See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/368849940

A Study of Consumer Perceptions on Digital Payment System in India with

Special Reference to Mysuru District

Article · February 2023

DOI: 10.2015/IJIRMF/202302021

CITATIONS READS

3 5,828

1 author:

Siddaraju S.
Vidyavardhaka First Grade College, Mysuru
9 PUBLICATIONS 4 CITATIONS

SEE PROFILE

All content following this page was uploaded by Siddaraju S. on 28 February 2023.

The user has requested enhancement of the downloaded file.

INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD
ISSN(O): 2455-0620 [ Impact Factor: 7.581 ]
Monthly, Peer-Reviewed, Refereed, Indexed Journal with IC Value : 86.87
Volume - 9, Issue - 2, February - 2023 Publication Date: 28/02/2023

DOIs:10.2015/IJIRMF/202302021 --:-- Research Paper / Article / Review

A Study of Consumer Perceptions on Digital Payment System in India with

Special Reference to Mysuru District
Mr. Siddaraju S
Assistant Professor, Department of Commerce, Vidyavardhaka First Grade College Mysuru, Karnataka 570001
Email - [email protected]

Abstract: India's digital programme is a government initiative with the main goal of transforming India into a
knowledge economy and a digital society. There are several digital payment options available as part of the effort
to promote cashless transactions and make India a country with less cash. Demonetization had changed the
nation's economic structure. In the modern world, notes and coins would no longer be used for payment; instead,
contactless cards, mobile phone applications, and other electronic ways will be used exclusively. The main aim
of the study is to find out the consumer perceptions regarding Digital Payment Systems. Consumer perceptions
has been defined with the help of four variables such as, Transaction speed and security system of DPS,
Usefulness, Compatibility and Convenience of DPS, Trust and Connectivity of DPS, and Social influence and Cost
and Benefits of DPS. Primary data was collected through Google Form with the help of structured questionnaire,
110 responses were considered from the survey for Analysis. Data was analysed with the help of descriptive
statics, t-test and ANOVA. The findings of the study revealed that, there is a significant difference between age
and perception of consumers on digital payment Systems, and it also proved that, there is no significant difference
between gender, educational qualification and perception of consumers on digital payment systems.

Key Words: Digital Payment Systems, Transactions Speed, Security System, Social Influence, Compatibility,
Convenience and Connectivity.

1. INTRODUCTION:
The world is becoming more digitalized today, whether it is through the digitization of documents (Digi Locker),
the direct deposit of government benefits into individual bank accounts, or the use of mobile wallets in place of physical
currency. Honourable PM, Shri Narendra Modi launched the "Digital India" campaign in July 2015, the digitalization
received a significant boost. The ideal thought behind the introduction of ‘Digital India’ is Fearless, Paperless, and
Cashless.
The world is at the cusp of the advanced upset as computerized innovations are changing the way the business
and profession being carried out. Digitalisation has worked with a quicker recuperation of financial movement from the
pandemic and will stay critical for nations to fabricate strength later on. G20 Computerized Economy Improvement and
Participation Drive (2016), recognized digitalization as a driver of worldwide comprehensive monetary development,
upgrading efficiency of existing businesses. Besides, favourable to dynamic arrangement support for quicker reception
of wilderness technologies is picking up speed to high speed the development interaction.
As the effect of computerized labour and products on a country's monetary development is by all accounts
developing, especially after the pandemic shock, it is critical to foster a vigorous structure, particularly for a nation like
India, where the advanced economy is consistently infiltrating all areas of the economy. The unstable development of
mechanical empowering agents in India throughout the past one decade, including telecom and cell phone entrance,
quick and minimal expense internet providers, innovation worked with admittance to credit, and proficient and
comprehensive instalment frameworks, make it essential to grasp the advancement of digitalization comparative with
the general economy and its effect on monetary action and business.

This study had been focused on exploring the perception of consumers of different digital payment systems.
The study had limited to the consumers who are located in and around Mysuru District. Consumer perceptions had been
collected regarding four important variables they are;
1. Transaction speed and security system of DPS,
Available online on – WWW.IJIRMF.COM Page 117
INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD
ISSN(O): 2455-0620 [ Impact Factor: 7.581 ]
Monthly, Peer-Reviewed, Refereed, Indexed Journal with IC Value : 86.87
Volume - 9, Issue - 2, February - 2023 Publication Date: 28/02/2023

2. Usefulness, Compatibility and Convenience of DPS,

3. Trust and Connectivity of DPS, and
4. Social influence and Cost and Benefits of DPS.

2. LITERATURE REVIEW:

Suma & Hema (2018) the researcher investigated the positive impact that Digitization of payment system, and study
also emphasis analysed the adoption level of various digital payment systems by customers. The results indicate that the
deployment of technology for digital payments have improved the performance of banking sector and able to achieve
the motive cash less country. The study gives emphasis to the percentage of awareness on maximum utilization of
technology. Banks should take effective measures in creating awareness towards the effective usage of technology and
security

Prakash (2022) the study investigated customer’s perception towards Digital payments. The study revealed that the
majority of the respondents were aware about digital payment systems and they opined that digital payment systems
was their part of life and it saved their time in standing long queue in the banks. The study also pointed that
Demonetizations had drastically impacted on usage of digital payments as it is safe and distances issues.

Shinki (2022) the study made 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. It also 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.

Vandana & Pradeepta (2021) this study tried to investigate the reasons resulting to sustainability of digital payments
over the period of 2011-12: Q1- 2020-21: Q1. Empirical evidence reveals that national income and economic shocks
(demonetisation and pandemic) have significant positive on sustainability of digital payment transactions both in value
and volume terms, whereas mobile payments are substitutes and hence negatively affects digital payments. Insights
from the results signify impact on development in the direction of growing need for financial exposure by way of
financial literacy and rising economic growth using positive shocks to advance digital payments in India.

3. OBJECTIVE OF THE STUDY:

1. To study the background of Digital Payment System in India
2. To analyse the impact of demographic factors on usage of digital payment systems

4. HYPOTHESIS:
H0: There is no significant difference between demographic factors and perception of consumers on digital payment
system

5. RESEARCH METHODOLOGY:
Exploratory research method has been employed. Required data has been gathered from secondary sources of
research articles and primary data has been collected with the help of structured questionnaire. The reliability test value
of the questionnaire is 0.914>0.8, It can be comprehended that the statements are reliable to test the hypothesis. The
samples selected based on Simple Random Sampling method. The questionnaires were distributed through Google
Form. The responses considered were 110 in numbers. Statistical tests which used for the study were standard deviation,
frequency, Independent sample t- test and one way ANOVA.

Reliability Statistics

Cronbach's Cronbach's Alpha Based on

Alpha Standardized Items N of Items
.910 .914 23

Available online on – WWW.IJIRMF.COM Page 118

INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD
ISSN(O): 2455-0620 [ Impact Factor: 7.581 ]
Monthly, Peer-Reviewed, Refereed, Indexed Journal with IC Value : 86.87
Volume - 9, Issue - 2, February - 2023 Publication Date: 28/02/2023

6. RESULTS AND DISCUSSION:

Table No. 1: Showing the Socio Demographic Details of Respondents
Demographic Variables Frequency Percentage
Age (in Years) Below 20 years 27 24.5
21 to 30 years 63 57.3
Above 30 years 20 18.2
Gender Male 67 60.9
Female 43 39.1
Marital Status Single 80 72.7
Married 30 27.3
Educational P.U.C. 4 3.6
Qualification Under Graduation 42 38.2
Post-Graduation 60 54.5
Profession 4 3.6
Annual Income of the Below 1 Lakh 38 34.54
Family 1Lakh – 3 Lakh 26 23.63
3 lakh-5 lakh 27 24.54
above 5 lakh 19 17.27
Employment Status Student 31 28.18
Government 26 23.63
Non-Government 28 25.45
Professional 15 13.63
Self Employed 6 5.45
Home maker 4 3.63
SOURCE: FIELD SURVEY

It was evident form the above table that, majority of the respondents were belong to the age group of 21 years
to 30 years(57.3%), it means adults are using more digital payment apps. Majority of the respondent are single(72.7%),
who uses digital payment for purchases, payment of college fees and online purchase & booking etc., It was observed
that most of the respondents were educated, it implies that, they have awareness about the various online payment
systems, and they know the importance to go with cashless transactions. Majority of the respondents were having normal
family income, it shows that, their major spending is on purchase of daily needs. Most of the respondents were working
(68.16%)

DIFFERENT DIGITAL PAYMENT SYSTEMS:

Table No. 2: Showing Different Digital Payment Systems used by the Respondents

Digital Payment Modes Frequency Percentage

Credit Cards, Debit Cards 54 49.1
Online Banking (NEFT,RTGS,IMPS,ECS) 35 31.8%
Mobile Wallets (Apps like Paytm, Mobikwik, Oxigen, Tez, PayU, etc.,) 47 42.7%
Mobile Banking (Apps of various banks) 49 44.5%
AEPS (Aadhaar Enables Payment System) 8 7.3%
UPI (Unified Payments Interface) 64 58.2%
USSD (Unstructured Supplementary Service Data) 5 4.5%
Point-Of-Sale (POS) 9 8.2%
Micro ATMs 17 15.5%
BHIM Apps (Bharat Interface for Money) 19 17.3%
QR Code Scanning Payment 60 54.5%
BBPS (Bharat Bill Payment System 6 5.5%
SOURCE: FIELD SURVEY

Available online on – WWW.IJIRMF.COM Page 119

INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD
ISSN(O): 2455-0620 [ Impact Factor: 7.581 ]
Monthly, Peer-Reviewed, Refereed, Indexed Journal with IC Value : 86.87
Volume - 9, Issue - 2, February - 2023 Publication Date: 28/02/2023

The above diagram shows that, the UPI (58.2%), QR code scanning payment (54.5%), and Credit cards, debit
cards (49.1%) were three digital payment systems were most commonly used by respondents for their routine payments,
as these digital payment systems are common in Shopping malls, online payments and fund transfer. It is also proveds
that the mobile wallets like Paytm (42.7%), Mobile banking (44.5%) and online banking such as NEFT, RTGS were
stood in the next place of customer’s preference to do cashless transaction and to operate their bank account. Digital
payment applications now a day helps the different customers to avail the banking servicer with 24/7 and these save the
time too. AEPS, USSD, Point-of-sale, Micro ATMs, BHIM Apps and BBPS were few other applications which rarely
used for making payments, because these applications have not been popularized among the respondent customers.

H0: There is no significant difference between Age and Perception of consumer on Digital Payment Systems
H1: There is a significant difference between Age and Perception of consumers on Digital Payment Systems

Table No3: Showing the Significant Difference between Age and Perception of Consumers on Digital Payment
Systems
Factors of Consumer Perception on Digital Payment F Value Significance
System with Age
perceived Transaction speed and security system 1.873 .159
perceived Usefulness, Compatibility and Convenience 1.180 .311
perceived Trust and Connectivity 6.549 .002
perceived Social influence and Cost and Benefits 6.373 .002
Source: Field Survey (ANOVA)

According to the above table, the null hypothesis has been rejected and alternative hypothesis “There is a significant
difference between Age and Perceptions of consumer on Digital Payment Systems” has been accepted.

The results shows that there is a significant difference between age and perceived trust and connectivity (F value
6.549 and sig .002<.05) and perceived social influence and cost and benefits (F value 6.373 and sig .002<.05) and the
test also depict that, there is no significant difference between age and perceived transaction speed and security system
(F value 1.873 and sig .159>.05) and perceived usefulness compatibility and convenience (F value 1.180 and sig
.159>.05). It can be comprehended that, the younger generation is completely accepted and adopted the digital payment
systems in their life, as digital payment systems are safe as compared to carry cash and it gives them the tracking of
their payment and they can have better budgeting their expenditure than it before. Due to rapid development in
information and telecommunication and introduction of 4G and 5G technology, it gives easy access to the online
payments, and some digital payment applications have been giving discounts, offers and cash back, these encourages
the customers to use more than the before. But age old people find it difficult to adjust with the online payments systems.
The study also revealed that, all age groups are not satisfied with the speed of transaction process and due to server
problem, many payments cancelled and it pose the customer into difficult situation.

H0: There is no significant difference between Gender and Perception of consumer on Digital Payment Systems
H1: There is a significant difference between Gender and Perception of consumers on Digital Payment Systems

Table No.4: Showing the Significant Difference between Gender and Perception of Consumers on Digital Payment
Systems
Factors of Consumer Perception on Digital Payment t- Value Significance
System with Gender (2-tailed)
perceived Transaction speed and security system 0.21 .983
perceived Usefulness, Compatibility and Convenience -1.247 .185
perceived Trust and Connectivity -1.374 .162
perceived Social influence and Cost and Benefits -2.129 .024
Source: Field Survey (Independent Sample t-Test)

According to the above table, the null hypothesis “There is no significant difference between Gender and Perception of
consumers on Digital Payment Systems” has been accepted.

Available online on – WWW.IJIRMF.COM Page 120

INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD
ISSN(O): 2455-0620 [ Impact Factor: 7.581 ]
Monthly, Peer-Reviewed, Refereed, Indexed Journal with IC Value : 86.87
Volume - 9, Issue - 2, February - 2023 Publication Date: 28/02/2023

The results shows that there is a significant difference between gender and perceived social influence and cost
and benefits (t value 2.129 and sig .024<.05) and there is no significant difference between gender and perceived
transaction speed and security system (t value 0.21 and sig .983>.05), perceived usefulness and convenience (t value
1.247 and sig .185>.05) and perceived trust and connectivity (t value 1.374 and sig .162>.05). it can be comprehend
that, gender (male and female) respondents are having difference of opinion regarding security systems of DPS. Male
respondents are ready to face any kind of challenges, but female respondents afraid to unwanted circumstances in their
lives. Pertain to the convenience, connectivity and social influence both male and female are having same opinion.

H0: There is no significant difference between Educational Qualification and Perception of consumer on Digital
Payment Systems
H1: There is a significant difference between Educational Qualification and Perception of consumers on Digital Payment
Systems

Table No. 5: Showing the Significant Difference between Educational Qualification and Perception of Consumers on
Digital Payment Systems
Factors of Consumer Perception on Digital Payment F Value Significance
System with Educational Qualification
perceived Transaction speed and security system .038 .990
perceived Usefulness, Compatibility and Convenience .244 .865
perceived Trust and Connectivity 1.907 .133
perceived Social influence and Cost and Benefits 2.172 .046

Source: Field Survey (ANOVA)

According to the above table, the null hypothesis “There is no significant difference between Educational Qualification
and Perception of consumers on Digital Payment Systems” has been accepted.

The results shows that there is a significant difference between educational qualification and perceived social
influence and cost and benefits (F value 2.172 and sig .046<.05) and there is no significant difference between
Educational Qualification and perceived transaction speed and security system (F value 0.038 and sig .990>.05),
perceived usefulness and convenience (F value 0.244 and sig .865>.05) and perceived trust and connectivity (F value
1.907 and sig .133>.05). it can be comprehend that, respondents from various educational background are thinking
differently with regard to the cost and benefits i.e., professional and self-employed people are using various DPS as it
saves time of travelling to the banks, fast settlement of business transaction. It is trust worthy and for recording of
financial transaction. But others are using DPS because the rewards and benefits which are associated with DPS. all
are having same kind of attitude towards convenience, connectivity and security.

7. FINDINGS:
 QR code scanning payment, UPI, cards and mobile banking are few types of DPS which have been used
massively by large population.
 Some respondents were felt that, the digital payment systems were slow in performance and many a time they
face inconvenience. Some respondents opined that the lost money too and there is no proper mechanism to file
complaint.
 Majority of the respondents were opine that, the digital payment systems saves travel time and energy as they
need not to stand in queue in banks or to pay utility bills.
 Majority of the respondents were influenced by their family members, friends and colleagues to use the digital
payment system.
 Different age group respondents were having different opinion regarding DPS frauds. There is a significant
difference between age and perceived DPS trust and it transactional frauds.
 People were tensed regarding losing their persona data, when they had to give pass ward and OTP while carrying
online payment.

Available online on – WWW.IJIRMF.COM Page 121

INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD
ISSN(O): 2455-0620 [ Impact Factor: 7.581 ]
Monthly, Peer-Reviewed, Refereed, Indexed Journal with IC Value : 86.87
Volume - 9, Issue - 2, February - 2023 Publication Date: 28/02/2023

 There is no significant difference between consumer perception on DPS and educational qualification (F value
0.900 and sig .444>.05), annual income of the family (F value 0.723 and sig .541>.05) and employment status
(F value 1.075 and sig .378>.05)

8. CONCLUSION:
The majority of consumers are rushing for cashless transactions, with possibly limited cash on hand and endless
munches in view. The new measure will motivate more businesses to accept electronic cash or digital money. When
opposed to making payments with cash withdrawal, cashless means are more practical, simple, and secure. A cashless
society is one that can complete the modernization, development, and payment system phases. It promotes accountability
and transparency, lowers the cost of transactions, and lessens the scope of the grey or informal economy. But the
government required create right mechanisms to resolve complaints and take the necessary actions to increase people's
digital literacy. Every digital payment app should include proper cyber security and double-time authentication.

9. REFERENCE:
1. aathira s, n., & p.kannan,. (2020, november). an overview on digital payment. international journal of creative
research thoughts, 08(11), pp. 2015-2018.
2. aniket, a. m. (september 2021). a study of impact of covid-19 on digital payments in india. project report, veer
narmad south gujarat university, department of business and industrial managament, surat.
3. ashish, b. (2018, december). a study on the future of digital payments in india. ijrar- international journal of
research and analytical reviews, 05(04), pp. 85-89.
4. ashwini s, & siddaraju s. (2020, october). work-life balance: a comparitive analysis of perceptions of. global
journal for research analysis, 09(10), pp. 22-27.
5. borkar, & avinash, g. (2020). digital payment: the canvas of. european journal of molecular & clinical medicine,
07(08), pp. 5868-5878.
6. dhruvi, b. (2020, december). digital payments system in india and its scope in the. international journal of
innovative research in technology, 07(06), pp. 228-240.
7. kota, s. m. (2019, april). a study on digital environment – mode of payments in digital. gjra - global journal for
research analysis, 08(04), pp. 11-15.
8. mahesh, & ganesh, b. (2022, april). india’s digital payment landscape – an analysis. international journal of
case studies in business, it, and education, 06(01), pp. 224-237.
9. malusare, l. b. (2019, august). digital payments methods in india: a study of problems and prospects.
international journal of scientific research in engineering and management (ijsrem), 03(08), pp. 1-7.
10. pavithra, & ranganayaki. (n.d.). types, opportunities and challenges of. emerging trends and innovations in
modern management, pp. 377-386.
11. prakash. ( 2022). a study on consumer perception towards digital payment. east asian journal of
multidisciplinary research (eajmr), 01(06), pp. 1033-1044.
12. raja, k. c., & souparnika v.t. (2021). a study on the impact of digital payment. international journal of aquatic
science, 12(02), pp. 894-902.
13. rashi, s. (2021, february). impact and importance of digital payment in india. internationaljournalof
multidisciplinaryeducationalresearch, 10(2(3)), pp. 100-104.
14. rashi, s. (2021, may). impact of covid 19 on digital payment services at town and villages. international journal
of creative research thoughts, 09(05), pp. 585-594.
15. shahrukh, s. (2023). impactof covid- 19 pandemic on digital payments. journal of contemporary issues in
business and government, 28(03), pp. 757-767.
16. shinki, k. p. (2022). a study on digital payments system & consumer perception: an. journal of positive school
psychology, 06(03), pp. 10121 – 10131.
17. siddaraju.s (2021, september). impact of micro finance on women empowerment through shgs in mysuru taluk.
international journal for innovative research inmultidisciplinary field(28), pp. 208-214.
18. suma, v., & hema, d. (2018). a study on digital payments in india with. international journal of pure and applied
mathematics, 119(15), pp. 1259-1268.
19. vandana, b., & pradeepta, k. s. (2021). sustainability of digital payments: empirical. atlantis highlights in social
sciences, education and humanities, 02, pp. 70-78.

Available online on – WWW.IJIRMF.COM Page 122

View publication stats