A study on customer level of satisfaction

and perception towards the usage of E –

Payment services (with special reference to
Coimbatore city)
 CONTENTS
CHAPTER TITLE PAGE NO.
NO.
I INTRODUCTION 1

1.1 ELECTRONIC PAYMENT

1.2 DEVELOPMENT OF E-PAYMENT

1.3 CHARACTERISTICS OF E-PAYMENT

1.4 ADVANTAGES OF E-PAYMENT

1.5 STATEMENT OF THE PROBLEM

1.6 OBJECTIVES OF THE STUDY

1.7 SIGNIFICANCE OF THE STUDY

1.8 SCOPE OF THE STUDY

1.9 LIMITATION OF THE STUDY

1.10 METHODOLOGY

1.11 STATISTICAL TOOLS USED

1.12 PERIOD OF THE STUDY

1.13 AREA OF THE STUDY

1.14 CHAPTER SCHEME

II REVIEW OF LITERATURE 12
III DIMENSIONS OF ELECTRONIC PAYMENT 18

3.1 INTRODUCTION

3.2 THE GROWTH OF ELECTRONIC PAYMENT IN

 INDIA

3.3 CONCEPT OF ELECTRONIC PAYMENT

3.4 BENEFITS OF ELECTRONIC PAYMENT

3.5 TYPES OF ELECTRONIC PAYMENT

3.6 SECURITY PROTECTION IN E-PAYMENT

3.7 TRENDS IN E-PAYMENT

3.8 USAGE OF E-PAYMENT OVER THE WORLD

3.9 PROXIMITY ELECTRONIC PAYMENT

USER SHARE IN SELECTED COUNTRIES, 2021

3.10 THE RISING POPULARITY OF E-COMMERCE

PAYMENT

3.11 PROCESS BEHIND ELECTRONIC PAYMENT

IV ANALYSIS AND INTERPRETATION 35

4.1 ANALYSIS OF DATA

4.2 INTERPRETATION OF ANALYSIS

V SUMMARY OF FINDINGS & SUGGESSION OF THE 79
STUDY

5.1 FINDINGS OF THE STUDY

5.2 SUGGESTIONS

5.3 CONCLUSION
BIBLIOGRAPHY 84
APPENDIX 89
 LIST OF TABLES

SL. TABLE TITLE PAGE

NO. NO. NO.
1 4.1 Gender of the Respondents 38
2 4.2 Age Group of the Respondents 40
3 4.3 Residential Area of the Respondents 42
4 4.4 Educational Qualification 44
5 4.5 Occupational Status 46
6 4.6 Monthly Household Income 48
7 4.7 Usage of Bank Account of Respondents 50
8 4.8 Type of Bank account of Respondents 52
9 4.9 Recognition of e-payment 54
10 4.10 Time of usage of e-payment 56
11 4.11 Frequency of e-payment usage 58
12 4.12 Purpose of e-payment 60
13 4.13 Benefit of e-payment usage 62
14 4.14 Influencing factors of e-payment 64
15 4.15 Preferred e-payment channel 66
16 4.16 Online shopping payment method 68
17 4.17 Issues faced during e-payment transaction 70
18 4.18 E-payment convenience over cash 72
19 4.19 User-friendly interface 74
20 4.20 Garrett’s Ranking Technique 76
 LIST OF CHARTS

SL. CHART TITLE PAGE

NO. NO. NO.
1 4.1 Gender of the Respondents 39
2 4.2 Age Group of the Respondents 41
3 4.3 Residential Area of the Respondents 43
4 4.4 Educational Qualification 45
5 4.5 Occupational Status 47
6 4.6 Monthly Household Income 49
7 4.7 Usage of Bank Account of Respondents 51
8 4.8 Type of Bank account of Respondents 53
9 4.9 Recognition of e-payment 55
10 4.10 Time of usage of e-payment 57
11 4.11 Frequency of e-payment usage 59
12 4.12 Purpose of e-payment 61
13 4.13 Benefit of e-payment usage 63
14 4.14 Influencing factors of e-payment 65
15 4.15 Preferred e-payment channel 67
16 4.16 Online shopping payment method 69
17 4.17 Issues faced during e-payment transaction 71
18 4.18 E-payment convenience over cash 73
19 4.19 User-friendly interface 75
 CHAPTER 1

INTRODUCTION

1
 CHAPTER I

INTRODUCTION

Commerce establishes an essential activity for any business that is the exchange of goods and
services on a large scale. While commerce focuses on transaction of goods and services, e-
commerce refers to buying and selling of goods of services electronically. It also refers to
information and communication interchange between businesses and customers to promote
the activities and relationships that a business maintains.

Down with the evolution of internet, online payment services started to commence in early
90s through online banking services provided to bank customers. Those early online payment
systems were not easy to use — users needed to have some encryption knowledge and apply
the data transfer principles. With the society getting comfortable with e- commerce, e-
payment has become essential for any business.

1.1 ELECTRONIC PAYMENT

E-payment is a medium of transaction where payments are made to the other person through
internet or any electronic medium. It has become inherently more secure than cash
transactions and it allows people to make payments quickly, efficiently and in real-time.
Mobile devices emerged as popular payment methods, allowing users to make mobile
payments with mobile wallets.

Electronic payments continue to grow in popularity, rewarding organizations that think ahead
of meeting the needs of technologically advanced clients and pushing backwards to
modernize to stay competitive. E-payment system has advanced over the last decade due to
the rise of net-based banking and shopping. Electronic payment gives its users a replacement
to pay bills and expenses through a medium of electronic devices instead using cash and
cheque.

2
1.2 DEVELOPMENT OF E-PAYMENT

In 1871, Western Union (then the Western Union Telegraph Company) introduced electronic
fund transfer (EFTs) as a payment method for currency exchange. Otherwise known as
―wiring,‖ EFT is known as the fastest and easiest way to send money without the need for an
exchange between senders and recipients.

In 1914, Western Union introduced Charge accounts that could be used in various businesses
- while previous duplication was limited to individual stores that offered them. These
accounts were linked to the cards that users could utilize to purchase goods on credit, which
would have to be returned to the issuer. Known as the "credit card" in modern times, this
original type of credit was the most common electronic payment system during the first half
of the 20th century.

Bank of America was the first bank to bring out successful credit card. Its clever strategy
involved sending a card to locals where most homeowners were customers of Bank of
America, quickly building a cardholder base to increase the chances of merchants accepting
cards.

However, the Bank of America and its successors still faced many challenges to widespread
credit card acceptance. This was because the process of using them was much more
complicated than it is today. Before the introduction of digital credit card information in the
early '70s, credit card customers required a merchant to call an issuing bank, which then
called a credit card company, where the employee would verify the customer name and credit
balance to authorize the transaction.

The big difference between charge cards and credit cards as we know today is that charge
cards required full balances to be paid over a period of time, while credit cards were allowed
to extend credit - usually at extra interest rates - allowing balances to exist transferred to past
salary. This method of payment is known as "revolving credit," which was used by the Bank
of America in 1958 to create the first modern credit card.

3
1.3 CHARACTERISTICS OF E-PAYMENT

Important characteristics of e-payment include various that provide the whole structure of e-
payment. These characteristics define the idea behind e-payment and how it works.

Applicability

Applicability of a payment system is defined as the extent to which it is accepted for

payments at points of sale, or at online e-commerce sites.

Debit cards and credit cards have high applicability, as one can pay with them in a variety of
places. The applicability of a payment system may vary from country to country.

Ease of Use

One of the reasons why digital payment is better than cash is that it frees up time and makes
cash flow more seamless than ever for businesses in all industries. It provides a way to send
and receive money online without needing your credit or debit card details.

Security

The concrete security requirements of electronic payment systems vary, depending both on
their features and the trust assumptions placed on their operation. In general, however,
electronic payment systems must exhibit integrity, authorization, confidentiality, availability,
and reliability.

Reliability

Users and businesses want a payment system that is reliable because the availability of
services and smooth running of an enterprise will depend on the availability and successful
operation of the payment infrastructure.

The users should be completely shielded infrastructures. The user should be completely
shielded from a system or single point failure.

4
Trust

Trust refers to the degree of customers confidence that their money and personal information
will be safe, and that all parties involved will not act against users’ interests. Users need to
trust that payments will be bot be stolen or misused.

Flexibility

Payment systems should be in a position to accept several forms of payment rather than
limiting the users to a single form of currency.

Efficiency

Efficiency in e-payment refers mainly to the cost overheads involved in the operation of
digital payments. The cost of payment per transaction should be negligible.

Traceability

Traceability indicates how easy it is to trace cash flow and sources of fund that are going
through a payment system and used for purchases. In electronic payment system, records kept
of payment activity can trace cash flow.

1.4 ADVANTAGES OF E-PAYMENT

 Instant payment

 High payment security

 Better consumer convenience

 Saves processing cost

 Low risk of theft

 Transparent

 Contactless
5
 Affordable

 Supports recurring bills

1.5 STATEMENT OF THE PROBLEM

Where e-payment has brought new opportunities for its users and merchants, they still lack
awareness and is adopted rather slowly. It has also exposed them to issues concerning
security and privacy. Despite the fact that the e-payment service being well established, it
still possesses difficulties that put a disadvantage on its further recognition.

Although e-payment makes people’s life comfortable and has a broader scope for the future,
it still is not trusted and used adequately by many people. The level of awareness of e-
payments and its benefits have not shown much improvement in rural areas. To spread the
awareness among people, this study observes the usage and convenience of e-payment to
widen the opportunity of e-payment.

1.6 OBJECTIVES OF THE STUDY

The followings are the objectives of the study.

 To study about the level of awareness of e-payment services among public.

 To study about the adoption of electronic payment among public.

 To understand the factors that influences users to choose e-payment.

 To study the user’s satisfaction and perception level of e-payment.

1.7 SIGNIFICANCE OF THE STUDY

The importance of this study is to analyse the awareness and satisfaction that e-payment
provides to the users. There are several modes of payment available that a user can choose
6
from, to make safe and secured payments. This project provides observations on how a user
is influenced to select e-payment. It provides the best e-payment option a user can utilise.

The major benefit e-payment has over cash payments are that e-payments are convenient and
has rapid transaction speed. The study focuses on the adoption and usage of e-payment
among its users. E-payment is designed as to provide ease of use and make the payments
secured. This study is significant to spread awareness about e-payment and the various
benefits it could provide to its users.

1.8 SCOPE OF THE STUDY

The activities related to buying and selling of goods and services electronically represent e-
commerce. The scope of these activities embraces the important part of e-payment
remarkably in B2C businesses. Electronic payment has advanced significantly due to e-
commerce given the most prominent online shopping.

It is believed that e-payment has the potential to outfit the risks related to the security and
privacy and current improvement in technologies reveals that this modification for the change
is being developed.

This study discusses various modes of e-payment that are by user to make payment and
purchase using internet. This study also observes the several means of e-payment including
credit/debit card, internet banking and various mobile payment applications.

1.9 LIMITATION OF THE STUDY

A certain number of limitations were faced during the study.

 The study was conducted in Coimbatore and the surroundings, which limits the area of
study. Study from all over the country may give a different outcome because of the
demographic, economic and financial differences.

7
 The opinion of the non-users of e-payment was not collected since it focuses on studying
the users of e-payment, which cannot be generalized.

 The number of respondents is limited to 100 thus this study does not cover the opinion of
a large number of samples.

 The questionnaire was distributed most among the students, thus majority of the
responses are from them, thus limiting the response of users from other fields.

1.10 METHODOLOGY

This study assumes the characteristics of descriptive research. In order to study the
awareness towards e-payment among its users as a payment option, Coimbatore district is
chosen as the area for analysis of the study.

1.10.1 Source of Data

Collection of data is the process of gathering and measuring information in an established

system that allows evaluating the outcome. The study uses both primary and secondary data
that are collected through various sources. The primary data was collected using a systematic
questionnaire distributed through Google forms. The respondents were asked to fill the
questionnaire true to their knowledge.

The secondary data was collected from the articles, journals, newspapers and reports related
to the topic. These secondary data were used in the introduction; review of literature and
dimensions of electronic payment. It is used throughout the study and helps in understanding
the topic.

1.10.2 Sampling Design of the Study

The study uses simple random sampling that represents the accuracy of the study. The
sample size is 100 that comprises of various types of users of e-payment who use different
types of electronic payment.

8
1.11 STATISTICAL TOOLS USED

The data collected from the respondents are tabulated and analysed using statistical tools.
The relationship between different variables has been estimated with the help of:

 Simple Percentage Analysis

 Garrett’s Ranking Technique

1.11.1 Percentage Analysis

Percentage method is used to find the percentage values for all the questions used in making
comparison between two or more series of data.

Percentage (%) = (Number of Respondents/ Total Number of Respondents) * 100

1.11.2 Garrett’s Ranking Technique

Garrett method is often used to complete the ranking of an alternative based on the ratings of
respondents that are converted into certain ranks [23]. This ranking is done by determining
the most significant factor from the respondent's answer. The ranking of alternatives using
Garrett method is done by calculating the respondent's data as a factor of the percentage
position value using the following equation:

Percent position (PP) = 100(Rij – 0.5) / Nj

Where, Rij is the value of the i variable given by the respondents to j,

while Nj is the number of variables assessed by as many as j

respondents.

The results of the percentage position are then converted into Garrett Values using the Garrett
ranking conversion table. The value of R ij is then multiplied by the Garrett Value to
determine the Total Garrett Score. The average Garrett Score is then calculated by dividing
the Total Garrett Score by the amount of alternatives. The alternative ranking is done based
on the highest average value.
9
1.12 PERIOD OF THE STUDY

Period of the study has been taken from December 2021 to April 2022.

1.13 AREA OF THE STUDY

The area has been limited to Coimbatore district.

1.13.1 Profile of the Area

Coimbatore also known as Kovai, is one of the major metropolitan cities in the Indian state of
Tamil Nadu. It is the second largest city in Tamil Nadu after Chennai and the 16 th largest
urban agglomeration in India as per the census 2011. In 1981, Coimbatore formed as the third
municipal corporation in Tamil Nadu after Chennai and Madurai.

Podanur Junction is the oldest Railway station in Coimbatore city. The city is one of the
largest exporters of Jewellery, Wet grinders, Poultry and auto components. A major hub for
manufacturing, education and healthcare in Tamil Nadu, Coimbatore is among the fastest
growing tier-II cities in India. It houses more than 25,000 small, medium and large industries
with the primary industries being engineering and textiles. Being a hub of textile industry in
South India, the city is sometimes referred to as the ―Manchester of South
India‖. Coimbatore region experienced a textile boom in the 1920s and 1930s.

Coimbatore is the second largest producer of software in the state, next to capital Chennai.
TIDEL Park Coimbatore and other Information technology parks in the city has aided in the
growth of IT and Business process outsourcing industries in the city. It is ranked at 17 th
among the top global outsourcing cities. Software exports stood at Rs. 7.1 billion for the
financial year 2009-10 up 90% from the previous year.

10
1.14 CHAPTER SCHEME

 Introduction and Research Design

 Review of Literature

 Dimensions of Electronic Payment

 Analysis and Interpretation

 Findings, Suggestion and Conclusion

11
 CHAPTER - II

REVIEW OF LITERATURE

12
 CHAPTER II

REVIEW OF LITERATURE

1. Vishal Acharya, S.O. Junare, Dharmesh D. Gandhavi (2013) the study stated that
contributing factors such as Government support, trust in internet and trust in Government are
influencing e-payment adoption intention of rural people in India. Mobile phones and e-
commerce are growing rapidly and consumers are showing affinity towards digital
technology. Indian government is also stepping up by launching ―Digital India‖ initiative to
accelerate the awareness, availability and adoption of digital technologies. Today Indian
govt., businesspersons and people are exploring the possibility to move towards a cashless
economy.

2. Princewill Aigbe, Jackson Akpojaro (2014) studied that electronic payments systems
with more authentication mechanisms involving two or more authentication factors tend to be
more secured, reduced fraud vulnerability, and boost users’ confidence in using electronic
payment systems. The emergence of e-commerce has created new financial needs that in
many cases cannot be effectively fulfilled by the traditional payment systems. Recognizing
this, virtually all interested parties are exploring various types of electronic payment systems,
issues surrounding electronic payment system and digital currency.

3. Zlatko Bezhovski (2016) revealed that electronic cash systems are under way in achieving
high uptake by consumers despite their strength to cater small and varied payments. A central
challenge, for all these payment methods, is the provision of an authentication system that
must ensure the security and convenience of each transaction made. Enhancing the
compatibility with a wide range of users, the use of latest technology and establishment of
common standards for various service providers, and overcoming the security and privacy
issues could help in facilitating faster adoption of electronic payment methods and advance
the rising market of the mobile payments.

4. Lukman O. Oyelami, Sulaimon O. Adebiyi, Babatunde S. Adekunlel (2020) examined

that educational attainment, financial inclusion, income level, internet service availability,

13
awareness, trust, social influence, safety, security and convenience constitute major
determinants of e-payment adoption. It is important to increase the trust of an average
customer involved in financial transaction using electronic means in order to increase the e-
payment adoption rate.

5. Sanghita Roy, Dr. Indrajit Sinha (2014) stated that Innovation, Incentive, Customer
convenience and legal framework are the four factors, which contribute to strengthen the e-
payment system. Customer attitude was found to have least significant effect on adoption of
e-payment system. E-payment system is accepted only by the urban people (82.03%), while
rural and suburban people hardly know about it. Majority of them are rare users of ATM card
only.

6. World Bank Development Research Group (2014) said that not only are digital
payments more efficient than cash payments, but their broader adoption also can reduce rates
of corruption and violent crime, reduce the cost of government wage and social transfer
payments, offer new pathways into the financial system for the disadvantaged, and,
importantly, contribute to the on-going objective of women’s economic empowerment.

7. S. Britto, R. Kumar, and S. Albert Rabara (2009) studied that the mobile devices are
making a big impact on mobile payment system. So far, there are number of mobile payment
systems available. Only the standard payment systems and secured payment solutions have a
possibility to be accepted in the market. The Mobile Commerce is an emerging discipline
that involves mobile devices, middleware and mobile networks. Mobile Payment is a natural
evolution of e-payment scheme that will facilitate mobile commerce.

8. Syed Far Abid Hossain, Zhao Xi, Mohammad Nurunnabi, Khalid Hussain (2020)
said that the consumers are engaged in social interactions through the internet by the new
opportunities provided by social media. These interactions provide and generate certain
values for both businesses and consumers. An upsurge in the application of social media on
mobile phones by users is evident, giving optimism and the ability to view the role of the
integration of m-commerce into social media.

9. Thakur & Srivastava (2014) studied that mobile devices have influenced the life of
people in ways more than any other innovation in the history of the humankind. The
application of m-commerce, or mobile commerce, a wireless terminal, and network that can
14
access information and, therefore, execute transaction processes that can result in value
transfer by information exchange.

10. Chanchai Phonthanukitithaworn, Carmine Sellitto, Michelle W. L. Fong (2016)

stated that the m-payment services industry should ensure that their offerings are aligned with
consumers’ current values, needs, and lifestyles. Moreover, promoting m-payment services
through business, employer, and social networks may be useful in increasing potential
uptake. An important finding concerns how certain factors such as trust and cost become
significant issues after people begin using m-payment services.

11. Baoyuan Kang, Dongyang Shao, Jiaqiang Wang (2017) pointed out that in a typical
electronic payment scheme there are three participants: a user, a merchant, and a bank.
Before one transaction, the user and the merchant must register with the bank, and open their
account to benefit electronic payment.

12. Reserve Bank of India (2021) stated that retail payment system in India is undergoing
radical transformation due to rapid technological changes and innovations in recent years.
There was a greater need for sensitisation among the public about basic safety norms while
using digital modes of payment.

13. Changsu Kim, Wang Tao, Namchul Shin, Ki-Soo Kim (2010) pointed out that both
technical protections and security statements are significant factors for improving consumers’
perceived security. The inconvenience consumers experience in the transaction procedures
might degrade consumers’ valuation of the security and the trustworthiness of the e-payment
system.

14. Kathrin Dotzauer & Fabienne Haiss (2017) stated that the rise of the number of
smartphones users goes along with the increase of functions smartphones offer, facilitating
the everyday life of users, amongst others with the function of performing mobile payment
transactions. Smartphones do no longer only have the function to serve as a medium to
communicate but rather to operate as a multifunctional device enabling consumers for
example to perform all kinds of financial services via their smartphones.

15
15. Debasis Rooj and Reshmi Sengupta (2021) studied that the recent increase in the use of
a digital payment system is an interesting prospect in predicting macroeconomic activity. A
digital payment system comprising credit cards, debit cards, automated teller machines
(ATMs), and mobile banking represents a broad spectrum of spending activity. The data on
these indicators are also available at a higher frequency and therefore suitable for predicting
lower-frequency macroeconomic variables. Digital payment data are an important predictor
of private consumption in India.

16. Jignesh Babubhai Valand (2019) stated that as far as banking is concern customer is a
key for success in the business world. For the satisfaction it is prime responsibility of the
banks to inform customers about various schemes and services rendering to them, so
today mobile is a tool through which they can spread awareness and ATMs is also best
medium of information sharing to all the end user.

17. Marwah Naeem Hassooni, Methaq Hameed, Mustafa Sabah Taha (2020) pointed out
that from the evolving current inclinations, it is very clear that electronic payment systems in
the world trading and commercial sectors have become crucial. It is recommended that an
electronic payment system that is protected for the purpose of executive purchases via the
internet through the utilisation of information security system.

18. Miss R. Elavarasi (2014) studied that E-banking technology is highly useful to
customers as well as banks and other organisations like government organisations. To
increase productivity, efficiency, service quality of banks, expansion of bank globally e-
banking services are major importance of all commercial banks to adopt in their countries as
well as their customers.

19. Akshita kool (2021) revealed that E-Banking in India is only at its earliest stage
command by the Indian private and foreign banks. The use of e-banking is narrow to a few
consumer slabs. The risks related with e-banking are numerous. The legal structure as its
exits need an updating to simplify and controls the issues associated with e-banking.

20. Ms. K. Renuka & Ms .M. Kirithikaa (2018) stated that the main factors which persuade
people to use online banking are comfort &convenience & the facility which attracts them
most is quality &quantity of information. To increase productivity, efficiency, service quality

16
of banks, expansion of banks globally e-banking is major important of all commercial banks
to adopt in their countries as well as their customers.

21. Pooja Malhotra, Balwinder Singh (2009) pointed out than an average, internet banks
are larger, more profitable and are more operationally efficient than non-internet banks
Internet banks have higher asset quality and are better managed to lower the expenses for
building and equipment. In contrast to developed countries Internet banks in India rely
substantially on deposits, the traditional source of financing.

22. Janine Aron (2018) stated that Mobile money is a recent innovation that provides
financial transaction services via mobile phone, including to the unbanked global poor. The
technology has spread rapidly in the developing world, ―leapfrogging‖ the provision of
formal banking services by solving the problems of weak institutional infrastructure and the
cost structure of conventional banking.

23. Shrey Bhagat (2020) pointed out that a financial market of any country plays a crucial
role in the financial system and economy of the country. M-wallets are widely adopted in
businesses like restaurant and grocery stores.

24. Malhotra, P. and Singh, B. (2004) studied that there is no statistical significant
difference between the internet and non-internet banks with respect to accounting efficiency
and credit quality. However, private sector internet banks are more efficient than private non-
internet banks.

25. Prof. Sana Khan, Ms. Shreya Jain (2018) said that technologies like block chains are
replacing the expensive, unproductive accounting and payment systems of the financial
industry; it can also be used to improve efficiency of regulatory compliance procedures and
save on the back office cost.

17
 Chapter - iii

OVERVIEW OF STUDY

18
 CHAPTER III

OVERVIEW OF STUDY

3.1 INTRODUCTION

For decades, cash has been the typical method of payment that was required to complete a
transaction. That changed when Western Union launched Electronic Fund Transfer (EFT) in
1871 as a payment method by exchanging funds. Later in 1914, Western Union further
developed the payment system by introducing Charge Accounts. These accounts linked with
the card that a user holds allowed them to purchase the product on credit. Over the course of
time, the e-payment system has gone through various changes adapting to new technologies
each time.

Electronic payment system refers to the inventive applications and diverse approaches such
as debit card, credit card, Automated Teller Machines (ATM), Electronic Fund Transfer
(EFT), online payment system that facilitates that allows users to pay for a product or service.

Now almost all the banks provide electronic payment system for their customers. Online
Banking e-Payments (OBeP) are a payment network developed by banks in association with
technology providers, specifically created to address distinctive requirements of payment
completed through internet. The online payment is enabled through payment gateways and
third party service providers called intermediaries. Internet payment gateways allow to make
payment and give access to its customers 24*7. Along with internet banking, majority of
banks have started to provide mobile banking services.

3.1.1 Role of E-Commerce in the Development of Electronic Payment

The electronic payment system is regarded as the backbone of e-commerce. Presently e-

commerce has become a swiftly growing market. As electronic payment system provides
payment method carried over with the help of internet connectivity, e-commerce is the
process of carrying out business through with the assistance of electronic device and internet
connection.

19
Electronic commerce has provided businesses to increase their sales through online. The
development of e-commerce has visibly expanded the scope of e-payment system. With the
development of electronic devices such as smartphones and tablets, electronic payment
methods have improved up to 21% in 2012. Since e-commerce grants various modes of
making payment electronically, e-payment system has grown significantly along with
technological advances over the years.

3.2 THE GROWTH OF ELECTRONIC PAYMENT IN INDIA

India had its unexpected rapid growth of electronic payment system after it experienced
demonetization on November 8, 2016 that lead to the cashless economy that resulted in
electronic payments becoming an integral part of people’s life. The pandemic in India have
drastically boosted the cashless payment trend by ignoring both cash and cheque and
replacing them with e-payment.

Following globalization, various Indian banks have adopted electronic banking method to
enhance their financial positions. According to RBI, it is found that various modes of
electronic payment have shown improvement than the traditional cheque system. According
to The Economic Times, by 2023 around 66.6 billion transactions worth $270.7 billion are
expected to shift from cash to card and digital payments in India.

Guided by RBI’s Payment and Settlement Systems Vision 2019-2021 document, various
initiatives were undertaken by the Department of Payment and Settlement Systems(DPSS)
during the year in the payments ecosystem with continued emphasis on safety, security,
efficiency, innovation, competition, user protection and financial inclusion. The share of
digital transactions in the total volume of non-cash retail payments increased to 98.5 per cent
during 2020-21, up from 97.0 per cent in the previous year.

E-payment has become the most convenient form of payment that allows a user to make
payments electronically without the means of cash or any other source. It is evident that the
development of e-payment closely follows the e-commerce and its trends over the years. E-
payment is the most convenient way of payment when it comes to e-commerce. It provides

20
various payment options like credit card, debit card, online banking and e-wallets with
secured platform for payments.

Amid Covid, India was home to the highest number of real-time online transactions in 2020
ahead of countries such as China and the US. 25.5 billion real-time payments transactions
were processed in the country followed by 15.7 billion in China, 6 billion in South Korea, 5.2
billion in Thailand, and 2.8 billion in the UK. Among the top 10 countries, the US was
ranked ninth with 1.2 billion transactions. The transaction volume share for instant payments
India, among real-time transactions, was 15.6 per cent and 22.9 per cent for other electronic
payments in 2020, according to a report by the US-based payments system company ACI
Worldwide. Importantly, paper-based payments continued to have a considerable share of
61.4 per cent in India.

However, this is expected to change by 2025 as volume shares for instant payments and other
electronic payments are likely to grow to 37.1 per cent and 34.6 per cent respectively.
Consequently, the share of paper-based transactions would contract to 28.3 per cent.
Moreover, the share of real-time payments volume in overall electronic transactions will
exceed 50 per cent by 2024.

―India’s journey of creating a digital financial infrastructure has been characterized by

collaboration between the government, the regulator, banks, and fintechs. This has helped to
advance the country’s goal of enabling financial inclusion and also provided rapid payments
digitization for citizens,‖ said Kaushik Roy, VP and head of product management, Asia, ME
and Africa, ACI Worldwide in a statement.

India’s digital payments market led by Paytm, PhonePe, Pine Labs, Razorpay, BharatPe, and
others on the B2C and B2B sides has surged during the pandemic even as incentives such as
cash backs, rewards, and offers have helped businesses to attract more customers. Moreover,
policy frameworks such as Pre-Paid Instruments (PPI), Universal Payment Interface (UPI) by
the NPCI apart from Aadhar, and the launch of BHIM-app have driven the financial inclusion
and improved the payment acceptance infrastructure in the country in the past few years.

21
 3.3 CONCEPT OF ELECTRONIC PAYMENT

An e-payment system is a way to make payments and / or transactions for goods and services
on an e-commerce website or electronic site without the need to use cash or check. An email
payment system is also known as an online payment system. It has many types such as credit
card, debit card, postal order, e-wallet, mobile payment, crypto currency, etc.

A payment gateway is a system that helps payments in a solid way. In a broader sense, a
service that securely holds confidential information about a credit card, debit card and other
electronic payment methods for users who place an online order in e-commerce systems,
forward it to the e-commerce manager and bank or consultant. Institutions from the e-
commerce manager in compliance with related standards and allows real-time online
processing.

3.4 BENEFITS OF ELECTRONIC PAYMENT

Electronic payment system allows a user to pay quickly and allow them to compile their
financial records with greater accuracy. This will eliminate a user’s accounting errors and
help in keep the records more accurate. Nevertheless, the benefits of using an electronic
payment solution are not limited to this; here are some important benefits of electronic
payments:

3.4.1 Fast Payments

Electronic payments are much faster than standard payment methods such as cash or checks.
In the case of online payments, there is no time limit or location. You can easily pay anytime
anywhere in the world.

E-payment systems have eliminated the need to go to banks to pay. Now no one needs to
waste their time standing in long lines at banks. They can easily pay a business using an
electronic payment app.

22
3.4.2 Low Processing Cost

When using electronic payment in business, it does not incur high charges for processing. It
only costs a fixed subscription to the service provider.

3.4.3 Secured Payment

Despite its strong features, electronic payment systems have not become very popular with
retailers. They still use the same old methods of accepting payments. As a result, they miss
the opportunity to serve many clients.

Electronic payment systems give various ways to secure your payments such as tokenization,
encryption, SSL, etc. Thus it serves as a better payment option for any kind of business.

3.4.4 Better Convenience

Electronic payments can help in providing easy payment information to users. It allows the
users to buy goods on credit by providing them with later payment. Instead of sending
payment reminders regularly, a business or merchant can automatically collect money later.

3.4.5 Low Risk

If cash is used to accept payments from customers, there is a good chance it will be stolen. In
addition, there is a need to take extra security measures in depositing cash in your bank
account.

However, this risk can be reduced if a secured electronic payment system is used. By using it,
payments are recorded automatically. A user can easily get an accurate record of everything
they have done at the end of the day.

3.5 TYPES OF ELECTRONIC PAYMENT

A user can choose from several payments medium. The payment options are broad and each
one has its own unique features. Currently several modes of e-payment are in use. Listed
below are the some of the prominent modes of e-payment:
23
3.5.1 Debit Card

Debit card is a small plastic card with a unique number and bank account number. It is
necessary to hold a bank account to receive a debit card. The card is used to withdraw cash
from our account and to check account balance. These cards are used by inserting through
ATM (Automated Teller Machine) and swipe machines.

The first debit card was used in 1966, says the report by Kansas City Federal Reserve.
Approximately around 300 million transactions were made through debit card in the year
1990 and 37.6 billion transactions in the year 2009.

3.5.2 Credit Card

Credit cards are small plastic cards given by financial institutions that allow its users to make
payment by credit and without paying cash. The credit limit is preset and the financial
institute decides the cards limit depending on the users’ credit score and monthly income.

Credit score is an index of a person’s creditworthiness depending upon their capability to

repay the bills. Credit score represent a person’s credit risk.

The Central Bank of India first launched credit cards in India in the year 1980. In the same
year, Andhra bank also introduced credit cards, which used the Visa brand.

3.5.3 Internet Banking

Internet banking or online banking is a electronic payment system that allows the users of its
representative bank to make transaction accessed through internet. Any individual who has an
active bank account to make transactions without facing the other party of the transaction can
use it.

The various benefits provided by Internet Banking are as follows:

i. Payment of bills and utilities

ii. Access to banking services 24*7
iii. Secured with unique ID and password
iv. Keep a hold of loans, savings and investments

24
v. Apply for insurance

25
 vi. Set-up monthly recurring payment for insurance and other services
vii. Transfer of funds

3.5.4 E- Cheque

E-cheque is an electronic counterpart of the physical cheque. E-cheque is a form of payment

made through internet that is designated to perform the action of transactions. It is the same
of a physical cheque and the payments can be executed in a fewer steps. Users can make
convenient payments since the additional security features include digital signatures,
encryption and authentication.

3.5.5 E-Wallets and Mobile Wallets

An e-wallet is a secured online platform that allows a user to make payment with businesses.
It is linked to the bank account and all the bank services such as debit card and credit card
can be stored in the e-wallets. Mobile wallets are similar to e-wallets except that e-wallets
are used through any device such as computer and laptop whereas mobile wallets are
exclusively accessed only through mobile payment applications.

Origen Wallet is the first ever e-wallet introduced in India in July 2004. It was followed by
Wallet365.com in 2006. In 2011, Google became the first company for launch a mobile
wallet. Examples of e-wallets are Paytm, Amazon Pay, Airtel money, Paypal, Mobikwik.

3.5.6 UPI

Unified Payment Interface (UPI) is a system that combines several bank account into
a single cellular software, merging several banking features, seamless fund routing
& merchant bills within one application. . It authorises payment that can be paid as according
to requirement.

With the above context in mind, NPCI conducted a pilot release with 21 member banks. The
pilot launch became on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at
Mumbai. Banks have began to upload their UPI enabled Apps on Google
Play Store from 25th August 2016 onwards.

26
3.5.7 Mobile Apps

The mobile apps allows user to make contact less payment, which are flexible and competent.
Increased mobile usage and mobile internet connectivity as well as spending incentives,
mobile payment apps, and mobile wallets drive the growth of mobile payment. These e-
payment apps quickly change the usual payment method such as checks, credit cards, debit
cards, etc.

India saw the highest number of digital transactions in 2020 with 25.5 billion digital
transactions. The followings apps are the most well-known mobile payment apps:

Paytm

Paytm (or pay by mobile) is a Noida-based fintech firm owned by One97 Communications.
Paytm is one of India's largest mobile payments and e-commerce player. It allows free
transactions via the Paytm app or the Paytm website.

Paytm wallet allows you to save and send money from one wallet to another or pay directly
through your bank account using the UPI. You can re-charge your mobile phones, municipal
cards, data cards, DTH cable and make utility billing payments, postal payments, or book
movies and tour tickets, shop online or use at various places like taxis, grocery stores,
restaurants, supermarkets, etc.

With over 150 million active users, Paytm continues to be the top in the largest number of
services performed by any payment company in India. Paytm has been estimated at $ 16
billion from 2020.

Google Pay

Google Pay, formerly known as Tez in India, is an e-payment app from Google. It uses UPI
to enable in-app, online, in-store, and personal payments on mobile devices, tablets, smart
watches. Users can pay and receive money from other Google Pay users within India.
Google Pay India also has acquainted to similar products in other markets that receives
various refunds and cash backs including prepaid cards, discounts, etc.

27
PhonePe

Using PhonePe, a user can transfer money, recharge, pay bills, shop online, book flights,
invest, etc. It works on the UPI system, and allows its user to link their bank account with
PhonePe account to make transactions. User can also pay with PhonePe wallet, bankcards,
and combine all e-wallets to Phonepe app. This Bangalore-based online payment app is
India's first UPI-enabled payment app, supported by Walmart-owned Flipkart with over 300
million registered users across India.

Amazon Pay

Amazon Pay is owned by e-commerce business Amazon, which allows a user to make an
online payment through payment methods stored in their Amazon account. Not only a user
can purchase Amazon goods and services but also authorizes to pay for utility bills, phone
bills, send money to contacts, and more. Users can also set up Amazon Pay UPI for UPI
transactions by subscribing to the Amazon app. There are currently 50 million users utilize
Amazon Pay UPI services.

3.6 SECURITY PROTECTION IN E-PAYMENT

The continuous improvements increase the risk, which creates the need for data protection to
match the level of technological change. Tools to secure one’s payment are explained below.

3.6.1 SSL Protocol

The first important thing in your payment security is to make sure you have the SSL (Secure
Sockets Layer) protocol used on your website. It helps you encrypt incoming information,
such as credit card details and sensitive data that users share during the opt-out process.

The padlock icon that appears in the URL bar next to the web address which begins with
https ensures the users that the website is protected and secure to use.

28
3.6.2 Tokenization

Tokenization is a technology that makes it easier to improve payment security and provide a
payment process without risk. It helps to authorize the user at the time of purchase without
compromising payment security.

The process uses tokens — random letters that replace sensitive information, such as a 16-
character credit card number. Tokenization reduces the risk of data breach, if the token is
stolen, it will not be of any use to fraudsters.

3.6.3 Address Verification Service

Address Verification Service, also known as AVS — is a security measure used to prevent
fraudulent transactions on debit and credit cards. The tool checks whether the payment
address provided by the cardholder is the same as the one associated with the card.

The address is verified as part of the merchant's authorization request at the time of the credit
card purchase. The merchant receives a response code from a credit card reviewer and knows
that a transaction should be accepted or rejected.

3.6.4 3D Secure

Secured 3D is a feature that removes any security threat during checkout. When a user pays
for a product or service online, 3D security adds an additional layer of authentication
controlled by the cardholder bank.

When a user of Visa card purchases a product on a site, Visa will be the one to administer the
final verification test. These tests may involve inserting PINs or using biometric scanners.
One does not have to decide on the type of test offered because it is done by a card issuing
bank.

This additional level of online payment security helps to verify that the person using the card
is the real person to whom the card was issued. Some, and not all, payment processors offer
this feature of security.

29
 3.7 TRENDS IN E-PAYMENT

Purchasing methods are enhancing every day; merchants and customers are ready to adapt
and adjust to daily changes happening in the economy. The riches of financial options and
payment methods are overwhelming.

The ways we manage our budget and financial plans for the future are evolving. Payment
methods are no exception and recent trends reveals that electronic payment solutions have
become more influential.

Whether it is other credit options, mobile start-up strategies or more secure and efficient
payment methods, we can expect to see these technologies provide advanced information for
both consumers and businesses. The five payment styles are explained below:

3.7.1 The Mobile Shopping Experience Becomes Faster and Easier

Online shopping has become a preferred method of shopping, and retailers need to adapt their
strategies - with digital and mobile buyers. The number of mobile phone buyers on their
shopping journey has increased by 28 per cent between 2019 and 2021 – reveals the
Synchrony's 2021 Major Purchase Study. For retailers, this is a great opportunity to build and
strengthen customer loyalty.

Whether that means speeding up the payment process, integrating digital wallets (Amazon
Pay, Apple Pay, Google Pay) or providing financial options that consumers can use and use
directly on their phones, the development of mobile shopping information is likely to
continue.

3.7.2 The Future of Payments Unveiled

The use of touch-free payments, especially QR codes, has exploded in recent years - and is
starting. QR payments are estimated to account for 27 per cent of all digital sales by 2024;
making it the most widely used digital trading method in terms of volume, according to
Juniper Research.

Apart from being unaffected, the new payment method is expected to be popular: invisible
payments. These payments happen in the background almost automatically, requiring more
30
than just logging into the smartphone app or even confirm an activity. ―Free exit stores‖, such
as Amazon Go, use a combination of QR codes, cameras and weight sensors that allow
consumers to enter, hold something, and ―just walk out‖ - all without using the usual payment
sensor like scanning their items, something in a full or self-employed stand.

3.7.3 Biometric Verification Continues Growing Influence

As portable, invisible and real-time payments all increase in popularity, protection against
theft and fraud will be a priority for institutions and individuals. To prevent cybercrime and
identity theft, many organizations are turning to portable biometric technology. Biometric
verification will save $ 2 billion in mobile and in-store sales by 2023, according to Juniper
Research. Smartphones using biometric hardware such as face recognition and iris scanning
are expected to surpass 1 billion devices over the next five years.

3.7.4 Buy Now, Pay Later

Additional stores and financial institutions offer Buy Now, Pay Later (BNPL) programs -
which some people consider as a non-profit alternative to traditional credit cards. While not
yet the most widely used payment option, it is becoming increasingly popular - especially
with millennial consumers.

Users want flexibility in payment options, with the assurance of equitable payments within
their budget. One of the best tools in the financial system right now is Buy Now, Pay Later.
People's ability to pay for small ticket items quickly, split payments into equal payouts of
four or more. It always returns to offer payment flexibility.

It is expected that consumers will increasingly embrace this payment method as it becomes
more common. The Insider Intelligence report predicts that the industry will grow to $ 680
billion in production capacity by 2025.

3.7.5 Real-Time Payments Transform Business Trading Forever

Real-time payment (RTP) technology allows for the fast payment of digital transactions
between individuals and / or businesses without the need to wait for approval. In recent years,
it has been causing quite a stir in the US, largely because of its efficiency, and could be the
next major trend in payment technology by 2022. Recent reports confirm that 130 financial
31
institutions are working to utilize real-time payments on their existing infrastructure and that
the Federal Reserve plans to launch its RTP platform by 2023.

For individuals, real-time payments may mean waiting to transfer funds from a mobile
payment app to a bank account. For retailers and businesses, it could mean instant payment or
instant cash disbursement.

3.8 USAGE OF E-PAYMENT OVER THE WORLD

The Electronic Payments market segment is led by consumer transactions and includes
payments for products and services which are made over the Internet as well as mobile
payments at point of sale (POS) via smartphone applications and cross-border money
transfers made over the internet (digital remittances). The following are not included in this
segment: transactions between businesses (business to business payments) and payment
transactions at the point of sale where mobile card readers (terminals) are used.

 Total transaction value in the electronic payment segments is projected to reach US $8.56
trillion in 2022.

 Total transaction value is expected to show an annual growth rate (CAGR 2022-2026) of
12.77% resulting in a projected total amount of US $13.85 trillion by 2026.

 The market's largest segment is Electronic Commerce with a projected total transaction
value of US $5.45 trillion in 2022.

 From a global comparison perspective it is shown that the highest cumulated transaction
value is reached in China (US $3,225.00 billion in 2022).

3.8.1 Numbers and Percentages

 According to the PayPal annual report, the total payments in 2018 amounted to 578
billion US dollars, the company received an income of 15.45 billion US dollars.

32
 According to 2018 data, in the UK 78% of the population make online purchases.
Whereas in Egypt, only 11%.

 In North America, half of all retailers use Apple Pay. A slightly smaller share, 45 and 43
per cent, respectively, work with Masterpass by Mastercard and Visa checkout. PayPal is
used by 36% of merchants who accept online payments.

 It is important that more people use a smartphone, not a computer. This also applies to
online payments. According to the Global WebIndex report, 58% of Internet users choose
their mobile phone for online shopping. While 40% choose a PC.

 Money mobile application increased in 2018 from 19% to 34%. Increasingly, users of this
service carry out transfers from Android-based mobile devices. The share of transfers
made using computers decreased from 81% to 66%.

 According to the World Bank, the United States leads in the number of sent transfers in
the world, followed by Saudi Arabia, Switzerland closes the top three. At the same time,
the highest transaction cost was achieved in the USA.

 The amount of transactions in the segment of digital money transfers around the world in
2018 amounted to 64,173 million US dollars. An annual increase of 15.9% is expected,
which will lead to a total of $ 143,096 million by 2023.

 The number of users who perform online transfers in 2018 reached 5,850
million. Researchers believe that this number will be more than 13 million by 2023.

3.8.2 In-Scope of Worldwide E-Payment

 Online processed payment transactions

 Mobile POS (point of sale) payments processed via smart devices at point of sale

 Digital consumer commerce transactions (e.g. credit card, online payment providers)

33
 Online cross-border payments and remittance sending

 Money transfers processed by online-pure players (e.g. Transfer Wise)

 Transaction value equals money transfers out of the selected region

3.9 PROXIMITY ELECTRONIC PAYMENT USER SHARE IN

SELECTED COUNTRIES, 2021

Electronic Payment Users via smartphones

100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

3.10 THE RISING POPULARITY OF E-COMMERCE PAYMENT

34
3.11 PROCESS BEHIND ELECTRONIC PAYMENT

Although e-payments seem to be swift and effortless, the entire process behind the payment
button is complex and sophisticated.

1. Customer action - It begins when a customer visits the merchant’s site and adds items
(products or services) to the cart. Next, they need to fill out the payment form with certain
information (e.g., card number, expiration date, CVV code, address).
Depending on the payment method, the customer either is redirected to an external
service or bank’s website or continues the payment on the merchant’s website/app.

2. Payment authentication by the operator – The payment gateway (with other parties
involved) checks whether the payment information is valid. If everything is OK, the
process continues, and the payment gateway reports the successful transaction.
After that, the customer receives a payment confirmation — usually a real-time
notification.

3. Payment to the merchant’s account – An online payment provider receives a payment

from a customer’s bank and transfers it to the merchant’s account.

Briefly, e-payments are considered a prompt and secure alternative to traditional payment
methods, such as bank transfers, checks, etc. Accepting electronic payments comes with
many benefits for both sides of transactions – merchants (of any size) and consumers.
Moreover, electronic payments are highly effective for international transactions. It is
generally cheaper, easier, and faster than any other payment method.

35
 Chapter - IV

Analysis and Interpretation

36
 CHAPTER – IV

ANALYSIS AND INTERPRETATION

Analysis and interpretation are the central steps in the research process. All business
decisions are based upon evaluation of some data. Availability of right information is very
important for making right decisions. Once the data begins to flow in, attention turns to data
analysis.

It is impossible for the management to deal with all this data in its row form. Such data must
be presented in a suitable and summarized form without any loss of relevant information so
that it can be efficiently used for decision making.

Whenever there is a need to present numerous figures or to describe a technical process or

procedures, graphic aids can help to communicate this information to the audience more
quickly. The two graphic aids mostly used in research report are tables and graphs. Besides
making the report easier to read and understand, graphic aids improve its physical
appearances.

Data analysis and interpretation is the process of assigning meaning to the collected
information and determining the conclusions, significance, and implications of the findings.

4.1 ANALYSIS OF DATA

Analysis of data means studying the tabulated material in order to determine inherently facts.
This means breaking down the complex factors into simpler parts for the purpose of
interpretation. The analysis via statistical measures and/or narrative themes should provide
answers to the assessment questions.

37
 4.2 INTERPRETATION OF ANALYSIS

Interpretation refers to the task of drawing influences from the collected facts after an
analytical study. Interpreting the analysed data from the appropriate perspective allows for
determination of the significance and implication of the assessment. The task of
interpretation has two major aspects:

 The effort to establish continuity in research through linking the results of the given study
with those of another is one of the tasks.
 The establishment of some explanatory concepts is the second task.

38
PERCENTAGE ANALYSIS

TABLE 4.1

Gender of the Respondents

Gender No. of Respondents Percentage (%)

Male 21 21%

Female 79 79%

Total 100 100%

Source: Primary Data

The above table shows that out of 100 respondents, 21% are male respondents and 79% are
female respondents.

39
 TABLE 4.2

Age Group of the Respondents

Age Group No. of Respondents Percentage (%)

10 to 20 years 34 34%

21 to 30 years 60 60%

31 to 40 years 4 4%

Above 40 years 2 2%

Total 100 100%

Source: Primary Data

The above table shows that the respondents belong to the age group of 10 to 20 years
represents 34% and the age group is 21 to 30 years represented by 60% of respondents. The
least response is received by the 31 to 40 years and above 40 years age groups.

40
 TABLE 4.3

Residential Area of the Respondents

Residential Area No. of the Respondents Percentage (%)

Rural 47 47%

Urban 41 41%

Semi Urban 12 12%

Total 100 100%

Source: Primary Data

Table 4.3 shows the residential area of the respondents to be 47% on rural areas and 41% on
urban area. The remaining 12% belongs to the Semi-Urban residents.

41
 TABLE 4.4

Educational Qualification

Educational Qualification No. of Respondents Percentage (%)

HSC 5 5%

Under Graduate 80 80%

Post Graduate 12 12%

Others 3 3%

Total 100 100%

Source: Primary Data

Table 4.4 represents that 80% of the respondents are Under Graduates and 12% of them are
Post Graduates. The remaining 5% of a total 100 respondents have HSC qualification.

42
 TABLE 4.5

Occupational Status

Occupational Status No. of Respondents Percentage

Student 66 66%

Employed 25 25%

Unemployed 5 5%

Entrepreneur 2 2%

Business 1 1%

House Wife 1 1%

Total 100 100%

Source: Primary Data

Table 4.5 shows that majority of respondents are students with a 66% and 25% of them are
employed whereas Business and House Wife each represents 1% each.

43
 TABLE 4.6
Monthly Household Income

Monthly Household Income No. of Respondents Percentage (%)

Rs. 10000 to 20000 56 56%

Rs. 20001 to 30000 19 19%

Rs. 30001 to 40000 11 11%

Above 40000 14 14%

Total 100 100%

Source: Primary Data

Table 4.6 represents the monthly household income of the respondents. 56% of respondents
are under the category of Rs.10000 to 20000, 19% of them under Rs.20001 to 30000, 11%
under Rs.30001 to 40000 and 14% of above 14%.

44
 TABLE 4.7

Usage of Bank Account of Respondents

Usage of bank account No. of Respondents Percentage (%)

Yes 100 100%

No 0 0

Total 100 100%

Source: Primary Data

Table 4.7 shows the usage of bank account by the respondents. Out of 100 respondents, all
100% are users of bank account.

45
 Usage of Bank account of Respondents

TABLE 4.8

Learn about E -payment of Respondents

Learn about E payment No. of Respondents Percentage (%)

Advertisement 38 38%

Family and Friends 50 50%

Bank 11 11%

In my school days 1 1%

Total 100 100%

Source: Primary Data

Table 4.8 shows that total number of 100% respondents that e payment in advertisement
have 38% and Family and Friends have 50% are mentioned here

46
 TABLE 4.9

Time of usage of e-payment

Time of Usage No. of Respondents Percentage (%)

Less than 1 year 46 46%

1-2 year 34 34%

3-4 years 12 12%

More than 4 years 8 8%

Total 100 100%

Source: Primary Data

Table 4.10 shows that 46% of respondents have been using e-payment for less than 1 year,
34% for 1-2 years, 12% for 3-4 years and 8% for more than 4 years.

47
 TABLE 4.10

Frequency of e-payment usage

Frequency of e-payment No. of Respondents Percentage (%)

Once in a month 32 32%

Twice a month 23 23%

Thrice a month 18 18%

More than thrice a month 27 27%

Total 100 100%

Source: Primary Data

Table 4.11 represents the frequency of usage of e-payment. Out of 100 respondents, 32% of
respondents use it once a month, 23% uses it twice a month, 18% of them use it thrice a
month and 27% of them use it more than thrice a month.

48
 TABLE 4.11

Purpose of e-payment

Purpose of e-payments No. of Respondents Percentage (%)

Bill payments 43 43%

Ticket Booking 30 30%

Insurance 11 11%

Bank transfers 16 16%

Total 100 100%

Source: Primary Data

Table 4.12 represents that 43% of respondents use e-payment for the purpose of bill
payments, 30% for ticket booking, 11% for insurance and 16% for bank transfers.

49
 TABLE 4.12

Benefit of e-payment usage

Benefits of e-payment usage No. of Respondents Percentage (%)

Security 20 20%

Convenience 21 21%

Fast transactions 54 54%

Accessibility 5 5%

Total 100 100%

Source: Primary Data

Table 4.13 represents that 20% of respondents use e-payment for security, while 21% find it
convenient, 54% use e-payment for fast transaction and 5% use for accessibility.

50
 TABLE 4.13

Preferred e-payment channel

Preferred e-payment channel No. of Respondents Percentage (%)

Internet Banking 28 28%

Debit/Credit card 19 19%

Google Pay 36 36%

Paytm 12 12%

Phone pe 5 5%

Total 100 100%

Source: Primary Data

Table 4.15 shows that internet banking is preferred by 28% of respondents, debit/credit card
by 19%, google pay by 36%, paytm by 12%, phone pe by 5%.

51
 TABLE 4.14

Online shopping payment method

Online shopping payment No. of Respondents Percentage (%)

method

Internet banking 23 23%

UPI 33 33%

Debit/Credit card 29 29%

Cash on Delivery 15 15%

Total 100 100%

Source: Primary Data

Table 4.16 shows that internet banking is preferred by 23% of respondents during online
shopping, while UPI is preferred by 33%, Debit/Credit card by 29%, cash on delivery by
15%.

52
 TABLE 4.15

E-payment convenience over cash

E-payment convenience over No. of Respondents Percentage (%)

cash

Yes 94 94%

No 6 6%

Total 100 100%

Source: Primary Data

Table 4.18 shows that out of 100 respondents, 94% of them think that e-payment is better
than regular payment, while 6% does not.

53
54
 TABLE 4.16

User-friendly interface

User-friendly interface No. of respondents Percentage (%)

Yes 97 97%

No 3 3%

Total 100 100%

Source: Primary Data

Table 4.19 shows that 97% of respondents thinks that e-payment service has a user-friendly
interface, while 3% does not.

55
 CHART 4 .17

Usage of monthly E payment

Usage of monthly payment No of Respondents Percentage

Less than Rs 5000 46 46%

Rs 5000 – Rs 10000 24 24%

Rs 10000 - 15000 21 21%

More than Rs 15000 9 9%

Total 100 100%

Primary data
It shows that the usage of the e payment that have total 100 respondents and having that the
less than the 5000 is 46%, 5000 to 10000 is 24%, 10000 to 15000 is 21%, and more than 15000 is
9 %.

56
 CHART 4.18

Problem in usage of E payment

Problem in usage of e-payment No of Respondents Percentage

Network issues 29 29%

Server Error 50 50%

Forgot UPI 9 9%

Transaction Limit 12 12%

Total 100 100%

Primary data
If pretends that the total number of 104 respondents and the usage of e payment has the
network issues have the 29%, server error have the 50% , forgotten UPI is 9%, Transaction limit is
12% .

57
 CHART 4.19

Overall services of E payment

Overall services of E No of Respondents Percentage

payment
Highly satisfied 39 39%

Satisfied 41 41%

Neutral 14 14%

Dissatisfied 6 6%

Highly dissatisfied 0 0%

Total 100 100%

Primary data

The total e payment usage has the 100 respondents that highly satisfied is 39%, satisfied
have 41%, neutral is 14%, Dissatisfied is 6%, Highly dissatisfied is 0%.

58
RANKING TECHNIQUE

TABLE 4.20

Satisfaction of respondents towards modes of e-payment

E payment features Rating scale Overall

5 4 3 2 1 WM Rank
Internet banking 1 39 20 12 13 3.33 2
6
Debit / credit card 7 24 45 12 12 3.02 5
Mobile payment 8 34 27 18 13 3.06 4
E wallets 8 25 50 10 7 3.17 3
E cheque 1 45 22 10 8 3.49 1
5
Overall weighted mean 3.21
rating

Internet banking =(5*16)+(4*39)+(3*20)+(2*12)+(1*13) = 333/100 =3.33

Debit /credit card = (5*7)+(4*24)+(3*45)+(2*12)+(1*12)= 302/100 = 3.02
Mobile payment = (5*8)+(4*34)+(3*27)+(2*18)+(1*13)= 306/100 = 3.06
E wallet = (5*8)+(4*25)+(3*50)+(2*10)+(1*7)= 317/100 =3.17
E cheque =(5*15)+(4*45)+(3*22)+(2*10)+(1*8) = 349100 = 3.49
Overall Weighted Mean Rating = 3.33+ 3.02+ 3.06+ 3.17+ 3.49
= 16.07/5
= 3.21
Primary data

The table shows that E cheque Rank 1st, Interest banking Rank 2nd , E wallet Rank
3rd ,Mobile Banking Rank 4th and Debit /credit card Rank 5th

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 Chapter – v

SUMMARY OF FINDINGS AND

SUGGESSION OF THE STUDY

60
 CHAPTER - V

SUMMARY OF FINDINGS & SUGGESSION OF THE STUDY

5.1 FINDINGS OF THE STUDY

1. Majority of the respondents (77%) are female.

2. Majority of the respondents (56%) belong to the age group 21 to 30 years.

3. Most of the respondents (48%) are rural residents.

4. Majority of respondents (76%) are under graduates.

5. Majority of the respondents (62%) are students.

6. Majority of the respondents (56%) has a monthly household income of Rs.10000 to

20000.

7. Majority of the respondents (100%) have bank accounts.

8. Majority of the respondent (52%) have fast transactions

9. Majority of the respondents (51%) recognised e-payment from their family and friends.

10. Most of the respondents (48%) have been using e-payment for less than a year.

11. Majority of the respondents (32%) frequently use e-payment for once in a month.

12. Most of the respondents (44%) use e-payment for the purpose of bill payments.

61
13. Most of the respondents (35%) using internet banking.

14. Most of the respondents (48%) consider that debit / credit card are higher in E payment

15. Most of the respondents (35%) say that Google Pay is the most preferred e-payment
channel.

16. Most of the respondents (45%) express that they prefer less than 5000 for monthly
payment

17. Most of the respondents (48%) reveal that they face server error during e-payment
transactions.

18. Majority of the respondents (94%) express that e-payment is better

19. Majority of the respondents (96%) agrees that e-payment channels have a user friendly
interface.

20. Majority of the respondents reveals that they are mostly satisfied by Mobile
payments apps compared to Internet Banking, Debit/Credit cards, E-cheques and Aadhar
Enabled Payment System.

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 5.1SUGGESTIONS

On the basis of analysis and interpretation of the responses, the following suggestions are
made:

 Though the adoption of e-payment has considerably increased over the years, it still has a
long way to go to be truly accepted by the people. Awareness about e-payment has to be
spread widely around India.

 Respondents revealed that users mostly prefer Cash on Delivery during online shopping.
Enough trust must be outspread to the public to increase the preference of e-payment
during online shopping.

 Network issues are faced during the transactions even with advanced technological and
network improvements. This problem must be solved through improving the layout of
the e-payment channels.

 Not every bank provides e-payment facilities. This should be expanded by every bank by
offering facilities for electronic banking facilities.

 This study has received most response from students. Further study on the topic must
include analysis from all age group and profession.

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 5.2CONCLUSION

This study explored the frequently used electronic payment channels by the users in
Coimbatore. It is found from this study that mobile payments are the mostly preferred e-
payment channel. Internet banking and Debit/credit cards are preferred next to mobile
payments respectively. Factors such as educational level, household income, internet
availability, awareness among users and convenience greatly affect the usage of electronic
payment. Banks must provide awareness services to its customers to expand the usage of e-
payment. Increase in the usage of electronic payment is beneficial to Indian economy for the
expansion of credit market.

64
Bibliography

65
BIBLIOGRAPHY

Books

1. C.R. Kotheri, ―RESEARCH METHODOLOGY‖, Sulthan Chand & Sons Publishers,

New Delhi, 3rd edition, 2015.

2. Dr. S.P Gupta, ―STATISTICAL METHODS‖, Sulthan Chand & Sons Publishers,
New Delhi, 46th edition, 2014.

3. Donal O’ Mahony, ―Electronic Payment Systems for E-commerce‖, Artech House Print
on Demand; 2nd edition, 2001.

Websites

www.google.com

https://iopscience.iop.org/

https://economictimes.indiatimes.com/

https://rbi.org.in

https://www.researchgate.net

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QUESTIONNAIRE

AN EMPIRICAL STUDY ON PERCEPTION AND SATISFACTION OF ELECTRONIC

PAYMENT USERS WITH SPECIAL REFERENCE TO COIMBATORE DISTRICT.

DEMOGRAPHIC QUESTIONS:

1. GENDER:
a) Male b) Female c) Transgender

2. AGE:
a) 20 years and above b) 21-30 years
c) 31-40 years d) above 40 years

3. RESIDENTIAL AREA:
a) Rural b) Urban c) Semi Urban

4. EDUCATIONAL QUALIFICATION:
a) No Schooling b) HSC
c) Under Graduate d) Post Graduate

5. OCCUPATIONAL STATUS:
a) Student b) Employed
c) Unemployed d) Entrepreneur

6. MONTHLY HOUSEHOLD INCOME:

a) Rs.10000 to 20000 b) Rs.20001 to 30000

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c) Rs. 30001 to 40000 d) More than 40000

71
PERCEPTION TOWARDS ELECTRONIC PAYMENT

7. DO YOU HAVE A BANK ACCOUNT?

a) Yes b) No

8. IF YES, WHAT TYPE OF BANK ACCOUNT DO YOU OWN?

a) Savings Account b) Current Account
c) Fixed Deposit Account d) All of the above

9. WHERE DID YOU RECOGNIZE E-PAYMENT?

a) Advertisement b) Family & Friends
c) Bank d) Social Media

10. HOW LONG HAVE YOU BEEN AN USER OF E-PAYMENT?

a) Less than 1 year b) 1-2 years
c) 3-4 years d) More than 4 years

11. HOW FREQUENTLY DO YOU MAKE E-PAYMENT?

a) Once in a month b) two time in a month
c) three times in a month d) More than 3 times

12. WHAT PURPOSE DO YOU USE E-PAYMENT REGULARLY?

a) Bill Payments b) Ticket Booking
c) Insurance d) Bank Transfers

13. AMONG THE FOLLOWING, WHAT DO YOU CONSIDER AS A MAJOR BENEFIT

OF E-PAYMENT?
a) Security b) Convenience
c) Fast Transaction d) Accessibility

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14. WHAT IS YOUR PREFERRED E-PAYMENT CHANNEL TO MAKE
TRANSACTIONS?
a) Internet Banking b) Debit/Credit Card
c) Google Pay d) Paytm
e) PhonePe f) BHIM
g) Aadhar Enabled Payment System

15. WHAT IS YOUR PREFERRED PAYMENT CHANNEL DURING ONLINE

SHOPPING?
a) Internet Banking b) UPI
c) Debit/Credit Card d) Cash on Delivery

16. WHAT ISSUES DO YOU FACE WHILE MAKING E-PAYMENT TRANSACTIONS?

a) Technical Issues b) Security Issues
c) Network Issues d) Recurring Bills

17. IS E-PAYMENT CONVENIENT TO USE?

a) Yes b) No

18. DOES E-PAYMENT HAVE USER-FRIENDLY INTERFACE?

a) Yes b) No

19. RANK THESE MODES OF E-PAYMENT ACCORDING TO YOUR SATISFACTION

LEVEL:
a) Internet Banking b) Debit/Credit Card
c) Mobile Payment Apps d) E-Cheque
d) Aadhar Enabled Payment System

73