10th International Conference on Emerging Trends in Corporate Finance and Financial Markets

October 13-14, 2022

A Study on Digital Payment Users in Electronic City Bengaluru South

Usha.N
Professor
Department of Finance
ISBR College, Bangalore
ushaprakashkumar10@gmail.com

A P Naghul Krishna
ISBR College, Bangalore.
Naghulk7@gmail.com

Prithesh Dsouza
MBA
ISBR College, Bangalore.
Pritheshdsouza57@gmail.com
Abstract:
In the present scenario digital mode of transactions are highly used when compared to physical
mode of monetary transactions. In the current situation digital payments plays a sound role in
the growth of the Indian economy as the money passes from banks to banks and banks utilise
those money lending and it covers all the areas and there is a high possibility that cash
transactions will slowly be side-lined. Pandemic crisis (COVID-19) has made ways to adapt
towards the technological advancement especially in transacting through digital payment
applications. A few of them are Google pay, Paytm, Phonepe, Bharatpe, Mobiwik, etc.
A switch to online payment mode is found in these recent times (especially during COVID -19
Crisis) in India. Researches indicates some factors as barriers to the consumers towards mobile
payment applications and this study helps in to plan proper strategy and to overcome the
barriers for the cashless economy. Therefore, this research paper highlights the study on digital
payment users in electronic city Bangalore
Key words: Digital Payment, Cashless, Online Transactions, Mobile Application
Introduction
Nowadays Digital payments have become an official way of payment all across the nation from small
petty shops to big star hotels everyone has switched towards UPI.ICICI Bank was the very first bank in
India which introduced online banking services in india followed by HDFC in 1999. Our research mainly
focusses on how exactly people feel using digital payments and what challenges they face in their daily
life. Types of digital payments which are used very often are Online banking, UPI, E-wallets and so on. RBI
regulates the digital payments in India
Indian digital payment applications have almost set up their humongous business in India they mainly
generate review through bill payments and other online bookings in the way of commissions. Bharat pe
has generated a lot of revenue by just collecting transactional data of customers and their buying
patterns and based on that they provide loans starting from 10,000 to 200,000 Rupees with
comparatively lower rate of interests and the loan repayment success ratio is about 98%. Directly or
indirectly digital payments have created many entrepreneurs and has also made works of common man
easier than ever before. As of 2022 there were almost 71 Billion digital payments recorded all across the

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 10th International Conference on Emerging Trends in Corporate Finance and Financial Markets
October 13-14, 2022
nation it was a gradual increase when compared to the previous three years and there are estimates that
this ratio might increase way more than expected 2025.
India is one among the top nations to utilise digital mode of transactions and has been very successful in
its vision and has also motivated developed nations like Singapore to adapt this way of payments

Reviews on Literature
1. (Sahayaseelvi, 2017) The study on to know about the various types of digital transactions that are
used by the common people in their day-to-day’s lives and impact of digital revolution.
2. (Ghosh, 2021) Various methods of digital payments why they are being adopted, what is the
future of digital payment in coming years and it’s also a great way to make our country a cashless
economy.
3. (Goel & Nath, 2020) To study new digital evolution and challenges for conventional payment
system of financial institution and tremendous opportunities for developing countries.
4. (Goplani, Sabhani, & Gupta, 2021) in the present scenario the usage of most popular digital
payment applications for the online transaction for the towards cashless economy.
5. (Vally & Divya , 2018) the focuses on the analysis of the adoption level of these digital payment
systems by customers.
6. (Pahwa, 2020) the study is interested to examine particularly about the awareness level of digital
payments among people in the present Indian setting due to the intriguing developments.
7. (Malusare, 2021) conveying real scope of digital payment use in a future and also focus on the
problems of digital payment system in India and effects of the system in people and economic
system of India.
8. (Dixit, 2020) The research indicates some factors as barriers to the consumers towards mobile
payment applications towards hidden charges, digital payments are not accepted everywhere due
to trust. The study will help in India to plan successful strategies for increasing the use of online
transaction to build better relations with consumers.
9. (Gokilavani, Mr. D.Venkatesh kumar, Dr. M. Durgarani, & Dr. R. Mahalakshmi, 2018) The moderate
level of perception about digital payment and there is significant difference between socio-
economic status of consumers and their perception towards digital payment.
10. (K M, 2021) The study the consumer perception of digital payment methods on the basis of
demographic characteristics such as gender, age, education, profession, and employment.
11. (Punwatkar & Verghese, 2018) to know the security of e-wallet or digital wallet for mode of
transaction in convenient way.
12. (M & FATHIMA, 2021) the tenure of usage and years of business does play a vital role in making
decision and is the reason to adopt the digital payment method. There is high correlation between
behavioural intension and perceived behavioural control.
13. (Nair, 2020) to understand the different methods of online payments, and its advantages and
disadvantages towards adoption of technology for the growth.
14. (Babu & Narayanamma, 2018) mobile wallet/digital payment provides benefits to individual for
purchase of products, improve the quality of decision, helpful in buying products as compared to
traditional methods.
15. (Tyagi & Jagadale, 2022) study of applications that deals with Unified Payment Interface (UPI) in
India. It shows how the dynamics are changing in the UPI sector. It is also gaining popularity due to
increase in use of Smartphone by the people.
16. (Sundari & Shobana, 2021) the customer awareness and factors influence to access the digital
payment apps had been made to know the technological access behaviour of the users.
17. (Velmathi, 2019) people are not adopting these services due to some illusions regarding digital
payment to overcome that the study is made.

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 10th International Conference on Emerging Trends in Corporate Finance and Financial Markets
October 13-14, 2022
18. (K, 2020) study is focused towards understanding the perception of digital payments among the
people and to establish the reasons as to why they use digital payments. It will also help ascertain
the usage of digital payments.
19. (Kamath, 2020) usually, India is traditionally a cash-based economy, but now slowly we see the
growth of card-based economy. Now it is moved towards adoption of digital payments.
20. (Malick, Sheth, & Trachtman, 2019) the adoption is both feasible and inexpensive, therefore low
rates of adoption do not appear to be the result of supply-side barriers, but due rather to demand-
side factors or taxes and concerns that records of mobile payments might increase tax liability.
21. (Lachhwani & Kanwar, 2020) shows customer preference towards digital banking. The research
intends to know what the effect of Digital banking is and which factor has major influence on the
customer.
22. (Ghana Shyam Kafley & Chandrasekaran, 2021) The study results show that Trust, Perceived
Usefulness, and perceived ease of use are statistically significant, indicating that this variable has a
positive effect on Intention to use e-payment.
23. (SINGH & RANA, 2017) to understand the Increasing use of internet, mobile penetration and
government initiative such as Digital India are acting as catalyst which leads to exponential growth
in use of digital payment.
24. (VINCENT & ABRAHAM, 2019) technology provide a positive impact to ground for the conduct of
electronic transactions as it is ease of use, convenient, 24*7 available but it faces a lot of problems
on the ground of complexity in usage, lack of internet accessibility etc.
25. (Balakrishnan & Meeshalini, 2020) the impact on the adoption of digital payment applications
among Malaysians, based on the adapted version of the Cashless Society Readiness-Adoption
model.
26. (Singhal & Gupta, 2021) to study the concept of digital payment along with impact of COVID-19 on
digital payment services in towns and villages of India the conclusion of present research paper
shows that there is a high increase in use of digital payments services through various applications
in Indian towns and villages which was not much high before the happening of world-wide
pandemic COVID-19.
Objectives
1. To understand the benefits of digital payments
2. To understand the difficulties faced by customers during server issues

Methodology
This study is carried out in mainly Electronic City Precisely in Bangalore South we collected data mostly
from students and working employees to study about the Digital payments. We collected data from
nearly 152 People out of which 80 were male and 72 were females Most of our respondents were
between the age of 18 and 25 and most of them having an annual income below 3 Lakh We used various
tools for testing namely, Correlation Regression, ANOVA & two-way ANNOVA
Level of Awareness
Personal Factor of the Study
No of Respondent Percentage
Male 80 52.63 %
Gender
Female 72 47.36 %
18-25 142 93.63 %
25-30 03 2.2 %
Age
30-40 00 00.00 %
40 Above 07 4.4%
Student 110 72.36 %
Profession Employee 42 27.64 %
Self Employed 00 00.00 %

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October 13-14, 2022

Other 00 00.00 %
Below 3 Lakh 121 80.00%
Annual
3 Lakh -6 Lakh 22 14.3%
Income
10 Lakh Above 09 5.7%

1. Correlation
• An analysis to find correlation between Certainty to avail exact change from the bearer and
Dependence on Digital Payment.
Certainty to avail exact Dependence on
Particulars change from the bearer Digital Payment
Certainty to avail exact change from the bearer 1
Dependence on Digital Payment 0.145440847 1

From the above table we analysed that People very often face a challenge in receiving the exact change
of money in many places like travelling in busses, small petty shops and so on, it represents the positive
correlation of 0.145440847 so in the present scenario to avoid all those penny people prefer to be
dependent on transacting via Digital mode or Paying through cards wherever available.
• An analysis to find correlation between Benefits of Digital Payment and Dependence on Digital
Payment.
Benefits of Digital Dependence on Digital
Particulars Payment Payment
Benefits of Digital Payment 1
Dependence on Digital Payment 0.263200508 1
From the above table we analysed that People have started analysing the difference between the cash
transactions and mere digital transactions and as a whole people have come to an conclusion that they
feel more comfortable in transacting via digital mode, from the above table we can see that dependency
on digital payment has a positive corelation of 0.263200508 People have started witnessing the benefits
in digital transactions like cashbacks from UPI, Realtime transaction history, Proper note on single penny
spent and so on.

2. Regression
An analysis for finding the regression between lack of trust on UPI and people prefer to deposit a money
in e-wallet for faster payment
Regression Statistics
Multiple R 0.056007
R Square 0.003137
Adjusted R
Square -0.00351
Standard Error 1.234565
Observations 152
3. ANNOVA
ANNOVA
Particulars df SS MS F Significance F
Regression 1 0.719401 0.719401 0.472001 0.493129
Residual 150 228.6227 1.524151
Total 151 229.3421

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Standard Lower Upper Lower Upper
Particulars Coefficients Error t Stat P-value 95% 95% 95.0% 95.0%
Intercept 3.208299 0.343736 9.333608 1.29E-16 2.529108 3.887489 2.529108 3.887489
X Variable 1 0.058103 0.084571 0.687024 0.493129 -0.109 0.225208 -0.109 0.225208

Here in R square is a measure of how much change in customers are prefer for online e- wallet
transaction when the actual server is down and it shows positive points at 0.003137. And indicating the
3.137% of customer prefer for online e-wallet like Paytm, Mobikwik, Phonepe, etc, here we get to know
the customers preference when actual issue arise.

The significance of F in ANNOVA is important, in the above table the significance of F is lesser than 0.5
which is 0.472001 indicates that this is a strong Regression.

In this coefficient case this regression is sounds good because we got the significance value in positive
relation because of lesser than 0.5

An analysis for the finding of factor of two or more variables, like digital payment, server issue and e-
wallet and to know the relation between dependent and independent variables analysis

Total
Count 152 152 152
Sum 291 522 387
Average 1.914474 3.434211 2.546053
Variance 0.793961 1.518822 1.150183

ANOVA Two Way

Source of
Variation SS df MS F P-value F crit
Digitalization 63.27193 37 1.710052 1.563738 0.022706 1.445838
Server issue 177.1974 2 88.59868 81.01805 1.58E-29 3.022127
Interaction 85.63596 74 1.157243 1.058227 0.362226 1.3272
Within 374 342 1.093567

H0: There is no iteration between e wallet server issue and digitalization

H0: there is significant relationship between digitalization and server issue and no iteration between e-
wallet
H1: There is iteration between e wallet server issue and digitalization
H1: There is significant relationship between digitalization and server issue and iteration between e-
wallet
From the above table of ANOVA 2 Way say that there is a significant relationship between customers
preference towards digitalization and faced the server issue, and the interaction between the
digitalization and server issue the factors are lower than the critical value not because of e-wallet. And
the P value of digitalization and server issue are significant relation at 0.022706 and 1.58E-29 and the
value of interaction is more than 0.05, 0.362226 the P value and there is no significant relationship so we
accepted the H0.

An analysis for finding the relationship between the variables are related or not with the help of
hypothesis

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October 13-14, 2022

Grand
Observed (fo) 1 2 3 4 5 Total
Female 11 12 9 13 21 66
Male 21 20 6 15 24 86
Grand Total 32 32 15 28 45 152

Expected Grand
(fe) 1 2 3 4 5 Total
Female 13.89474 13.89474 6.513158 12.15789 19.53947 66
Male 18.10526 18.10526 8.486842 15.84211 25.46053 86
Grand Total 33 34 18 32 50 152

Grand
Chi-square 1 2 3 4 5 Total
Female 0.60307 0.258373 0.949522 0.058328 0.109171 1.9784632
Male 0.462821 0.198286 0.728703 0.044763 0.083782 1.51835548
Grand Total 1.065891 0.45666 1.678224 0.103091 0.192953 3.49681869

H0: There is no relationship between Digital transaction and Server issue

H1: There is a significance relationship between Digital transaction and server issue
From the above table we analysed and we found the critical value is 9.487729, and this the rejection
level. Our chi square statistics says that value is 3.499681869, so it falls in the non-rejection region.
Chi square value lesser than critical value then it indicates fail to reject H0, because there is relationship.
And P value is 0.478362, Alpha level is 0.05 here in our study P value is greater than the Alpha so we
accepted the H0.
An analysis for finding the relationship between the e-wallet as a problem-solving tool for to overcome
from the issue

SUMMARY
Groups Count Sum Average Variance
Did you find e-wallets as a problem-solving technique for
overcoming server issues 152 479 3.151316 1.281588
Do you face server issue while doing the transaction? 152 291 1.914474 0.793961

ANOVA
Source of
Variation SS df MS F P-value F crit
Between Groups 116.2632 1 116.2632 112.0312 1.78E-22 3.872435
Within Groups 313.4079 302 1.037774

Total 429.6711 303

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 10th International Conference on Emerging Trends in Corporate Finance and Financial Markets
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H0: there is no significance relationship between e-wallet as a problem-solving technique with server
issue.
H1: There is significance relationship between e-wallet as a problem-solving technique with server issue.
Alpha = 0.05
The results from the above table describes between the group as the source of variation and raw
describes the results when the two sources of variation within the group.
F-statistics 112.0312 lesser than F crit, results say the test is no significant. P value for the hypothesis test
is 1.78E-22, hence null hypothesis was there is difference between means of the problem-solving
technique and server issue.
When P0 greater than 0.05 we accept the null hypothesis and reject the alternative in our above table our
P value is greater than 0.05 we failed to reject null hypothesis.

Conclusion
This study elucidates about the Digital Payment users mainly concentrated in Electronic city, most of the
people see here the digital payments in a positive phase but they have some important queries too
The main complaint on digital payments is server problems many customers who totally depend on UPI
completely say this as a major threat people feel embarrassed when they are not able to do the
transaction to the bearer
There are Limits in the number of transactions a person can do in a day this is also seen as a threat for
many people but it can be resolved if the customer is having multiple number of bank accounts
As the payments are getting more digitalised and technology is getting updated every minute people are
more fearful regarding cyber security as there is a fear of getting hacked in every single person who is
using digital mode to do their transactions
People are still happy in using Digital mode of payments as it saves lots of time to the customer and its
faster and more efficient but they should keep in mind the negative phases too while choosing digital
mode as their transaction method.

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