A

RESEARCH PROJECT REPORT

on
“Impact of Online payment system in new changing economic era ”
SUBMITTED FOR THE PARTIAL FULFILLMENT FOR THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION

Session :2023-2024
By: Saumya Jaiswal
Roll Number: 2200110700187
Under the guidance of
Mr. Arpit Gupta
( Assistance Professor)

UNITED INSTITUTE OF MANAGEMENT, PRAYAGRAJ (011)

AFFILIATED TO
Dr. A.P.J. Abdul Kalam Technical University (APJAKTU), LUCKNOW

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 Certificate
Research Project Report – 2024
This is to certify that Mr/Ms………Saumya Jaiswal………………….……
Roll No………2200110700187……………,student of MBA 4th Semester of our institute
has prepared RESEARCH PROJECT REPORT on
o Title:….. “Impact of Online payment system in new changing economic era…
He / she has carried out the research under my supervision and has completed the same in
conformance with / partial fulfillment of the provisions of AKTU, Lucknow.
The work is based on secondary data and has not been submitted anywhere else in any
manner.
Signature……………………………............
Name – Mr/Ms/Dr………………………….
Project guide.
Department of Busines Administration
Date………………………………………..
Counter signed
Signature…………………
(Prof K K Malviya)
Principal
Date…………..……..

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 ACKNOWLEGEMENT

It is a matter of great pleasure to thanks all esteemed who helped me to complete my final
research project successfully otherwise it would not been possible.

Acknowledgement is not only a ritual but also an expression of indebtedness to all who
have helped in the completion process of the project . One of the most pleasant aspects in
collecting the necessary and vital information and compiling it is the opportunity to
thanks all those whose activity contribute to it.

I would like to express my deepest gratitude and thank TO PROF. K.K. MALVIYA
(UIM PRINCIPAL), DR. ROHIT KUMAR VISHWAKARMA (HEAD OF
DEPARTMENT UIM), MS. NISHI SINGH(CLASS COORDINATOR), and project
guide MR. ARPIT GUPTA (ASSISTANT PROFESSOR) , of the valuable guidance and
constant encouragement which extend to me through my research project.

Date:

Place: Prayagraj

Saumya Jaiswal

MBA 2 nd (Sec D )

Roll No. 1

Student Id – 13220076

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 Preface

Research Project is business organization in fuse among student a sense of critical

analysis of the real managerial situation to which they are exposed. This gives them an
opportunity to apply their conceptual theoretical & imaginative skills in a real life
situations and to evaluate the results there of.

Practical training through selling policies and interact with the clients which gave me
actual input to fulfill my real aim.

This report is the written account of what I learnt experienced during my training.

I wish those going through it will not only find it real but also get useful information.

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 Declaration

We hereby declare that the project entitled – “Impact of Online payment

system in new changing economic era ” which is being submitted as
Research Project Report of 4th semester in UNITED INSTITUTE OF
MANAGEMENT ,NAINI, PRAYAGAJ (UP) is an authentic record of
genuine work under the work of MR. ARPIT GUPTA (ASSISTANT
PROFESSOR)

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 Content

Chapters Topics Page no.

1. Objectives of the study

2. Review of literatures

3. Overview of the associated firm

/ industry

4. Research Methodology

5. Data analysis & interpretation

6. Findings

7. Conclusions

8. Recommendations

9. Bibliography

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Chapter -1

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 Objective

 To study the issues challenge faced by the consumers .

 To identify strategies on the application of emerging technologies in the Online
platforms.

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Chapter -2

9
Review of literature

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Development of Digital Payment Systems in Indonesia

Muhammad RidhoNurAlamsyahHendrawan, ShofiArofatulMarits, Sebastian

Herman

JurnalIlmiahManajemenKesatuan 11 (3), 1335-1344, 2023

This research explores the dynamics and development of the digital payment system in
Indonesia along with rapid technological transformation, including the growth of the
digital finance industry and a shift in consumer behavior towards non-cash transactions.
The aim of this research is to analyze the impact of the development of digital payment
systems on the existence of cash in the digital economy era as well as reduce risks that
may arise from the use of digital payment systems and prevent price increases due to the
amount of cash in circulation. The method used in this research is a qualitative method
with a phenomenological approach. Data was analyzed involving measuring and testing
data by considering theoretical concepts related to the development of digital payment
systems. The results of this research indicate that technological progress in the digital
economy era, especially in the development of digital payment systems, has increased
rapidly. The COVID-19 pandemic has accelerated the use of e-commerce and digital
wallets, triggering digital transformation in the Micro, Small and Medium Enterprises
(MSME) sector. Efforts from governments, regulators and service providers to maintain
user security and privacy are important steps to build public trust in digital payments.

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E-Payment System reforms and its impact on Currency in Circulation in India:
Evaluation using Vector Autoregressive Model (VAR)

Abhay Singh Chauhan, NavitaNathani, Shiv Kumar Singh, Nishant Joshi

PURUSHARTHA-A journal of Management, Ethics and Spirituality 15 (1), 68-78,

2022

The present study contributes to the literature by investigating the impact of E-Payment
System on Currency in circulation after facing three major reforms ie, Demonetization of
500 and 1000 rupee note, implementation of GST and Current pandemic (Covid-19)
situation. Results imply that with the increase in the volume of all the respective
electronic payment systems the currency in circulation (in physical form) got minimized
in the economy. Moreover, NEFTshows much higher influence on currency in circulation
as compare to RTGS and IMPS but PPI’s shows the highest influence on currency in
circulation from the selected E-Payment systems. Furthermore, Vector Autoregressive
model suggests, RTGS, IMPS, NEFT, CARDS (POS), PPI’s, M-Banking are expected to
increase whereas NACH

Exploring online payment system adoption factors in the age of COVID-19—

Evidence from the Turkish banking industry

MelihCoskun, EbruSaygili, Mehmet OguzKarahan

International Journal of Financial Studies 10 (2), 39, 2022

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Turkey’s e-commerce market is rapidly expanding, and the country is ranked first in the
world in monthly mobile purchases. The purpose of this study is to determine the factors
that influence the adoption of online payments systems among the customers of a Turkish
bank during the COVID-19 pandemic. The research model extends the technology
acceptance model (TAM) by further examining the impact of 11 factors on attitude,
behavioral intention and actual usage. The results suggest a strong influence of these
factors on attitude and behavioral intention. Relative advantage, perceived trust,
perceived usefulness, personal innovativeness, perceived integrity, perceived ease of use,
health and epidemic effects, income, private sector employment and self-employment all
have a positive effect on actual online payment system usage. However, perceived risk
and age have a negative impact on the actual online payment system usage.

Impact of E-payment system on consumer buying behavior: a study in Jordan

Malak Mohammad Ghaith, Yahya Mohammad Ghaith

Journal of Positive School Psychology 6 (8), 3813-3824, 2022

The Jordanian banking industry is vital in injecting capital via various forms of financial
security. Reforms in the banking sector in Jordan are intended to restore the country’s
competitiveness. Digital transactions like debit/credit card payments and bank wire
transfers are accepted from our customers. Financial authorities in Jordan have adopted a
number of measures to assist the country’s economy in realigning with global trends.
With this study, we set out to learn more about how people in Jordan perceive and use
electronic payment systems, as well as how these systems have affected their purchasing

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habits. In this respect, a Likert-scale questionnaire was used to obtain primary data from
the Jordanian population. Descriptive, factor, correlation, and regression analyses were
then performed to verify the effect of the e-payment system on customer behavior. The
findings show that the e-payment system has had a considerable impact on the people of
Jordan. According to the study, e-payment systems are not a luxury but a need for a
country to efficiently join the global financial network, compete in this market, and reap
the advantages of globalization. Therefore, financial institutions must proactively develop
and roll out electronic payment systems, such as the cash-lite economic plan launched by
Jordan’s Central Bank in 2012. It has been shown via statistical analysis that the use of
electronic payment systems has a profoundly favorable effect on customer behavior.

The effect of e-payment and online shopping on sales growth: Evidence from
banking industry

H Alzoubi, M Alshurideh, B Al Kurdi, K Alhyasat, T Ghazal

International Journal of Data and Network Science 6 (4), 1369-1380, 2022

Transforming from digitalization to digitization brings many new technologies to

restructure our life and life routines. In today’s competitive world, internet infrastructures
and banking industries are counted as integral components for online shopping and
commercial transactions. As because, disclosure of online transactions has been allowed
through internet media, that would enhance the availability of electronic payment
systems. Further, this study aims to explore and investigate the relationship and impact of
electronic payment methods on the sales growth with the mediating role of online

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shopping by targeting UAE banking Industry. This study followed the quantitative
approach and a correlational design. The empirical data were collected through a survey
designed on a 5-point Likert scale, 217 valid questionnaires were sent to all participants
(ie, top managers, middle managers and technicians) via emails. Different statistical
analyses were performed in this study. The results of the study showed high internal
consistency among the study variables as Cronbach’s Alpha values ranged from. 873 to.
855. Further, this study highlighted the significant relationship and direct impact between
online shopping and sales growth. Meanwhile, indirect impact was confirmed by the
results between online shopping and sales growth through e-payment. In this regard,
results can help to identify the impact of e-payment on sales growth through online
shopping and also provide advantage for this and many other similar organizational
studies.

The real-time impact on real economy: A multivariate bvar analysis of digital

payment systems and economic growth in India

DebasisRooj, ReshmiSengupta

ADBI Working Paper Series, 2020

Financial sector development can play a crucial role in driving economic growth.
Innovation in the payment system can potentially impact output, prices, and monetary
policy transmissions. However, there is a conspicuous lack of work on the role of the
payment system in driving economic activity, especially for an emerging economy like
India. This paper examines the dynamic linkage between a digital payment system, real-
time gross settlement (RTGS), and economic growth in India, using a multivariate
Bayesian vector autoregressive (BVAR) model. Using monthly observations on the value

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and the volume of RTGS, we show that the value of RTGS has a significant impact on
both income and price level in the economy. Our results also indicate that both RTGS and
economic growth positively and significantly impact each other, supporting the existence
of bidirectional causality between the two. A variance decomposition analysis confirms
that both RTGS and economic activity contribute significantly to each other’s
fluctuations. Several sensitivity analyses reinforce our main findings.

Emergence and growth of mobile money in modern India: A study on the effect of
mobile money

MukundJakhiya, Malini Mittal Bishnoi, Harsh Purohit

2020 Advances in science and engineering technology international conferences

(ASET), 1-10, 2020

In contemporary India, mobile payments started with the onset of delivery services
known as Immediate Payment Services (IMPS) started by the National Payment
Corporation of India, setting the growth cycle in motion. Mobile Money has grown
significantly, especially post demonetization, enabled by `smart devices’ such as
smartphones, smartwatches, smart cards, toll payment devices, and voice-enabled
products deploying the Internet of Things (loT). The ease and simplicity of payments
through IoT devices are set to change the shopping experience and consequently retail
permanently. The government of India’s Digital India program is further likely to
transform the entire nation into a digitally enabled society as well as a knowledge
economy. Mobile money is becoming an essential tool for financial inclusion to unite the

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unbanked communities of rural India. Internet was introduced in India in 1995, and the
first wave of e-commerce began soon after that. Artificial Intelligence (AI) and smart
solutions are noticeable in the growth of mobile payments in India in dual ways, firstly in
reducing fraud in high-risk mobile payments and secondly in improved Peer to Peer
(P2P) Payment Platforms. Mobile payments through AI solutions is just one illustration
of technology that is broadly used today, and that has already started advancing the
FinTech industry forward for the Fourth Industrial Revolution. This embarks on a sound
period of digital inclusion leading to mobile and internet connectivity, with the overall
growth of Information and Communication Technology (ICT) networks in India. A
dynamic force for next-generation e-commerce is the fast-multiplication of mobile
phones, handheld computers, mobile devices and PDAs. Mobile commerce demonstrates
a sea change in consumer behavior in India. This study aims to examine the growth and
effect of mobile payments in India, where mobile penetration is the second highest in the
world, after China. The impact of COVID-19 pandemic on the digital payments segment
in India are noteworthy.. Like other economies of the world, the adverse effects of the
pandemic are pervading to significant sectors of the Indian economy including retail
trade, aviation, hospitality, entertainment industry, restaurants, clubs and entertainment
parks. All of these sectors are experiencing the burden of the slowdown. In contrast, the
digital payments sector comprising of groceries, online money transfer, Over The Top –
OTT streaming media services, online gaming, online education is experiencing a boost.
The government and RBI have asked banks to encourage their clients to use digital
payment methods as a preventive measure against the COVID-19 pandemic.

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E-payment system: A rising trend of economy

A Mishra

New Paradigm in Business & Education 1, 1-6, 2020

Electronic payment is revolutionary stage of Indian economic industry. Electronic

payment (E-Payment) has come up with both infrastructure E-commerce and Mobile
commerce. The digital transaction was massively spread around 8,969.09 crore in FY
2019-20. In India, E-commerce industry has created valuable customer satisfaction in
various consumer-based sectors. Now with the help of advanced technology companies
coming up with mobile applications-based industry. Mobile commerce was first time
announced by Kevin Duffey in 1997 at the Global Mobile Commerce Forum. The
increase of the ability and strength of wireless offers provides right opportunities for
rising up offerings to customers. Businesses are starting to realize that e-payment system
is the important thing to enhance their brand differentiation, boost sales, customer
satisfaction and hold up with competitors. In the present-day, e-payment mode has been
entered in finance, services, retails, telecommunication and IT/ITES sectors related
business organizations. The recent transaction of BHIM wallet has been received three
times growth in only one financial year 2019-20. This chapter examines the relationship
between consumer responses towards modern technology for e-payment. This chapter
presents a review of digital payment though online business models and an overview of
the paradigm shift of accepting change in mode of payment transactions. This chapter
attempts to understand the assess the rising trend of E-payment transaction mode.

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Online payment services and individuals’ behaviour: new evidence from the
MENAP

FadiShihadeh

International journal of electronic banking 2 (4), 275-282, 2020

This study aims to analyse the relationship between individuals’ characteristics and the
use of online payment services in daily life in the Middle East, North Africa, Afghanistan
and Pakistan. The analysis reveals that the use of online payment tools in the MENAP
region is still at the minimum. The results also indicate that people with higher education
are more familiar with using online services than people with less education. Future
research could focus on the relationship between the use of online payment systems and
the performance of financial intermediaries; it could also study the influence of using
online payment services and firms’ profitability in the region. Also, there is a need to
investigate the relationship between the 2020 COVID-19 pandemic and using online-
banking services in daily life in the MENAP, and whether a lack of accessible online
financial services is impeding economic stability in the region during a time of crisis.

Effect Of cashless payment methods: A case study perspective analysis

MaturiThirupathi, G Vinayagamoorthi, SP Mathiraj

International Journal of scientific & technology research 8 (8), 394-397, 2019

The Digital India scheme is a showcase scheme of the Government of India with a keen
to convert India into a digitally empowered companionship and cognizance

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thriftiness.“Faceless, Paperless, Cashless” is one of professed party of Digital India. The
digital payment system day by day rising with interlink between banks and financial
institution movement from cash to cashless system. Present government (Narendra Modi)
is pushing the people to go forward towards cashless transaction, it will helps to
government to achieve the economical growth in India. In this case study research tries to
find the impact of digital payment apps and its impact after demonetization.

Impact of digitalization on Indian rural banking customer: With reference to

payment systems

Renu Singh, Garima Malik

Emerging Economy Studies 5 (1), 31-41, 2019

Moving on from the physical clearance of the cheques to the CTS technology, from brick
and mortar model of the banks to the internet banking and mobile banking, launch of
BHIM and UPI application, digitalization has become a buzz word in today’s era.
Information Technology today has a crucial role to play in an efficient banking system,
and Indian banks have placed a strong infrastructure to leverage its benefits by moving on
to contextual banking and open Application Programming Interface. Though riddled with
lot of risk, banking services have steadily moved forward with digitalization to offer
customer services at their fingertips and laptop screens. With Indian Banking Industry
competing the world class technology, the rural banking customers still face challenges in
embracing digital payments. The article attempts to present the opportunities and
challenges recently emerging in the rural banking sector with special emphasis on

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digitalization and to analyze the importance of digital literacy in today’s banking
scenario. This study provides the insights of the digital technology and ways adopted by
banks in rural India and to understand the perception and behavior of rural customers
toward these services.

Adoption of digital payment systems in the era of demonetization in India: An

empirical study

BrijeshSivathanu

Journal of Science and Technology Policy Management 10 (1), 143-171, 2019

Purpose

This study aims to investigate the actual usage (AU) of digital payment systems by the
consumers during the period of demonetization (from November 9, 2016 to December
30, 2016) in India.

Design/methodology/approach

The conceptual frame work for this study is based on the unified theory of acceptance
and use of technology (UTAUT 2) and innovation resistance theory. A total of 766
sample respondents were surveyed using a pre-tested questionnaire. The empirical
validation of the framework and analysis was done using partial least squares (PLS)-
structural equation modeling (SEM) technique.

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Findings

The results suggest that the behavioral intention (BI) to use and innovation resistance
(IR) affect the usage of digital payment systems. The relation between BI to use digital
payment systems and the AU of digital payment systems is moderated by the stickiness to
cash payments.

Research limitations/implications

This cross-sectional study is limited by geographic constraints and highlights the AU of

digital payment systems by using the UTAUT 2 and IR theory only during the
demonetization period.

Practical implications

This study offers valuable insights to the economists, policymakers and digital payment
service providers regarding the usage of digital payment systems by consumers during
demonetization.

Originality/value

This study assumes importance as it empirically examines the influence of BI and IR on

the AU of digital payment systems during the demonetization period in India. This study
empirically validates the moderating influence of stickiness to cash payments on the AU
of digital payment systems.

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The effect of electronic payment on customer satisfaction

Nitin Gupta, Aditi Yadav

IJARIIE-ISSN (O) 3 (3), 2395-4396, 2017

Retail electronic payment system has progressed in the recent years in various countries.
We find that India is no exception. Reserve Bank in its Vision statement has set the
objective to proactively promote electronic payments with an objective towards cash less
society. The formation of National Payments Corporation (NPCI) in the year 2009 has set
the stage for development of retail electronic payments which offers enormous
opportunity to move towards cashless and less cash society. Using T test, with an
objective to assess the contribution of NPCI, we find that significant difference exist in
products such as electronic clearing, ECS (Debit), National Electronic Funds Transfer
(NEFT), and Card Products when we compare the period after formation of NPCI and
before formation of NPCI. Various innovative products, such as Immediate Payment
Services (IMPS), National Automated Clearing House (NACH) and Prepaid Instruments
(PPI), were launched after the formation of NPCI. There is enormous opportunity since
the ratio of retail electronic clearing to systematically important payments such as Real
Time Gross Settlement and CCIL grew from 1 percent in the year 2005-06 to 3 percent in
the year 2013-2014. I intend to discuss with you all about a silent revolution that has been
sweeping the country. It is about the payment systems in India. I said’silent revolution’.
That is because, the payment systems has been evolving and changes have been
continuous over the last 35 years, it has rarely got noticed as a revolutionary change. Let
us see how it evolved and beneficially impacted settlement of economic transactions of
common persons and businesses and how it is now poised for still larger impact.

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A new era in fintech payment innovations? A perspective from the institutions and
regulation of payment systems

Iris HY Chiu

Law, Innovation and Technology 9 (2), 190-234, 2017

This article analyses the existing institutions and infrastructure for payments.
Authoritative settlement based on central bank support is seen as being essential for both
large value and retail payment systems; and, in the EU, UK, and US, the importance of
regulating for the protection of consumers who use retail payment systems is recognised.
In this institutional context, payment innovations (including Bitcoin and distributed
ledger or autonomous organisation technologies) are assessed. It is suggested that, while
competition at certain levels is likely to bring social benefits through commercial
developments, the maintenance of public interest objectives necessarily delineates the
scope of competition. While this might limit the disruptive impact of payment
innovations, it is argued that, in the light of the public policy needs for a stable and
efficient public infrastructure and the social needs of confidence and trust in a predictable
and regulated payment system that meets commercial and social expectations such as in
consumer protection, this is not necessarily undesirable.

E-commece and online payment in the modern era

Momin Mukherjee, Sahadev Roy

International Journal of Advanced Research in Computer Science and Software

Engineering 7 (5), 2017

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Face-to-face exchange of goods between the two sides conducted before the beginning of
recorded history. Always there are some security problems in traditional payment system.
After that electronics payments system brought out a huge revolution. Though modern
technology digital documents can be copied perfectly, duplicate signature of anybody is
possible. Name of the Buyer’s can be linked with each payment, to eliminate the secrecy
of money. Without proper and high-quality security system somehow e-commerce will
not work anymore. On the other hand a very well designed electronics payment system
can provides high label security then the traditional payment. In this article we discussed
about the different process, benefits, and security related issue of electronic payment
system.

The Information Technology and its Impact on Indian Banking and Payment
Settlement Systems: A Case Study

SM Tariq Zafar, Qasim Al Ajmi, DS Chaubey

Management Convergence 7 (1), 29-46, 2016

The impact of digital technology in banking and financial services over the past decade
mirrors the drastic impact on the economy as a whole. To meet out the growing
challenges of economy and to speed up the business financial transactions the banking
sector has transformed itself according to the socio-economical norms and embraced the
use of technology to serve its clients faster in order to maximise the banking base with
controlled payment settlement systems. Industry leaders are trying their best to determine
the implication of these changes. Ever growing technological revolution has
systematically consolidated the banking industry and changed its accounting and

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management system which impacted efficient and speedy payment settlement inside and
outside the political boundary. Revolutionised modern banking is now focusing to
minimise the use of cash in society and continued its endeavours to improve the IT
infrastructure with a view to facilitate the Indian banking sectors alignment with the latest
technological innovations. Thus this article presents a study which aims to analyze the
RBI initiatives and role of information technology in banking industry especially in
context to speedy payment settlement system according to the policies procedures laid by
the apex body Reserve Bank of India (RBI).

Implications of emerging electronic payment systems in India: a strategic overview

HemlataChelawat, IV Trivedi

Journal of Multidisciplinary Research 6 (3), 53-65, 2014

The purpose of this article is to study the implications of the development of electronic
payment systems in the Indian markets. The electronic payment systems that emerged as
a technological innovation, to provide customers with an efficient and secure means of
payment, can have far-reaching implications for the country’s banking system, the role of
its central bank, its monetary policy, and its economy. This article identifies the policy
issues that arise from the growth of these modern payment systems and discusses the
possible policy responses by the Reserve Bank of India to mitigate such impacts. The
article concludes that while we cannot slow down the pace of technological innovations,
understanding these implications can contribute to finding policy responses and solutions,
and building effective safeguards into the system.

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Electronic payment system and economic growth: a review of transition to cashless
economy in Nigeria

Oginni Simon Oyewole, JibreelGambo, Mohammed Abba, Michael Ezekiel Onuh

International Journal of Scientific Engineering and Technology 2 (9), 913-918, 2013

Technological advancement has provided efficient and effective payment system devoid
of ‘cash and carry syndrome’. Specifically, electronic payment system provides a
medium through economic exchanges take place without visiting brick and mortal banks
or with no physical presence of the transacting parties. While electronic payment system
enjoys prominence in Nigeria, evidence of its contribution to economic growth has not
been empirically established. Meanwhile, the current transition to cashless economy was
essentially based on the prominence of e-payment system. Therefore, this study, for the
first time, explored relationship between e-payment system and economic growth as
means of reviewing current transition to cashless economy in Nigeria. Data was analysed
using OLS and TSLS methods covering period of 7years (2005–2012). The result
indicates a significant positive relationship between e-payment system and economic
growth in term of real GDP per capita and trade per capita. Only ATMs was found to
positively contribute to economic growth while other e-payment channels contribute
negatively. Hence, current cashless policy should be tailored towards effective e-payment
system and other factors which bear much relevance on successful transition to cashless
economy should be prioritized.

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Digital Payment System: A Golden Face for Indian Economy

Rahul Rathore, DrMadhulikaSonawane

Digital Payment System and Rural India, Research Dimension an International

Journal ISSN, 2249-3867

Digital Payment System an innovation step in field of information technology this system
describe the economic condition a business transaction that is made electronically not in
cash, paper money or coins and many countries had already adopted this system
likeBelgium, France, Canada, UK, Sweden, Australia, Netherlands, USA, Germany and
South Korea. Presently inIndia cash system islargely followed and is only source of
financial transaction, but this revolutionaryDigitalPaymentSystemwasinitiated with
increasing user of smart phone, internet on mobile phone, increasing entry of non-
banking institution, customer demand and expecting one touch Payment Systemand all
this factors are responsible to transform the current payments system to digitalization and
from past few years all this activities witnessed that Digital Payment System had change
the overall economic condition in country and this new framework will change the
traditional business condition in India. The present paper is a descriptive study based on
secondary data, focuses on the pros and cons of Digital Payment System, its elements and
representing the current scenario and its impact on Indian economy.

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Chapter – 3

29
Overview of the associated firm / industry

30
 E – commerce

Online payment system

31
E-commerce, or electronic commerce, refers to the buying and selling of goods and
services over the internet. It encompasses various online business models, including
retail, wholesale, drop shipping, crowdfunding, subscription services, and digital
products.

E-commerce, or electronic commerce, refers to the buying and selling of goods and
services over the internet. It encompasses various online business models, including
retail, wholesale, drop shipping, crowdfunding, subscription services, and digital
products.

Online payment systems have revolutionized the e-commerce industry, making it easier
and more efficient for businesses and consumers to conduct transactions. These systems
facilitate the digital transfer of funds, enabling a seamless shopping experience that
supports the rapid growth of online retail.

Online payment systems are integral to the e-commerce industry, driving convenience,
security, and efficiency in transactions. Despite challenges such as security risks and
regulatory compliance, the benefits far outweigh the drawbacks, supporting the growth
and expansion of e-commerce. As technology advances, the future of online payment
systems will likely see more innovations that enhance the customer experience and
provide even greater security and efficiency. Businesses that leverage these systems
effectively will be well-positioned to thrive in the competitive e-commerce landscape

32
Chapter -4

33
Research Methodology

34
Methodology is a research strategy that forms the structure the project to be

undertaken and also helps in identifying the method to be used. Methodology and

method are two different concepts. Methodology is a systematic and theoretical

analysis of the methods being used in the study. Whereas, Methods are the tools or

techniques that are used in the form of surveys, interviews etc. Methods and

methodology are not interchangeable with each other. They are vary two different

concepts. Methodology explains how a research is to be carried out, how to find

information and how it is to be interpreted. Generally, methodology means branch

of knowledge which forms the base of any research.

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Research Design:

Descriptive research

It is a scientific method which involves observing and describing the behavior of a

subject without influencing it in any way. A descriptive research method can be

used in multiple ways and for various reasons. Before getting into any survey,

though, the survey goals and survey design are crucial. Despite following these

steps, there is no way to know if one will meet the research outcome. How to use

descriptive research? To understand the end objective of research goals, below are

some ways organizations currently use descriptive research today:

Some distinctive characteristics of descriptive research are:

1. Quantitative research:

Descriptive research is a quantitative research method that attempts to collect quantifiable

information for statistical analysis of the population sample. It is a popular market
research tool that allows us to collect and describe the demographic segment’s nature.

36
 2. Uncontrolled variables:

In descriptive research, none of the variables are influenced in any way. This uses
observational methods to conduct the research. Hence, the nature of the variables or their
behavior is not in the hands of the researcher.

3. Cross-sectional studies:

Descriptive research is generally a cross-sectional study where different sections

belonging to the same group are studied.

4. The basis for further research:

Researchers further research the data collected and analyzed from descriptive research
using different research techniques. The data can also help point towards the types of
research methods used for the subsequent research.

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SOURCES OF DATA COLLECTION:

Secondary Source Of Data Collection:

The secondary source of data collection is assessed to gain information and knowledge
about our research problem that may be previously discussed by some other researcher.
The secondary is referred to know what has already been discussed and what more scope
can be there for research. The secondary data is taken from selective websites and from
online publication of some researchers. The secondary data was useful for the study of
Review of Literature. We couldstudy various aspects of different researchers which gave
us an idea about the factors being previously discussed and also the conclusions drawn
from them. It also gave us an insight on what more could be studied to solve the research
problem.

Sample Design

Convenience sampling:

Convenience sampling is defined as a method adopted by researchers where they collect

market research data from a conveniently available pool of respondents. It is the most
commonly used sampling technique as it’s incredibly prompt, uncomplicated, and
economical. In many cases, members are readily approachable to be a part of the sample.

Researchers use various sampling techniques in situations where there are large
populations. In most cases, testing the entire community is practically impossible because
they are not easy to reach. Researchers use convenience sampling in situations where
additional inputs are not necessary for the principal research. There are no criteria

38
required to be a part of this sample. Thus, it becomes incredibly simplified to include
elements in this sample. All components of the population are eligible and dependent on
the researcher’s proximity to get involved in the sample.

The researcher chooses members merely based on proximity and doesn’t consider
whether they represent the entire population or not. Using this technique, they can
observe habits, opinions, and viewpoint.

Here are the advantages of adopting a convenience sampling approach:

1. Collect data quickly:

In situations where time is a constraint, many researchers choose this method for
quick data collection. The rules to gather elements for the sample are least
complicated in comparison to techniques such as simple random sampling, stratified
sampling, and systematic sampling. Due to this simplicity, data collection takes
minimal time.

2. Inexpensive to create samples:

The money and time invested in other probability sampling methods are quite large
compared to convenience sampling. It allows researchers to generate more samples
with less or no investment and in a brief period.

39
 3. Easy to do research:

The name of this surveying technique clarifies how samples are formed. Elements are
easily accessible by the researchers and so, collecting members for the sample becomes
easy.

4. Low cost:

Low cost is one of the main reasons why researchers adopt this technique. When on a
small budget, researchers – especially students, can use the budget in other areas of the
project.

5. Readily available sample:

Data collection is easy and accessible. Most convenience sampling considers the
population at hand. Samples are readily available to the researcher. They do not have to
move around too much for data collection. Quotas are met quickly, and the data
collection can commence even within a few hours.

6. Fewer rules to follow:

It doesn’t require going through a checklist to filter members of an audience. Here,

gathering critical information and data becomes uncomplicated. For instance, if an NGO
wants to survey women’s empowerment, they can go to schools, colleges, offices, etc. in
their proximity and gather quick responses.

40
Systematic Sampling:

Systematic sampling is an improvement over the simple random sampling. This method
requires the complete information about the population. There should be a list of
information of all the individuals of the population in any systematic way. Now we
decide the size of the sample: Let the size of sample is = n and population size is = N
Now we select each N/n individual from the list and thus we have the desired size of
sample which is known as systematic sample. Thus for this technique of sampling
population should be arranged in any systematic way.

Merits:

1. This is a simple method of selecting a sample.

2. It reduces the field cost.
3. Inferential statistics may be used.
4. Sample may be comprehensive and representative of population.
5. Observations of the sample may be used for drawing conclusions and
generalizations.

Demerits:

1. This is not free from error, since there is subjectivity due to different ways of
systematic list by different individuals.
2. Knowledge of population is essential.
3. Information of each individual is essential.

41
Sample Size:

Sample size determination is the process of choosing the number of respondents

observation to include in a statistical sample. It is an important feature of a research study
because on the basis of sample size data is collected and interpreted to give accurate and
appropriate results. The correct and appropriate sample size is said to give more accurate
results. For example, in a census, data is collected from the entire population. Therefore,
the sample size is equal to population of the country. Keeping in mind the rate of
nonresponse and no availability of respondents, the sample size was taken between 25-
100 working professionals. It was Random sampling method that was considered to
decide the sample size. Due to the sample size being small there may be slight inaccuracy
of data that can be rectified by further study.

Research Tools and Techniques:

A researcher requires many data – gathering tools or techniques. Tests are the tools of
measurement and it guides the researcher in data collection and also in evaluation. Tools
may vary in complexity, interpretation, design and administration. Each tool is suitable
for the collection of certain type of information. One has to select from the available tools
those which will provide data he seeks for testing hypothesis. It may happen that existing
research tools do not suit the purpose in some situation, so researcher should modify
them or construct his own. Research tools are anything which helps in the collection of
information for a particular research such as observation forms, interview schedules,
questionnaires, and the interview guides. Hence, for testing the information collected
research or statistical tools are used. There various types of research tools used to test the
data in different ways. These statistical tools are usually applied on the tabulated data.
These tools can be of two types: parametric tests and non- parametric tests. For applying

42
parametric test, the information should be distributed in the tabular format whereas for
applying non-parametric test, no such format is required. It can be applied on any type of
data of even and uneven distribution. The parametric tests are usually applied on the
metric data only whereas the non-parametric test is applied on the non-metric data. For
the purpose of this research, only parametric tests are used i.e. only metric data is
analyzed. There are various parametric tests: t-test; f-test; z-test; annova; chisquare;
descriptive statistics which includes mean, median, mode, standard deviation and
variance; correlation, regression, and cross tabulation. Here the researcher has used t-test,
f-test, annova and descriptive statistics. The following are used because my data collected
is a scaled data and for testing of hypothesis for population mean and to find out the
variance in the population or the data collected. T-test is type of tools for hypothesis
testing. It is usually used to find out the significant difference between the means of two
groups. F-test is used when two models is to be compared in order to identify the model
that fits the population from which the data is sampled. Annova also known as “Analysis
of Variance” is a statistical tool used to test the differences between two or more means.
Descriptive Statistics is a tool used to measure various measures of central tendencies and
measures of variability.

43
Questionnaire

“A questionnaire is a systematic compilation of questions that are submitted to a

sampling of population from which information is desired.”

The questionnaire is probably most used and most abused of the data gathering devices .It
is easy to prepare and to administer. The questionnaire is a form prepared and distributed
to secure responses to certain questions. It is a device for securing answers to questions
by using a form which the respondent will fill by himself. It is a systematic compilation
of questions. It is an important instrument being used to gather information from widely
scattered sources. Normally use where one cannot see personally all of the people from
whom he desires responses or where there is no particular reason to see them personally.

 Characteristics of a Good Questionnaire:

1. It deals with an important or significant topic.
2. Its significance is carefully stated on the questionnaire itself or on its covering
letter.
3. It seeks only that data which cannot be obtained from the resources like books,
reports and records.
4. It is as short as possible, only long enough to get the essential data.
5. It is attractive in appearance, nearly arranged and clearly duplicated or printed.
6. Directions are clear and complete, important terms are clarified.
7. The questions are objective, with no clues, hints or suggestions.
8. Questions are presented in a order from simple to complex.
9. Double negatives, adverbs and descriptive adjectives are avoided.
10. Double barreled questions or putting two questions in one question are also
avoided.

44
Survey

A survey is a research method used to collect information from a sample of individuals or

entities in order to gather insights, opinions, or data on specific topics or a set of related
topics. Surveys are structured questionnaires or interviews designed to systematically
gather information from respondents.

Here’s how surveys are useful:

Gathering Data:

Surveys provide a systematic way to collect data from a representative sample of a

population. This data can be both quantitative (numerical) and qualitative (descriptive).

Research and Analysis:

Surveys are crucial in various fields, including market research, social sciences,
healthcare, education, and more. They are used to study trends, behaviors, preferences,
and attitudes.

Understanding Customer Needs:

Surveys allow businesses to gather feedback from customers, helping them understand
preferences, satisfaction levels, and areas for improvement.

45
Decision Making:

Survey data helps organizations make informed decisions. For instance, a company may
use a customer satisfaction survey to decide on improvements in product or service
offerings.

Measuring Satisfaction and Loyalty:

Customer satisfaction surveys help evaluate how satisfied customers are with a product,
service, or experience. They also provide insights into customer loyalty.

Product Development:

Surveys can be used to gather feedback during the development phase of a product,
allowing for adjustments based on customer preferences.

Policy Formulation:

In public policy, surveys can be used to understand public opinion on various issues,
which can inform policy decisions.

Academic Research:

Surveys are widely used in academic research to gather data for studies in various
disciplines, including psychology, sociology, economics, and more.

46
Employee Feedback:

Employee surveys help organizations gauge job satisfaction, identify areas for
improvement in the workplace, and understand employee needs and concerns.

Market Segmentation:

Surveys assist in segmenting a market based on factors like demographics, behavior, and
preferences, which helps businesses target specific customer groups effectively.

Customer Profiling:

Surveys can help build detailed profiles of customers, allowing businesses to tailor their
offerings and marketing strategies to specific segments.

Evaluating Program Effectiveness:

Surveys can be used to assess the impact and effectiveness of programs, interventions, or
initiatives.

In summary, surveys are versatile tools used to gather information from a targeted
audience, making them a vital part of decision-making processes in a wide range of fields
and industries. They help organizations better understand their audience, make data-
driven decisions, and improve products, services, and experiences.

47
Pie Chart

The “pie chart” is also known as a “circle chart”, dividing the circular statistical graphic
into sectors or sections to illustrate the numerical problems. Each sector denotes a
proportionate part of the whole. To find out the composition of something, Pie-chart
works the best at that time. In most cases, pie charts replace other graphs like the bar
graph, line plots, histograms, etc.

The pie chart is an important type of data representation. It contains different segments
and sectors in which each segment and sector of a pie chart forms a specific portion of
the total(percentage). The sum of all the data is equal to 360°.

The total value of the pie is always 100%.

To work out with the percentage for a pie chart, follow the steps given below:

Categorize the data

Calculate the total

Divide the categories

Convert into percentages

Finally, calculate the degrees

48
Scope of the Study:

To know how many people are aware about the online payment system.

To find and analyze the factors affecting the customers choice in selecting payment
system.

To analyze the services quality offered by the E – commerce company that satisfies the
needs of customer and give suggestions to improve their marketing strategies.

The scope of a study explains the extent to which the research area will be explored in the
work and specifies the parameters within the study will be operating. Basically, this
means that you will have to define what the study is going to cover and what it is
focusing on. Similarly, you also have to define what the study is not going to cover. This
will come under the limitations. Generally, the scope of a research paper is followed by
its limitations as a researcher, you have to be careful when you define your scope or area
of focus. Remember that if you broaden the scope too much, you might not be able to do
justice to the work or it might take a very long time to complete. Consider the feasibility
of your work before you write down the scope.

Again, if the scope is too narrow, the findings might not be generalizable.

49
Research limitation:

The sample size of the study is small to able to give an adequate representation of the
whole population.

Some of the respondents data may not be fully corrected and some refuse to fill.

1. Formulation of research aims and objectives.

You might have formulated research aims and objectives too broadly. You can specify in
which ways the formulation of research aims and objectives could be narrowed so that
the level of focus of the study could be increased.

2. Implementation of data collection method.

Because you do not have an extensive experience in primary data collection

(otherwise you would not be reading this book), there is a great chance that the nature
of implementation of data collection method is flawed.

3. Sample size.

Sample size depends on the nature of the research problem. If sample size is too small,
statistical tests would not be able to identify significant relationships within data set.
You can state that basing your study in larger sample size could have generated more
accurate results. The importance of sample size is greater in quantitative studies
compared to qualitative studies.

50
 4. Lack of previous studies in the research area.

Literature review is an important part of any research, because it helps to identify the
scope of works that have been done so far in research area. Literature review findings
are used as the foundation for the researcher to be built upon to achieve her research
objectives.

However, there may be little, if any, prior research on your topic if you have focused on
the most contemporary and evolving research problem or too narrow research problem.
For example, if you have chosen to explore the role of Bitcoins as the future currency,
you may not be able to find tons of scholarly paper addressing the research problem,
because Bitcoins are only a recent phenomenon.

5. Scope of discussions.

You can include this point as a limitation of your research regardless of the choice of the
research area. Because (most likely) you don’t have many years of experience of
conducing researches and producing academic papers of such a large size individually,
the scope and depth of discussions in your paper is compromised in many levels
compared to the works of experienced scholars. You can discuss certain points from your
research limitations as the suggestion for further research at conclusions chapter of your
dissertation.

51
Chapter –5

52
Data analysis and interpretation

53
The Emerging Technologies of Digital Payments and Associated Challenges: A
Systematic Literature Review

https://images.app.goo.gl/8TmqR8RTekhGbF7h8

Interpretation:

As per this survey, we know about the percentage % & number of digital payment
technologies & their category. How much people using online payment system for what
purpose.

54
A study on digital payment applications in India - JMRA

https://images.app.goo.gl/KoZFpbgQd2g1VKaL6

Interpretation:

As per this survey, we know about the market share of multiple online paying apps . The
people using which one & feel comfort the option are available.

55
A STUDY ON DIGITAL PAYMENT USAGE AMONG THE STUDENT
COMMUNITY IN TIRUCHIRAPPALLI CITY OF TAMIL NADU

https://images.app.goo.gl/TtcqVLd9WJo3BTBD7

Interpretation:

As per this survey, we know about the people of using online payment system for which
purpose mainly.

56
Digital payment & consumer experience in India: a survey based empirical study

https://www.google.com/imgres?imgurl=https%3A%2F%2Fmedia.springernature.com%
2Flw685%2Fspringer-static%2Fimage%2Fart%253A10.1007%252Fs42786-020-00024-
z%2FMediaObjects%2F42786_2020_24_Fig1_HTML.png&tbnid=_F5GHDl81ytVFM&
vet=1&imgrefurl=https%3A%2F%2Flink.springer.com%2Farticle%2F10.1007%2Fs427
86-020-00024-z&docid=ko-0GBf_WjdqXM&w=685&h=756&hl=en-
GB&source=sh%2Fx%2Fim%2Fm1%2F4&kgs=eb4a7eca405f6538&shem=abme%2Css
ic%2Ctrie

Interpretation:

As per this survey, we know about the demographic impact on the sample. The people
involved in which type of category more.

57
Interpretation:

As per this survey, we know about the age perception of people. Which age category
using more online payment system.

58
Interpretation:

As per this survey, we know about the level of knowledge. Whom understand better the
impact of online payment system.

59
Interpretation:

As per this survey, we know about the income of sample. Regarding this we know the
more uses of online payment system.

60
Interpretation:

As per this survey, we know about the gender of sample. Which supports more or lesser
the online payment system .

61
Chapter – 6

62
Findings

63
1. Increased Adoption and Convenience

- Growth in Usage: There has been a significant increase in the adoption of online
payment systems due to their convenience and ease of use. Both consumers and
businesses prefer digital payments for transactions.

- Wide Acceptance: Online payment systems are now widely accepted across various
sectors, including retail, e-commerce, services, and even government services.

2. Economic Inclusivity

- Financial Inclusion: Online payment systems have brought financial services to the
unbanked and underbanked populations, particularly in developing regions. Mobile
wallets and online banking apps have made it easier for people to access financial
services.

- Small Business Support: Small and medium-sized enterprises (SMEs) benefit from
online payment systems by reducing transaction costs and expanding their customer base.

3. Security and Fraud Concerns

- Security Measures: Despite advancements in security measures like encryption and

two-factor authentication, online payment systems are still vulnerable to fraud and cyber-
attacks.

- Consumer Trust: Concerns over security and privacy impact consumer trust in
online payment systems. There is a need for continuous improvement in security
protocols.

64
4. Impact on Traditional Banking

- Banking Transformation: Traditional banking institutions are increasingly

integrating online payment solutions to stay competitive. This has led to a transformation
in banking operations and customer service.

- Reduction in Cash Transactions: There is a noticeable reduction in cash

transactions, leading to lower cash handling costs for businesses and banks.

5. Regulatory Challenges

- Compliance: Online payment systems must navigate a complex regulatory

environment, which varies by country. Compliance with anti-money laundering (AML)
and know your customer (KYC) regulations is essential.

- Innovation vs. Regulation: Balancing innovation in online payments with regulatory

compliance poses a challenge for financial institutions and fintech companies.

6. Economic Efficiency

- Cost Reduction: Online payment systems reduce transaction costs and improve the
efficiency of financial transactions.

- Speed of Transactions: Payments are processed more quickly, enhancing cash flow
management for businesses.

65
Chapter – 7

66
Conclusion

67
The impact of online payment systems in the new changing economic era is profound,
driving significant transformations in how financial transactions are conducted. These
systems offer convenience, inclusivity, and economic efficiency, benefiting both
consumers and businesses. However, challenges such as security concerns, regulatory
complexities, and the need for financial literacy remain.

To maximize the benefits of online payment systems, it is crucial to enhance security

measures, promote financial literacy, improve regulatory frameworks, support SMEs,
leverage data analytics, and enhance user experiences. By addressing these challenges
and implementing the recommended strategies, the adoption and effectiveness of online
payment systems can be further enhanced, contributing to economic growth and financial
inclusion in the evolving digital economy.

68
Chapter – 8

69
Recommendation

70
1. Enhance Security Measures

Invest in Technology: Continuously invest in advanced security technologies such as

blockchain, biometrics, and artificial intelligence to prevent fraud and cyber-attacks.

- Consumer Education: Educate consumers on safe online payment practices and the
importance of using secure networks and devices.

2. Promote Financial Literacy

- Educational Programs: Implement financial literacy programs to educate consumers

about the benefits and usage of online payment systems, especially in underserved
communities.

- Transparency: Ensure transparency in transaction processes and fees to build

consumer trust.

3. Improve Regulatory Frameworks

- Harmonize Regulations: Work towards harmonizing regulatory standards across

different jurisdictions to facilitate cross-border online payments.

- Support Innovation: Encourage regulatory sandboxes that allow fintech companies to

test new payment solutions in a controlled environment.

4. Support SMEs

71
- Incentivize Adoption: Provide incentives for SMEs to adopt online payment systems,
such as tax benefits or subsidies.

- Offer Training: Offer training programs to help SMEs integrate and effectively use
online payment technologies.

5. Leverage Data Analytics

- Consumer Insights: Use data analytics to gain insights into consumer behavior and
preferences, allowing for personalized services and targeted marketing.

- Fraud Detection: Employ machine learning algorithms to detect and prevent fraudulent
activities in real-time.

6. Enhance User Experience

- Simplify Interfaces: Design user-friendly interfaces for online payment systems to

ensure ease of use for all age groups.

- Customer Support: Provide robust customer support to address issues and enhance the
user experience.

72
Chapter – 9

73
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