores users account data, like debit and credit card
information to make an online transaction easier and convenient. It provides
benefit like cash back and coupons which make users feel delighted and use digital
payments often.

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 QUESTIONNAIRE

User Profiling

1. Age *

Mark only one oval.

less than 20 years

21-30 years

31-40 years

41-50 years

51-60 years

60 years above

2. Gender *

Mark only one oval.

Male

Female

[50]
3. Which of the following best describes your current occupation? *

Mark only one oval.

Mark only one oval.

Yes

No

5. Do you use e-wallets? *

Mark only one oval.

Yes

No

6. Have you used any of the internet portals operated by the government (BHIM App/ Mygov app)? *
Mark only one oval.

Yes

No

[51]
7. Which mobile payment app you use? *

[52]
 [1:

Knowledge about e-payment

Question 8-11

8. I have sufficient knowledge to use the mobile payment service. *

Mark only one oval.

1 2 3 4 5

9. I have sufficient knowledge to handle any problems that may arise during the use of the mobile

payment service * Mark only one oval.

1 2 3 4 5

10. I have sufficient knowledge to process a mobile payment transaction *

Mark only one oval.

1 2 3 4 5

11. I am well informed about how to deal with problems caused by using the mobile payment service. *

Mark only one oval.

1 2 3 4 5

[53]
Usefulness
Question 12-15

12. The mobile payment service provides real-life convenience in my personal transactions. *

Mark only one oval.

1 2 3 4 5

13. The mobile payment service provide real-life management my personal transactions. *

Mark only one oval.

1 2 3 4 5

14. In general, the mobile payment service are fast in managing transactions *

Mark only one oval.

1 2 3 4 5

15. In general, the mobile payment service are accurate in managing transactions. *

Mark only one oval.

1 2 3 4 5

[54]
Satisfaction
Question 16-18

16. Overall, I am satisfied with the mobile payment service *

Mark only one oval.

1 2 3 4 5

17. Using the mobile payment service gives me satisfaction in financial transactions. *

Mark only one oval.

1 2 3 4 5

18. Using the mobile payment service makes financial transactions more convenient. *

Mark only one oval.

1 2 3 4 5

Perceived Risk (PR)

Question 19-21

19. I believe that the money is easy to be stolen by using mobile service. *

Mark only one oval.

1 2 3 4 5

[55]
 20. I believe personal privacy will be disclosed by using mobile payment services. *

Mark only one oval.

1 2 3 4 5

21. Overall, I feel mobile payment services are risky. *

Mark only one oval.

1 2 3 4 5

Continuous intention
Question 22-24

22. I will continuously use the mobile payment service. *

Mark only one oval.

1 2 3 4 5

[56]
23. My intention is to continue to use the mobile payment service rather than find an alternative

means (e.g., traditional payment services). * Mark only one oval.

1 2 3 4 5

24. If I possible, I would rather not to use the mobile payment services. *

Mark only one oval.

1 2 3 4 5

[57]
 BIBLIOGRAPHY

Journals
Bamasak O (2011) Exploring consumers’ acceptance of mobile payments-an empirical Study.
International Journal of Information Technology, Communications and Convergence 1: 173-
185.

Roy S, Sinha I. Determinants of Customers Acceptance of Electronic Payment System in

Indian Banking Sector-A Study. International Journal of Scientific & Engineering Research.
ISSN 2229-5518, 2014; 5(1):177-187.

Dr. Hitesh Kapoor (2016), Customer Satisfaction and E – Banking services: a Case Study of
Tricity, International Journal of Innovative Research in Science, Engineering and Technology
Vol. 4, Issue 10, October 2015, ISSN: 2319-8753.

Websites
https://government.economictimes.indiatimes.com/news/digital-payments/new-delhi-
gurgaon-tops-digital-payments-transaction-charts/72331444

https://www.hindustantimes.com/delhi/delhi-ncr-street-vendors-get-smarter-with-digital-
wallets/story-Uw0wv38FXT4wvrfjfwEY6L.html

http://mfsys.com.pk/post-demonetisation-which-digital- paymentmethod-to-use/

https://www.npci.org.in/PDF/npci/knowledge-center/Digital-Payment-Adoption-in-India-
2020.pdf

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