“A Study On Different Types Of Payment Methods In India”

A PROJECT SUBMITTED TO

University Of Mumbai for partial completion of the degree of

BACHELOR OF COMMERCE (ACCOUNTING AND FINANCE)

UNDER THE FACULTY OF COMMERCE

BY

Meet Rohra

Roll No 20436

UNDER THE GUIDANCE OF

PROF. SONA DEEPAKLAL DAWRA

SEVA SADAN COLLEGE OF ARTS, SCIENCE AND COMMERCE

(SEVA SADAN MARG, ULHASNAGAR –421 003)

APRIL 2023

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 CERTIFICATE

This is to certify that Mr Meet Rohra worked and duly completed his Project Work for
the degree of Bachelor of Commerce (Accounting and Finance) under the Faculty of
Commerce in the subject of Project Work and his project is entitled, “A Study On
Different Types Of Payment Methods In India”, under my supervision.

I further certify that the entire work has been done by the learner under my guidance and
that no part of it has been submitted previously for any Degree or Diploma of any
University.

It is his own work and facts reported by his personal findings and investigations.

(Prof. Sona Deepaklal Dawra)

Date of submission:

2
 Declaration by learner

I the undersigned Mr. Meet Rohra here by, declare that the work embodied in this

project work titled “A Study On Different Types Of Payment Methods In India”, forms
my own contribution to the research work carried out under the guidance of PROF.
SONA DEEPAKLAL DAWRA is a result of my own search work and has not been
previously submitted to any other University for any other Degree / Diploma to this or
any other University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

(Meet Rohra)

(Roll No 20436)

Certified by

(Prof.Sona Deepaklal Dawra )

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal, DR. GULABCHAND GUPTA for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator Prof. SONA DEEPAKLAL DAWRA
for her moral support and guidance.

I would also like to express my sincere gratitude towards my project guide Prof. SONA
DEEPAKLAL DAWRA whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me
in the completion of the project especially my Parents and Peers who supported me
throughout my project.

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 Index

Sr no. Title Page no.

Chapter 1 Introduction

1.1 Introduction to payment

1.2 History of payment methods in
India
1.3 Payment systems in India
1.4 Different types of payment
methods in India
1.5 What are the benefits of digital
payments?
1.6 Limitations of payment
methods
1.7 Digital innovation will continue
to improve and grow payment
sector
1.8 Digital payment trends
1.9 Digital payment see rapid
growth in March – September
days RBI

Chapter 2 Literature Review

2.1 Introduction to Review of
literature
2.2 Review of literature
2.3 Gap Analysis

Chapter 3 Research Methodology

3.1 Introduction to Research
Methodology
3.2 Objectives
3.3 Sample Size

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3.4 Data collection
3.5 Sources and method of data
collection

Chapter 4 Data Analysis and

Interpretation

Chapter 5 Conclusion and suggestions

5.1 Conclusion
5.2 Suggestion

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CHAPTER 1:- INTRODUCTION

-1.1 INTRODUCTION TO PAYMENT

A payment is the voluntary tender of money or its equivalent or of things of value by one party
(such as a person or company) to another in exchange for goods, or services provided by them, or
to fulfill a legal obligation. The party making the payment is commonly called the payer, while the
payee is the party receiving the payment.

Payments can be effected in a number of ways, for example:

The use of money, cheque, or debit, credit or bank transfers.

The transfer of anything of value, such as stock, or using barter, the exchange of one good or service
for another. In general, the payee is at liberty to determine what method of payment he or she will
accept; though normally laws require the payer to accept the country’s legal tender up to a
prescribed limit. Payment is most commonly effected in the local currency of the payee unless the
parties agree otherwise. Payment in another currency involves an additional foreign exchange
transaction. The payee may compromise on a debt, i.e., accept part payment in full settlement of a
debtor’s obligation, or may offer a discount, E.G: For payment in cash, or for prompt payment, etc.

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On the other hand, the payee may impose a surcharge, for example, as a late payment fee, or for
use of a certain credit card, etc.

Payments are frequently preceded by an invoice or bill, which follow the supply of goods or
services, but in some industries (such as travel and hotels) it is becoming common for pre-payments
to be required before the service is performed or provided. In some industries, a deposit may be
required before services are performed, which acts as a part pre-payment or as security to the
service provider. In some cases, progress payments are made in advance, and in some cases part
payments are accepted, which do not extinguish the payer’s legal obligations. The acceptance of a
payment by the payee extinguishes a debt or other obligation. A creditor cannot unreasonably
refuse to accept a payment, but payment can be refused in some circumstances, for example, on a
Sunday or outside banking hours. A payee is usually obligated to acknowledge payment by
producing a receipt to the payer. A receipt may be an endorsement on an account as “paid in full”.
The giving of a guarantee or other security for a debt does not constitute a payment.

A digital payment, sometimes called an electronic payment, is the transfer of value from one
payment account to another using a digital device such as a mobile phone, POS (Point of Sales) or
computer, a digital channel communication such as mobile wireless data or SWIFT (Society for
the Worldwide Interbank Financial Telecommunication). This definition includes payments made
with bank transfers, mobile money, and payment cards including credit, debit and prepaid cards.

Digital payments are transactions that take place via digital or online modes, with no physical
exchange of money involved. This means that both parties, the payer and the payee, use electronic
mediums to exchange money.

The Government of India has been undertaking several measures to promote and encourage digital
payments in the country. As part of the ‘Digital India’ campaign, the government has an aim to
create a ‘digitally empowered’ economy that is ‘Faceless, Paperless, Cashless’. There are various
types and methods of digital payments.

Digital payments can take place on the internet as well as on physical premises. For example, if
you buy something from Amazon and pay for it via UPI, it qualifies as a digital payment. Similarly,
if you purchase something from your local Kirana store and choose to pay via UPI instead of
handing over cash, that also is a digital payment.
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1.2. History of payment Methods in India

When people or businesses enter into economic transactions, i.e. buy and sell goods and services,
the value thereof needs to be settled. Before the concept of money came in, the settlement was
through exchange of goods and / or services and it was called the barter system. With the
concept of money, the sale and purchase of goods and services are being effected or settled by
payment of money.

The ‘money’ was in early days the precious metals like gold and silver. Later, the
governments issued coins made of these precious metals as money; still later, the paper
money, the currency, became the norm as the money. Thus people settled their economic
transactions by paying in currency notes and coins.

As the banking system evolved, it became easier, safe and even remunerative to keep one’s
money in a bank account and it became still more easier and safe to use ‘transfer of money in
bank accounts’ for making payments for the economic transactions. This was more so for
large value transactions. Actually, it is now used equally for effecting low value transactions
also. 6. For effecting this transfer of money in bank accounts, a payment instrument was
needed to instruct the bank to effect that transfer. This instrument was the cheque for a very
long period. Thus a system consisting of the cheque as the payment instruments and an
infrastructure around the cheques consisting of the drawer bank, the drawer bank and the cheque
clearing houses came on the scene and were known as the payment systems.
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. With the developments in the information and communication technology, world over,
different kinds of payment instruments and innovations in the instruments and the payment
systems evolved. It happened in India too and that’s the story I will be narrating no we can
boast of a strong retail payments framework in the country comparable to that of any advanced
country, and perhaps even better than some of them in terms of the variety and efficiency.
Various types of payment instruments exist to meet the requirements of different users in
different circumstances – bank accounts, cheques, debit and credit cards, prepaid payment
instruments, etc. There are various systems to meet the remittance requirements of users
depending upon their time criticality and cost sensitivity – National Electronic Funds Transfer
(NEFT), Immediate Payment Service (IMPS), Aadhaar Enabled Payment System (AEPS) and
recently Unified Payments Interface. The need for making bulk and repetitive payments is met
by systems such as Electronic Clearing Service (ECS), National Automated Clearing House
(NACH) and Aadhaar Payment Bridge System (APBS).

Moving further along the path of non-cash, non-paper payments, over a period of time various
systems have been put in place to meet the remittance requirements of different segments of
users. The National Electronic Funds Transfer or NEFT as it is popularly known, is a pan-
India system today. Though it began its journey a decade ago as a local EFT system, it later
expanded to cover larger areas. There are not too many systems of comparison even in other
countries. Our Vision -2018 envisages further efficiency enhancements in NEFT.

Apart from NEFT, the Immediate Payment Service (IMPS) and Real Time Gross Settlement
System (RTGS) also facilitate funds transfer requirements of users. While the former is a
24x7 immediate funds transfer system the latter is essentially a Financial Market Infrastructure
which processes large payments including customer payment transaction where value is above
2 lakh. In all these systems, a system of positive confirmation

Over last 3-4 years many regulatory changes have been introduced to ensure safety and
security both in terms of form factor as well as at transaction level of card payments. Some
of these are briefly indicated below: - Introduction of online alerts (through SMS mostly) - use
of PIN for successive ATM transactions - use of additional factor of authentication for
proximity (card present) in the form of PIN@POS for debit cards and online transactions

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(card not present) in the form of static passwords or dynamic passwords like OTP, etc -
mandate for securing the card processing infrastructure - mandate for phased migration to EMV
chip and PIN card issuance

Thus, the retail payments ecosystem has not only evolved over the last twenty five years
but has also taken a revolutionary trajectory in many areas. Whether it is fast payments
(IMPS) offered through multiple access channels (mobile, net banking, ATM, branch, IVR,
BC, etc) or mobile banking / payments, cheque clearing or card payments security aspects,
our systems are comparable with the best in the world, which is no mean achievement for a
country like ours despite challenges in the form of migrating large segments of cash transactions
to electronic, financial inclusion, awareness and financial literacy, customer protection, etc.

Further, in comparison to other countries, the changes in our payments eco-system have
been fast-forwarded to reach the present stage in the shortest possible time. Innovations in
technology are pushing the boundaries of payment processes and the players are keen to
adopt newer systems and adapt the older payment mechanisms in new avatars.

1.3. Payment Systems in India

• Overview of Payment Systems in India

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The central bank of any country is usually the driving force in the development of national payment
systems. The Reserve Bank of India as the central bank of India has been playing this
developmental role and has taken several initiatives for Safe, Secure, Sound, Efficient, Accessible
and Authorized payment systems in the country.

The Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), a sub-
committee of the Central Board of the Reserve Bank of India is the highest policy making body on
payment systems in the country. The BPSS is empowered for authorising, prescribing policies and
setting standards for regulating and supervising all the payment and settlement systems in the
country. The Department of Payment and Settlement Systems of the Reserve Bank of India serves
as the Secretariat to the Board and executes its directions.

In India, the payment and settlement systems are regulated by the Payment and Settlement Systems
Act, 2007 (PSS Act) which was legislated in December 2007. The PSS Act as well as the Payment
and Settlement System Regulations, 2008 framed thereunder came into effect from August 12,
2008. In terms of Section 4 of the PSS Act, no person other than the Reserve Bank of India (RBI)
can commence or operate a payment system in India unless authorized by RBI. Reserve Bank has
since authorized payment system operators of pre-paid payment instruments, card schemes, cross-
border in-bound money transfers, Automated Teller Machine (ATM) networks and centralized
clearing arrangements.

• Payment System

The Reserve Bank has taken many initiatives towards introducing and upgrading safe and efficient
modes of payment systems in the country to meet the requirements of the public at large. The
dominant features of large geographic spread of the country and the vast network of branches of
the Indian banking system require the logistics of collection and delivery of paper instruments.
These aspects of the banking structure in the country have always been kept in mind while
developing the payment systems.

• Paper-based Payments
Use of paper-based instruments (like cheques, drafts, and the like) accounts for nearly 60% of the
volume of total non-cash transactions in the country. In value terms, the share is presently around
11%. This share has been steadily decreasing over a period of time and electronic mode gained

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popularity due to the concerted efforts of Reserve Bank of India to popularize the electronic
payment products in preference to cash and cheques.
Since paper based payments occupy an important place in the country, Reserve Bank had
introduced Magnetic Ink Character Recognition (MICR) technology for speeding up and bringing
in efficiency in processing of cheques.

Later, a separate High Value Clearing was introduced for clearing cheques of value Rupees one
lakh and above. This clearing was available at select large centres in the country (since
discontinued). Recent developments in paper-based instruments include launch of Speed Clearing
(for local clearance of outstation cheques drawn on core-banking enabled branches of banks),
introduction of cheque truncation system (to restrict physical movement of cheques and enable use
of images for payment processing), framing CTS-2010 Standards (for enhancing the security
features on cheque forms) and the like.
While the overall thrust is to reduce the use of paper for transactions, given the fact that it would
take some time to completely move to the electronic mode, the intention is to reduce the movement
of paper – both for local and outstation clearance of cheques.

• Electronic Payments
The initiatives taken by RBI in the mid-eighties and early-nineties focused on technology-based
solutions for the improvement of the payment and settlement system infrastructure, coupled with
the introduction of new payment products by taking advantage of the technological advancements
in banks. The continued increase in the volume of cheques added pressure on the existing set-up,
thus necessitating a cost-effective alternative system.

• Electronic Clearing Service (ECS) Credit

The Bank introduced the ECS (Credit) scheme during the 1990s to handle bulk and repetitive
payment requirements (like salary, interest, dividend payments) of corporates and other
institutions. ECS (Credit) facilitates customer accounts to be credited on the specified value date
and is presently available at all major cities in the country.

During September 2008, the Bank launched a new service known as National Electronic Clearing
Service (NECS), at National Clearing Cell (NCC), Mumbai. NECS (Credit) facilitates multiple
credits to beneficiary accounts with destination branches across the country against a single debit

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of the account of the sponsor bank. The system has a pan-India characteristic and leverages on Core
Banking Solutions (CBS) of member banks, facilitating all CBS bank branches to participate in the
system, irrespective of their location across the country.

• Regional ECS (RECS)

Next to NECS, RECS has been launched during the year 2009.RECS, a miniature of the NECS is
confined to the bank branches within the jurisdiction of a regional office of RBI. Under the system,
the sponsor bank will upload the validated data through the Secured Web Server of RBI containing
credit/debit instructions to the customers of CBS enabled bank branches spread across the
Jurisdiction of the Regional office of RBI. The RECS centre will process the data, arrive at the
settlement, generate destination bank wise data/reports and make available the data/reports through
secured web-server to facilitate the destination bank branches to afford credit/debit to the accounts
of beneficiaries by leveraging the CBS technology put in place by the bank. Presently RECS is
available in Ahmedabad, Bengaluru, Chennai and Kolkata.

• Electronic Clearing Service (ECS) Debit

The ECS (Debit) Scheme was introduced by RBI to provide a faster method of effecting periodic
and repetitive collections of utility companies. ECS (Debit) facilitates consumers / subscribers of
utility companies to make routine and repetitive payments by ‘mandating’ bank branches to debit
their accounts and pass on the money to the companies. This tremendously minimises use of paper
instruments apart from improving process efficiency and customer satisfaction. There is no limit
as to the minimum or maximum amount of payment. This is also available across major cities in
the country.

• Electronic Funds Transfer (EFT)

This retail funds transfer system introduced in the late 1990s enabled an account holder of a bank
to electronically transfer funds to another account holder with any other participating bank.
Available across 15 major centers in the country, this system is no longer available for use by the
general public, for whose benefit a feature-rich and more efficient system is now in place, which is
the National Electronic Funds Transfer (NEFT) system.

• National Electronic Funds Transfer (NEFT) System

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In November 2005, a more secure system was introduced for facilitating one-to-one funds transfer
requirements of individuals / corporates. Available across a longer time window, the NEFT system
provides for batch settlements at hourly intervals, thus enabling near real-time transfer of funds.
Certain other unique features viz. accepting cash for originating transactions, initiating transfer
requests without any minimum or maximum amount limitations, facilitating one-way transfers to
Nepal, receiving confirmation of the date / time of credit to the account of the beneficiaries, etc.,
are available in the system.

• Real Time Gross Settlement (RTGS)System

RTGS is a funds transfer systems where transfer of money takes place from one bank to another
on a “real time” and on “gross” basis. Settlement in “real time” means payment transaction is not
subjected to any waiting period. “Gross settlement” means the transaction is settled on one-to-one
basis without bunching or netting with any other transaction. Once processed, payments are final
and irrevocable. This was introduced in in 2004 and settles all inter-bank payments and customer
transactions above `2 lakh.

• Clearing Corporation of India Limited (CCIL)

CCIL was set up in April 2001 by banks, financial institutions and primary dealers, to function as
an industry service organization for clearing and settlement of trades in money market, government
securities and foreign exchange markets.

The Clearing Corporation plays the crucial role of a Central Counter Party (CCP) in the government
securities, USD –INR forex exchange (both spot and forward segments) and Borrowing and
Lending Obligation (CBLO) markets. CCIL plays the role of a central counterparty whereby, the
contract between buyer and seller gets replaced by two new contracts – between CCIL and each of
the two parties. This process is known as ‘Novation’. Through novation, the counterparty credit
risk between the buyer and seller is eliminated with CCIL subsuming all counterparty and credit
risks. In order to minimize the these risks, that it exposes itself to, CCIL follows specific risk
management practices which are as per international best practices. IN addition to the guaranteed
settlement, CCIL also provides non guaranteed settlement services for National Financial Switch
(Inter bank ATM transactions) and for rupee derivatives such as Interest Rate Swaps.

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CCIL is also providing a reporting platform and acts as a repository for Over the Counter (OTC)
products.

Other Payment Systems

• Pre-paid Payment Systems

Pre-paid instruments are payment instruments that facilitate purchase of goods and services against
the value stored on these instruments. The value stored on such instruments represents the value
paid for by the holders by cash, by debit to a bank account, or by credit card. The pre-paid payment
instruments can be issued in the form of smart cards, magnetic stripe cards, internet accounts,
internet wallets, mobile accounts, mobile wallets, paper vouchers, etc.

Subsequent to the notification of the PSS Act, policy guidelines for issuance and operation of
prepaid instruments in India were issued in the public interest to regulate the issue of prepaid
payment instruments in the country.

The use of pre-paid payment instruments for cross border transactions has not been permitted,
except for the payment instruments approved under Foreign Exchange Management Act,1999
(FEMA).

• Mobile Banking System

Mobile phones as a medium for providing banking services have been attaining increased
importance. Reserve Bank brought out a set of operating guidelines on mobile banking for banks
in October 2008, according to which only banks which are licensed and supervised in India and
have a physical presence in India are permitted to offer mobile banking after obtaining necessary
permission from Reserve Bank. The guidelines focus on systems for security and inter-bank
transfer arrangements through Reserve Bank’s authorized systems. On the technology front the
objective is to enable the development of inter-operable standards so as to facilitate funds transfer
from one account to any other account in the same or any other bank on a real time basis irrespective
of the mobile network a customer has subscribed to.

• ATMs / Point of Sale (POS) Terminals / Online Transactions

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Presently, there are over 61,000 ATMs in India. Savings Bank customers can withdraw cash from
any bank terminal up to 5 times in a month without being charged for the same. To address the
customer service issues arising out of failed ATM transactions where the customer’s account gets
debited without actual disbursal of cash, the Reserve Bank has mandated re-crediting of such failed
transactions within 12 working day and mandated compensation for delays beyond the stipulated
period. Furthermore, a standardized template has been prescribed for displaying at all ATM
locations to facilitate lodging of complaints by customers.

There are over five lakh POS terminals in the country, which enable customers to make payments
for purchases of goods and services by means of credit/debit cards. To facilitate customer
convenience the Bank has also permitted cash withdrawal using debit cards issued by the banks at
PoS terminals.

The PoS for accepting card payments also include online payment gateways. This facility is used
for enabling online payments for goods and services. The online payment are enabled through own
payment gateways or third party service providers called intermediaries. In payment transactions
involving intermediaries, these intermediaries act as the initial recipient of payments and distribute
the payment to merchants. In such transactions, the customers are exposed to the uncertainty of
payment as most merchants treat the payments as final on receipt from the intermediaries. In this
regard safeguard the interests of customers and to ensure that the payments made by them using
Electronic/Online Payment modes are duly accounted for by intermediaries receiving such
payments, directions were issued in November 2009. Directions require that the funds received
from customers for such transactions need to be maintained in an internal account of a bank and
the intermediary should not have access to the same.

Further, to reduce the risks arising out of the use of credit/debit cards over internet/IVR (technically
referred to as card not present (CNP) transactions), Reserve Bank mandated that all CNP
transactions should be additionally authenticated based on information not available on the card
and an online alert should be sent to the cardholders for such transactions.

• National Payments Corporation of India

The Reserve Bank encouraged the setting up of National Payments Corporation of India (NPCI) to
act as an umbrella organization for operating various Retail Payment Systems (RPS) in India. NPCI
became functional in early 2009. NPCI has taken over National Financial Switch (NFS) from
Institute for Development and Research in Banking Technology (IDRBT). NPCI is expected to

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bring greater efficiency by way of uniformity and standardization in retail payments and expanding
and extending the reach of both existing and innovative payment products for greater customer
convenience.

• Oversight of Payment and Settlement Systems

Oversight of the payment and settlement systems is a central bank function whereby the objectives
of safety and efficiency are promoted by monitoring existing and planned systems, assessing them
against these objectives and, where necessary, inducing change. By overseeing payment and
settlement systems, central banks help to maintain systemic stability and reduce systemic risk, and
to maintain public confidence in payment and settlement systems.

The Payment and Settlement Systems Act, 2007 and the Payment and Settlement Systems
Regulations, 2008 framed thereunder, provide the necessary statutory backing to the Reserve Bank
of India for undertaking the Oversight function over the payment and settlement systems in the
country.

1.4 Different types of payment Methods in India

The Digital India programmes is a flagship programmes of the Government of India with a vision
to transform India into a digitally empowered society and knowledge economy. “Faceless,
Paperless, Cashless” is one of professed role of Digital India.

As part of promoting cashless transactions and converting India into less-cash society, various
modes of digital payments are available.

• Credit and Debit Cards

Nationally, card penetration is low. But the actual value of sales paid with cards is 29% of the
ecommerce pie,1 so offering Visa, MasterCard, and the national RuPay card scheme is important
to addressing the top end of the market.

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Many cards in India are not approved for international purchases. Businesses who wish to sell
cross-border should seek a local partner for credit card payment processing and offer other locally
preferred payment method

Bank cards is among the most used type of cashless payment method. It comes with a number of
features, such as convenience, security, etc. The main benefit of a debit or credit card is that it can
be used for making other types of digital payments.

For instance, you can save your card information in the mobile Apps to make a cashless payment.
A few of well-known card payment systems include Visa, MasterCard, and Rupay. You can also
these banking cards for online purchase and online transaction, PoS machines, and in digital
payments.

• Bank Transfer

India has long had a mature system of online bank transfers – from “Net banking”, enabling users
to authenticate to their bank and approve an online purchase, to IMPS, the instant transfer network,
or to more traditional NEFT and RTGS. Indians have a wide range of bank transfer options in

19
addition to UPI. As bank account penetration increases, transfer rates will continue to rise,
particularly for higher value transactions.

• E- Wallets

The use of e wallets is rising in India, with an expected compound annual growth rate of 80%
to 2021.1 e wallets are well on their way to becoming the dominant online payment method
and must be part of any ecommerce or mobile-commerce checkout experience.

In addition to simple payments, e wallets in India have become “super apps”, with features that
engage users throughout the day:

Paytm:

The Paytm app enables Indian consumers to purchase a variety of goods, as well as book travel
and event tickets, invest, and pay their bills. Paytm is the most popular payment method in India
with 20.3% of online shoppers ranking it as their favorite way to pay according to 2020 Consumer
Online Buying and Payment Stud

Google Pay – These international entrants built natively for India on top of UPI and local
partnerships. 19% of online shoppers in India rank Google Pay as their favorite payment method
with hundreds of millions of users already saving their card information to their Google account,
Google Pay could offer an extra layer of convenience for a significant number of your customers.

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Trusted worldwide, Google Pay lets shoppers choose from saved payment methods in their Google
account in order to checkout quickly and smoothly on third-party sites. On top of this, your
customers can also store branded gift cards, loyalty cards and offers with Google Pay, helping you
to build brand affinity and provide a seamless shopping experience that is entirely online. What’s
more, Google Pay is free for both you and your customers to use.

Amazon pay Amazon Pay is another big player in the online payment space. Similar to PayPal,
Amazon Pay is a digital payment processing service that allows customers to pay online using their
Amazon payment methods on third party websites. Amazon Pay uses the details already stored on
the shopper’s Amazon account to complete the transaction and provide a speedy checkout
experience.

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Online retailers can certainly benefit from Amazon’s undisputed popularity across the whole web,
as the majority of customers will already hold an account with Amazon.

PayPal.

Alongside credit and debit cards, PayPal is one of the most dominant payment methods available
today with over 254 million users worldwide. Owned by eBay, PayPal is an ecommerce payment
processing company that allows users to set up a PayPal account and pay a fee for each cash
transaction. Many customers prefer to checkout with PayPal because it’s so simple and quick to
use, not to mention its perceived level of security by online shoppers.

Used by more than 17 million businesses worldwide, PayPal boasts that customers who use its
services to checkout convert at 82% higher rates compared with other payment options.However,
keep in mind that rules and fees will vary depending on the currency being used and the amount
transacted.

PhonePe: PhonePe is also a one-stop cashless app, enabling Indian consumers to shop, pay bills,
and transfer funds from one central platform.

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Airtel Money: The Airtel Money app provides a broad spectrum of financial features, allowing
consumers to shop online, access banking services and purchase insurance, among other options

1.5 What are the benefits of digital payments?

In a country like India, where disparities are sometimes poles apart, ensuring financial equality
becomes an issue of prime importance. One of the reasons why our government started vocalizing
Cashless Economy and Digital India was to improve access to financial resources. There are
multiple benefits that digital payments bring to the table.

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• Ease and convenience
One of the most significant advantages of digital payment is the seamless experience they provide
to customers. Reduced dependency on cash, fast transfer speed, and the ease of transacting make
online payments a preferred option. Traditional payment methods like cash and cheques add to
factors like risk, steps, and physical presence. With digital payment, you can send and receive funds
from anywhere in the world at the click of a button.

Standing in long ATM queues just to withdraw a small amount of cash is hardly an exciting activity
for anyone. However, most seniors have to face this scenario every time they step out to buy
something.

Digital payments, on the other hand, offer increased convenience for the elderly as it allows them
to easily conduct financial transactions without having to worry about whether they have adequate
cash in their wallet.

• Economic progress
Customers transact more online when they see the ease, convenience, and security of online
payments. This means that more and more people feel comfortable buying online, investing
digitally, and transferring funds via electronic mediums. The increase in money movement and
online business contributes to the progress of the economy. This is why online ventures are being
launched every day and even more are making profits daily.

• Safety and efficient tracking

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Handling and dealing in cash is a cumbersome and tedious task. Along with the risk of losing
money, there is the hassle of carrying cash everywhere you go and keeping it safe. With digital
payments, one can keep their funds secured in online format effortlessly. Nowadays, your mobile
phone alone is enough to make and receive payments – thanks to UPI, net banking, and mobile
wallets. Additionally, most digital payment channels provide regular updates, notifications, and
statements for a customer to track his funds.

• Increased Security
Carrying cash at all times can be a risky decision. This is why senior citizens are common targets
of small thefts or robberies. One of the main advantages of digital payments is that they are much
more secure than regular cash transactions, as they require proper verification and authentication.

Banks and other digital payment platforms also provide added security for digital transactions in
the form of OTPs and cross-verification, which can help in preventing fraudulent transactions.

• Seamless Transactions
Since digital payments have been around for quite sometime now, the process has become easier
than ever, especially for seniors. Showrooms, malls and even small shops have now started
accepting digital payments.

The whole transaction process has also become seamless, as buyers can now make payments using
their mobile banking apps or other digital wallets.

• Different Options
Right from debit cards and credit cards to digital wallets like Google Pay and PhonePe, seniors can
now choose from a wide range of options for their preferred mode of digital payment.

This gives the elderly an opportunity to conduct financial transactions without the fear of falling
short of liquid cash. Also, one of the main reasons why seniors must go cashless

• Offers & Discounts

In order to promote digital payments, banks as well as other financial institutions regularly offer
different types of offers and discounts for their customers.

25
Elders can benefit from these offers and can even receive regular cashbacks, rewards and discount
vouchers for their digital payments. Moreover, some banks and digital wallets provide special
rewards and offers for their senior customers as well.

• Convenience During Travel

Gone are the days when we had to carry large amounts of cash during any outstation travel. Today,
retailers all over the country have understood the importance of going cashless and have started
accepting digital payments.

Thus, elders can now easily travel to and from other cities in India, without having to worry about
finding an ATM or running out of cash.

• Physical Distancing
One of the main benefits of digital payments is that it promotes safe and contactless transactions.
With the Covid-19 crisis still looming over our heads, avoiding physical contact is of utmost
importance.

Elders are known to be at a higher risk during this crisis. Opting for digital payments is, therefore,
one of the best ways for seniors to stay safe during the Covid-19 pandemic

• Track Your Spending

The first step towards financial independence is to maintain a regular weekly/monthly budget. This
is even more important for seniors who depend on their pension and other life savings. Digital
payments allow the elderly to stay on top of their overall spending with easy-to-access bank
statements and records of all transactions.
• Save Time & Money
One of the main benefits of going cashless is that it can save the elderly a lot of time and money as
well. The various payment options available ensure that seniors can make faster payments.

Elders can also save money by opting for digital platforms that do not charge any transaction fees.
Not only will this be helpful in saving money , but it can also prove to be beneficial for their overall
budget

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 So, these were some of the main reasons why seniors must go cashless and embrace the era of
digitization. Although it may be somewhat difficult for the elderly to fully understand the concept
of digital transactions,

• Budget Discipline
Going cashless is one of the best ways for seniors to understand their spending habits, as they can
use different apps to track and analyze their transaction patterns as well.

This will help them to understand their expenses and will also allow them to plan their budget in a
much better way. Developing a budgeting discipline also plays a key role in achieving financial
independence

1.6 Limitations of payment methods

• Merchant charges

The primary downside of using a payment processor is that it will come with a charge. As we’ve
said, this could be a monthly rental fee or simply a percentage of each transaction. These additional
costs can add up, but thankfully most providers offer a reasonable package that shouldn’t hit the
wallet too hard.

• Risk of fraud

Although e-payment systems are generally secure, there’s always the risk of their security measures
failing. Systems may not come under direct attack, but phishing techniques can be used to obtain IDs
and passwords. Once a hacker has these details, e-payments make it possible to process multiple
payments before the genuine account holder notices.

• Reliance on internet

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Of course, as the ‘e’ in ‘e-payment systems’ denotes, these transaction methods are reliant on the
Internet. Should you suffer an outage in service, this can grind business activity to a halt, leading
to frustrated customers and a lack of income for you.

Although there are downsides to e-payment systems, no method of payment will be perfect, and
the pros far outweigh the cons. Whichever way you look at it, modern consumer culture is
becoming increasingly cashless, and it pays to keep up with this trend.

• Not Traceable:

The digital cash uses the internet, which makes traceability difficult. Hence, the system provides
anonymity. This can be a good thing but also a bad thing. For instance, criminals could use the
digital cash system to launder their money to different countries. The lack of traceability is a major
problem for governments and legal authorities. It does not have any significant impact on the user
community.

• Forgery:

Digital cash systems pose some unique risks. Since cash is digital, it is likely that hackers might
break into the system. They may generate more coins even though they have not paid anything to
earn that cash. When excessive coins are generated, the value of the other coins in the system is
reduced. Hence, this risk affects both the users as well as the banks equally

• Service Fees:

Many a time while using e-payment services we are liable to pay service fees or a convenience fee
which adds to our expense

• Risk of Theft:

There have been many incidents in which cybercriminals have manipulated people and money has
been looted.

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• Technical Problems:

As it is an online service, it may go down due to technical issues and people who get 100% reliable
on this service for their payments may face an issue.

• Remote Areas:

Remote areas still rely on cash. You might find it difficult in making payments on the go while
traveling to some remote areas.
1.7 Digital innovations will continue to improve and grow the payments sector

The pace of digital innovation in payments is driving a reduction in costs projected double
compound annual growth rate. It is resulting in new business models and a more competitive
environment as new players emerge. These are some of the innovations:

• Contactless payments –

A secure payment method using a debit, credit or smartcard enabled by Radiofrequency

Identification (RFID) or near-field communication (NFC). This digital payment method is growing
in popularity due to its speed and seamless experience.

• Open Application Programming Interfaces (API)

A publicly available API that provides developers with programmatic access to a proprietary
software application or web service. Open APIs allow new providers to build services on top of
existing infrastructure. The relevance of these approaches is that it lowers barriers to entry for new
financial technology players, encouraging innovation and enabling the rise of seamless digital
payment services for the end-user.

• Unified Payments Interface (UPI)

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UPI is a payment system that culminates numerous bank accounts into a single application,
allowing the transfer of money easily between any two parties. As compared to NEFT, RTGS, and
IMPS, UPI is far more well-defined and standardized across banks. You can use UPI to initiate a
bank transfer from anywhere in just a few clicks.

The benefit of using UPI is that it allows you to pay directly from your bank account, without the
need to type in the card or bank details. This method has become one of the most popular digital
payment modes in 2020, with October witnessing over 2 billion transactions.

• Distributed ledger technology (DLT)

A database that is consensually shared and synchronized across multiple sites, institutions or
geographies. This database architecture solves the problem of trust among multiple stakeholders
and the so-called “double spend”, which refers to the dilemma of ensuring a digital asset is not
spent twice. Since all members of the network hold a copy of the ledger at all times, DLT allows
for decentralized digital payment systems that do not rely on a single central authority, such as a
bank or a public institution (see our full series on DLT and digital payments here)

• QR codes –

A two-dimensional Quick Response bar code or square-shaped code that contains data. It has
become popular as it is a quick and easy way to exchange information and has the potential of
substantially reducing payment acceptance costs. All that is needed for the payment to take place
is a digital device with a camera linked to an account.

• Biometric Payments

Biometric digital payments use Biometric ID as a means of verification and authorization of

payments. Biometric ID is any means by which a person can be uniquely identified by evaluating
one or more distinguishing biological traits. Unique identifiers include fingerprints, hand geometry,
earlobe geometry, retina and iris patterns, voice waves, DNA, and signatures.
• Central Bank Digital Currencies (CBDC) –

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Globally, emerging market economies are moving from conceptual research to intensive practical
development. Central banks representing a fifth of the world’s population say they are likely to
issue the first CBDCs in the next few years

• Unstructured Supplementary Service Data (USSD)

USSD was launched for those sections of India’s population which don’t have access to proper
banking and internet facilities. Under USSD, mobile banking transactions are possible without an
internet connection by simply dialing *99# on any essential feature phone.

This number is operational across all Telecom Service Providers (TSPs) and allows customers to
avail of services including interbank account to account fund transfer, balance inquiry, and availing
mini statements. Around 51 leading banks offer USSD service in 12 different languages, including
Hindi & English.

• Aadhaar Enabled Payment System (AEPS)

AEPS is a bank-led model for digital payments that was initiated to leverage the presence and reach
of Aadhar. Under this system, customers can use their Aadhaar-linked accounts to transfer money
between two Aadhaar linked Bank Accounts. As of February 2020, AEPS had crossed more than
205 million as per NPCI data.

AEPS doesn’t require any physical activity like visiting a branch, using debit or credit cards or
making a signature on a document. This bank-led model allows digital payments at PoS (Point of
Sale / Micro ATM) via a Business Correspondent(also known as Bank Mitra) using Aadhaar
authentication. The AePS fees for Cash withdrawal at BC Points are around Rs.15.

1.8 Digital payment trends

Digitization became top priority for financial institutions in 2020, and this transformation is giving
rise to digital payment companies across the world. Consumers are digitizing the payments they
make in-store and online—bringing new tech like contactless digital payments to the mainstream.
Apps like Venmo, Zelle, and Square Cash have grown in popularity, with volume hitting $393.87
billion on the back of massive user growth in 2020, according to Insider Intelligence estimates.

31
Maturing mobile P2P will enhance the opportunity—and need—for providers to monetize their
product, since a bump in volume has put the industry in a better position than ever to begin
capturing revenues from the services.

And the growth trends of cross-border payments and real-time non-card payments are increasingly
becoming a barometer for overall industry changes

Other trends that will continue to shape the digital payment landscape include:

• Leveraging new forms of fraud prevention

• Developing digital Payments as a Service (PaaS) experiences for unlikely entrants to the
payments space
• Managing the impact of cost pressure on the merchant-provider relationship

1.9 Digital. Payments see rapid growth in March-September, says RBI

The Reserve Bank of India’s (RBI) digital payments index (DPI), which was launched in January
2021 to indicate the extent of digitization of payments across the country, shows that the index for
September 2021 stood at 304.06 against 270.59 in March. This indicates the rapid adoption and
deepening of digital payments across the country.

In a statement, the RBI said, “The RBI-DPI Index continues to demonstrate significant growth in
adoption and deepening of digital payments across the country

32
The RBI said the index will be published on a semi-annual basis with a lag of four months. The
RBI-DPI has been constructed with March 2018 as the base period, that is, DPI score for March
2018 is set at 100.

The DPI index comprises five broad parameters that enable us to know the penetration of digital
payments in the country over different time periods.

The parameters include payment enablers, with a weightage of 25 per cent in the index, followed
by demand-side and supply-side payment infrastructure factors, with a weightage of 10 per cent
each. There is also the payment performance, with 45 per cent weightage, and consumer centricity,
with 5 per cent weightage. Each of the parameters has sub-parameters, which, in turn, consist of
various measurable indicators.

Experts have pointed out that Covid-19 has advanced digital payments adoption in the country by
5-10 years.

According to a report by Jeffries, India, on an annual basis, sees over $2 trillion in digital payments
on a combination of banking apps, cards, unified payments interface (UPI), mobile wallets and
government-driven direct-benefit transfers.

UPI payments have seen the highest ramp-up and constitute $1 trillion of annualized payments (as
of August 2021), followed by immediate payments services (IMPS).

While mobile wallets are growing, their transaction market share is lower, annualizing at $29
billion. Credit and debit cards at point of sale (PoS) machines are annualizing at $230 billion. Of

33
course, the legacy online banking platform national electronic fund transfer (NEFT) still drives a
dominating $3.6 trillion in annualized payments.

Experts have pointed out that a combination of initiatives by the government and the regulator has
led to rapid replacement of cash transactions in favour of digital. These include the JAM trinity
(Jan Dhan Bank Accounts), Aadhaar-based identification and mobile penetration, launch of
platforms like UPI, mobile banking and payment gateways, among others.

In 2021-22 (FY22) so far, UPI, the most popular payments platform in the country, processed more
than 31 billion transactions, surpassing the transactions processed in 2020-21 (FY21). In FY21, the
platform processed around 22 billion transactions.

In CY21, UPI had processed more than 38 billion transactions, amounting to Rs 71.59 trillion.

The National Payments Corporation of India, the umbrella organization of digital payments in the
country, is aiming to achieve 1 billion transactions per day on the UPI platform in the next 3-5
years

Mumbai: There was a 40 per cent growth in digital payments across the country in a year through
September 2021, according to Reserve Bank of India’s (RBI) digital payment index.

The index which measures adoption of online transactions, was at 304.06 during September 2021
as against 270.59 in March 2021 and 217.74 in September 2020.

“The RBI-DPI Index continues to demonstrate significant growth in adoption and deepening of
digital payments across the country” the RBI said in a statement on Wednesday.

The central bank had announced construction of a composite RBI – Digital Payments Index (RBI-
DPI) with March 2018 as base to capture the extent of digitisation of payments across the country.

The RBI-DPI consists of five broad parameters that enable measurement of deepening and
penetration of digital payments in the country over different periods.

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 • PAYMENT METHOD IN INDIA

Mobile payments is a mode of payment using mobile phones. Instead of using methods like cash,
cheque, and credit card, a customer can use a mobile phone to transfer money or to pay for goods
and services. A customer can transfer money or pay for goods and services by sending an SMS,
using a Java application over GPRS, a WAP service, over IVR or other mobile communication
technologies. In India, this service is bank-led. Customers wishing to avail themselves of this
service will have to register with banks which provide this service. Currently, this service is being
offered by several major banks and is expected to grow further. Mobile Payment Forum of India
(MPFI) is the umbrella organisation which is responsible for deploying mobile payments in India.

India is the world’s largest-growing mobile payments market. Mobile payment surpassed credit
card transaction in 2021, clocking an annual value greater than $1 trillion

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 CHAPTER 2:- LITERATURE REVIEW

2.1 INTRODUCTION TO REVIEW OF LITERATURE

2.2REVIEW OF LITERATURE

2.3GAP ANALYSIS

The format of a review of literature may vary from discipline to discipline and from assignment to
assignment. A review may be a self-contained unit — an end in itself — or a preface to and rationale
for engaging in primary research. A review is a required part of grant and research proposals and often
a chapter in theses and dissertations. Generally, the purpose of a review is to analyze critically a
segment of a published body of knowledge through summary, classification, and comparison of prior
research studies, reviews of literature, and theoretical articles.

➢ Kevin Foster, Scott Schuh, and Hanbing Zhang (2010)they examined the consumer payment
methods with respect to cash holdings and withdrawals which was decreasing since 2010.There
was an increase in card payment system with respect to 2009 in the year 2010, which resulted
in less usage of paper currency. Since 2010 there was an increase in usage of debit and credit
card compare to cash transaction which slowly took a decline giving rise to prepaid payments.

➢ Singh.A et.al (2012) in their study discussed how secure the internet network should be to make
smooth transaction for all the parties and the merchants. The systems are made in such a way
so that there is no fraudulent activity takes place people can use their card for transaction in a
secure way so that no data is shared. People mostly do digital transactions for e-commerce but
they find internet I not secure to do so. Therefore some strict protocol should be followed and
managed to make transaction secure and the data is also protected

➢ . Oladejo, Morufu et.al (2012) in their study examined the improvement of e-payment system
in Nigeria. They explored what initiated the people to adopt the e-payment system. A structured
questionnaire and some financial statements were collected to analyse the data. The results

36
 were such that when bank adopted e-payment system there was a change in the performance
level of the banks. With the advent of e-payment system there was a rise in usage of ATMs.

➢ Nitsure (2014) in his study highlighted the issues that were being faced or observed in
developing country like India in using the e-payment system which was due to the low spread
of internet and technology. The paper focused on major issues such as security, rules, etc. IN a
country like India there is a high risk where the poor’s are given a chance to be informed
about such facilities neither they are given any such information.
➢ Rakesh H M & Ramya T J (2014), in their study analysed the factors that which was resulting
in the adoption of internet banking in our country. It was found out that perceived reliability,
Perceived ease of use and Perceived usefulness were the main reason for the adoption or usage
of internet bank

➢ Dr. Indrajit Sinha (2014), discussed in their paper that in India there has been a sudden surge
in the usage of digitalised payment. But still there is almost 90% transactions which are done
through paper currency. They had used the TAM (Technology Acceptance Model) in this study
to find out the factors which are strengthening the e-payment system the factors are innovation,
incentives, and legal frame work and customer convenience.

➢ Dennehy & Sammon (2015) has analyzed how in the 21st century the usage of digital payment
has increased over the years. The main focus here was to find out how where will in the digital
payment system in future stand. Many papers have been examined to find out what are the
views regarding the digital payment system. With the passage of time the technology has been
shifting very fast so with the innovation of technology the aim was to make people familiar
with digital payment. The merchants also got a new platform to invest so as to cater the
customers. Data was collected by following empirical method i.e. survey, interviews, etc.
Lastly the study was only focused on Google data base that was a limitation about the study.

➢ Sanaz Zarrin Kafsh (2015) made a study on “Developing Consumer Adoption Model on Mobile
wallets in Canada”,in her study she did convenience sampling from were 530 respondents were
selected and there after the Partial least square model was used to test the data.As per the

37
 analysis the result perceived usage, perceived ease of use and perceived security is related to
each for forecasting the adoption of digital payment.

➢ Bezhovski (2016) has examined how internet and e-commerce has opened the gateway for
digital payment system with the increment in technology people are adopting the new means
of payment system and how they will be benefited and is there any pitfall of using it. When e-
commerce was launched it was a unique way of trading so the digital payment is also a unique
way of transaction which will also emerge as the e-commerce and in near future it will become
the backbone of e-commerce. The future of these digital wallets will depend on the security
and privacy that are provided by the companies as people are highly security concerns any pros
and cons will decide the future of digital wallets. It is not only restricted to make transactions
but it be used for booking airlines, movie tickets. Many offers are provide for making bill
payments or buying any goods using these platforms. As the smart phones has removed many
devices from our daily live and have clubbed in one device only so it is expected that digital
wallet will also do the same which will become substitute for many other things.

➢ Ravi (2017), has examined that India’s two third population are residing rural areas so they
play a very important role in the development of the economy, with the emergence of IT and
Communication it is predicted that rural areas will have 50% of India’s Internet users by
2020.Digital wallets should be used in rural places so that the people know the significance of
using it and what benefit they will be getting by using it. The Government of India has also
taken up the initiative of making rural people aware about Digitization. Adoption of technology
has always been low in India compare to other countries but in case of Digital wallet our country
is going with the pace of other countries to become a cashless economy. As the two third
population of India is in rural part so if the rural people with time adopt the digital payment
system then in the coming years India will become a cashless economy. The government of
India has taken up various initiatives to make the rural people become familiar with digital
wallet. The urban people have adopted the digital system of payment, now it’s time for the rural
people too. If the rural people are made aware about digitalization soon it will roll out all over
India. The best step that the National Payments Corporation of India has taken is that digital
wallet will work on all mobiles with or without internet.

38
➢ Singh (2017) in his study showed that how digital payment and digital wallet in India was get
popularized due to demonetization. As there was a tremendous growth in the usage of internet
and the no. of smart phone users were also increasing so people found it convenient to use as
an alternative for cash. In this study he also pointed out that how different digital wallet
companies were having competition to enter and expand the Indian market as it was the best
opportunity for them to establish their company. It was also predicted that in future India will
become a cashless economy and with digitalization people will surely adopt the digital mode
of payment. ANOVA was used in this study to show that there is no significant variance
in the consumer perception with respect to its demographic factors.

➢ Balazs Vinnai, general manager, Digital Channels, Misys(April 25, 2016), says That “It is
critical for banks to consider new digital channels as part of an Integrated strategy and evolve
from first to second generation digital banking: Switching digital from a supporting role, to the
primary sales and Communication channel for banks,” says Vinnai. “Reengineering processes
Around the customer is not easy, but banks must embrace digital banking to Remain
competitive and relevant.”

➢ Baghla . A (2018) in his study identified the trends for adopting the digital payment system
India. Further the paper talks about how after demonetization people started to use the digital
platforms for transactions. How the government initiative to make our economy a cashless one
and how consumer will be adopting such system are further discussed. A structed questionnaire
was used to collect data and find out the future of digital payment system in India.

➢ Pandey and Rathore (2018) in their study discussed the impact of digital payment system.
Due to modernisation and globalisation it was very important for the people to accept the
modern method of payment. The study is based on secondary data and various literatures from
past papers and government data. All data collected has been analysed and used to find the
impact and adoption of digital payments by the people.

➢ Pushpa S. Abbigeri and Rajeshwari M. Shettar (2018) talked about how the Digital India
flagship program attracted large number of people to start using digital wallets , which people
started to use as there was lots of cash back offers and coupons. After the digital India flagship

39
 program a lot of mobile wallet companies entered India and other methods such as UPI, NEFT
to a surge. The initiative taken by the government and RBI was being accepted by the people
as they were using such methods.

➢ Sanghita Roy, Dr. Indrajit Sinha (2014) . stated that E- payment system in India, Has shown
tremendous growth, but still there has lot to be done to increase its Usage. Still 90% of the
transactions are cash based. Technology Acceptance Model used for the purpose of study. They
found Innovation, incentive, Customer convenience and legal framework are the four factors
which Contribute to strengthen the E- payment system.
➢ E-payment systems are important mechanisms used by individual and Organizations as a
secured and convenient way of making payments over the Internet and at the same time a
gateway to technological advancement in the Field of world economy (Slozko & Pello, 2015).

➢ Rakesh H M & Ramya T J (2014) in their research paper titled “A Study on Factors Influencing
Consumer Adoption of Internet Banking in India” tried to Examine the factors that influence
internet banking adoption. It is found that Internet banking is influenced by its perceived
reliability, Perceived ease of use And Perceived usefulness. In the process of internet banking
services expert Should emphasize the benefits its adoption provides and awareness can also be
Improved to attract consumers‟ attention to internet banking services.

➢ Kartikeya Bolar (2014)In his research paper “End-user Acceptance of Technology Interface In
Transaction Based Environment “stated that Creators and investors of technology need
information about the customers‟ evaluation Of their technology interface based on the features
and various quality Dimensions to make strategic decisions in improving technology interfaces
and Compete on various quality dimensions.

➢ Shivathanu B. (2019) in his study adoption of digital payment system in the era of
demonetization emphasised on how the digital payment system was used by the people or
accepted by the people during demonetization. It was based on a conceptual framework
where the sample size was 766 .The data analysed suggested that behavioural intentions and
innovation resistance had an impact on the actual usage

40
2.2 GAP ANALYSIS:-

Various researches have been conducted at district level on The subject matter. Most of these studies
either are focused on general segment of People or on youth. No studies have been conducted on
various methods of payment in India . Considering this gap, present study is Undertaken.

41
 CHAPTER 3 :- RESEARCH AND METHODOLOGY

3.1 INTRODUCTION TO RESEARCH AND METHODOLOGY

3.2 OBJECTIVES

3.3 SAMPLE SIZE

3.4 DATA COLLECTION

3.5 SOURCES AND METHODS OF DATA COLLECTION

3.6 LIMITATIONS OF THE STUDY

42
3.1 INTRODUCTION TO RESEARCH AND METHODOLOGY:-

Research methodology is the specific procedures or techniques used to identify, select, process, and
analyze information about a topic. In a research paper, the methodology section allows the reader to
critically evaluate a study’s overall validity and reliability. … How was it analyzed?

It shows the path through which these researchers formulate their problem and objective and present
their result from the data obtained during the study period. This research design and methodology
chapter also shows how the research outcome at the end will be obtained in line with meeting the
objective of the study. This chapter hence discusses the research methods that were used during the
research process. It includes the research methodology of the study from the research strategy to the
result dissemination.

For emphasis, in this chapter, the author outlines the research strategy, research design, research
methodology, the study area, data sources such as primary data sources and secondary data, population
consideration and sample size determination such as questionnaires sample size determination and
workplace site exposure measurement sample determination, data collection methods like primary data
collection methods including workplace site observation data collection and data collection through
desk review, data collection through questionnaires, data obtained from experts opinion, workplace
site exposure measurement, data collection tools pretest, secondary data collection methods, methods
of data analysis used such as quantitative data analysis and qualitative data analysis, data analysis
software, the reliability and validity analysis of the quantitative data, reliability of data, reliability
analysis, validity, data quality management, inclusion criteria, ethical consideration and dissemination
of result and its utilization approaches.

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3.2 OBJECTIVES :-

Objectives are very significant elements in any research. Objectives aid in Determining the likelihood
of conducting the research. Generally the aim of any research Is to confirm the reliability of existing
knowledge and to find the deviation of existing Knowledge i.e. to contribute the new knowledge in the
existing one. Before conducting The research it is necessary to recognize the research objectives as it
evades the waste of Time and efforts in future stages. Research objectives must be obviously
identifiable. Objectives act as the guiding principles for conducting the research. By stating the list of
Objectives, researcher actually endeavours’ at fixing the frame of research.

1. To study the concept of Digital payment system and cashless transactions.

2. To know the Impact of Digital payment system
3. To know the advantages of cashless transactions
4. To know the opportunities and challenges of e-payment system in India
5. To know the problems of digital payment system

3.3 SAMPLE SIZE:-

The sample size is a term used in market research for defining the number of subjects included in a
sample size. By sample size, we understand a group of subjects that are selected from the general
population and is considered a representative of the real population for that specific study.

3.4 DATA COLLECTION:-

Primary data is a type of data that is collected by researchers directly from main sources through
interviews, surveys, experiments, etc. Primary data are usually collected from the source—where the
data originally originates from and are regarded as the best kind of data in research.

44
The sources of primary data are usually chosen and tailored specifically to meet the demands or
requirements of a particular research. Also, before choosing a data collection source, things like the
aim of the research and target population need to be identified.

For example, when doing a market survey, the goal of the survey and the sample population need to
be identified first. This is what will determine what data collection source will be most suitable—an
offline survey will be more suitable for a population living in remote areas without internet connection
compared to online surveys.

Financial reports of companies involved in the market Whitepapers, research-papers, and news blogs
Company websites and their product catalog Government Organizations Reports. The report provides
an in-depth analysis on market size, intended quality of the service preferred by consumers. The report
will serve as a source for 360-degree analysis of the market thoroughly integrating different models.

Secondary data refers to data that is collected by someone other than the primary user. Common
sources of secondary data for social science include censuses, information collected by government
departments, organizational records and data that was originally collected for other research purposes.

3.5 SOURCES AND METHODS OF DATA COLLECTION:-

We chose the approach of online semi-structured interviews as one of our data collection method and
we conducted one interview for each case. The hotels, that we chose to communicate with are located
in different parts of the world and online interviews seemed to be the only adequate method

To collect the diverse information. Synchronous online interviews were conducted by using modern
digital technologies, which gives us the opportunity to make a video or audio calls and therefore
receive the information in real-time with an increased possibility of interactions .

➢ METHODS:
➢ Simple random sampling:-

45
 In this case each individual is chosen entirely by chance and each member of the Population
has an equal chance, or probability, of being select size

➢ Systematic sampling:-
Individuals are selected at regular intervals from the sampling frame. The intervals are Chosen
to ensure an adequate sample size.

➢ Stratified Sampling :
In this method, the population is first divided into subgroups who all share a similar
Characteristic. It is used when we might reasonably expect the measurement of interest To vary
between the different subgroups, and we want to ensure representation from all The subgroups

➢ Clustered sampling:-
In a clustered sample, subgroups of the population are used as the sampling unit, Rather than
individuals. The population is divided into subgroups, known as clusters, Which are randomly
selected to be included in the study. Clusters are usually already Defined, for example
individual GP practices or towns could be identified as clusters. In single-stage cluster
sampling, all members of the chosen clusters are then included In the study

➢ Convenience sampling:-
Convenience sampling is perhaps the easiest method of sampling, because Participants are
selected based on availability and willingness to take part. Useful Results can be obtained, but
the results are prone to significant bias, because those who Volunteer to take part may be
different from those who choose not to (volunteer bias), And the sample may not be
representative of other characteristics, such as age or sex.

➢ Quota sampling :-
This method of sampling is often used by market researchers. Interviewers are given a Quota
of subjects of a specified type to attempt to recruit. For example, an intersa mpling Might be
told to go out and select 20 adult men, 20 adult women, 10 teenage girls and 10 teenage boys

46
 so that they could interview them about their television viewing. Ideally the quotas chosen
would proportionally represent the characteristics of the Underlying population.

➢ Judgement (or Purposive) Sampling :-

Also known as selective, or subjective, sampling, this technique relies on the Judgement of the
researcher when choosing who to ask to participate. Researchers May implicitly thus choose a
“representative” sample to suit their needs, or Specifically approach individuals with certain
characteristics. This approach is often Used by the media when canvassing the public for
opinions and in qualitative Research.

➢ Snowball sampling:-
This method is commonly used in social sciences when investigating hard-to-reach Groups.
Existing subjects are asked to nominate further subjects known to them, so the Sample increases
in size like a rolling snowball. For example, when carrying out a Survey of risk behaviours
amongst intravenous drug users, participants may be asked To nominate other users to be
interviewed.

3.6 LIMITATIONS OF THE STUDY

1. Limited coverage of areas.

2. Small sample size of 100 people

3.7 AREA OF THE STUDY:-

India is the second-most populous country in the world (after China), with an estimated population of
1.37 billion people (in 2020). The country is subdivided into 29 states and seven Union Territories.
With an area of 3,287,263 km², India is the 7th largest country in the world, about one-third the size of
the USA..

47
CHAPTER 4:- DATA ANALYSIS AND INTERPRETATION

Gender

Sr No Item Percentage
1 Male 46.1 %
2 Female 53.9 %

Interpretation:- According to the pie chart given above 46.1% of the respondents are male
followed by the other 53.9% who are female.

48
Age

Sr. no Item Percentage

1 18-25 69.6 %
2 25-35 14.7 %
3 35-45 13.7 %
4 45& above 2%

Interpretation:- The above pie chart shows the age of the respondents. According to the pie chart
given above 69.6% of the respondents are of the age group of 18-25 followed by the other 14.7%
and 13.7% of the respondents who are between the age group of 25-35 and 35-45 respectively.
The remaining 2% of the respondents were of the age 45& above.

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Occupation

Sr No Item Percentage
1 Self Employed 14.7 %
2 Service 21.6 %
3 Student 52.9 %
4 Businessman 10.8 %

Interpretation:- According to the pie chart given above 14.7% of the respondents are self
employed followed by the other 21.6% , 52.9% and 10.8% of the respondents who are in service,
student and businessman respectively.

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1. Which mode of Digital Payment you use ?

Sr No Item Percentage
1 UPI 65.7 %
2 Credit card 7.8 %
3 NEFT 2.9 %
4 Debit Card 18.6 %
5 Others 5%

Interpretation:- According to the pie chart given above 65.7% of the respondents use UPI
payment as a mode of payment followed by the other 7.8% , 2.9% , 18.6% , and 5% who use
credit card, NEFT or Debit card and others as a mode of payment respectively.

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2. Which services do you pay using online payment methods ?

Sr No Item Percentage
1 Travel Bills 4.9 %
2 Movie tickets 19.6 %
3 Restaurant 15.7 %
4 All of the above 59.8 %

Interpretation:- According to the pie chart given above 4.9% of the respondents pay travel bills
through online payment mode followed by the other 19.6% and 15.7% who use online payment
method for movie tickets and restaurant bills. The remaining 59.8% of the respondents do all of
the above payments through online payment mode.

52
3. Why do you prefer paying through mobile wallets and UPI ?

Sr No Item Percentage
1 Convience 32.4 %
2 Cash back 24.5 %
3 Multiple payment methods 30.4 %
4 Better user experience 12.7 %

Interpretation:- According to the responses collected above it can be seen that people use
payment through mobile apps as it is more convenient and the Percentage of people who use
because the the convience are 32.4% . The other 24.5% and 30.4% of the respondents use it as
they can earn cashback and multiple payment method respectively. The remaining 12.7% of the
respondents use it as it has better user experience.

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4. What’s your preferred payment app for transferring money among peers?

Sr No Item Percentage
1 Paytm 9.8 %
2 Google pay 68.6 %
3 Phone pe 15.7 %
4 BHIM 1%
5 Amazon Pay 4.9 %

Interpretation:- According to the pie chart given above 9.8% of the respondents prefer Paytm
more to transfer money among the peers followed by the other 68.6% , 15.7% and 1% of the
respondents who prefer Google pay, phone pay and Bhim payment respectively. The remaining
4.9% of the respondents prefer Amazon pay for transferring money among peers.

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5. What’s your intent to transfer money among your peers?

Sr no Item Percentage
1 Expense Sharing 38.2 %
2 Rent Transfer 17.6 %
3 Informal Credit 9.8 %
4 Sending family 34.3 %

Interpretation:- According to the pie chart given above 38.2% of the respondents intension to
transfer money among the peer is expense sharing followed by the other 17.6% , 9.8% and 34.3%
who intent transfer the rent, informal credit and sending money to their families respectively.

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6. What urges you to make an online payment?

Sr.No. Item Percentage

1 Lack of cash 18.6 %
2 Lack of change 19.6 %
3 Cashback 22.5 %
4 Shopkeeper insists 4%
5 convenience 35.3 %

Interpretation:- According to the pie chart given above 18.6% of the respondents are urged to
make online payment due to lack of cash followed by the other 19.6% who are urged due to lack
of change. The remaining 22.5% , 4% and 35.3% of the respondents are urged to make online
payment due to high rates of cashbacks, and the other reason that the shopkeeper himself insist
to do so and it is a convinent way respectively.

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7. Do you agree that the Digital Payments can reduce or eliminate black money from India?

Sr.no. Items Percentage

1 Strongly disagree 11.8 %
2 Disagree 9.8 %
3 Agree 41.2 %
4 Neutral 10.8 %
5 Strongly agree 26.5 %

Interpretation:- According to the pie chart given above 11.8% strongly disagree with the
statement that digital payment can reduce or eliminate black money from India followed by the
other 9.8% , 41.2% and 10.8% who Disagree with this , are Agree with the statement and Neutral
with this statement respectively. The remaining 26.5% of he respondents strongly Agree that
digital payments can eliminate or reduce the black money from India.

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8. How frequently do you make Digital Payments in a week?

Sr. no Items Percentage

1 Twice in a week 49 %
2 Once in a week 33.3 %
3 Once in 2 weeks 4.9 %
4 Once in a month 6.9 %
5 Very rarely 5.9 %

Interpretation:- According to the pie chart given above it can be seen that 49% respondents
make digital payment twice in a week followed by the other 33.3% , 4.9% and 6.9% who make
digital payments once in a week, once in two weeks and once in a month respectively. The
remaining 5.9% make digital payments very rarely.

58
9. Do you think that Digital Payments are safe enough?

Sr no Items Percentage
1 Yes 87.3 %
2 No 12.7 %

Interpretation:- According to the pie chart given above 87.3% think that digital payments are
safe followed by the other 12.7% who feel it as unsafe.13

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10. What is the reason behind your shift towards digital payments?

Sr.no Items percentage

1 No need to carry huge cash 30.4 %

2 Cashback offers 3.9 %

3 Easy and fast way to make 24.5 %

payments
4 24 X 7 transfer 27.5 %

5 Time saving 9.8 %

6 Discount & reward points 3.9 %

Interpretation:- According to the pie chart given above the shift of people towards the digital
payment is because of no need to carry huge cash and percentage of people whose reason tends
to be this one is 30.4% . The other 3.9% , 24.5% , of the respondents reasons for the shift is
cashback offers, easy and fast way to make payment, and respectively. The remaining 3.9% and
9.8% of the respondent’s reason towards the shift to digital payments is because it has discount
and reward points and it is time saving respectively.

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CHAPTER 5:- CONCLUSION AND SUGGESTIONS

5.1 CONCLUSION

Digital Payment system is easy to use to the customer as well as bank officers and there

Are several option are available in the financial system in India, but there are large amount of people
in India don’t know how to use the system. The Digital literacy of Indian people is low level. Therefore
digital payment system is not pure developed and spread all over the India. The social and infrastructure
barriers are there influences to use of digital payment system. But Now a day’s mobile banking are
becoming famous in the India because it is easy to use and anytime can use. It is also required to
improve the digital literacy among the people. There are also issues relating to the risk and security.

While governments, regulators and service-providers are working in synergy to enhance the electronic
payments systems and related infrastructure, it makes sense to study how these options are perceived
by the end-user. The key policy recommendation from our study is that incorporating feedback and
gauging public perception can further catalyse digitisation. We observe through our study that
perception of digital payment instruments affects the payment behaviour of an individual. Digital
payments were not only driven by a positive outlook on digital payments but also a negative outlook
on cash. Contrary to popular belief, customers were seen to be willing to discount online fraud
experience in the face of higher convenience offered by digital payment modes. The impact of
experiencing fraud on the choice to pay digitally differs according to the purpose of the transaction.
Also, we cannot ignore the role played by demographic factors in better digital payment adoption.
Digital payments adoption is expected to increase in line with the overall socioeconomic development
of the population.

While our collected data is from a geographically diverse set of respondents, it is still limited to a
certain part of the population. The data has been collected during a country-wide lockdown and
therefore could only include respondents who were willing to fill the survey online (English or Hindi).
Thus, most of the respondents were already digitally literate, educated and economically sound when
compared to the population. This is one of the major limitations of the study. Further, since responses
were collected in extraordinary circumstances of nationwide lockdown, they may be biased in the sense

61
that these were times when many were compelled to pay digitally for fear of contracting COVID-19.
Also, e-commerce and technology firms (with higher acceptance of digital payments) had stepped up
their services, filling in the vacuum created by closure of brick and mortar stores. Various central banks
around the world conduct payment diary surveys to gauge useful variables at the individual level and
observe their impact on payment behaviour. In the future, surveys like these could be taken up with a
broader sample and in a more structured manner, as things gradually return to normal.

Also The payment system evaluation framework may be used for planning and evaluating payment
systems for transaction based online gaming and other similar services. The framework illustrates how
viable the system is not only from a user's point of view but also from a merchant's point of view. The
near future of electronic payment for network gaming systems will still be divided to subscription
based and transaction based models in both micro and macro level. These models are more frequently
being divided into 3 categories: Telecom payments, online payments and offline payments, where
Offline methods are much more used than they currently are. To define the future trend for payment
systems in network gaming and similar services, one may see that having different viable options for
payments to cover the real target group's needs is a key future success factor.

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5.2:- SUGGESTIONS

1. Standardize Browser And Device Support

As with password management, different browsers and devices use different mechanisms for storing
credit card information and automatically supplying that information when prompted by apps and Web
pages. Some standardization would help.

2. Educate Consumers

Many consumers are still wary about using digital payments, but if companies can educate their
customers on the security advantages of digital payments, more consumers will be comfortable with
the new form of payment. Consider displaying signage in your business or using email marketing to
explain to customers how digital payments are much more secure than traditional transactions.

3. Integrate More Banks

One way to make digital payment methods more effective is to integrate as many banks as possible so
that it becomes more convenient to transfer money from person to person. Just look at what Venmo,
Apple Pay and Google Pay are doing. Clearly explain the security benefits of using said digital payment
method, such as tokenization and/or multi-factor authentication

4. Avoid Redirects

Nowadays, all payment credentials must work in a safe, convenient and fast environment across any
channel the customer wants to use and without the need for an account. Users dislike being redirected
and providing more personal information than needed.

5. Improve Interoperability

My one request would be that all banks and payment companies interface and work with each other. If
they don’t interact with each other so I can pay my vendors or my staff, it’s useless. All banks and
payment companies should interact and be able to work with each other. Right now they do not, and
that is a shame and a hardship for everyone at this point.

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 6. Instantly Reward Consumers

More consumers are willing to switch their primary cards if it means that they can receive higher return
values, which is why a built-in rewards system can be so enticing. However, when it comes to earning
and redeeming rewards, consumers desire simplicity. To make digital payments more effective, allow
consumers to redeem rewards at the point of sale terminal so that they can benefit even faster.

7. Integrate SMS Messaging

Digital payments have an interesting capacity to significantly reduce your DSO — days sales
outstanding — and to change your accounts-receivable profile. The key is to “nudge” the payer at the
right time. Consider using SMS text messaging through platform and API providers like Authvia,
Twilio (through its Pay interface) and SignalWire to entice prompt payments from your customers.

8. Standardize Across Platforms

One of the things I have noticed over the years is the proliferation of different payment processing
systems and the companies that sell them. Each of these systems tends to have something missing
(tokenization, multiple currencies, international support). I would like to see a more standardized
approach in functionality to avoid using several vendors to achieve my digital payment objectives.

9. Widen Cryptocurrency Adoption

Digital payments will be more effective once we see more widespread adoption of cryptocurrencies.
Cryptocurrencies can significantly reduce (and possibly eliminate) intermediary transfer costs,
resulting in significant savings. People around the world will benefit, especially in third-world
countries where a large proportion of people do not have access to a traditional bank account.

10. Make Digital Payment Easier

As an end-user, if I had to substitute traditional payments with new-age digital wallets, one must-have
feature would be the ease of usage or ease of doing the transaction. While a lot of mobile wallets have
wide acceptance, if the user has to go through multiple levels of authorization and sign-ups, the chances
are they may never use it again.

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 11. Personalize The Digital Payment Journey

Capitalize on the richness of data across the ecosystem to gain greater context awareness and combine
it with the power of cognitive computing to dynamically optimize the payment methods used.
Maximize value to the customer in every transaction—all in milliseconds and behind the scenes (app
and device-agnostic)—and make the digital payment journey truly personalized, yet incredibly simple.

12. Enable Conversational Payments

Brands can go well beyond simply integrating digital payment methods with their apps and websites.
To keep up with consumer expectations for “always-on” access, brands can integrate payments directly
into conversational experiences, especially with the increasing capabilities of secure, transactional,
conversational AI. This can be done with encryption, sensitive data redaction and PCI compliance. -

13. Compatibility:

Any digital payment method should be compatible across all platforms. If the digital payment system
runs with the only special platform and some set of systems and it does not run with others then it
becomes an inconvenience for consumers. He/she will always be in a dilemma if my cashless payment
method is not accepted by this platform.

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REFERENCE:

• http://www.jamwire.com/2016/11/list-of-mobile-wallets-upi-payment-apps-inindia/145172
http://www.ciol.com/indias-wallet-launched-2/
• https://en.wikipedia.org/wiki/Digital_wallet
• https://www.sumhr.com/digital-wallets-india-list-online-payment-gateway/
• https://www.medianama.com/2016/11/223-cashless-india/
• http://www.sinhaatul.com/2016/12/digital-india-types-of-digital-payment-mode.html
• http://vikaspedia.in/e-governance/digital-payment/various-means-of-digital
• Payments #section-3 9. https://www.rbi.org.in/scripts/BS View Bulletin.aspx?Id=13554
• https://www.researchgate.net/publication/349076488_Digital_Payments_Methods_in_India_
A_study_of_Problems_and_Prospects

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ANNEXURE:-

➢ Gender
o Male
o Female

➢ Age
o 18-25
o 25-35
o 35-45
o 45 and above

➢ Occupation
o Self employed
o Service
o Student
o Businessman

1. Which mode of Digital Payment you use ?

➢ Upi
➢ Credit card
➢ Mobile wallets
➢ Rtgs
➢ Bhim
➢ Neft
➢ Debit card

67
2. Which type of payment method do u feel more convinent for paying during regular stoppings
?
➢ Upi
➢ Debit card
➢ Credit card
➢ Mobile wallets
➢ Cash

3. Which services do you pay using online payment methods ?

➢ Electricity bills
➢ Travel bills
➢ Movie tickets
➢ Restaurant bills
➢ All of the above

4. Why do you prefer paying through mobile wallets and upi ?

➢ Convenience
➢ Cashback
➢ Mutiple Payment Methods
➢ Better User Experience

5. What’s your preferred payment app for transferring money among peers?
➢ Paytm
➢ Google Pay
➢ Phone Pe
➢ BHIM
➢ Amazon Pay

6. What’s your intent to transfer money among your peers?

➢ Expense Sharing
➢ Rent Transfer
➢ Informal Credit
➢ Sending family

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7. What’s your preferred payment app for making an offline merchant payment?
➢ Paytm
➢ Google Pay
➢ Phone Pe
➢ BHIM
➢ Amazon Pay

8. What nudges you to make an offline payment?

➢ Lack of cash
➢ Lack of change
➢ Cashback
➢ Shopkepper insists
➢ Convinence

9. Do you agree that the Digital Payments can reduce or eliminate black money from India?
➢ Strongly Agree
➢ Agree
➢ Neutral
➢ Disagree
➢ Strongly Disagree

10. How frequently do you make Digital Payments in a week?

➢ Twice in a week
➢ Once in a week
➢ Once in 2 weeks
➢ Once in a month
➢ Very rarely

69
11. Do you think that Digital Payments are safe enough?
➢ Yes
➢ No
➢ May be

12. What is the reason behind your shift towards digital payments?
➢ No need to carry huge cash.
➢ Cashback offers.
➢ Easy and fast way to make payments.
➢ Easy to track the record of Payments.
➢ 24*7 transfer.
➢ Discounts and reward points.
➢ Time saving.

13. Do you agree that digital payments are better mode than cash payments?
➢ Strongly Agree
➢ Agree
➢ Neutral
➢ Disagree
➢ Strongly Disagree

14. In how much time do you think India can achieve completely cashless economy?
➢ 10 years
➢ 15 years
➢ 20 years
➢ More than 20 years
15. When you are paid in cash, what do you do most often ?
➢ Deposit all of it into your bank account,
➢ Deposit some of it into your bank account and keep some cash,
➢ Keep all of the cash without depositing any into a bank account
➢ Other

70
 16. Where do you most often go to deposit your cash pay?
➢ Go to an ATM to deposit it into your bank account.
➢ Go to a bank branch office to have a bank employee deposit it into your
➢ Bank account .
➢ Other (specify).

17. In your opinion why people fear to use credit cards

➢ Inconvenient Fees
➢ Risk of accumulating debt
➢ Risk of theft
➢ Privacy concerns
➢ Difficult record keeping
➢ Other

18. Why people prefer cash more than ATM cards and online payments ?
➢ Inconvenient
➢ Prefer dealing with a real person/bank teller
➢ Do not know how use to an ATM card/ATM machine
➢ Do not want money immediately deducted from my account
➢ Fees
➢ Fear of overdraft
➢ Risk of theft
➢ Privacy concerns.

19. According to you why people don’t use automated bill payment methods ?

➢ Want control over payments

➢ Difficult to set up
➢ Inconvenient o Privacy concerns
➢ Lack of/ difficult Record keeping
➢ Risk of theft
➢ No need
➢ Have never been given the option.

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20. Do you agree that upi payments have good cashbacks and are a better way for payments?

➢ Strongly Agree
➢ Agree
➢ Neutral
➢ Disagree
➢ Strongly Disagree

21. Do you feel that online payment apps and mobile wallets meet your expectations?

➢ Not met
➢ Met
➢ Exceeded
➢ Mostly not met
➢ Partly not met
➢ Partly met/ not met
➢ Mostly met

22. Have you ever faced difficulty in online payment methods like bhim and upi ?

➢ Yes
➢ No

23. Did you ever faced a problem like your payment was stucked when you were using upi payments
like google pay amazon pay etc ?

➢ Yes
➢ No

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