Journal of Positive School Psychology http://journalppw.

com
2022, Vol. 6, No. 3, 10121 – 10131

A Study on Digital Payments System & Consumer Perception: An

Empirical Survey.
Shinki Katyayani Pandey
Assistant Professor, Kalinga University, Naya Raipur, CG
[email protected]

Abstract
Propelled by recent policy initiatives and technological developments, India’s digital payment system
is a promising success story in the making. In recent decades, the country has seen a significant
increase in the use of digital payments. A digital payment, also known as an electronic payment, is the
transfer of value from one payment account to another using a digital device such as a mobile phone,
POS, or computer, as well as a digital communication channel such as mobile wireless data or
SWIFT. Mode of digital payment commonly used by the citizens of the country are bank transfers,
mobile money, and payment cards i.e., credit, debit, and prepaid cards. Since the launch of IMPS by
NPCI in 2010 until the release of UPI in 2016, the digital payment system has evolved several times.
The study is an attempt to analyze how various forms of digital payment evolved in the past and how
COVID-19 impacted the digital payment systems in India. The study concludes that digital payments
in India recorded a robust growth of 26.2 per cent in terms of volume during 2020-21 on top of the
expansion of 44.2 per cent in the previous year. Lastly, it has been observed that after COVID-19
pandemic, people were concerned about health regulations and were afraid of cash transactions which
made them switch to this mode, resulting in a rise in the usage of different modes of digital payment
systems.
Keywords: Digital Payment System, Pandemic, Cash Transactions, POS.

INTRODUCTION requirement such as withdrawal or deposit of

The consensus around the origin and the forms cash, funds transfer, verifying statement of
of ancient money has kept changing over the accounts etc. It has been called as the original
course of recorded history. But, what has not banks which was the method of past in the
changed over the years is what money does; economy. They were the original commercial
broadly, it facilitates trade in goods and mediators to provide bank accounts. From the
services as medium of exchange and acts as a exterior they had the big buildings with pillars
credible store of value. Modern day trade made by marbles but in the interior, it had an
demands massive payments to be settled fast abundance of money in the box. This has been
over long distances with minimum transaction called “Bank”. They were big athletes in the
cost. Evidently, to suit these needs the commercial markets. They converted the
payment systems are being digitized globally. savings of the house into loans for business as
Cash, however, remains a crucial part of the an investment. Traditional Banking designed
trade. Therefore, the discourse on the current on IT acceptance. The Indian Banking Sector
age payment system revolves around cash vs arose in the world of technology in the
digital transactions. A digital payment, often beginning of 1990s. In India public sector
known as an e-payment, is a method of banks have been influenced by the banking
making electronic payments between a payer sector, which occupied above 80% base of
and a payee. Both the payer and the payee use total asset.(Gupta & Gupta, 2020)
digital modes to complete the transaction.
Right from barter system to paper money, Different Modes of Digital Payment (2010–
there has been a huge evolution in the modes 2015):
of payment in India. And now in the second
decade of the millennium with the youth and NEFT: NEFT stands for National Electronic
coming generation, cashless i.e., digital Funds Transfer. Started in November 2005,
payment mode is the new phase of payments. NEFT is an electronic funds transfer system
Before the evolution. The basic concept of set up and managed by the Reserve Bank of
traditional banking was that the users have to India. NEFT allows the online transfer of
go the bank for the primary banking

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10122 Journal of Positive School Psychology

funds from one NEFT-enabled bank account to the digital wallet to load money into it. The
to another. majority of banks have their own email,
wallets and some private companies, e.g.,
RTGS: Real-time gross settlements are a Paytm, Freecharge, Mobikwik, Oxigen,
process that is used for high-value inter-bank mRupee, Airtel Money, Jio Money, SBI
transactions. These transactions typically Buddy, Itz Cash, Citrus Pay, Vodafone M-
require instant and full clearing and are Pesa, Axis Bank Lime, ICICI Pockets, Speed-
generally done by the central bank of the Pay etc.
country. RTGS reduces the overall risk as
these settlements are made almost instantly AADHAAR ENABLED PAYMENT
throughout the day. It is not like National SYSTEM: Is a bank-led model which allows
Electronic Funds Transfer (NEFT), in which online interoperable financial transactions at
settlements are made in batches. Hence, the PoS (Point of Sale/Micro ATM) through the
charges involved in the real-time gross transfer Business Correspondent (BC)/Bank Mitra of
of funds may incur higher costs for customers. any bank using Aadhaar authentication.

Factors that could influence the Digital Banks Prepaid Cards: For Spending money,
Payment system: it is loaded into the prepaid card in advance. If
you have "opted in" to your bank's overdraft
Digital India Campaign: With the program, you can cover your overdraft with a
commencement of the Digital India initiative debit card linked to a bank account. This
in 2015, the Indian government pushed hard means that your bank may charge you a fee to
for the adoption of cashless transactions. It cover the cost of a purchase or ATM
was a campaign to urge Indian businesspeople withdrawal. Withdrawal that exceeds what you
and citizens to embrace digital technology in have in your account.
their daily lives in order to boost the country's
economy by facilitating paperless, anonymous, The Unified Payments Interface (UPI) is a
and cashless transactions. Various means of system that powers multiple bank accounts.
digital payment have been made available This single mobile application (of any
under the national payment corporation of participating bank) merges several banking
India (NPCI) in order to encourage cashless features, Fund routing and merchant payments
transactions and convert the entire country into are combined under one hood. It also caters to
a cashless India, such as: (M. C. Joshi, the "peer to Peer" collects requests which can
2017) be scheduled and paid as per requirement and
convenience. Each bank provides its own UPI
Banking Cards: Banking Cards provide App for Android, Windows, and iOS mobile
consumers with increased security, platforms.
convenience, flexibility, and control than with
any other payment method. The wide variety Effect of Demonetization
of cards available—including credit, it also Demonetization undoubtedly aided the
provides a great deal of flexibility. These cards adoption of digital payments. The country's
provide 2 factors authentication for secure demonetization on November 8, 2016, marked
payments, e.g., secure PIN and OTP. RuPay, a watershed moment in the country's economy,
Visa, and Mastercard. Some examples of card with massive cash transactions taking place.
payment systems are as follows: Digital payments have changed everyone's
way of life since demonetization, and the
Mobile Wallets: A mobile wallet is a way to country's cashless economy is one among the
carry cash in a digital format. You can link key benefits of demonetization. Every
your credit card or debit card information on disturbance, it is claimed, offers possibilities,
your mobile device to the mobile wallet app or and the announcement of demonetization was
You can transfer money online to a mobile one such disruption. Demonetization provided
wallet. Instead of using your physical plastic a significant development opportunity for
card to make purchases, you can pay with your digital payments in India, and digital wallet
smartphone, tablet, or smart watch. An businesses seized it with both hands to
individual's account. It is required to be linked increase their market share For Indian

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10123 Journal of Positive School Psychology

customers, demonetization has provided a the value of RTGS increased from 78,179
different opportunity for the adoption of billion INR to 1,02,348 billion INR. The
digital payment as an alternative to transactions from E-wallets reportedly
cash.(Singh, Shamsher, Rana, 2017) increased from 17 lakhs per day to 63 lakhs
per day (Dr. Swati Kulkarni, Dr. Aparna J
The demonetization resulted in unprecedented Varma, 2021). It was also seen that in various
growth in digital payments. By February of metro cities, even small market merchants
this year, digital wallet companies had grown started keeping Point of Sales (POS) machines
by 271 percent. government and private sector at their shops to accept payment digitally.
companies such as Paytm, Freecharge, and
Mobikwik have been aggressively pushing The New Digital System
several digital payment applications, including
the Aadhaar Payment app, the UPI app, and Even if people in India were aware of the new
the National Payments Corporation of India digital system, they were not digitally literate.
(NPCI) developed the Bharat Interface for People have to start utilizing the internet on a
Money (BHIM) app. Digital transfers using regular basis and become familiar with its
apps have brought behavioral change and functionalities in order to overcome this. And,
helped in the adoption of digital payment. This once again, this was a watershed event, since
has resulted in the ease of money transfer in Reliance Jio launched their sim at the same
rural areas which was not touched earlier by time in 2016, offering 1 GB of data per day.
the digital payment method. Many foreign Digital literacy is a necessary ability for all
investors now want to invest in the digital Indian citizens to engage fully in the
payment industry, which is a new attractive democratic process. For effective usage of
destination because of the scope of digital activities, basic knowledge and
tremendous expansion in India.(Manocha et competencies are required. The Indian telecom
al., 2019) business, as well as people's internet usage
patterns, were forever changed by Reliance. In
According to another study, there was a the first month, Jio claimed that 16 million
significant increase in digital payment people had signed up. No other mobile
methods and transactions following network operator in the world has ever created
demonetization. The effect they saw from the a network as quickly as this one. Jio attracted
use of various mobile wallets like Paytm, 50 million users in 83 days by offering 1 GB
Razorpay, Mobikwik, Freecharge, etc. just one of data per day. As a result of this increased
day after demonetization. Various grocery accessibility, the use of social media, social
startups saw an increase in sales of 40–50%. networking sites, and digital payment has
Furthermore, one of the studies showed that increased. People were more fearless when it
the liquidity state of the economy is highly came to using the internet. As a result, Jio
affected in a positive manner as played a key role in the growth of digital
demonetization helped the country to go payments in India.(Mishra Shivam Vyas,
cashless while at the same time increasing 2018)
transparency in the financial aspect of the
economy. It was also observed that digital Jio triggered the widespread use of digital
payment transactions through internet banking transactions, however, studies show that UPI
and mobile digital wallets saw a tremendous has gained more traction in the long run by
rise in value. Paytm wallet, for example, grew popularizing the digital payment methods. It
from 125 million wallet customers prior to has been observed that UPI overtook all the
demonetization to 185 million three months digital financial transaction instruments by
later. And it continued to grow, hitting 280 increasing the volume of transaction by 450%
million users by November 2017. PWC India at the end of the financial year 2018-2019.
reported that post demonetization, the According to the industry experts the
transactions through digital payment methods affordability of smartphones and internet data
of NEFT and RTGS have seen a substantial too have accelerated the widespread
rise, both in terms of volumes and values. The acceptability among the customers from
value of NEFT transactions increased from different strata of the society.(Dr. Swati
8,808 billion INR to 14,182 billion INR. And Kulkarni, Dr. Aparna J Varma, 2021)

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10124 Journal of Positive School Psychology

COVID-19 over the previous three years. Customers were

instantly encouraged to use mobile's
CASHLESS AFTER PANDEMIC? People contactless payment possibilities by
Fear That Money Can Spread the Coronavirus merchants. During the outbreak, contactless
because electronic payments seem to be more payments increased at 69 percent of stores,
attractive. (Rooney, 2020) highlights the key and 94 percent predict that trend will continue
points as: Seeing money as a coronavirus in the next 18 months. In-store or proximity
vehicle can change how consumers choose to mobile payments increased by 29% in 2020, as
pay in person. Critics say that the mobile becomes the preferred method of
"psychological factor" of people who think payment.
money is "dirty" can spur more adoption of
things like Apple Pay and Venmo. "People Popular e-wallets used in India:
default to normal, unless something pushes
you away," said Jodie Kelley, manager of the G-pay In the year 2015, Google Incorporation
Electronic Transaction Association. "Wireless launched the application. Google Pay is the
billing has been considered something new for most widely used digital payment app, and it's
consumers who know what they're up to." available on both Android and iOS devices. A
person can either transfer money or pay their
(Ma et al., 2021) The Digital India mission, utility bills immediately from their bank
which urged Indian enterprises and individuals account. Or by having a UPI (Unified Payment
to use digital technology into their daily lives Interface) ID, which can only be obtained after
in order to enhance the country's economy installing the Google Pay application. The app
through paperless, faceless, and cashless provides users with two levels of protection,
transactions, gave birth to the notion of digital including fingerprint security. It renders
payment in India in 2016. In the year 2020, individuals stress-free in the event of identity
when the coronavirus had a significant theft or the loss of their secret credentials. It
negative impact on the country, every second can be used by small businesses. Payments can
person began making essential payments be made or received by merchants,
through digital means, avoiding cash payments wholesalers, or even major corporations. As of
to protect themselves from any kind of contact today, the app has over 100 million users.
with another person, whether from the city,
town, or even villages. A person can make PhonePe PhonePe is another Indian-based
digital payments by using a mobile banking payment service app that was released in 2015
app or a third-party app like Amazon Pay or as a privately owned multilingual mobile and
Google Pay. Phone Pay, Paytm and several PC software. The company's headquarters are
others where both the parties, such as payer as located in Bangalore, Karnataka, India.
well as payee, are required to link their bank PhonePe is a unified payment interface (UPI)-
account with the payment application in order based software that requires a user to link their
to place a transaction or need to deposit an bank account and generate a UPI ID in order
amount on their digital wallet of installed to complete any transaction or pay utility bills.
application The app, like Paytm, is available in 11
languages for Indian customers. As of today,
Since January 2020, there has been an increase PhonePe has over 280 million clients who use
in the number of digital payment transactions. its services. The company offered an ATM
It nearly doubled from January to February service for its subscribers called "PhonePe
2020, going from 436.43 crore transactions to ATM" in January of 2020. It creates more
847.44 crore transactions. In addition, the revenue.
percentage increase was dwindling. It was
49.05 percent from February to March 2020. BHIM Bharat Interface for Money (BHIM) is
From November 2020 to December 2020, the a payment app that lets you make simple, easy,
percentage decline is increased to 03.05 and quick transactions using the Unified
percent. The total number of transactions Payments Interface (UPI). You can make
increased to 4764.28 crore in December. India direct bank payments to anyone on UPI by
received over 44 billion digital payments in using their UPI ID or scanning their QR code
fiscal year 2021. This was a huge increase with the BHIM app. You can also request

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10125 Journal of Positive School Psychology

money through the app using a UPI ID. (Agarwal et al., 2018) examine how the
Pioneered and developed by the National unavailability of cash affects a consumer’s
Payments Corporation of India (NPCI), BHIM spending behavior and choice of spending
has been conceived and launched by the mechanism in a cash-based economy. They
Hon'ble Prime Minister of India, Narendra also use a difference-in-difference framework
Modi, on December 30th, 2016 to bring to estimate the magnitude and persistence of
financial inclusion to the nation and a digitally the use of digital payment channels post the
empowered society. announcement. They noted that the debit card
data reveals an increase in usage post-
Paytm Paytm is a third-party mobile and demonetization among existing users, where
computer-based digital payment service with transaction volume rose by almost 28 percent,
Indian origins. Paytm was founded in 2010 as and also that the transaction volume of new
a private business operating company. E- adopters rose by almost 400 percent. They also
commerce, financial technology, and digital analyzed the impact of demonetization from
wallets are among the application's specialties. the supply side on payment modes like
It is a commonly used program that provides traditional (debit card) and non-traditional (e-
services in 11 distinct Indian languages, with wallet) as well as from the demand side by
the goal of being easily understood by all collecting data from two retailers (one an e-
citizens of the country. Aside from providing grocer and the other a physical marketplace).
the ability to send and receive payments, the
app also caters to a variety of client demands (Ghosh, 2021) reviewed various papers and
through its Paytm Money, Paytm Smart Retail, noted that digital payment is far more
and Paytm Payments bank services. As of convenient and time-saving as compared to
now, the application has over 350 million traditional means of paper currency. He also
active users. emphasized that such payment transactions
can be done round-the-clock by any individual
REVIEW OF LITERATURE who possesses an internet connection; they
don’t have to wait in lines to make
(R. Joshi & Kumar, 2020) investigated the transactions. The researcher suggests that
impact of digital India on the Indian economy people are using and accepting digital payment
in order to assess the challenges associated systems as it is a faster mode of payment that
with digital India. The study discovered that also offers rewards or cash back. The
digitalization has resulted in increased researcher also talked about the digital
innovation, ease of operation, economic payment system post-demonetization and how
growth, and new job prospects. It has aided in the government took an initiative to make
the establishment of systemic transparency and India a cashless country. The researcher noted
the free flow of funds across the economy. that post-COVID-19, we are all making the
most use of the digital payment system. All e-
(M. C. Joshi, 2017) examined the impact of commerce, all online grocery, or other
demonetization on digital payments, as well as necessary online commerce do not accept
the differences in growth in various digital cash. They all accept prepaid payment, which
payment modes prior to, during, and after can be done through various digital payment
demonetization. They used a descriptive systems.
research approach to achieve the above goals,
and the study's required data of retail digital (Dr. Swati Kulkarni, Dr. Aparna J Varma,
payment data in NPCI was acquired from the 2021) attempted to identify the thinking of
Reserve Bank of India's website. They consumers with respect to online payments
discovered in their research that the true and the safety of these payments. This study
impact of demonetization on digital payments aims to understand the frequency of digital
was also realized after the move. payments and factors affecting or challenges
Demonetization made it mandatory to utilize faced by consumers while using digital
digital payments as an alternative to cash, and payment modes that may affect consumer
digital payments have continued to rise since perception. The researchers also suggested that
then. the study is exploratory in nature and relies on
literature reviews and secondary information

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10126 Journal of Positive School Psychology

for the findings. They also noted that there are instead of cash payments.
various drawbacks to the study, as it is not an
in-depth study, is not exhaustive in terms of (Manocha et al., 2019) After collecting
the literature, and it does not use any secondary data from various research papers
quantitative data. The paper identifies the main and articles, noted and mentioned in their
thrust areas in literature and projects them. research that the transactions from E-wallets
reportedly increased from 17 lakhs per day to
(Mate & Kapdi, 2021) analyzed the 63 lakhs per day. It was also seen that in
importance of digital payments in the COVID- various metro cities, even small market
19 pandemic and also the perception of merchants started keeping Point of Sales
consumers with regards to the usage of digital (POS) machines at their shops to accept
payments in the COVID-19 pandemic. They payment digitally. Furthermore, it is evident
collected primary data irrespective of their from past studies and statistics that there are
demographic characteristics. A total of 113 some major challenges and limitations that
responses were obtained. Apart from this, the must be essentially considered and addressed.
secondary data was obtained from the Potential developments in this direction are
Government of India portal of digital becoming difficult due to the fact that the data
payments, official reports and other web considered for analysis is taken from the
sources. They noted that when people were source of the Reserve Bank of India. The
asked about the experience of the E-wallet months contributing to the post-effect are from
during the COVID-19 period, they said it was November, 2016 to February, 2018. The total
convenient to use, safe, and easy to handle. data is for 30 months. In their research, they
They also noticed an increase in orders placed also revealed that demonetization made a
on ecommerce websites and apps for food, significant difference in rising digital
entertainment, and food during the COVID-19 payments, but still, there is an essential need to
outbreak, when people were encouraged to improve the rate of online transactions and
stay connected to the public sphere. move to a cashless world. Cash transactions
are still one of the dominant players among
(Ma et al., 2021) From secondary research any other mode of digital payment
such as previously published articles, journals, transactions. To improve the rate of cashless
and government-published sources, analyzed transactions, the factors that are directly
the impact of COVID-19 on Digital Payment affecting the cashless economy need to be
Services in Towns and Villages. The considered. Governments, financial
researchers observed that there is an increasing intermediaries, and banks must initiate
trend year by year in the financial year share awareness campaigns and programs.
of digital payments, which was less than 5 per
cent in an economy that increased to (Singh, Shamsher, Rana, 2017) analyzed
approximately 15 per cent in the financial year customer perception and the impact of
before the pandemic. In the year 2020, the demographic factors on the adoption of a
share experienced a growth of between 15-20 digital mode of payment. For the study, they
per cent, which has further increased to near collected primary data from 150 respondents
20 per cent in the current year, which is the from different parts of Delhi. They found that
financial year 2021. It is being predicted that demographic factors, except education, do not
by the year 2023, the Indian economy will have much impact on the adoption of digital
have approximately 25 percent of its share, payments. ANOVA computation supported
which will translate into about $1 trillion in this finding as there was no significant
the US. They found out that there was a use of difference perceived by the respondents on the
digital payment services by Indian people, basis of gender, age, profession, and annual
such as businessmen as well as households, income. It indicates that adoption of digital
but the wave of COVID-19 has increased the payment is influenced by the education level
use of digital applications in the economy, of the customer. If a person has studied
especially at town and village level. The beyond matriculation, he or she will be
reason behind the findings was that every inclined to use the digital payment mode. It
citizen is now conscious about their health and was also found that in areas where the
safety, hence preferring digital transactions education level is high, such as Delhi NCR

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10127 Journal of Positive School Psychology

and other metropolitan areas, the possibility of youth & young adults.
acceptance of digital payment is much higher. Sample size: The sample size decided in this
The increased use of smartphones and internet research was 200.
penetration in such areas aided in the adoption Sampling procedure: For the collection of
of digital payment. primary data a well-structured questionnaire
was floated among different sects of population
(Adharsh et al., 2018) found in the study of in different parts of India.
"Transformation towards E-wallet payments
Systems pertaining to Indian Youth" that there Survey Data & Empirical Methodology
are approximately 80.5 million users of digital
wallets in India and the major group who uses For the purpose of this study, primary data is
the digital wallet services is the youth. The collected using a structured questionnaire
objective of the researcher is to analyze the circulated online (Appendix 1). Following
impact of digital payments after snowball sampling, the survey was shared on
demonetization on the daily expenses of various social media platforms for better
students, for which they have conducted a reach. The questionnaire was drafted in
survey by asking various questions to a sample English and Hindi, to both expand and
size of 160 respondents. They found that diversify the sample. It consists of 28
approximately two-thirds of youth use mobile questions that are divided into seven sections
recharges and ticket bookings from online viz. demographics, access to and usage of
modes as it’s less time-consuming and more technology, awareness of different modes of
convenient to make transactions. They also digital payment, preference and perception on
noted that various cash backs, freebies, loyalty cash and digital payment systems, spending
points, or redemptions attract them to make habits, experience related to fraud, and
digital payments and avail the best offers out feedback on awareness campaigns.
of them. Our study broadly aims to understand the
impact of user perception, trust in payment
OBJECTIVES OF THE STUDY systems, and experience of online fraud on
the choice of mode of payment. For
• To examine digital payment system regression analysis, mode of payment is taken
of India. as the dependent variable and the
• To understand various modes of independent variable is added to a baseline
digital payment in Indian Banking model according to the hypothesis being
Industry before after Pandemic. tested. Firstly, a baseline model is obtained
• To understand the impact of user for all five types of purchases—grocery,
perception, trust in payment systems, utilities, online shopping, durables, and gold.
and experience of online fraud on the These transactions range from low to high
choice of mode of payment value transactions. The responses recorded
for different types of purchases have the
RESEARCH METHODOLOGY following three alternatives:

The present study is based on primary data • Always pay in cash,

collected from 200 respondents from different • Always pay digitally, and
parts of India (Tier 1 to Tier 3 cities) as well as • Sometimes pay in cash and
from secondary data collected from various sometimes digitally.
articles, research papers and RBI’s website. To
study the consumers' perception about digital Because the dependent variable is categorical
payment a questionnaire of 10 questions and 6 and has more than two types, polynomial
sub-questions were designed to collect data logistic regression is best suited for
from respondents. regression analysis. The polynomial logit
model is an extension of the logit model, with
Sampling unit: This was to define the target more than two types, in no particular order.
population to be surveyed. The sampling unit The maximum likelihood estimate is used to
for the research was the population using get the model's parameters.
digital payment and the target unit was the

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10128 Journal of Positive School Psychology

Profile of the Respondents are job holders (17.5%). This is the ideal
The demographic profile of respondents in profile of users of digital mode who are
Table 1 shows the population who generally educated, employed or is either undergraduate
use digital payment. Maximum number of the or postgraduate.
respondents are male (51%), students (76%) or

Table 1: Respondents demographic profile

Variable Characteristics Frequency Frequency Analysis

16-20 122 61%

Age 21-30 59 29.50%

Total 200 90.50%

Male 102 51%

Gender Female 98 49.00%

Total 200 100.00%

Self employed 0% 5%

Business 4 2.00%

Occupation Job holder 35 17.50%

Student 152 76%

Total 200 100%

Tier-1 42 21%

Tier-2 107 53.50%

City
Tier-3 51 25.50%

Total 200 100.00%

Interpretation of the Table; the above table of percentage of users (respondents) using digital
demographic profile (gender) shows the payment system in different parts of India
different gender using digital payment. The mainly divided in three categories: - Tier 1
chart shows that the number of male (51%) is (21%), Tier 2 (53.5%) and Tier 3 (25.5%).
greater than the number of female respondents
(49%). The above table shows the percentage Concluding the analysis of demographic
of respondents using digital payment system in profile, the points to be noted from the above
which the major volume of respondents are in table and figures is that the major chunk of
16-20 categories (61%), the second most respondents are students (youth) - 61%, in
number of respondents are in 21-30 (29.5%) which the majority are male (51%), who
and the least number of respondents are in 31- belong to Tier 2 cities (53.5% of total
40 (9.5%). The above data shows the respondents).

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10129 Journal of Positive School Psychology

Frequency analysis

Table 2: - Table showing consumer preference of different E-wallets

G- Phone- Frequency
pay Paytm pe BHIM Others Total analysis
Age 16 - 20 63 23 30 2 4 122 61
21 - 30 21 23 14 0 1 59 29.5
31 - 40 6 5 4 4 0 19 9.5
Total 90 51 48 6 5 200 100
Table 2 shows that the youth (age bracket 16- responses (23 out of 59) in the 21-30 age
20) benefit the most from digital payments. bracket, while G-pay has once again beaten
G-pay has also received the most responses other E-wallets in the 31-40 age range (6 out
(63 out of 122) of all the E-wallets. When it of 19 responses).
comes to other wallets, Paytm has the most
Table 3: - Table showing why respondents prefer to use above wallets

Time Safe and Better

saving Convenient Secure ratings Total FA
16 -
Age 20 24 39 53 6 122 61
21 -
30 10 27 21 1 59 29.5
31 -
40 2 8 7 2 19 9.5
Total 36 74 81 9 200 100
*F. A is abbreviation of Frequency analysis. table that the mentioned category finds G-pay
more time saving (24 out of 122 responded) as
For the convenience of interpretation, the compared to other E-wallets also it can be
above table can be explained as: -the 16-20 noted that the youth find the preferred wallet
age category: - 16-20 age bracket has the to be convenient (39 out of 122), safe and
highest number of responses and it is the target secure (53 out 122) with better ratings (6 out
group of our study. It can be noted from above of 122) as compared to others.
Table 4: - Table showing how the respondents knew about their preferred wallets

Word
News of Social
article mouth Online search media Total FA
16 -
Age 20 8 53 23 38 122 61
21 -
30 3 28 12 16 59 29.5
31 -
40 4 11 3 1 19 9.5
Total 15 92 38 55 200 100

From Table 4 it observed that in 16-20 age about their preferred wallet through word of
bracket 53 out of 122 respondents have heard mouth, 28 out 59 respondents in 21-30
category and 11 out of 19 in 31-40 category
also concluded the same.

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10130 Journal of Positive School Psychology

Table 5: - In the Table a ‘wordcloud’ based on population. Data was collected using random
the frequently occurring words in the feedback sampling therefore it only includes
highlights that consumers favour the respondents willing to complete the survey
‘convenience’ offered by digital payment online. This is one of the major limitations of
options available. the study. In addition, e-commerce and
technology companies (more accepting of
CONCLUSION digital payments) have ramped up their
As governments, regulators and service offerings, filling the void left by the closure of
provider’s work together to improve electronic physical stores. Various central banks around
payment systems and related infrastructure, it the world conduct payments log surveys to
is advisable to study how end users perceive assess useful variables at the individual level
these choices. The main policy and observe their impact on payment behavior.
recommendation of the study is that a In the future, such surveys may be continued
combination of feedback and public perception with a larger sample and in a more structured
assessment can accelerate digitization. manner.
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