INDEX

Sr. No. Topic Page

Number

 Executive Summary

1. 1.1 Introduction

1.2 History of Online Payments Apps

1.3 The internet and World Wide Web

1.4 The first online payments take place

1.5 Keeping Your Private Data Safe

1.6 Digital payments companies become major

players

1.7 Cashless Transaction

1.8 Methods of Online Payments

1.9 Mobile Banking Applications in India

1.10 Characteristics of Online Payment

1.11 Advantages of Online payments

1.12 Disadvantages of Online Payments

1.13 Demonetization in India

 1.14 Effects of Demonetization on Online
Payment System

2. Research Methodology

2.1 Objectives of the study

2.2 Nature of the study

2.3 Scope of the study

2.4 Significance of the study

2.5 Selection of the problem

2.6 Primary data

2.7 Secondary data

2.8 Methods of sampling

2.9 Data collection tool

2.10 Data processing and analysis

2.11 Limitations of the study

2.12 Statistical tools

3. Literature Review

4. Data Analysis, Interpretation& Presentation

5. Suggestion and Conclusion

5.1 Suggestion 5.2 Conclusion

Case Study/ Article (Optional)

• Bibliography/References - • Appendix
(Questionnaire)

• Bibliography/References - • Appendix
(Questionnaire)
 CHAPTER NO.1: INTRODUCTION

The dawn of the 21st century has been marked by a wave of technological advancements that
have reshaped various aspects of human life, especially in the financial sector. Among these
advancements, online payment applications have emerged as a revolutionary tool, transforming
the way people conduct financial transactions. These apps offer convenience, speed, and
security, making them an essential part of daily life, particularly for working professionals. The
widespread use of smartphones and the internet has further accelerated the adoption of online
payment apps, positioning them as a vital component of the modern digital economy. According
to the Reserve Bank of India (2024), digital payments have witnessed exponential growth over
the past decade, with Unified Payment Interface (UPI) transactions surpassing traditional
payment methods in both volume and value. The journey of digital payment systems began in the
early 2000s with the introduction of internet banking. However, the true transformation came
with the launch of UPI in 2016, which allowed instant fund transfers between bank accounts
through mobile apps. This innovation eliminated the need for physical cash or cards, making
financial transactions more accessible and efficient. Popular apps like Google Pay, PhonePe,
Paytm, and Amazon Pay quickly gained popularity among working professionals due to their
user-friendly interfaces, multiple payment options, and robust security features (NPCI, 2024).
One of the primary reasons for the growing use of online payment apps among working
professionals is the unparalleled convenience they offer. These apps enable users to make
payments, transfer money, pay bills, recharge mobile phones, and shop online with just a few
taps on their smartphones.

The introduction of QR code-based payments in retail stores has further simplified the payment
process, reducing the need for cash. A study by Singh and Mehta (2023) found that 78% of
working professionals in urban areas prefer digital payment apps over cash or card transactions
due to their ease of use and speed. The rise of online payment apps is closely linked to broader
societal trends such as globalization, urbanization, and changing work cultures. Globalization has
increased interconnectedness, creating a demand for seamless cross-border payment solutions.
Urbanization has concentrated populations in cities, where digital payment apps offer a
convenient alternative to cash transactions. The shift towards remote work and flexible work
arrangements has also increased the demand for digital payment solutions that allow users to
make transactions anytime, anywhere (Castells, 2010). Government initiatives promoting digital
payments have played a crucial role in accelerating the adoption of online payment apps. The
Digital India campaign, launched in 2015, aimed to create a digitally empowered society and
promote cashless transactions. The demonetization in 2016 further pushed people to shift from
cash-based transactions to digital payment methods. The COVID-19 pandemic acted as another
catalyst, as concerns about hygiene and physical contact led to a surge in contactless and digital
payments (Sharma & Singh, 2022). These factors have collectively contributed to the growing
popularity of online payment apps among working professionals. For working professionals, the
appeal of online payment apps goes beyond convenience. These apps offer several benefits that
align with their fast-paced lifestyles.
 Instant transactions eliminate the need to wait in queues, while integration with other digital
services like ride-sharing apps, food delivery platforms, and e-commerce websites enhances the
overall user experience. Additionally, many apps offer cashback rewards, discounts, and loyalty
programs, making digital payments even more attractive (Venkatesh et al., 2012). Security is
another critical factor driving the adoption of online payment apps. Leading digital payment
platforms employ advanced encryption technologies and multi-factor authentication to protect
user data and prevent fraud. Unlike cash transactions, digital payments leave a traceable record,
offering greater transparency and accountability.

This feature is particularly useful for working professionals in managing expenses, tracking
spending patterns, and budgeting effectively (Kim et al., 2010). Despite their numerous
advantages, the widespread adoption of online payment apps faces several challenges.
Cybersecurity concerns, lack of digital literacy, network connectivity issues, and resistance to
change are some of the primary barriers. According to Gupta and Bansal (2023), 42% of users
expressed concerns about data breaches and unauthorized transactions, which discouraged them
from fully utilizing digital payment methods. Addressing these concerns through robust security
measures, user education, and technological improvements is essential to building trust and
promoting broader adoption. The proliferation of smartphones among working professionals has
been a key enabler of online payment app adoption. Smartphones have evolved into powerful
personal devices that facilitate communication, productivity, and financial management. The
seamless integration of online payment apps into smartphones makes digital payments easily
accessible and an integral part of daily routines. The always-connected nature of smartphones
further enhances the utility of these apps, allowing users to conduct transactions from virtually
any location with internet connectivity. Cultural, social, and economic factors also play a
significant role in shaping the adoption patterns of online payment apps. In some cultures, cash
continues to hold symbolic value, while in others, digital payments have become the norm.
Socio-economic factors such as income levels, financial stability, and access to banking services
can also influence adoption rates. Understanding these dynamics is crucial for promoting
inclusive adoption of digital payment solutions across diverse professional and social groups
(Gefen et al., 2003). The regulatory landscape surrounding online payment apps is another
critical factor affecting their adoption.

Government regulations on data privacy, cybersecurity, and consumer protection play a vital role
in ensuring the security and reliability of digital payment platforms. Compliance with regulatory
frameworks helps build user trust and enhances the long-term sustainability of the digital
payment ecosystem. Additionally, government initiatives to promote digital payments, such as
offering incentives and investing in digital infrastructure, can further accelerate adoption rates
(RBI, 2019). The competitive environment in the online payment app market has driven
continuous innovation and improved user experiences. Established financial institutions,
technology companies, and FinTech startups are all vying for market share, offering diverse
payment solutions. This competition benefits consumers by providing better services, lower
transaction costs, and
enhanced security features. However, it also requires users to carefully consider platform
reliability, security protocols, and long-term viability when selecting an online payment app.

The study of online payment app usage among working professionals holds significant practical
implications. For financial institutions and FinTech companies, understanding user preferences
and challenges can guide the development of user-centric payment solutions. For employers,
facilitating the use of digital payment methods can streamline payroll disbursements and expense
management. For policymakers, insights into adoption patterns can inform regulatory
frameworks and promote financial inclusion.

This study aims to explore the following key areas:

 Identify the most frequently used online payment apps among working professionals.
 Analyze the diverse use cases of online payment apps in both professional and personal
contexts.
 Investigate the factors influencing the adoption and continued usage of online payment
apps.
 Assess the perceived benefits and challenges associated with using online payment apps.
 Examine the impact of online payment apps on financial behavior and productivity.
 Explore future trends and prospects in the adoption of digital payment solutions.

By addressing these key research questions, this study seeks to provide a comprehensive
understanding of the role of online payment apps in the lives of working professionals. The
findings will contribute valuable insights to the ongoing discourse on digital finance and its
transformative impact on society.

1.2 HISTORY OF ONLINE PAYMENTS APPS

Evolution of Electronic Payments: A Journey Towards a Cashless Economy

Electronic payments have significantly transformed the way financial transactions are conducted
across the globe. The roots of electronic payments can be traced back to the 1870s when the
Western Union introduced the Electronic Fund Transfer (EFT) system in 1871. This
revolutionary system allowed individuals to send money without physically being present at the
transaction site, setting the foundation for future payment innovations. Since then, technology
has played a pivotal role in shaping electronic payment systems, making transactions faster,
safer, and more convenient.

The journey of electronic payments gained momentum with the introduction of telegraphic
money transfers by the Federal Reserve of America in the 1910s. This system marked the
beginning of automated monetary transactions, significantly reducing the time required for funds
to reach the
 intended recipients. The mid-20th century witnessed another breakthrough with the emergence
of credit cards. In 1950, Diner’s Club International became the first independent credit card
company, followed by American Express in 1958. The introduction of the plastic payment card
by American Express in 1959 revolutionized the payment landscape, offering a secure and
convenient alternative to cash transactions.

The 1970s brought further advancements with the rise of computer technology in financial
transactions. In 1972, the Automated Clearing House (ACH) system was developed to process
large volumes of transactions efficiently. Two years later, NACHA established operating rules
for ACH payments, standardizing the electronic transfer process and enhancing reliability. The
proliferation of personal computers and the internet in the 1990s set the stage for e-commerce
payment systems. These systems, a subcomponent of Electronic Data Interface (EDI), facilitated
online transactions, making it possible for consumers to purchase goods and services from the
comfort of their homes.

Credit cards emerged as the most widely used form of payment for online transactions.
According to a report, nearly 90% of online retail transactions in North America were conducted
using credit cards by 2008. The widespread use of credit and debit cards made it essential for
online retailers to support these payment methods. Companies such as Stripe, PayPal, and Smart
Pay played a crucial role in simplifying online payment processes, enabling seamless fund
transfers between online accounts and traditional bank accounts through ACH transactions.
Despite the convenience, electronic payment systems are not without challenges. The risk of
theft, abuse, and the lack of transparency in large financial institutions have raised concerns
among users. The 2016 Wells Fargo account fraud scandal highlighted the vulnerabilities in the
system, further eroding public trust in financial institutions.

The transition from cash to digital payments has gained momentum in recent years. A study by
Capgemini and BNP Paribas projected that digital payments would reach 726 billion transactions
by 2020. Countries like Sweden are already on the path to becoming cashless economies, setting
an example for others to follow. Digital payments offer numerous benefits, including faster
transactions, enhanced security, and greater financial inclusion. The Indian government has also
taken significant steps to promote digital payments. The introduction of the Unified Payments
Interface (UPI) by the National Payments Corporation of India has simplified digital
transactions, making them as easy as sending a text message.

However, several hurdles remain in India’s journey towards becoming a cashless economy. A
large portion of the population is still unbanked and heavily reliant on cash transactions.
According to a 2015 report by PricewaterhouseCoopers, India’s unbanked population stood at
233 million. Even among those with access to banking services, the limited availability of point-
of-sale (POS) machines restricts the use of debit and credit cards. With only 1.46 million POS
terminals across the country, the infrastructure to support digital transactions is still inadequate.
Additionally, the informal sector, which employs approximately 90% of the workforce and
contributes nearly half of India’s GDP, remains largely cash dependent. The lack of digital
literacy and the preference for cash transactions to avoid tax obligations further complicate the
transition to a cashless economy. Despite the challenges, mobile wallets have gained popularity
in recent years. Platforms like Paytm, Google Pay, and PhonePe have witnessed significant
adoption, especially in urban areas. These digital wallets offer a convenient alternative to cash
transactions, allowing users to make payments using their smartphones.

Government initiatives and technological advancements will play a crucial role in driving the
adoption of digital payments. Financial literacy campaigns, improved internet connectivity, and
incentives for merchants to accept digital payments are essential to promote cashless
transactions. The Pradhan Mantri Jan Dhan Yojana (PMJDY) has made significant strides in
financial inclusion by opening millions of bank accounts for the unbanked population.
Additionally, the rollout of the Aadhaar-based payment system has further facilitated digital
transactions in rural areas.

The ongoing efforts to promote digital payments have already yielded positive results. The
demonetization exercise in 2016 served as a catalyst for digital payment adoption in India. The
cash crunch forced many individuals and businesses to explore alternative payment methods,
leading to a surge in digital transactions. While some of the initial momentum has waned, a
section of the population that used digital payments for the first time continues to rely on this
medium for their daily transactions.

The journey towards a cashless economy is a gradual process that requires concerted efforts from
all stakeholders. Awareness campaigns, robust technological infrastructure, and regulatory
support are vital to overcoming the existing barriers. The benefits of digital payments, including
increased transparency, reduced corruption, and enhanced financial inclusion, make them a
powerful tool for economic development. As more people embrace digital payment methods, the
vision of a cashless society will become a reality.

1.3 THE INTERNET AND WORLD WIDE WEB:

Digital payments have their roots in the early development of the internet, which began with
ARPANET — a network created by the US during the Cold War in the late 1960s. However, the
idea of digital payments gained momentum in 1989 when Tim Berners-Lee introduced the
concept of the World Wide Web, enabling web pages to be connected through hyperlinks,
making online transactions a more practical possibility (Laudon & Traver, 2022).

1.4 THE FIRST ONLINE PAYMENTS TAKE PLACE:

The first online payments were a major step in the development of e-commerce. Before online
payments, money transfers were done through traditional banking systems. The idea of sending
money digitally started with Electronic Funds Transfer (EFT) in the 1970s, but this was mainly
for banks. With the invention of the World Wide Web by Tim Berners-Lee in 1989, online
transactions became possible (Laudon & Traver, 2022). The first secure online payment
happened in 1994 when a customer bought a CD from Net Market using encrypted credit card
information (Khan, 2021). This marked the beginning of secure online shopping. In 1998, PayPal
was founded, offering a simple way for people to send and receive money online. PayPal became
very popular and helped make digital payments common (Chaffey, 2021). Security was a big
concern in the early days of online payments. The introduction of Secure Socket Layer (SSL)
encryption in the mid-1990s helped protect payment information (Laudon & Traver, 2022).
Today, features like two-factor authentication and biometric verification make online payments
safer. Online payments have transformed how people shop and pay for services. They made e-
commerce possible and continue to shape the future of digital transactions.

1.5 KEEPING YOUR PRIVATE DATA SAFE:

As technology changes, However, faster rates that guarantee data security the hearts of most
merchants. It's easy to understand why. Data breaches can have long-reaching financial and
systematic impacts for businesses and can damage the reputation of longstanding organizations.
What’s more, breaches can also spell financial ruin for companies without the financial, legal
and logistical bandwidth to weather the storms of a hack. Standardize payment data through
NACHA and PCI regulations it is received, stored, sent and handled for each transaction; The
probability of attack.

However, the payment processor that provides PCI is Compliance programs go ahead of those
who want to harm workers Hacking the system and owning it. For point-of-sale transactions,
EMV compatible (also Known as "flea card") transactions add another level of encryption to
your sales when Make card sales. End -to -end encryption, as well as strong offers, provides a
level of security to the entirety of your terminal payments to pay acceptance and beyond. When
you accept online payments, SSL web pages and others Data encryption methods help weaken
consumers' concerns and take part of Trader's officers remain compatible with PCI.

1.6 DIGITAL PAYMENTS COMPANIES BECOME MAJOR PLAYERS:

Digital payments companies have become dominant players in the financial ecosystem as e-
commerce and online banking expand. The shift from cash to digital transactions has been driven
by technological advancements, changing consumer habits, and the rise of online shopping.
Companies like PayPal, Apple Pay, Google Pay, and Amazon Pay have revolutionized how
people transact, making payments more seamless, secure, and widely accessible. PayPal, a
pioneer in
digital payments, received its EU banking license in 2007 and had 35 million European
customers. After eBay spun it off in 2015, PayPal expanded rapidly, acquiring Swedish
payments start-up iZettle for $2.2 billion in 2018 to strengthen its position in SMB transactions.
Meanwhile, Apple Pay, launched in 2014, transformed digital wallets by integrating biometric
authentication. Google Pay facilitates peer-to-peer payments and contactless transactions, while
Amazon Pay simplifies online shopping with a one-click checkout experience. Digital wallets
have gained massive adoption, especially among millennials and Gen Z, with services like
Paytm, Alipay, and WeChat Pay dominating Asia, while Venmo and Cash App lead in North
America.

The Buy Now, Pay Later (BNPL) model, offered by Klarna, Afterpay, and Affirm, is reshaping
consumer spending by allowing installment-based purchases. Cryptocurrencies and Central Bank
Digital Currencies (CBDCs) are also gaining traction, with companies like Tesla and Shopify
accepting Bitcoin, while governments explore CBDCs as digital alternatives to cash. QR code-
based payments, initially popularized in China, have become mainstream globally, with India’s
UPI system processing over 10 billion transactions monthly. AI and biometric payments,
including facial recognition and fingerprint scanning, are enhancing security and convenience.
Super apps like WeChat and Paytm integrate multiple financial services, and cross-border
payment platforms such as PayPal, Wise, and Ripple are making international transactions faster
and more affordable. As digital payments evolve, innovations in fintech, regulatory support, and
improved infrastructure are driving a cashless economy. With increasing adoption worldwide,
digital transactions are set to become the foundation of the future financial landscape.

1.7 CASHLESS TRANSACTION:

Cashless economy is the one in which all Transactions are performed using cards or digital
funds. Physical circulation The currency is minimal. Flying society describes the economic state
through which Financial transactions are not carried out with money in the form of physical
banknotes or coins, but rather through the transmission of digital information (usually electronic
Presenting money) between the parties. What you need to pay Except physical money, it is done
with the help of. Includes checks, neft/rtgs, payment Debit/credit card or electronic transfer via
services such as Paytm, Pay money Airtel, Jio, etc. All such payments create tracks and
transactions can be closely monitored. In other words, there are some barter transactions (unless
you need to send a title) (It's recorded like real estate and most vehicles) and payments using
ingots will also go bankrupt. However, in this regard, they are not in the definition of non-cache.
No name Transactions are not a natural blessing for progress. It's just a form a transaction
developed from barter and money. They are not a strong blessing for progress, these are the
intermediaries only. Education, honesty, science and technology, combined Bay work is the main
requirement for developing a nation. Cashless seeds it is impossible to produce products for
consumption. Invention and use the motto has lost its importance. All over the world, currency
always holds an important position. I don't know how digital transactions can be taken into
consideration, Customs staff on a foreign tour.
Only cash transactions have a sense of decoration, or integrity and does not require validation
after posting as a digital or non-cache transaction. It will capture your heart until it is checked.
However, it cannot handle large amounts of processing seed. All transactions via digital
accounting, and all transactions via checks It is called a non-cash transaction

In this increasingly digital world, it’s not surprising that money will follow suit as well. Recent
trends show that digital money kept in mobile wallets will soon replace physical cash and even
credit cards. Below the example of cashless transaction Process

 Log in with username and password: - User enters the username and password.
 Select the Telecom Operator: -Select the user which telecom operator he wants.
 Enter Recharge amount, phone number and connection type: -Enter the recharge amount,
mobile number and connection type of the user. 10
 Select one of the payment options: -Select one of the payment options like ATM card,
Debit card etc.
 Enter card Information: -Enter the card information like pin number.
 Payment Processor: -The payment is proceeding.
  Authenticate it is confirming or not: -the authenticate when it is confirming or not when
it is yes then receiving Success message.

1.8 METHODS OF ONLINE PAYMENTS: - THERE ARE TWO TYPES OF

ONLINE PAYMENTS

A) Bank Payments

B) Mobile Money Wallets

Bank Payments: -

This is a system that is not linked to a physical card. It is used by customers who have an account
with banking services on the Internet. In this system, instead of entering card details on the
buyer\'s site, you can specify who you are using a payment gateway.

The bank they want to pay. Users will then be redirected to the bank's website to authenticate and
approve payments. Usually, there is some form of two-factor authentication. Hackers are usually
considered safer than using a credit card, as it is much more difficult to get accounting data for
entries compared to credit card numbers. For many merchants through e-commerce, payment
offers with bank invoices give the possibility of entering into transactions without a credit card
and reducing basket refusal.

Mobile Money Wallets: -

In developing countries, many people are not accessible in banking facilities, particularly in
Level II and Level III cities. To give an example from India, there are more mobile phone users
than people with active bank accounts. Airlines in places like this have begun funding mobile
funds so that they can easily add funds using their existing mobile subscription numbers, access
physical points that charge next to their homes and offices, and convert money into the currency
of their mobile portfolio. Can be used to purchase online e-commerce transactions and
transactions. This continues in various applications: -

1.9 MOBILE BANKING APPLICATIONS IN INDIA:

We've listed a few cashless payment methods, including debit/credit cards, e-wallets, and others,
along with their requirements and essential details for making payments. Here's the breakdown:

A) DEBIT / CREDIT CARD: -

Suitable for: Purchases from online or offline merchants.
Transaction Limit: Determined by the card issuer.
Required Details: Card number, CVV, and expiry date.
Charges:

 Debit Cards: Up to 0.75% for transactions up to ₹2,000 and up to 1% for transactions

above ₹2,000.
 Credit Cards: Approximately 2.5% per transaction.

B) E-WALLET: -

Suitable for: Small tickets. Transaction Limit: Rs.20,000 per month (Rs. 1lakh for KYC
Compliant Wallet Holder) Obligation: Connection Cost: Only if you transfer money from your
portfolio Bank account. Below we have explained the characteristics of the various features
available Our banking application.
C) BHIM: -

A mobile banking application. This application is developed for make retail payments. This
application is supported only by Android phones or Android users can only use this application.
This application supports the Aadhaar card to create payments that require fingerprints, but they
still haven't started to work. But if you have subscribed to the UPI (UPI is a payment system that
facilitates the transfer of the fund between two bank accounts.

You don't have to give information on the bank account to transfer the fund via the UPI payment
system) payments on your bank account, which is also associated with your mobile phone
number, you can use the BHIM application to carry out digital transactions. Bhim is not like
another mobile electronic shaft. How every BHIM users should be associated with your bank
account for payment. Another application like Paytm and Mobikwik is not obliged to link with
the bank account to make the payment. In these applications, we have a limited amount of money
in their wallet, which you can send only to someone who uses the same wallet.
D) PAYTM: -

Paytm is accessible and available through its website all phone platforms as an application.
PAYTM is the most used method offline digital transactions. This means you can easily find a
local store. Paytm payments are accepted. Paytm offers the widest range of options can be used.
Money stored in your Paytm portfolio can be used to send money. Purchases, travel trips, etc.
PAYTM has deactivated transfer to bank function with your application and network, that is, you
cannot send money to your wallet let's go back to your bank account.
E) MOBIKWIK: -

Mobikwik is another option available when Indians come. For speciesless transactions. He also
started as a prepaid charging website. Works closely with Paytm. However, there are fewer the
places and services where you can use Mobikwik. Morikis authorizes bus and train reservations
but no flights.mobikwik Lite offers fluid operation even on slow internet. It doesn’t require a
smartphone. Morikis has limited reach compared to Paytm. FreeCharge also works and offers
services more or less similar to Paytm and Morikis. The application is available on the Android
OS and Windows mobile platforms. Freecharge payments are not accepted by major services like
Uber and Ola, but they offer interesting features like "Split Bill." Freecharge also offers prepaid,
postpay, DTH payments, Metro Recharge and public service bills for a variety of services. We
also provide an Atonement.

F) PHONE PE: -

Phonepe, India's Payment and Digital Trade System a portfolio company headquartered in
Bangalore, India. Established in December 2015, Samir Nigam and Rahul Chari. The Phonepe
application was on the air in August 2016 and it was the first payment application built on a
single payment interface (UPI). The Phonepe application is available in more than 11 Indian
languages. With Phonepe, users can transfer and receive money, dth chargege mobile, data card
pays for utility. Buy money online and offline and shop. Additionally, PhonePE allows users too
Book Ride, Ora Red Bus ticket payment, freshman food, EAF, fit, users Goibibo flights and
hotel services via microup on the platform. Phonepe is accepted as a payment option for 5
million offline and online sellers
A cash office that covers food, travel, products, movie tickets and more. Demand exceeded 100
million. In June 2018, the user brand achieved 5 billion transactions in December 2019.
Authorized by the Reserve Bank of India for mid-term release and operation the payment system
has been prevented.

G) FREECHARGE: -

FreeCharge, is an Indian digital marketplace for financial services based in Gurugram, Haryana,
India. FreeCharge services are available across a range of financial instruments including
savings, payments, insurance, investment and lending. The company focuses on creating
innovative products ecosystems; Ability to enable non-cache transactions. Freeload consumers
can pay public service bills (Electricity, Gas), Static Invoice or Mobile Charge Payment card.
Additionally, Freecharge, based on Axis Bank, allows users to invest Get a simple loan through
Freecharge EMI with a mutual fund. Freecharge Uppi and Payment Gateways allow consumers
to send or receive instantly by making purchases at the leader Categories Movies, Entertainment,
Food, Purchases, Offline and Online Traders travel to get cashback and discounts.

On April 8, 2015, Snapdeal acquired freeload in which is called the second largest shooting in
Indian electronic commerce the sector so far, after the repurchase of Ibibio by its rival
Makemytrip, and the largest company exit of capital in India to date. The agreement was around
$ 400 million in cash and the stock. On July 27, 2017, Axis Bank acquired Freeload for $60
million.
F) PayPal:

PayPal Holdings, Inc. - American companies work a global online payment system that supports
online money transfers and it serves as an electronic replacement for traditional paper methods
Like a check or a transfer. The company works as a payments processor for online surfacers,
auction sites and many other commercial users for whom he charges a fee in exchange for
manuals such as one click on one click and Password memory. At the initial group of the 2019
World Economic Forum in Davos, the founder Luke Noseck said the initial PayPal mission was
to create a global currency that was regardless of the intervention, you know, corrupt cartens of
banks and governments that corrupted their currencies. The sock said this mission in the end, he
failed in investor pressure to release the product as soon as possible.
1.10 CHARACTERISTICS OF ONLINE PAYMENT

 Instant Money Transfer facilitated 24/7 via mobile devices.

 You can access multiple bank accounts using one application. • Safety combined with
secure security: "One-click authentication for two factors"
 Access to liquid payments with just one click.
 Need to provide card number to eliminate virtual addresses, ifsc, accounts numbers etc.
Ensures additional security.
 The application allows you to share your account with friends. • Single Request Merchant
Payment and Easy Payment for Merchant.
 Record complaints directly through mobile applications

1.11 ADVANTAGES OF ONLINE PAYMENT

1. Convenience:

Online payments allow users to transfer money from the comfort of their homes or workplaces.
Payments can be made 24/7 without the need to visit banks or payment centers, making it highly
efficient for busy individuals.

2. Speed:

Transactions are processed instantly or within a few minutes, especially with UPI, e-wallets, and
net banking. This is much faster than traditional methods like cash deposits or cheques, which
take time to clear.

3. Security:

Modern payment gateways use encryption, two-factor authentication (OTP), and fraud detection
systems to ensure secure transactions. Additionally, features like biometric authentication and
tokenization enhance security further.

4. Multiple Payment Options:

Online platforms support various payment methods, including debit/credit cards, UPI, e-wallets,
net banking, and BNPL (Buy Now, Pay Later) services. This flexibility allows users to choose
their preferred mode of payment.

5. Trackable Transactions:

Every transaction generates an electronic receipt, making it easier for users to maintain records.
This helps in budgeting, managing expenses, and simplifying tax filing.
 6. Contactless Payments:

Especially during health crises like the COVID-19 pandemic, contactless payments offer a
hygienic way to pay without handling cash or touching card machines.

7. Global Access:

Online payments allow users to send money across borders easily, supporting international
transactions without the hassle of currency exchange or long processing times.

8. Offers and Discounts:

Many online payment platforms partner with merchants to offer cashback, reward points, or
discounts, encouraging users to choose digital payments over cash.

9. Automatic Payments:

Online systems allow users to set up automatic recurring payments for utility bills,
subscriptions, and EMIs, ensuring payments are made on time without manual intervention.

10. Eco-Friendly:

Digital transactions eliminate the need for paper-based receipts, cheques, and bills, contributing
to environmental conservation by reducing paper usage.

1.12 DISADVANTAGES OF ONLINE PAYMENTS

1. Security Risks:

Despite advanced encryption and security measures, online payments are vulnerable to
cyberattacks, phishing scams, and hacking. If users accidentally share sensitive information, such
as OTPs or passwords, they can fall victim to fraud.

2. Technical Glitches:

Online payment systems depend on internet connectivity and servers. Technical issues like
server downtime, poor internet connection, or system failures can delay or block transactions.

3. Fraud and Scams:

Cybercriminals often create fake payment gateways or websites to trick users into entering
payment details. Without verifying the website’s authenticity, users can lose their money.
 4. Lack of Privacy:

Online transactions require users to share personal and financial information, which can be
misused if proper privacy policies and security protocols are not followed by service providers.

5. Service Charges:

Many online payment methods involve transaction fees. Credit card payments, payment
gateways, and international transactions often come with additional service charges that make
payments more expensive.

6. Dependency on Technology:

Online payments rely on internet access, electricity, and digital devices. In areas with poor
network coverage or during power outages, digital transactions become impossible.

7. Complex Refund Process:

If a payment fails or a wrong transaction occurs, the refund process can be time-consuming and
complicated. Some platforms take several days or weeks to process refunds.

8. Limitations for Rural Areas:

In remote or rural areas where internet access is limited or people lack digital literacy, online
payments may not be a feasible option. Many individuals still prefer cash transactions due to
unfamiliarity with digital platforms.

9. Risk of Unauthorized Transactions:

Storing card details on e-commerce platforms or e-wallets increases the risk of unauthorized
transactions if the platform’s security is compromised.

10. Technical Knowledge Required:

Not everyone is comfortable with digital platforms. Elderly people, those with limited
education, or those unfamiliar with technology may find online payments challenging to use.

11. Delayed Payment Settlement:

While payments may seem instant, in some cases (especially with bank transfers or international
payments), the actual settlement into the recipient's account can take time, causing
inconvenience.
 12. Cybersecurity Costs:

Businesses that accept online payments need to invest in cybersecurity systems, software
updates, and PCI-DSS compliance, which increases operational costs.

1.13 DEMONETIZATION IN INDIA

India's 2016 demonetization initiative aimed to tackle issues such as black money, counterfeit
currency, and to promote a transition towards a cashless economy. Here's a detailed analysis of
its multifaceted impact:

Economic Growth and Industrial Output

The demonetization led to a significant cash crunch, adversely affecting various sectors. The
Purchasing Managers' Index (PMI) for November 2016 dropped to 46.7 from 54.5 in October,
indicating a contraction in manufacturing and services—the sharpest decline in three years.
Additionally, the growth of eight core sectors, including cement, steel, and refinery products,
slowed to 4.9% in November 2016, down from 6.6% in the previous month. (Wikipedia, 2025)

Employment

The labor market experienced disruptions post-demonetization. The labor force participation rate
(LPR) was lower than forecasted in October 2017, with the Centre for Monitoring Indian
Economy predicting 49.67%, but the actual rate grew to 46.28%.
(DIGITALCOMMONS.GEORGIASOUTHERN.EDU, 2024)

Banking Sector

The Reserve Bank of India's (RBI) expenditure on printing new banknotes escalated from
₹34.21 billion in 2015–2016 to ₹79.65 billion in 2016–2017. Consequently, the dividend paid to
the government decreased from ₹658.76 billion in 2015–2016 to ₹306.59 billion in 2016–2017,
impacting the fiscal deficit. (WikipediaThe Free Encyclopedia, 2025)

Digital Payments Surge

A notable outcome of demonetization was the rapid adoption of digital payment methods:

 Transaction Volume: Digital payment transactions surged from 2,071 crore in FY

2017–18 to 18,737 crore in FY 2023–24, marking a Compound Annual Growth Rate
(CAGR) of 44%. (Department Of Financial Services, 2024)
  Transaction Value: The total value of digital transactions grew from ₹1,962 lakh crore
to ₹3,659 lakh crore, with a CAGR of 11%. In the first five months (April–August) of
FY 2024–25 alone, the transaction value reached ₹1,669 lakh crore. (Ministry of
Finance, 2024)
 Unified Payments Interface (UPI): UPI has been a significant driver of this growth,
with transaction volumes increasing from 1,330.40 crore in FY 2019–20 to 1,504.17
crore in FY 2023–24. (department of finavial services, 2024)

Fintech Developments

The fintech sector has flourished post-demonetization:

 Prosus and PayU: Dutch technology investor Prosus plans to list its Indian digital
payments and lending firm, PayU, in 2025. PayU, valued between $5 billion to $7 billion,
received authorization to operate as a payment aggregator in April 2024, after
overcoming a 15-month regulatory ban. (Reutres, 2024)

 MobiKwik: The fintech firm MobiKwik's $67 million IPO received bids worth
approximately $4.7 billion, indicating strong investor confidence in India's digital
payment sector. The company's shares surged 86% in their market debut, valuing
MobiKwik at around ₹40 billion ($474 million). (Reuters, 2024)

Future Outlook

The digital payments landscape in India is poised for continued growth:

 Market Projections: The total transaction value in the digital payments segment is
expected to show an annual growth rate (CAGR 2025–2029) of 16.31%, resulting in a
projected total amount of US$3.46 trillion by 2029. (Statista, n.d.)

 Regulatory Developments: The National Payments Corporation of India has extended

by two years the deadline for digital payment firms to comply with a market share cap,
benefiting companies like PhonePe and Google Pay. Additionally, WhatsApp has been
cleared to offer its payment service to all users, potentially driving a digital payment
boom in India as it can now reach over 500 million users. (Financial Terms, 2025)

Table 1. Consumer Payment Statistics by Value (% of Total)

 OBSERVATIONS:

 Cash Usage Decline: Cash payments have consistently declined as digital payments
became more popular.
 Card Payments Dominance: Debit and credit cards remain a primary payment method
but are gradually losing ground to e-wallets.
 Rise of E-Wallets: Digital wallets like Google Pay, Paytm, Apple Pay, and others have
shown significant growth, especially post-2020.
 Bank Transfers & BNPL Growth: Bank transfers and Buy Now Pay Later (BNPL)
options are gaining popularity for online shopping and bill payments.
 Cryptocurrency & Others: Cryptocurrencies are still a small fraction but are slowly
entering mainstream payment methods.

1.14 EFFECTS OF DEMONETIZATION ON ONLINE PAYMENT SYSTEM

Demonetization affects all areas of life, such as a social field, economic, political and legal
The field, but its main effect is the country's economic and business activity.
Demonetization also affects the electronic commerce industry in India too much. these
The effects are positive and negative.
Positive Effects: -
1. Increase in Digital Transactions:

The sudden withdrawal of high-value currency notes during demonetization significantly

increased the use of digital payment methods such as UPI, mobile wallets, and
credit/debit cards. With cash availability being limited, people were compelled to adopt
digital payment platforms for their day-to-day transactions. This led to a sharp rise in the
volume of digital transactions across the country.
2. Expansion of Digital Payment Infrastructure:

The government and private sectors made concerted efforts to improve the digital
payment infrastructure. Banks launched user-friendly mobile banking applications, and
digital wallet providers like Paytm, PhonePe, and Google Pay expanded their services.
The number of POS (Point of Sale) terminals increased, especially in rural and semi-
urban areas, ensuring a wider reach of digital payment systems.
3. Promotion of Financial Inclusion:

Demonetization encouraged a larger section of society, including those in rural areas, to

adopt digital payment systems. The government introduced several initiatives, such as the
Pradhan Mantri Jan Dhan Yojana, to bring unbanked populations into the formal
financial system. This helped in the creation of bank accounts, making digital
transactions accessible to a broader audience.
4. Boost to E-Commerce Sector:

The e-commerce industry saw a significant surge in transactions during and after
demonetization. With cash-on-delivery options limited, consumers preferred to pay
through digital payment methods. This not only enhanced the growth of the e-commerce
sector but also built trust among consumers regarding online payment systems.
5. Transparency and Reduction in Black Money:

Digital transactions leave a digital footprint, making it easier for regulatory authorities to
track money flows and curb illegal activities. The shift from cash to digital payments
helped reduce the circulation of unaccounted money and increased transparency in
financial transactions.
6. Encouragement of UPI and Digital Wallets:

Unified Payments Interface (UPI) was introduced prior to demonetization but gained
massive popularity post-demonetization. Digital wallets like Paytm, Google Pay, and
PhonePe witnessed exponential growth, becoming primary modes of payment for small
and large transactions.
7. Cost Reduction in Cash Management:
 Cash handling involves significant costs in terms of printing, transportation, and security.
The rise in digital payments helped businesses and banks cut down on these expenses,
making the financial system more cost-efficient.
8. Government Initiatives for Digital Payments:

The Indian government launched various initiatives such as the Digital India campaign,
BHIM app, and cashback incentives to promote digital transactions. These initiatives
played a crucial role in encouraging citizens to shift from cash to digital payment
methods.

Negative Effects: -

1. Lack of Digital Literacy:

Despite the government's push towards digital payments, a significant portion of the
population, especially in rural and semi-urban areas, lacked basic knowledge of using
digital payment systems. Many people were not familiar with online banking, mobile
wallets, or UPI applications, which created confusion and reluctance to adopt these
methods during the demonetization period.
2. Cyber Security Concerns:

The sudden rise in digital transactions opened the door to various cyber crimes. People
who were unfamiliar with digital payment systems were more vulnerable to phishing
scams, hacking, and financial fraud. The lack of robust security measures in many digital
payment apps further increased the risk of data breaches and unauthorized transactions.
3. Infrastructure Deficiency:

India's digital infrastructure was not fully prepared to handle the massive surge in online
transactions during demonetization. Issues such as poor internet connectivity, lack of
point-of-sale (POS) machines in rural areas, and frequent server downtimes created
frustration among users. This hindered the seamless adoption of digital payment methods.
4. Exclusion of Non-Tech Savvy Population:

A large section of the population, particularly the elderly and those with limited
education, faced difficulty in adapting to the digital payment ecosystem. This digital
divide excluded many individuals from accessing essential goods and services, especially
during the initial phase of demonetization.
5. Transaction Charges:
 Online payment platforms and mobile wallets imposed transaction fees on certain types
of payments. These additional charges discouraged small merchants and low-income
individuals from adopting digital payment methods. Many users found these charges
burdensome, making them prefer cash transactions over digital ones.
6. Fraudulent Apps and Scams:

The rush to adopt digital payment methods led to the proliferation of fake payment apps
and fraudulent schemes. Scammers took advantage of people's lack of knowledge by
offering fake cashback offers, misleading apps, and unauthorized payment gateways,
which resulted in financial losses.
7. Connectivity Issues in Rural Areas:

Poor internet connectivity in rural and remote areas posed a significant barrier to the
adoption of digital payments. Many users were unable to access payment apps or
complete transactions due to unstable mobile networks, which forced them to rely on
cash transactions.
8. Resistance from Small Merchants:

Small shop owners, street vendors, and micro-businesses were hesitant to accept digital
payments due to the complexity of the systems, lack of awareness, and fear of tax
scrutiny. Many preferred cash transactions, which delayed the transition to a cashless
economy.

CHAPTER NO.2: RESEARCH METHODOLOGY

Research Methodology is a systematic process used to collect information and data, perform a
careful examination and analyze it statistically for the purpose of producing business and
financial decisions. The methodology could consist of publication research, data collection
methods, how to do interviews and surveys and others research methods. Research may include
information from current and historical studies. Research methods are indispensable and most
critical components as it focuses on different types of research techniques and demonstrates the
different methods, methods and important dimensions followed in research and helps us choose
between them based on research questions and preferred methods. Must include the basis of
concepts and theories that the basis of these methods. There are many different ways to get
closer to the study fulfills the requirements of the dissertation. Methods and techniques have
been selected Order successfully fulfill research goals.

2.1 OBJECTIVES OF THE STUDY:

 To analyze the awareness and usage patterns of online payment apps among the earning
population.
 To identify the key factors influencing user preference for different online payment apps,
including security, trust, and ease of use.
 To examine the challenges and concerns faced by users while using online payment apps,
including security risks and data privacy issues.

2.2 HYPOTHESIS OF THE STUDY:-

The hypothesis of this study is that online payment apps have become an essential tool for
working professionals, significantly enhancing their financial transactions' convenience, security,
and efficiency. With the increasing adoption of digital payments, professionals prefer using
mobile payment applications for various purposes, including bill payments, online shopping,
fund transfers, and investments. It is expected that factors such as ease of use, security features,
cashback offers, and seamless integration with banking services influence the frequency and
preference for these apps. Additionally, the study hypothesizes that demographic factors like age,
income level, and occupation play a crucial role in determining the adoption and usage patterns
of online payment applications. The findings aim to provide insights into user behavior,
preferences, and challenges faced while using these digital platforms.

2.3 SCOPE OF THE STUDY: -

This study would help to know how many peoples are aware about online payments apps. It also
helps to know how many peoples are moving towards digitalization. This research would help to
know the benefits or threats of using online payments services.

2.4 LIMITATIONS OF THE STUDY: -

1. Non representative sample: In this research project a sample survey was conducted. A
sample of 110 respondents was selected. So such sample size cannot be said to be the true
representative of the universe.
2. Shortage of time: The time period of study was very limited. It is very difficult to have in
detail study on project work due to limited time period. The period of 4 to 6 weeks is not
enough for the proper study of the project.
3. Inadequate data: The data provided was not up to the mark due to which problems where
faced.
4. Lack of scientific method: The lack of scientific training in methodology of research was
great impediment in our research program, which led to the delay of research.
5. Biasness in the responses: The answers provided by the respondents suffer from biasness.
6. Cost Factor: It was not possible to conduct extensive research due to paucity of funds.

2.5 SIGNIFICANCE OF THE STUDY: -

 To bring out solution in the form of applications to uproot electronic system.

 To understand the frequency of usage and the problems faced while using online
payments apps.
 To analyses and enhance payments done with the help of mobile devices at POS
terminals and the success and trustworthiness of mobile wallets used. The usability and
enhancement of the mobile wallets designed and developed.
 To understand the usage of latest method of transactions.

2.6 SELECTION OF THE PROBLEM: -

This topic has been selected to know how much population are using the online payments apps
for payments. It also helps to know how the investors view on risk involved in investment. To
know various reasons for investing and not investing in a particular investment option. To know
whether they invest based on risk or return.

2.7 NATURE OF THE STUDY: -

This particular study would help to understand the present and future scenario of online
payments through apps by Earning Population and also helps to determined how much
percentage of earning population are using this service.

2.8 PRIMARY DATA: -

The Primary Data for this study was collected using the Questionnaire Method, designed to
assess the usage patterns, preferences, and challenges faced by working professionals while
using online payment apps.

Data Collection Process:

 A structured questionnaire was prepared, covering aspects such as frequency of usage,

preferred payment apps, security concerns, ease of transactions, and impact on financial
management.
 The questionnaire was distributed to working professionals across different industries
through Google Forms to ensure easy access and quick responses.
 The responses were collected over a specified period, ensuring a diverse sample
representing different demographics, job roles, and income levels.

Primary Data Details:

 Sample Size: 110 respondents

 Target Population: Earning individuals (working professionals)
 Type of Research: Descriptive
 Mode of Data Collection: Online survey through Google Forms

Nature of Data Collected:

1. Demographics (Age, Gender, Occupation, Income Level)

2. Preferred Online Payment Apps (Google Pay, PhonePe, Paytm, etc.)
3. Frequency of Usage (Daily, Weekly, Monthly)
4. Purpose of Transactions (Shopping, Bill Payments, Money Transfers, etc.)
5. Factors Influencing Choice (Security, Speed, User-Friendliness, Rewards)
6. Challenges Faced (Transaction Failures, Fraud Concerns, Technical Issues)

2.9 SECONDARY DATA: -

The Secondary Data for this study was collected from various Published Sources such as:

 Books and Journals related to digital payments and financial technology

 Research Articles discussing trends and challenges in online transactions
  Newspapers and Websites covering reports on digital payment adoption
 Review of Literature from authentic sources, with references

2.10 METHODS OF SAMPLING: -

Sample was chosen on convenience basis

2.11 DATA PROCESSING AND ANALYSIS: -

The data collected through the structured questionnaire was processed and analyzed to derive
meaningful insights based on the research objectives. The questionnaire consisted of both
demographic and perception-based questions regarding the usage of online payment apps among
the earning population.

The positive statements were used in the questionnaire to gauge the perception of respondents
regarding various aspects of online payment apps. For recording responses, 5-Point Likert Scale
was utilized in certain sections, with the scale points being:

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree

The demographic details such as Gender, Age, Educational Qualification, Profession, and
Income Level were classified and analyzed to understand the awareness and preference of online
payment apps among different sections of the earning population.

A total of XX tables were prepared for further analysis, including:

1. Frequency of usage of online payment apps

2. Most preferred payment apps
3. Purpose of using online payment apps
4. Satisfaction level of users
5. Challenges faced during usage
6. Security concerns and trust issues
7. Comparison between public and private apps
8. Impact of demonetization on the usage of online payment apps
The analysis and interpretations were carried out based on the objectives of the study,
highlighting key findings and identifying the factors influencing the adoption of online payment
apps among the earning population.

2.12 STATISTICAL TOOLS: -

The data thus collected was analyzed and interpreted with relevant statistical tools for drawing
conclusions. For analyzing the data, relevant tools such as percentage analysis, tables and graphs
were used for proper understanding of the research.

Description of Research Methods and Sampling Techniques Used

Research
Study
Objectives of the Study Method
Phase
Used
To ensure the validation of the Questionn
Pilot questionnaire for the study on online aire
Study payment apps among the earning Survey
population. Method
To explore the relationship between
Questionn
Questionn demographic factors, awareness, usage,
aire
aire Study and satisfaction of online payment
Survey
apps.

CHAPTER NO. 3 REVIEW OF LITERATURE

1. Dr. Arti Gaur, Sanju Verma (2023) The most preferred method of payment is
electronic payment systems. because it is timely, convenient, and effective. What drives
people to use the system and to determine the most popular e-payment mode; this is the
goal of the study. The two most popular modes of e-payment are banking cards and
mobile wallets because of a lack of digital literacy. Certain areas of Haryana are reluctant
to adopt a cashless system. According to the study findings, in the low-income sector
which is dependent on cash, some educational institutions and other organisations
routinely offer digital literacy programmes to inform individuals about cashless
transactions.
2. Gupta, Knavish, and Nupur Arora.( 2020) shows that Perceived ease of use and
perceived utility have a positive impact on station to borrow mobile payment systems.
Also, there exists a substantial positive relationship between station to borrow mobile
payment systems and intention to borrow mobile payment systems. The current study
examines the impact of station towards mobile payment systems on intention to borrow
mobile payment systems through the operation of technology acceptance model. 4.
Mishra, A. B.( 2020). The increase of the capability and strength of wireless offers
provides right openings for rising up immolations to guests. Businesses are starting to
realize that-payment system is the important thing to enhance their brand isolation, boost
deals, client satisfaction and hold up with challengers. In the present- day, e- payment
mode has been entered in finance, services, retails, telecommunication and IT/ ITES
sectors related business associations. The recent sale of BHIM portmanteau has been
entered three times growth in only one fiscal time 2019- 20. 5. Singh, Sindhu( 2020). The
author denotes technological progression in mobile phones has increased the
fashionability of mobile payments. Users can protect online through a mobile device,
which is time saving and accessible. Mobile payment systems involve ongoing relations
between users and payment providers. The original acceptance of mobile payment
systems has been studied considerably, but many studies have tried to understand users
‘post-adoption behavior.

3. Mishra, A. B. (2020).The increase of the ability and strength of wireless offers provides
right opportunities for rising up offerings to customers. Businesses are starting to realize
that e-payment system is the important thing to enhance their brand differentiation, boost
sales, customer satisfaction and hold up with competitors. In the present-day, e- payment
mode has been entered in finance, services, retails, telecommunication and IT/ITES
sectors related business organizations. The recent transaction of BHIM wallet has been
received three times growth in only one financial year 2019-20.

4. Kavitha, M., and K. Sampath Kumar. (2018). The demonetization resulted in

tremendous growth in digital payments. With the government initiative such as Digital
India and increased use of mobile and internet are means to exponential growth in use of
digital payment. This transformation towards digital payments benefits in more
 transparency in transactions which empowers the country’s economy. In recent days
many changes took place in the payment system like digital wallets, UPI and BHIM apps
for smooth shift to digital payments.

5. Das, Abhrajyoti, et al.( 2018) Digital wallets’, gained a lot of fashionability in recent
times in India and around the globe. A digital wallet refers to a platform grounded on
electronic device or online service that allows an individual to make electronic deals. It's
a converted way to pay for effects. It's principally paperless payment system which
reduces all the hassle of carrying cash with you far and wide. numerous digital wallet
services have their own mobile apps. Post demonetization in India, the fashionability of
digital wallet earnings exponentially. There are numerous digital wallets which are
presently active in India like paytm, freecharge, jio Money, Airtel Money etc.

6. Arpan Kumar Kar (2020) Due to multiple planned and unplanned events Mobile
payment services have come decreasingly important in diurnal lives in India. the
determinants of operation satisfaction of mobile payments which could enhance service
adoption are to identify the ideal of this study. combining technology adoption and
service wisdom literature the “ Digital Service operation Satisfaction Model ” has been
proposed and validated. Twitter grounded on hashtags and keywords from First the data
was uprooted. Large volumes of textbook were analysed using sentiment mining and
content modelling. relating clusters among associated topics also network wisdom was
also used. A theoretical model was developed grounded on literature using content
analysis methodology. We validated the proposed model eventually using multiple
regression analysis. The operation satisfaction of mobile payments services the study
establishes that cost, utility, trust, social influence, credibility, information privacy, and
responsiveness factors are more important to increase. This validates a new approach
that uses social media data for developing an deducible theoretical model for this bid.

7. Neelam and Sonali Bhattacharya (2023), in the research paper titled “The Role of
Mobile Payment Apps in Inclusive Financial Growth” the researcher wants to prove the
importance of understanding the usage pattern and behaviour of low-income households
towards mobile payment apps. The perceived usefulness, ease of use, and security of
mobile payment apps are significant factors that influence the intention to use mobile
payment apps among low-income households. Furthermore, the adoption of mobile
payment apps has significant implications for the banking and mobile technology
industry, including the potential to expand their customer base and reduce the cost of
transactions
8. Prof Trilok Nath Shukla (2016), in the research paper titled “Mobile Wallet: Present
and the Future '' the researcher found that in future digital payments will have a major
contribution in the shopping experience of customers. Giving only security and an easy-
to-use payment system will not be enough to attract customers apart from this will require
cashbacks, loyalty programs, etc. The marketers should grab this opportunity by
partnering with various digital payment companies to attract to customers.

9. Gaurav Tyagi, Hrishikesh Jag dale and Nilesh Anute (2022), in the research paper
titled as “A study on digital payment applications in India” the researcher wants to prove
that the impact of UPI on the financial sector in India and the role played by major UPI
apps in driving its growth. It highlights the need for further research in this area to gain a
better understanding of the potential of UPI to transform the financial sector in India.

10. Hiram Ting, Yustman Yacob, Lona Liew, and Wee Ming Lau (2016) explored the
rapid advancement of communication technologies, particularly the growing adoption of
mobile payment systems as a convenient means for financial transactions. Despite their
widespread use, the factors influencing mobile users’ intention to make payments via
mobile devices in developing markets remain largely unexplored. Additionally, limited
research has examined how ethnicity affects payment behaviors.
a. Grounded in the theory of planned behavior, this study investigates how attitude,
subjective norms, and perceived behavioral control shape users' intention to adopt
mobile payment systems, focusing on Malays and Chinese in Malaysia. To
deepen the understanding, the researchers incorporated beliefs as antecedent
variables in the framework. A quantitative approach was employed through a
questionnaire-based survey, with 450 questionnaires distributed nationwide and
311 valid responses collected.
b. The study utilized descriptive analysis, multiple linear regression, and
independent sample t-tests to examine relationships and differences. The findings
revealed that attitude, subjective norms, and perceived behavioral control are
positively influenced by their corresponding belief factors, all of which
significantly impact the intention to use mobile payment systems. However,
subjective norms and perceived safety varied notably between Malays and
Chinese, leading to differences in their intention to adopt mobile payment
systems. This research underscores the importance of understanding the factors
driving mobile payment adoption in developing markets. It also highlights the
necessity of recognizing both commonalities and differences in multicultural and
multi-ethnic societies like Malaysia. The study provides valuable insights for
 improving service operations and marketing strategies, ensuring the effective
implementation of mobile payment technologies to enhance service excellence.

11. Singh, Gagandeep. (2019) In the growing era of the digitization of the technology much
of the people have using the plastic money in the form of Debit Card, Credit Card and
other cards provided by the numerous respective commercial banks. The banking
industry had an array of payment products – Core banking Services, immediate payment
service, net banking and mobile banking; but it is found that people needed an easier,
simpler way to make payments. so this gap was filled by the digital wallets or e-wallets.
This paper is constructed to find out the adoption behaviour and change in the daily
payment or transactions.

12. Yunban; Kristen Kahn; Kritika Sutrave (2016) describes mobile Payment systems can
be divided into five categories, including mobile payment About POS, Mobile, Mobile
Payment POS as an Independent Platform Direct exposure through mobile payment
systems and carrier exposure. Mobile payments It gained its popularity in many regions
of its convenience, it meets again Many threats and security issues. This article represents
mobile Enter your payment processing model and each type of mobile payment system.
Mobile payment system with the security services you want Safety mechanisms currently
on-site. We also identify and Discuss three security threats, that is, malicious programs,
SSL/TLS vulnerabilities and data Violations and four security tasks, that is, the detection
of harmful programs, multifactor authentication, prevention of data violations, detection
and prevention of fraud, in Mobile payment systems.

13. CHERUKUR, MR. (2020) The present study focuses on the customer satisfaction
towards mobile wallets. This study examines the factors that influence customer’s
satisfaction while using mobile wallets. Nowadays everyone uses their Smartphone’s to
make their day today transactions using mobile wallets. Mobile wallets create a huge
impact among the people. The present study is carried by a survey conducted among the
mobile wallet users to identify the satisfactory levels of them.

14. Tanya Sanatani (2017) studied this paper. Various payment methods in India have been
demo-netting. in particular, it aims to see how different digital platforms have evolved
Demon net. Various digital payments, such as payment applications, clean the research
was conducted in detail, including banking services. Their evolution before and after
Demonetization is taken into consideration and compared with each other. The demo
netting has brought great momentum to digital payments in India. They are fast, reliable,
easy to study and navigate. He can meet Requirements specifications. What platform did
 people choose? According to many factors. It's very practical and useful software
Components, it is not that there are no defects or problems That was decided in the near
future. Security is always a serious problem compared to these platforms. Request: These
payments will help you make your payments more practical easy to use. You don't need
to go to the bank to make money transaction

15. Jonas Edman and Stefanhenningson (2016) explain the introduction. Mobile payments
are one of many innovations that change payments Mobile Payment Market (MPMC)
This article shows how payments are digital as an innovation. Influence tradition and new
competition and cooperation stakeholders in the three levels of analysis payment
ecosystem. We do that Integration of the theory of market cooperation with commercial
literature and Technological ecosystem. The MPMC framework describes technology-
based technology Market cooperation strategies in the context of recent battles on mobile
phones. Payment ecosystem. In these battles, competitors can use technology in
protection and protection strategies to protect at market location or at A sender strategy
that beats frameworks to reach the ecosystem and improve positions. The successful
strategy is: Ricardo's rent based on operations the benefits of efficiency are monitored in
the company's location compared to the supplier Exclusive rights. And Baingan is rented,
and as a result, the company is Resist price competition in the market.

16. Tracy Coldwell (Journalist) (2016) Learn about the Google Wallet Mobile application
We created the concept of an electronic mass portfolio, but security breach wasn't too far
away Behind. Writers of the formal moment of harmful programs are like bank horses
attacking A highly secure connection between a bank and a user. Tracey Caldwell
examines the security threats facing e-wallets and sets out a number of approaches to
securing e-wallets, from using the Secure Element, to optical tokens and cloud-based
authentication. She also discusses the role that retailers, merchants and telco companies
may play in e-wallet security in the future.

17. Anshari, Muhammad, et al. (2021).Adoption of e-wallet can potentially enhance the
efficiency of financial institutions and the provision of new services for the convenience
of the customers. The youngsters really adapted to this payment apps .It really satisfy the
customers in easy transaction and payment.

18. Dr. R. MuthuKrishnaveni (2018) studied “Cashless Economy” is the system where all
the monetary payments are done by using digital means like internet banking, debit,
credit cards, e-wallets instead of hard cash. India has been presented in 2016, a prominent
 way of becoming a "species-free economy." The economy, the Indian government and
RBI have decided to jointly introduce UPI Payment application based. Therefore, UPI
payment applications are a non-cash economy method. UPI and UPI 2.0 applications and
their progress are their growing non-cache payments.

19. Miruna,S.Lyrics. (2019) In recent times technology plays a very vital role with this, the
way we transact in daily life has changed drastically with the advent of smart phone the
life has become easier where all payments & transaction are taking place on online. This
paved the way for the emergence of platform termed has a digital wallet.

20. Stefan Hit (2017) studied methods, devices, and readable computers A computer system,
network, or system or system is provided for mobile devices; Online payment system for
promotions or mobile and online advertising offers or daily transactions Daily coupons or
aggregation of coupons using print monitoring Analytics, Location, 2D and 3D Frames,
Social Networks, Users Actions and information to generate mobile phones and the
Internet. Placed in Ad Action or daily suggestions or coupons and/or for daily transaction
contracts or aggregated coupons. Selling products and/or services on social networks,
online or via mobile; Devices for mobile and web ads share or provide information about
the connection of information Location of user behavioral data or demographics to users,
or related users Demographic locations designated or provided for action or target
proposals For products and/or services on social networks, online or via mobile devices.

21. Michael Mumbani, Melanie Visa (2017) describes the purpose of this article It is the
development and verification of an integrated model of preparation for modified
technology Index (sorting) with an extensive model of confirmation of the expectation in
the context Information technologies (E -ECM -it) to explain acceptance and intention
Continue to use applications for mobile payments (applications).

22. Kumari and Hannah (2017), Non-cash payments: Changes in behavior Economic
growth. This article aims to study how behavioral change has led to Economic growth in
the Indian economic scenario. After the study, he was carried out We noted that a variety
of factors are the causes of changes like people Accept such changes and look for various
benefits and opportunities.
23. Robert J.Kauffman and DanMa (2018) studied the past twenty years have been a time
of many new technological developments, changing business practices, and interesting
innovations in the financial information system (IS) and technology landscape. They have
led to the increasing use of prior innovations that have supported e-commerce, and that
are now being brought into financial services to support different kinds of improvements
to core business processes. This study deals with recent payment changes in particular,
the Financial Services sector is linked to Mobile Payments (MPAYMENTS), which
offers a new channel for consumer payments for products. Purchase of services and other
forms of economic exchange. Recently expanded Research into the modes of
technological ecosystems and the impact of analysis. Innovations in industrial technology
arise and develop. We explore the degree in which they can be understood through the
prism of several Simple building blocks, including technological components,
technological services and infrastructures supported by technologies that provide the
basics for related digital companies. Our expansion of previous studies is focused on Two
key elements: modeling the effects of competition and cooperation on various forms of
innovation in the aforementioned building blocks; And Representation of the role played
by regulatory forces in driving or delay Innovation in a wider coverage of our approach
to modeling. Evaluate efficiency Within our approach, we use it for retrospective analysis
over the past 20 years. Innovation in the field of payments. Our results determine a
particular industry the innovation models that emerged suggest how they were affected It
shows more universal thanks to competition, cooperation and regulations an innovative
model that provides ideas for the development of e-commerce.

24. Tiwari, Pooja, Vikas Greg, and Abhishek Singhal. (2019). In today's fast-moving
lifestyle people need to adopt more convenient and secure gadgets to make their life more
comfortable. To achieve this goal, there is an innovative product called Digital Wallet.
The digital wallet refers to an electronic device or service provided to persons enabling
them to conduct electronic transactions. The best example of digital wallet is the online
shopping. It is also known as e-wallet. Nowadays people prefer online shopping as it is
providing them the benefits like it is less time consuming for examples paytm,
payUmoney, etc.

25. Rathore, Hem Shweta. (2016) In today-world, smart phone has become essential part of
daily life. Due to technology, mobile users can nowadays use their Smartphone’s to make
money transaction or payment by using applications installed in the phone. When smart
phones can function as leather wallets, it is called “Digital Wallet” or widely known as
“Mobile Wallet”.
 CHAPTER NO.4 DATA ANALYSIS & INTERPRETATION

Q1) Age

Age No. of Respondents % of Respondents

Under 25 70 63.6

25-34 18 16.4

35-44 9 8.2

45-54 5 4.5

55 and Above 8 7.3

Total 110 100

INTERPRETATION: The majority (63.6%) of respondents are under 25, indicating that
younger professionals are the most active users of online payment apps. Usage decreases with
age, with 16.4% in the 25-34 group and even lower percentages in older groups (8.2% for 35-
44, 4.5% for 45-54, and 7.3% for 55+).
Q2) Gender?

Gender No. of respondents % of respondents

Male 50 45.5

Female 60 54.5

Total 110 100

INTERPRETATION: Among the respondents 45.5% were Male ,54.5% were Female.
Q3) Education?

Education No. of respondents % of respondents

SSC 8 7.3

HSC 18 16.4

Graduate 16 14.5

Undergraduate 44 40

Post Graduate 19 17.3

Doctor 2 1.8

Sales Manager 1 0.9

Business Man 1 0.9

Diploma 1 0.9

Total 110 100.00

INTERPRETATION: The majority of respondents (40%) are undergraduates, followed by
postgraduates (17.3%) and HSC-qualified individuals (16.4%), indicating that students and
early-career professionals are the primary users of online payment apps. Graduates make up
14.5%, while SSC holders account for 7.3%. A small percentage includes doctors (1.8%),
business professionals, and diploma holders (0.9% each). This suggests that higher education
levels are linked to increased adoption of digital payment apps, with students and
professionals being key users.

Q4) Profession/ Occupation

Profession/ Occupation No. of respondents % of respondent

Self Employed
33 30
Salaried
16 14.5
Business Class
8 7.3
Government Services
5 4.5
Housewife
10 9.1
Student
30 27.3
Students
2 1.8
Doctor
1 0.9
Lawyer
1 0.9
Studying
1 0.9
Law
1 0.9
Athlete
1 0.9
student
1 0.9
Single
1 0.9
Total
110 100
Interpretation: The majority of respondents are self-employed (30%) and students (27.3%),
indicating that these groups are the most active users of online payment apps. Salaried
professionals (14.5%) and the business class (7.3%) also contribute significantly. Housewives
(9.1%) show a fair adoption rate, while government employees (4.5%) and professionals like
doctors, lawyers, and athletes (less than 1% each) have minimal representation. This suggests
that flexible-income groups and students rely heavily on digital payments, while adoption is
lower among traditional professions.

Q5) Annual Income

Annual Income No. of respondents % of respondents

Below 2,50,000 68 61.8
2,50,000-5,00,000 9 8.2
5,00,000-7,50,000 16 14.5
7,50,000-10,00,000 9 8.2
Above 10,00,000 8 7.3
Total 110 100
Interpretation:The majority of respondents (61.8%) have an annual income
below ₹2,50,000, indicating that students, entry-level professionals, and lower-
income groups are the primary users of online payment apps. 14.5% earn between
₹5,00,000-7,50,000, while 8.2% fall in the ₹2,50,000-5,00,000 and ₹7,50,000-
10,00,000 ranges. Only 7.3% earn above ₹10,00,000, suggesting that digital
payments are widely used across income levels but are most popular among
individuals with lower earnings, likely due to the convenience and accessibility of
these platforms.

Q6) Do You Use Online Payment Apps?

Do you use online payments No. of respondents % of respondents

apps
Yes 103 93.6
No 7 6.4
Total 110 100
Interpretation: The data shows that 93.6% of respondents use online payment apps,
highlighting their widespread adoption and convenience among users. Only 6.4% do not use
these apps, indicating minimal resistance to digital payments. This suggests that online payment
apps have become an essential part of financial transactions for most people.
 Respondents Using online Payment apps
Q7) Which apps do you use for online payments?

Preference No. of respondents % of respondents

Google Pay 93 84.5
Phone Pay 29 26.4
Bhim 11 10
Freecharge 8 7.3
Mobikwik 12 10.9
Paytm 22 20
Total 110 100

Interpretation: Google Pay (84.5%) is the most preferred online payment app, followed by
PhonePe (26.4%) and Paytm (20%). Other apps like Mobikwik (10.9%), Bhim (10.%), and
Freecharge (7.3%) have comparatively lower usage. This indicates that Google Pay dominates
the market, while other apps serve as secondary options for users.
Q8) How often do you use online payment apps?

How often do you use No. of respondents % of respondents

online payment apps
Daily 67 60.9
Weekly 27 24.5
Monthly 12 10.9
Yearly 4 3.6
Total 110 100

Interpretation: The majority of respondents (60.9%) use online payment apps daily,
showing high dependence on digital transactions. 24.5% use them weekly, while 10.9% use
them monthly. Only 3.6% use them yearly, indicating that most users rely on online
payment apps frequently for their transactions.

What Is the Main Reason You Use Online Payment Apps?

Purpose of using online No. of respondents % of respondents
payments
Bill Payments 59 53.6
Money Transfer To 51 46.4
Family/Friends
Online 46 41.8
Business Transaction 31 28.2
Investment/Payment For 29 26.4
Services
Recharge 38 34.5
 To Avail Cashback 11 10
Ticket Booking 1 0.9
Specially When There Is No 1 0.9
CO
Online Shopping 1 0.9
Total 110 100

Interpretation: The primary reason for using online payment apps is bill payments (53.6%),
followed by money transfers to family and friends (46.4%) and online purchases (41.8%).
Other common uses include business transactions (28.2%), recharges (34.5%), and
investments/payments for services (26.4%). A smaller percentage use them for cashback
benefits (10%) and ticket booking (0.9%). This indicates that online payment apps are
mainly used for essential financial transactions, with additional benefits like cashback
being a lesser priority.

10) Which app you would like to use in terms of

Terms Option No. of respondents % of respondents

Security Private App 73 66.36
Public App 37 33.64
Grand Total 110 100
Trustworthy Private App 82 74.55
Public App 28 25.45
 Grand Total 110 100
Interface Of App Private App 84 76.36
Public App 26 23.64
Grand Total 110 100
Processing Speed Of Private App 86 78.2
Transaction
Public App 24 21.8
Grand Total 110 100

Interpretation: The survey results indicate that respondents strongly prefer private apps over
public apps in terms of security, trustworthiness, app interface, and transaction processing speed.
The majority (66.36%) consider private apps more secure, while 74.55% find them more
trustworthy. Additionally, 76.36% prefer the interface of private apps, and 78.2% believe they
offer faster transaction processing. Overall, private apps are favored across all key aspects,
highlighting their perceived reliability and efficiency.
Q11) Why Do You Prefer Using Online Payment Apps?

Preference Options No. of respondents % of respondents

Discount Strongly 34 30.9

Agree

Agree 35 31.8

Neither Agree nor 32 29.1

Disagree

Strongly Disagree 1 0.9

Disagree 8 7.3

Grand Total 110 100

Premium Strongly Agree 15 13.6

Agree 43 39

Neither Agree nor 40 36.4

Disagree

Strongly Disagree 6 5.5

Disagree 6 5.5

Grand Total 110 100

Cashback Strongly Agree 24 21.8

Agree 42 38.2

Neither Agree nor 34 30.91

Disagree

Strongly Disagree 5 4.5

Disagree 5 4.5

Grand Total 110 100

Cost Effective Strongly Agree 36 32.7

Agree 34 30.9

Neither Agree nor 32 29.1

Disagree

Strongly Disagree 3 2.7

Disagree 5 4.6

Grand Total 110 100

Burden of paper Strongly Agree 39 35.5

Agree 39 35.5

Neither Agree nor 23 20.9

Disagree

Strongly Disagree 6 5.4

Disagree 3 2.7

Grand Total 110 100

46.4
Saving Strongly Agree 51
32.7
Agree 36
17.3
Neither Agree nor 19
Disagree
2.7
Strongly Disagree 3
0.9
Disagree 1
100
Grand Total 110
Interpretation:The survey results show that respondents prioritize savings (46.4% strongly
agree) and cost-effectiveness (32.7% strongly agree) when choosing financial options. Discounts
are also highly valued, with 62.7% agreeing or strongly agreeing. Cashback (60% agree/strongly
agree) and premium services (52.6% agree/strongly agree) receive mixed reactions, with a
notable portion remaining neutral. Additionally, 71% consider reducing the burden of paper
important. Overall, affordability, savings, and paperless transactions are key preferences among
respondents.

Q12)How Much Money Do You Spend For Online Payments?

How Much Money Do You No. of respondents % of respondents

Spend For Online
Payments?
Less Than 1000 38 34.5
1000-4000 40 36.4
4000-8000 12 10.9
More Than 8000 20 18.2
Total 110 100
Interpretation: Most respondents spend ₹1,000-4,000 (36.4%) on online payments,
followed by 34.5% spending less than ₹1,000. Around 10.9% spend ₹4,000-8,000, while
18.2% spend more than ₹8,000. This suggests that a majority of users make moderate
online transactions, while a smaller segment engages in high-value digital payments.

Q13)How Satisfied Are You With Your Online Payment App Experience?

Average rating No. of respondents % of respondents

1 7 6.4
2 1 0.9
3 17 15.5
4 45 40.9
5 40 36.4
Total 110 100
Interpretation: The majority of respondents are satisfied with their online payment app
experience, with 40.9% rating it 4 stars and 36.4% giving it 5 stars. 15.5% rated it 3 stars,
indicating a neutral experience, while only 6.4% gave 1 star and 0.9% gave 2 stars, showing
minimal dissatisfaction. Overall, most users have a positive experience with online payment
apps.

Q14)Are There Any Obstacles When You Use Online Payment Apps?
Obstacles face by respondents No. of respondents % of respondents
Yes 70 63.6
No 40 36.4
Total 110 100
Interpretation :A majority of respondents (63.6%) face obstacles when using online payment
apps, while 36.4% do not experience any issues. This suggests that challenges such as
transaction failures, security concerns, or technical glitches are common, highlighting the
need for improvements in user experience and reliability.

Q15)What Are The Obstacles You Face While Using This Apps?

Obstacles face by No. of respondents % of respondents

respondent
Security Issues 42 38.2
Online Fraud 40 36.4
Loss Of Data 48 43.6
Connectivity
Misuse Of Personal 34 30.9
Information
Hacking 26 23.6
Total 110 100
Interpretation : The most common obstacle faced by users is loss of data connectivity
(43.6%), followed by security issues (38.2%) and online fraud (36.4%). Other concerns
include misuse of personal information (30.9%) and hacking (23.6%). This indicates that
network issues and security threats are major challenges, emphasizing the need for better
fraud protection and app reliability.

Q16) Did demonetization affect the online payment apps?

Average rating No. of respondents % of respondents
1 9 8.2
2 15 13.6
3 32 29.1
4 17 15.5
5 37 33.6
Total 110 100
Interpretation :Most respondents believe that demonetization had a significant impact on
online payment apps, with 33.6% rating it 5 and 15.5% rating it 4. 29.1% gave a neutral
rating (3), while 13.6% rated it 2 and 8.2% rated it 1, indicating minimal impact for some.
Overall, demonetization played a key role in boosting the adoption of digital payments,
though opinions vary on its extent.

Q17)Are This Apps Services Useful For Payments?

Useful for payments No. of respondents % of respondents

Strongly Agree 65 59.1
Strongly Disagree 18 16.4
Neutral 27 24.5
Total 110 100
Interpretation :A majority of respondents (59.1%) strongly agree that online payment apps
are useful for payments, while 24.5% remain neutral. However, 16.4% strongly disagree,
indicating some dissatisfaction. Overall, most users find these apps beneficial, but some may
have concerns regarding usability or security.
Q18)How Secure Do You feel when Using Online Payment Apps?
How Secure Do You feel No. of respondents % of respondents
when Using Online Payment
Apps?
Very Secure 24 21.8
Secure 37 33.6
Neutral 38 34.5
Insecure 7 6.4
Very Insecure 4 3.6
Total 110 100

Interpretation:Most respondents feel secure (33.6%) or very secure (21.8%) when using
online payment apps. However, 34.5% remain neutral, indicating some uncertainty. A smaller
percentage feel insecure (6.4%) or very insecure (3.6%), suggesting minor security concerns.
Overall, while most users trust online payment apps, some still have reservations about
security.

Q19)Are You Concerned About The Privacy If Your Financial Data When Using These
Apps?

Are You Concerned About No. of respondents % of respondents

The Privacy If Your Financial
Data When Using These
Apps?
Not At All 11 10
Slightly
25 22.7
Moderately
39 35.5
Very
20 18.2
Extremely
15 13.6
 Total
110 100

Interpretation :Most respondents have some level of concern about their financial data
privacy, with 35.5% moderately concerned, 18.2% very concerned, and 13.6% extremely
concerned. 22.7% are slightly concerned, while only 10% have no concerns at all. This
indicates that privacy remains a significant issue for many users, highlighting the need for
stronger security measures and transparency from payment app providers.

Q20)Are This Apps Services Useful For Payments?

Useful for payments No. of respondents % of respondents

Strongly Agree 65 59.1
Strongly Disagree 18 16.4
Neutral 27 24.5
Total 110 100
Interpretation :A majority of respondents (59.1%) strongly agree that online payment apps
are useful for payments, while 24.5% remain neutral. However, 16.4% strongly disagree,
indicating some dissatisfaction. Overall, most users find these apps beneficial, but some may
have concerns regarding usability or security.

Q22)Would You Like To Refer Your Friend To Use Online Payments Apps?

Respondent promotes online No. of respondents % of respondents

payments apps
Yes 68 61.8
No 17 15.5
Maybe 25 22.7
Total 110 100

Interpretation :A majority of respondents (61.8%) are willing to refer online payment apps
to their friends, showing high satisfaction and trust. 22.7% are uncertain, while 15.5% would
not recommend them, possibly due to security or usability concerns. This indicates that while
most users find online payment apps beneficial, some still have reservations.

Respondents not Using online Payment apps

Q22)State Your Level Of Agreement With This Following
 Options No. of % of respondents
respondents

Strongly Agree 23 20.9

Agree 23 20.9
Respondent don’t
feel safe
Neither Agree nor 32 29.1
Disagree

Strongly Disagree 9 8.2

Disagree 23 20.9
Grand Total 110 100
Difficult to Strongly Agree 9 8.2
understand

Agree 30 27.3

Neither Agree nor 21 19.1

Disagree

Strongly Disagree 24 21.8

Disagree 26 23.6

Grand Total 110 100

Trust issues Strongly Agree 15 13.6

Agree 24 21.8

Neither Agree nor 45 40.9

Disagree

Strongly Disagree 8 7

Disagree 18 16.7

Grand Total 110 100

Fear Hacking Strongly Agree 19 17.2

Agree 33 30

Neither Agree nor 39 35.5

Interpretation: The survey results highlight significant concerns regarding security and trust
in digital platforms. Around 41.8% of respondents feel unsafe, and 47.2% fear hacking. Trust
issues persist, with 35.4% expressing concerns, though 40.9% remain neutral. Fraud is a major
worry, with 60.9% afraid of being scammed. Similarly, 53.6% fear their personal information
being misused. However, understanding the platform is less of an issue, as only 35.5% find it
difficult, while 45.4% disagree. Overall, security, fraud, and data privacy are key concerns for
respondents.

Q22)Do you feel that Online Payments Is Better Than Offline Payments?

Offline Payment No. of respondents % of respondents

Yes 58 52.7
No 24 21.8
Maybe 28 25.5
Total 110 100

Interpretation: A majority of respondents (52.7%) believe that online payments are better
than offline payments, while 25.5% are uncertain. However, 21.8% still prefer offline
payments, possibly due to security concerns or habit. This suggests that while digital payments
are widely accepted, some users still rely on traditional methods.
 CHAPTER NO. 5 SUGGESTION AND CONCLUSION
5.1 Suggestions

 The Indian government should implement nationwide digital literacy programs to

educate citizens on secure and efficient online transactions.
 To make Digital Mumbai a reality, technology should be leveraged to solve citizen
problems, requiring a strong culture of grassroots frugal innovation.
 Banks and the government should actively promote online payment modes through
awareness campaigns and incentives.
 Encourage businesses and individuals to manage cash flow efficiently with immediate
online payments, reducing reliance on physical transactions.
 Eliminate paper-based transactions to promote environmental sustainability and
efficiency in financial processes.
 Government and private organizations should design payment apps with simple and
user-friendly interfaces to ensure ease of use for all demographics.
 A specialized cyber-crime unit should be established to monitor and tackle fraud and
cyber threats related to online payments.
 Marketing digital payment solutions in rural and semi-rural areas will help increase
adoption among working professionals and small businesses.
 Providing concessions, discounts, or cashback for online payments can encourage
more users while promoting transparency and security.
 Address server downtime issues, as it is a major inconvenience for users, by improving
infrastructure and ensuring robust technical support.
 Implement multi-factor authentication and biometric security in online payment apps
to enhance security and reduce fraud risks.
 Introduce financial incentives or tax benefits for businesses and consumers who
actively use digital payment methods.
 Organize workshops and training sessions in corporate offices to educate working
professionals on secure online transactions and financial management.
 Strengthen legal frameworks and cybersecurity laws to ensure strict action against
online fraudsters and hackers.
 Promote integration of online payments with government services, making bill
payments, tax filings, and other transactions seamless.
 Encourage collaboration between fintech startups, banks, and government agencies
to develop innovative digital payment solutions.
 Establish a grievance redressal system for digital payment-related issues, ensuring users
can report frauds or technical glitches efficiently.
 Improve network connectivity and digital infrastructure, especially in tier-2 and tier-3
cities, to support smooth online transactions.
CHAPTER NO. 5 SUGGESTION AND CONCLUSION

5.1 Suggestions: -

1. Digital Literacy and Frugal Innovation

India's robust digital infrastructure, known as the India Stack, has been pivotal in achieving
financial inclusion for a significant portion of the population. This platform offers tools like
Aadhaar, UPI, and DigiLocker, which can be leveraged to foster a culture of grassroots
innovation in Mumbai.

2. Promotion of Online Payment Modes

The introduction of the Digital Rupee (e-rupee) by the Reserve Bank of India represents a
significant step towards digitalizing payments. Fintech firms like Cred have integrated the e-
rupee into their platforms, enhancing accessibility and adoption.

3. Immediate Payments and Cash Flow Management

The Unified Payments Interface (UPI) facilitates real-time payments, effectively reducing
reliance on traditional methods. Recent regulatory adjustments have extended the deadline for
digital payment firms to comply with market share caps, ensuring the continued growth and
reliability of platforms like PhonePe and Google Pay.

4. Simplified Digital Interfaces

The National Common Mobility Card (NCMC) is being implemented to streamline payments
across various transportation modes, including Mumbai's suburban railway network. This
initiative simplifies user experiences by integrating multiple services into a single card

5. Cybersecurity Measures

Recognizing the rise in digital fraud, the Reserve Bank of India is set to introduce secure website
domain names for financial entities, such as 'bank.in' and 'fin.in', to protect users from phishing
attacks. This measure aims to enhance the security of online payment platforms.

6. Awareness in Rural and Semi-Rural Areas

The Pradhan Mantri SVANidhi Scheme has been instrumental in promoting digital transactions
among street vendors, offering incentives for adopting digital payment methods. This initiative
has significantly increased digital payment adoption in rural and semi-rural regions.

7. Incentives for Online Payments

The government's integration of the Digital Rupee with UPI allows users to make payments
using existing UPI QR codes, offering a seamless transition to digital currency and encouraging
its use through familiar platforms.

8. Infrastructure Reliability

To address server reliability issues, the National Payments Corporation of India (NPCI) is
collaborating with international partners to enhance the robustness of digital payment systems,
ensuring consistent and reliable service.

By building upon these initiatives, Mumbai can further its goal of becoming a digitally
empowered city, ensuring that all citizens have access to secure and efficient digital payment
systems.
5.2 Conclusion: -

The study has provided valuable insights into customer perception and adoption of digital
payment systems. It was found that among various demographic factors, education plays a
crucial role in influencing digital payment adoption. Individuals with education beyond
matriculation, especially those who are tech-savvy, are more likely to embrace digital
transactions. The rapid growth of smartphone users and increased internet penetration has further
accelerated this trend, making digital payments an integral part of modern financial transactions.

The digital revolution has transformed the way consumers interact, make purchases, pay bills,
and conduct business. Consumers today have access to a wide range of digital platforms that
offer convenience, flexibility, and enhanced user experiences. Businesses and financial
institutions have leveraged digital tools to provide customers with multiple payment options,
attractive discounts, seamless product comparisons, and personalized offers, all of which
contribute to the habitual use of digital payment platforms. This, in turn, fosters trust, enhances
customer loyalty, and encourages repeat transactions.

However, despite the advantages, several challenges persist in digital payment adoption. Security
concerns remain one of the most significant barriers, with risks such as unauthorized access, data
breaches, identity theft, online fraud, hacking, and system failures posing threats to users. Many
customers hesitate to use digital payment methods due to the fear of financial loss, misuse of
personal data, and cyber threats. The existing authentication mechanisms in digital payment
systems, particularly single-factor authentication, have been found inadequate in fully preventing
fraud and unauthorized access. Attackers can exploit vulnerabilities to gain access to confidential
financial information such as credit card details and account credentials, leading to fraudulent
transactions and financial losses for users.

To address these concerns, financial institutions and digital payment service providers must
implement advanced security measures, including multi-factor authentication, biometric
verification, end-to-end encryption, and artificial intelligence-driven fraud detection systems.
Enhancing cybersecurity frameworks, raising consumer awareness about safe transaction
practices, and developing stringent data protection policies are crucial steps toward ensuring a
secure digital payment ecosystem.

Furthermore, continuous innovation and investment in secure payment infrastructure are

necessary to build consumer confidence. Digital payment service providers must proactively
address technical challenges such as server downtimes and transaction failures to ensure a
seamless and reliable payment experience. Collaboration between financial institutions,
cybersecurity experts, and regulatory bodies can help establish industry-wide security standards
that minimize risks and enhance the trustworthiness of digital payment platforms.
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https://www.ft.com/content/978a7a66-0850-498b-add5-2c9333e7c9a3?utm_

https://en.wikipedia.org/wiki/Digital_rupee?utm_
• https://en.m.wikipedia.org/wiki/2016_Indian_banknote_demonetisation

• https://www.quora.com/What-are-positive-and-negative-effects-
ofdemonetization

• www.googlescholar.com

• https://www.sciencedirect.com/science/article/pii/S2444969516300555

 https://scialert.net/fulltextmobile/?doi=jse.2015.877.885

 https://www.icommercecentral.com/open-access/study-of-consumer-
perception-of-digital-payment-mode.php?aid=86419

• https://www.theseus.fi/handle/10024/139600

• https://rba.gov.au/publications/rdp/2014/pdf/rdp2014-05.pdf

 https://www.npci.org.in
 https://www.rbi.org.in
 https://www.rbi.org.in
 https://www.researchgate.net/publication/
295863354_Security_Research_of_a_Social_Payment_App_and_Suggest
ed_Improvement

https://www.theseus.fi/handle/10024/139600

• https://rba.gov.au/publications/rdp/2014/pdf/rdp2014-05.pdf

https://www.proquest.com/openview/
0895f8abb03009cc9444bc9d237010e9/1

http://www.ijrar.org/papers/IJRAR19YP021.pdf

https://www.reuters.com/business/finance/fintech-firm-cred-joins-indian-
central-banks-digital-currency-project-2025-01-28/?utm_

https://fastercapital.com/content/Balance-of-Payments--The-International-
Ledger--Understanding-Balance-of-Payments.html

https://www.researchgate.net/publication/
323447470_Evolution_of_Mobile_Applications
https://ijcrt.org/papers/IJCRTRIETS026.pdf

HISTORY References:

Capgemini & BNP Paribas. (2020). World Payments Report.

PricewaterhouseCoopers. (2015). Unbanked Population in India.

NACHA. (1974). ACH Payment Rules and Regulations.

Western Union. (1871). Introduction of Electronic Fund Transfer.

Wells Fargo. (2016). Account Fraud Scandal Investigation.

National Payments Corporation of India. (2016). Unified Payments Interface

Overview.

Laudon, K. C., & Traver, C. G. (2022). E-Commerce 2022: Business,

Technology, Society. Pearson.

Chaffey, D. (2021). Digital Business and E-Commerce Management. Pearson.

Khan, M. (2021). E-Commerce: Fundamentals and Applications. Wiley.
Laudon, K. C., & Traver, C. G. (2022). E-Commerce 2022: Business,
Technology, Society. Pearson.
Turban, E., Pollard, C., & Wood, G. (2020). Electronic Commerce: A
Managerial and Social Networks Perspective. Springer.

INTRODUCTION References:

 Kaur, H., & Pathak, R. (2023). Digital Payment Systems and User
Adoption: A Systematic Review. International Journal of Financial
Research, 14(3), 45-58.
 NPCI. (2024). Unified Payment Interface (UPI) Report. Retrieved from
https://www.npci.org.in
 Reserve Bank of India. (2024). Digital Payment Trends in India.
Retrieved from https://www.rbi.org.in
 Sharma, P., & Singh, R. (2022). The Impact of COVID-19 on Digital
Payments: A Case Study of India. Journal of Business Research, 125(2),
112-125.
 Gupta, V., & Bansal, P. (2023). Cybersecurity Challenges in Digital
Payments: A Review. Journal of Information Security Research, 17(1),
34-49.
 Singh, A., & Mehta, K. (2023). Adoption of Digital Payment Systems
among Urban Professionals. Journal of Financial Technology, 11(4), 78-
91.
 Castells, M. (2010). The Rise of the Network Society. Wiley-Blackwell.
 Kim, H., et al. (2010). Digital Payment Security: A Review. Journal of
Financial Research, 8(2), 98-112.
 Venkatesh, V., et al. (2012). Technology Acceptance and Usage among
Professionals. MIS Quarterly, 36(1), 157-178.
 RBI. (2019). Digital Payments Vision 2021. Retrieved from
https://www.rbi.org.in
APPENDIX (QUESTIONNAIRE)

Name*
Your answer

Age*
◯Under 25
◯ 25-34
◯ 35-44
◯45-54
◯ 55 and above

Gender*
◯Male
◯Female

Education Qualification *
◯SSC
◯HSC
◯Graduate
◯Undergraduate
◯Post Graduate
◯Other:

Profession/ Occupation*
◯Self Employed
◯Salaried
◯Business Class
◯Government Services
◯Housewife
◯Other:

Annual Income *
◯Below 2,50,000
◯2,50,000-5,00,000
◯5,00,000-7,50,000
 ◯7,50,000-10,00,000
◯Above 10,00,000
Do You Use Online Payment Apps*
◯Yes
◯No

Which App Do You Use for Online Payment? *

☐Google Pay
☐Phone Pe
☐Bhim
☐Freecharge
☐MobiKwik
☐Paytm

How Often Do You Use Online Payment Apps? *

◯Daily
◯Weekly
◯Monthly
◯Yearly

What Is the Main Reason You Use Online Payment Apps? *

☐Bill Payments
☐Money Transfer to Family/Friends
☐Online
☐Business Transaction
☐Investment/Payment for Services
☐Recharge
☐To Avail Cashback
☐Other:
Which App You Would Like to Use in Terms Of: - (Private Apps Like Google Pay,
Paytm, PhonePe etc. Public Apps Like Bhims Apps, Umang etc.) *

◯ ◯
Criteria Public App Private App

◯ ◯
Security

◯ ◯
Trustworthy

Processing Speed of Transaction ◯ ◯

Interface of App

Why Do You Prefer Using Online Payment Apps?

Strongly Neither Agree nor Strongly

Criteria Agree Disagree
◯ ◯ ◯ ◯ ◯
Agree Disagree Disagree

◯ ◯ ◯ ◯ ◯
It Gives Discount

◯ ◯ ◯ ◯ ◯
It Gives Premium Offer

◯ ◯ ◯ ◯ ◯
It Gives Cash Back

◯ ◯ ◯ ◯ ◯
It Is Time Saving

◯ ◯ ◯ ◯ ◯
It Is Cost Effective
It Reduces Burden Of
Paper Work

How Much Money Do You Spend For Online Payments?*

◯Less Than 1000
◯1000-4000
◯4000-8000
◯More Than 8000

How Satisfied Are You With Your Online Payment App Experience? *
(Required)

1.
2.
3.
4.
5.
How Secure Do You feel when Using Online Payment Apps?*
◯Very Secure
◯Secure
◯Neutral
◯Insecure
◯Very Insecure

Are You Concerned About The Privacy If Your Financial Data When Using
These Apps?*
◯Not At All
◯Slightly
◯Moderately
◯Very
◯Extremely

Are There Any Obstacles When You Use Online Payment Apps?*
◯Yes
◯No

What Are The Obstacles You Face While Using This Apps?*
☐Security Issues
☐Online Fraud
☐Loss Of Data Connectivity
☐Misuse Of Personal Information
☐Hacking

Did Demonetization Affect The Online Payments Apps?*

1.
2.
3.
4.
5.

Are This Apps Services Useful For Payments?*

◯Strongly Agree
◯Strongly Disagree
◯Neutral
State Your Level Of Agreement With The Following: *

Strongly Neither Agree Strongly

Statement Agree Disagree
◯ ◯ ◯ ◯ ◯
Agree Nor Disagree Disagree
I Don't Feel Safe To Use Online

◯ ◯ ◯ ◯ ◯
Payment Apps

◯ ◯ ◯ ◯ ◯
I Find It Difficult To Understand

◯ ◯ ◯ ◯ ◯
I Face A Problem Of Trust Issues
I Find That Account Can Be

◯ ◯ ◯ ◯ ◯
Hacked In Online Payment Apps
I Feel Fraud Can Also Happen In

◯ ◯ ◯ ◯ ◯
Online Transaction
I Feel That Maybe Our Personal
Information Can Be Misused

Do You Feel That Online Payments Is Better Than Offline Payments?*

◯Yes
◯No
◯Maybe

◯Yes
Would You Like To Refer Your Friend To Use Online Payments Apps? *

◯No
◯Maybe