A STUDY ON MOBILE PAYMENT APPLICATIONS -

ISSUES AND CHALLENGES FACED BY YOUTH IN

CITY OF BANGALURU

NAME: POOJA KUMARI

REGISTRATION NO.: 17YACMD136
COLLEGE: PRESIDENCY COLLEGE
 CHAPTER-1

INTRODUCTION

New generation technologies are reshaping the traditional way of conducting business. There has
been drastic changes in field of technology in past few years. The tradition way of payment was
only cash. But now as the technology comes into play, the cash system is being vanished. From
small transactions to huge payments, people used to deal with only cash. From buying small
grocery object to paying household bills, cash was only used. But now cash is not the only option
people have. People are being technologically savvy. Earlier mobiles were only used to
communicate with other people but now it is used as a gadget to send or receive money across the
world.

From the scenario it can be easily said that the mobile commerce is the successor of e-commerce.
There are about 478 millions of mobile users in India and all the mobile users have access to
internet. The evolution of technology in telecommunication and wireless field has introduced a
new payment system which is the mobile payment application system. The payment application
system can be well-defined as a way of making a transaction where a mobile device is used to
initiate, approve and sanction an exchange of the money in return for good and the services.
Movies, music, video on demand, travelling, hospitality and many other facilities become possible
when mobile payment option become achievable and is present worldwide. The mobile payment
system has solved many problem and put the traditional payment method such as visa card,
debit/credit card, master card aside. Mobile payment systems can be used anytime anywhere. It is
the easiest way of carrying out transaction from anywhere at any point of time like money transfer,
paying bills, buying goods.

DEMONETIZATION PHASE OF INDIA

There is a saying that every disruptions brings opportunity and one such disruption happened in
India when on November 8th 2016, The Prime Minister Mr. Narendra Modi announced about
demonetization in India. Demonetization is an act of cancelling the legality of currency. This
created a huge havoc in the market. People wanted to buy goods but were hesitant in giving their
leftover cash. Also because of the unavailability of the cash, buying the daily requirement items
were tough. Some other way of payment was quickly needed and it should be easy as well so that
people can easily adapt it. So as a result the concept of new digital e-wallet came up. Some of the
company like paytm was already there in the market but it was not well known at that point of
time, so paytm also had a big jump. After demonetization the nation stepped forward as a cashless
nation. There was very less proportion of cash available so people made their transaction through
online sites. People started being more digital in terms of any transaction which led a number of
player enter the ecommerce field. Now the ecommerce has totally changed the face of business. It
brought revolution to the world. The traditional way of business is replaced by virtual one which
led to various digital payment concepts. Advancement is happening in terms of technology. Now
we are accommodated with various types of technology through which transaction takes place
from anywhere at any time. One of those type is Mobile payment applications are. Mobile payment
applications are revolutionary way of making any payment through mobile. From small recharges
to UPI payments, from online bill payments to money transfers, everything can be done easily
without going anywhere. Digital wallets, QR codes, virtual cards, unified payment interface (UPI)
are the part of mobile payment application that offers high secure payment option. In India there
are more than 15 players available in this field who are giving tough competition to each other.
Every service provider are adding new features to attract users. Everything has its pros and cons
so with lots of advantages there are disadvantages too.

This demonetization created a huge opportunity for the digital payment system in India. The
digital payment provider companies grabbed the opportunity with both their hands to expand their
market. Demonetization proved to be a unique platform for adopting the digital payment as an
alternative of cash for the consumers of India. Digital payment providers have shown tremendous
growth.

LIST OF AVAILABLE PAYMENT APPLICATION OF MOBILE

A wide range of mobile payment application are available in India. They are giving tough
competition to each other to prove themselves in market. A wide range of mobile payment
application have developed throughout the years. Mobile payment provider companies such as
Paytm, Phonepe, Mobikwik, GoogleTez and many more are violently pushing other payment
application such as Adhar payment app, the UPI app, the BHIM (Bharat Interface for Money) app.
Transfer of money using these mobile application has led the adoption of digital payment. This is
plus point for the people of rural area as they were unaware of the digital payment method. Now
investors from foreign countries are showing their interest in investing in the digital payment
industry of India because it has huge scope of tremendous expansion.

India has a number of mobile payment application currently functioning in the market. Some of
the applications are:-

 Paytm: Paytm was launched in 2010 and it is currently the biggest the largest mobile
application of India. Paytm is the dominant player in the world of digital payment.
Payments via Paytm is being accepted all over the country. With the help of Paytm wallet
one can buy objects, recharge phone number, book travelling or entertainment tickets,
transfer money, pay bills very easily and quickly.
 Mobikwik: This Company was found in 2009 and is based in Gurugram. This payment
app is used to store money and allows to pay bills, recharge and transfer money.
 PhonePe: PhonePe is financial technology company whose headquarter is based in
Bangalore. It was found in 2015. PhonePe provides a digital payment system that is based
on UPI (Unified Payment Interface). It is a new process of transferring electronic money
all across India launched by National Payment Corporation of India. PhonePe doesn’t
requires any account information. You just need to provide your name with the bank name
while connecting to PhonePe. The UPI system will automatically fetch the details from the
bank. The only drawback is if your bank is not working on the UPI platform, you cannot
connect to PhonePe.
 GoogleTez: Tez is a mobile payment application launched by google in 2017 to target
Indian customer. Tez has a unique feature called audio QR where users are allowed to
transfer money using their sounds. Tez works with Unified Payment Interface (UPI). Tez
has data security platform from Google that can easily detect any fraud and protect user’s
identity. Tez acts like a chat app that uses contact list in order to keep the history of
transaction organized.
  Freecharge: Freecharge was launched in 2015 and headquarter is based in Gurgaon. This
is one of the most famous name when it comes to mobile payment application. This
application is known to target the youth of India in all their promotions. They give amazing
deals and coupons for every recharge made by the user.

CHALLENGES OF MOBILE PAYMENT APPLICATION

Despite of having numerous benefits provided by mobile payment application, they have their own
challenges even when the world is developed. Some of the top challenges that they face are:

 Security: The security of all the information and data is very much critical for all the
information systems. Information security is a mixture of practices, procedures and
technology that is put together in a place to ensure the protection from any fraud or change
or any unauthorized access. If the payment system in unsecured it would never gain the
trust of its user. To gain the acceptance of user, trust is very important. A secure electronic
transaction have to meet the requirements of confidentiality, reliability, availability,
authorization and enhancing the payment security.
 Infrastructure: For the successful implementation of e-payments, infrastructure is very
much necessary. The proper groundwork for the payments is a big challenge. The users
can successfully retrieve the electronic payment if the infrastructure is reliable. The
groundwork of the electronic payment include internet and mobile network used by mobile
phones. The key necessity of electronic payment is a network that connects the banks and
other financial institute for clearing and confirmation of payments. So the low level of
network or internet and bad infrastructure can affect the smooth working of an application
 Governing and legal issues: For the successful operation and execution of any payment
application national set of rules and regulation is very important. National agreement and
legal frameworks is crucial in creating a reliable environment. It is very necessary to go
only with rules and regulation designed by government otherwise as a result the company
can face serious charges.
 Socio-Cultural challenges: Social and cultural attitudes towards the use of different forms
of money complicate the work of development of electronic payment system. Traditional
 mode of payment system have made the customer less likely to adopt and accept new
technologies. New technologies cannot gain their trust until they are sure that their privacy
will be secured. Even the new technologies are way cheaper and easy to use it will take a
lot of time to gain the confidence of the customer who follow traditional concept.
 Lack of usability: Even though the mobile payment application are widely available
everywhere, it is very difficult to make customer use it. People are used to use their old
way of payment method. Even if they have the convenience of using the mobile payment
method they don’t use it. So it is very tough for the mobile payment provider company to
convince them to use their application for transactions.
 Lack of trust: Online or digital payment have long history of fraud, misuse or reliability.
So customers find it very difficult to trust the company and make any kind of payment.
The payment apps have till now not built the trust in heart or minds of people. Some people
are afraid of making any kind of transaction through it.
 E-cash acceptability: there are many places where e-cash is not accepted. The commercial
business do not accept it as payment mode. This happens majorly in rural area. Some
people do not know the use of mobile payment application while most of them don’t even
have the access of any mobile payment application. So as a result the local retailers do not
keep the facility of the mobile payment application. Most of the population in India is from
rural area so the mobile payment industries suffers a lot in terms of its growth and profit.

OPPORTUNITY OF MOBILE PAYMENT APPLICATIONS

Earlier India used to be a cash operated country. But since past few years the whole market have
seen tremendous development, especially after some strict steps taken by the Indian Government
like UPI(unified payment interface) launch in August 2016, UPI 2.0 in August 2018 and
demonetization act in November 2016. India has always been an attractive market for many
financial or payment companies but it has now turned into a battleground for them. The well-
established payment players of India are now creating huge opportunity by bringing out many
products or solutions where they can provide more value to the retailers and lesser price for general
payment transaction. Companies are also now focusing on the cross border transaction where the
brims will be higher and it will not be easy for any startup companies compete unless they are very
rich in monetarily aspect.

As the payment provider companies are growing, these companies would want a specific dedicated
team for their each and every department. They would provide employment opportunities to the
people. They would want employees in the marketing department, sales and acquisition, product,
risk, information technology and operations. This would be a great opportunities for MBA
graduates to work in marketing field. Other humanities and liberal arts graduate could get work in
understanding human psychology, consumer behavior, customer relationship and services.

INDUSTRY PROFILE

BRIEF HISTORY OF MOBILE PAYMENT

The idea of exchange of money with any goods and services have grown a lot from the time of its
initiation. From metal, gold or copper coins to paper money, from exchange of goods to grains,
from bank account to digital wallets, money has taken different forms, figures and dimensions.
Payment method have seen growth from barter system, which was done in earlier time where
people used to trade goods and grain, to token system which included exchange of coins and paper
with goods and services, to cash sharing which include bank accounts, deposition and transactions,
and now to the cashless mode which is digital payments and digital wallets. Over the last periods,
payment technologies have seen a rapid growth.

The adoption of mobile payment application is diverse across different markets having huge
differences in their economy, protocols or infrastructure of their banking system. The APAC which
is Asia Pacific, was the first who adopted mobile payment application geographically because they
had huge unbanked economy. In 1990 the very first mobile transaction was recorded but patently
the first transaction was filed in 2000. Coco Cola invented its first vending machine which was
operated when customers send request through a text message. That made it the world’s first
mobile payment transaction. After then slowly and gradually a number of companies came after
one another in the mobile payment industry. They introduced their e-wallet application that let
people pay their various bills, book tickets for match or movies, order food online, transfer money
very easily. As the companies started growing they started taking their level up and as a result
people can now even book their airline tickets as well as can roam cashless. The e- wallets or
mobile payment wallets began with mobile recharges but have now upgraded the value chain and
offer a number of other services, such as shopping, food, movies, cabins, flights and much more.
The mobile payment applications are the applications used for payments for any kind of goods and
services. The rise in the need for relaxed and stress free purchase of items have given rise to the
increased use of digital payments.

THE ECOSYSTEM

The ecosystem of payment processor have a very complex networking that includes various
consumers, merchants, banks and payment or network providers. The mobile payment system is
heterogeneous in nature which means it has different types of operators along with different types
of advanced technologies and operating models. Each and every present companies in this industry
have their own operating model. Banks are the first operators when it comes to payment provider.
There are lot of new entrants like new financial institute and mobile manufacturing companies
who are increasing their shares. Companies are trying really hard in bringing innovative solutions
and features for the customers as well as they are competing with other companies to prove
themselves better in the market. The industry is now investing a lot in the security aspect that is
the biggest concern of the customers. They are enhancing their security feature to assure their
customers.
MODES OF MOBILE PAYMENT

There are various modes of mobile payment available as the industry is concerned with shaping
the future of its customer making the digital payments through mobile payment gateways.

 Mobile wallets
Mobile wallets are the digital wallets where the user can add money from their
account or can add their credit/debit card and saves the details of it. Users can make
transactions with the help of these wallets and also store money. Online purchase
can be done with the help of mobile wallets. Mobile wallets have replaced the
physical wallets. People don’t need to carry their wallets if they have the mobile
wallet with them. Users also gets exciting offers in the form of cashbacks or rewards
or discounts and coupons.
 SMS payments
This is the oldest form of mobile payments. It was considered to be one of the secure
mode of mobile payment. SMS is the abbreviation for short messaging service
where any payment regarding any product or service is done using text messages
through mobile phones. In this mode the purchaser is supposed to send a text
message to the mobile payment provider with full information regarding the
transaction. The mobile operator works as a mediator where he settles the
transaction between the purchaser and the vendor.
 Internet payment
Internet payment is the method in which user can place any transaction from
anywhere using internet. User can use their mobile phones as well as computer
desktop for making the transaction.
 Mobile banking
Most of the banks have now their own application. Mobile banking means making
any kind of transaction over phone with internet connection. First the user need to
have the bank application and signup using his mail id and password. There is
separate procedure of signup process for each and every bank.
 CHAPTER-2
BACKGROUND AND OBJECTIVES

The evolution of money looks like this: barter, coins, paper, plastic and now, phones. Now
smartphones are starting to replace cards and cash for a significant percentage of the global
population. Companies are revolutionizing the shopping experience and replacing cash and credit
cards with smartphones. People use smartphones to complete daily tasks including paying for
goods and services. That's why small businesses are encouraged to embrace mobile payments so
that the customers can pay as easily as possible. Mobile payments encompass mobile wallets and
mobile money transfers, both taking place through your mobile device. With the help of mobile
payments, there is no need to fumble for cash, write out checks or wait for invoices. As the growth
of mobile payment methods isn't slowing down, adapting to mobile payment technology is
extremely valuable for all business. With modernization of payment methods happening around
us, we are surely in an era which will be remembered for the radical changes in this industry. It’s
a phase where innovation and whirlwind growth of ecommerce is supporting the online payment
industry in such a way that now it has become an integral part of our lives. No matter how big or
small the payment is; every institution in the ecosystem has shown its dependency in the various
modes of online payments. To top it, the use of mobile phones, globally, has led to an increase in
the user base of e-payment subscribers. In India alone there are 150 million smartphone users
today, and the number is expected to rise to 500 million over the next five years taking the online
payment reach to a new level.

NEED FOR STUDY

According to the e-business marketers, India is the fastest growing country in terms of “proximity
mobile payments”. A proximity payment means scanning, tapping, swiping or checking with a
mobile at a point of scale. People are using digital mode of payments on their everyday basis of
life. From paying for autos cabs to paying for groceries, from making any bill payments to booking
travelling tickets online.
This is leading to a very high competition in the mobile payment field. We are provided with a
number of options. There are many players available at the present situation. These players have
their own application with features having advantages and disadvantages.

With lots of options available users are finding very difficult in sticking to one application.
People’s opinion towards the adoption of the mobile payment method matters to the eMarketers
as they can find out where their service is lacking when compared to another brand. There are still
educated and uneducated people. Where educated people are concerned about the security, the
uneducated people are unaware of the payment methods and if they know they don’t know how to
operate it. There are challenges and issues faced by the eMarketers as well as the users. So to
overcome these challenges and issue some solution is needed.

STATEMENT OF THE PROBLEM

Having a lot of option can confuse customers sometime. There are more than 15 mobile payment
applications available in India and not all the people are aware of all the application. Some people
know some application where some people don’t know any application. Different application
carries different features. They all provide services related to transaction. There are services which
people may not know and there could be services which is totally different from other service
providers. The satisfaction level of users is important while using the mobile payment application.
Whether they are satisfied with what they are getting or they are disappointed with the service.
User’s satisfaction level will make sure the application is going well in the market. People have
issues also while using the payment application. One of the biggest issue is security. User’s wants
to assure that their private data do not go in wrong hands. Another challenge is that it is difficult
to operate for a non-technical person such as farmers, workers etc. So the study helps to find out
the major issues and challenges faced by the users while using the mobile payment application.

There are lots of reason why people adopt mobile payment application and why they don’t.
Shamsher Singh of New Delhi carried out a study the perception of consumer on digital payment
mode in which he said that the level of education is one of the main reason why people adopt
mobile payment application. The high level of studies consumer pursue, the higher will be the
degree of usage of digital payment mode.
Mabil Carr of Hyderabad concluded his study by saying that there are lots of challenges which are
yet to be overcome in order to successfully implement mobile payment application. All the
businesses, merchants as well as the consumer have to come forward and make valuable
investment. He also mentioned that the government policies and the regulatory framework will act
as the pillar on which the mobile payment application will operate and execute their work.

Mobile payments applications are there in market for years now. The usage of these application is
increasing day by day. It has become a part of consumer where physical wallets are replaced by
the e-wallets. The e-wallets of mobile payment application provides a lot of benefits as well
convenience. The most convenient part of using digital payment is that without going somewhere
physically and standing in long queue, you can make the transaction.

Zlatko Bezhovski from Goce Delchev University, Macedonia concluded his research by saying
that the reason why people use mobile payment system is because they use mobile phones. Mobile
phones have become the integral part of human lives. They want their phones to do every possible
thing that it could. The proper implementation of mobile payment system will be proved best for
micropayments while the security risk of fraud, data theft, user and device authentication will
remain their among people. To make progress in future, it is very important for the m-payment
companies to overcome the security and authentication challenge.

Mobile payment applications advantage becomes a necessity in situations such as long queues,
unexpected urgent payments, time pressure, low cash or any loose change.

A research was carried on explaining the four economic models of mobile payment system. The
four model discussed were- the operator centric mode, the bank-centric mode, the independent
service provider and the collaborative model
[https://www.researchgate.net/publication/267917243_Four_models_for_mobile_payments]. The
first model which is operator centric mode is suitable for small transactions which reduces the
security risk of the customer. The bank centric model is suitable for higher expansion of financial
intermediation. The independent service provider is used by various types of user, it could be any
common individual or any professional having developed financial environment. The last model
which is the collaborative model, an association of an ideal partnership between mobile operator,
banks and financial institute, provide better solutions to the partners who are able to find ways to
share property rights.
There have been many studies conducted on issues and opportunity of mobile payment application
whereas there is no particular research conducted on the same topic mainly focusing on the youth
of the Bangalore city and their attitude towards it. Hence I have conducted this research in order
to get an overview of how the youth within the city response to mobile payment application.

RESEARCH OBJECTIVES

The objectives of the study was:-

 To study the awareness level of different payment application.

 To study the services provided by various payment banks.
 To study the satisfaction level of users of mobile payment application.
 To list the major challenges faced by users while using the mobile payment application.

RESEARCH METHODOLOGY

SCOPE OF STUDY

The study was conducted in Bangalore city.

Type of research

 This research was descriptive in nature and data was quantified in numbers and graphs.

Sampling design

The sampling plan for the study was follows:

 Sample Design:
The study is done by using convenience sampling method. A sample of 100 people in youth
category have been taken across Bengaluru city. The data gathered was analyzed using
simple tabulation, simple percentage analysis.
  Sampling unit:
The target unit was youth of different age category such as people who are between the
age of 20 to 25, 26 to 30 and 31 to 35 of Bangalore city
 Sample size :
A total of 100 respondents were taken as the sample size for the survey conducted.
 Data collection:
A well-structured questionnaire was used as a tool for primary data collection. The
questionnaire was distributed among 100 respondents through mail and online links and
they were asked to answer. The responses were noted. The respondents are mainly college
students, employed and non-employed youth.

Source of data: For the purpose of the study, the necessary data was collected from
primary as well as secondary data sources.
 Primary:
The fresh and raw data which we collect direct from the respondents is called primary
data. For primary data a survey was conducted online where response of 100 respondents
was recorded and analyzed.
 Secondary:
Secondary data is collected through various research papers, journals, published books or
newspaper. For this survey required data was collected through Book, Journals and
various published research paper.

LIMITATIONS OF THE STUDY

The limitations of the study are as follows:

 The research was conducted only in the city of Bengaluru so we cannot say that this
survey is valid for whole country.
 The research was conducted for a shorter duration so an intense research could not be as
the time provided was not enough.
 The study is limited to only 100 respondents.
The respondents were not available while taking the survey and the available respondents
doesn’t seemed to be serious while answering the question
 CHAPTER-3

TRAINING METHODS AND ACTIVITY

In the starting of the project work a proper orientation was held by the faculty coordinator
who explained each and every details regarding the project work under given guidelines.
There were some guideline which had to be followed by the students in order to prepare
their project report.
Guides were allocated to groups of student who held an interaction session regarding the
project work. The interaction with our respective guides provided us the guidelines and
help us understand about the topic. The guide also explained the process by which the
research should be done in a proper way. We had interaction with the guide time to time
whenever necessary. Guide helped us in doing our project work and helped us in
understanding the research gap. Weekly visit was made by the students in order to update

the guide with work progress that the student had made. The mistakes, if done any, was

corrected by the student with the help of the guide. The guide pointed us in the right
direction whenever we got stuck during our project work. The interaction were very much
beneficial for us as it helped us in achieving the main objectives of the research.
The guide made us understand about the statistical tool with the help of which the
questionnaire was designed and primary data was collected. The guide also made
understand about the sampling design of the research which helped us in concluding and
accomplishing the objectives of the study.
 CHAPTER-4

LEARNING OUTCOMES

From the training methods we get to learn the following things:

 Training helped in understanding the reason for which the research should be conducted.
It helped in getting the core meaning of the study.
 Learned to formulate and accomplish the main objectives of the research.
 It helped in understanding the analysis of primary as well as secondary data and then the
interpretation of that data as well.
 To understand about the sampling design and the size of the study.
 To study the literature review and with the help of which we can find the research gap of
the study.
 Help in finding out the conclusion.
 To understand the awareness and usage level of the mobile payment application
 To about the reason for the adoption of mobile payment application.
 To identify the issues and opportunity of mobile payment application.
 CHAPTER-5

DATA ANALYSIS AND INTERPRETATION

SURVEY DATA ANALYSIS

The survey was conducted to understand following:

 To understand the awareness level of different payment application

 To understand the service provided by various payment banks.
 To understand the satisfaction level of users of mobile payment application.
 To list the major challenges faced by users while using the mobile payment application.
 To understand the future opportunities of mobile payment application.

The following are the representation of the data distributed and collected through online survey.
The data is represented by using tables, graphs and charts. Percentage values are considered in
graphs and table
Q1. Gender

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of respondents %
Male 55 55%
Female 44 44%
Others 1 1%
Total 100 100%
Table 5.1

100 RESPONSES

Chart 5.1

Interpretation: This survey has 44% that is 44 women respondents from different background
and profession and 55% of male respondents coming from different background and profession.
Q2. Age group

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of respondents %

Between 20 to 25 76 76%

Between 26 to 30 17 17%

Between 31 to 35 7 7%

Total 100 100%

Table5. 2

Chart5.2

Interpretation: Respondents who are between the ages of 20 to 25 year account for 76%
which indicates that among the entire youth, the younger youth have taken most part in
response to this questionnaire. However the respondents between the age of 26 to 30 and
31 to 35 are only 17% and 7% of the total respondents.
Q3. Profession

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of Respondents %

Student 67 67%
Business person 16 16%
Home Maker 4 4%
Other 13 13%
Total 100 100%
Table 5.3

PROFESSION

13%
4% Student
Business person
16%
Home Maker
67% Other

Chart 5.3

Interpretation: 67% of the total respondents are student while 16% are business person.
Only 3% of total respondents are home maker and 13% of respondents are said whether
they are having private or government job like engineering, IT professionals, and special
service.
Q4. EDUCATION LEVEL

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of respondents %

Secondary 3 3%
Higher Secondary 5 5%
Graduate 39 39%
Post-graduate 51 51%
Others 2 2%
100 100%
Table 5.4

2%3%5%
SECONDARY
HIGHER SECONDARY
GRADUATE
51% 39%
POST-GRADUATE
OTHERS

Chart 5.4

Interpretation: From the educational level of the respondents it can be said that more than half
of the total respondents which is 51% are post-graduates. 39% of the total respondents have their
qualification till graduation and rest 2% and 5% of the people are having their qualification till
secondary or higher secondary level.
Q5. Are you aware of Mobile Payment Application?

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of respondents %

Yes 91 91%
No 4 4%
Maybe 5 5%
Total 100 100%
Table 5.5

4% 5%

YES
NO
MAYBE

91%

Chart 5.5

Interpretation: 91% of the total respondents were fully known or aware of mobile payment
application. Merely 4% of the people said they are not aware of mobile payment application and
2% of the respondents were not sure if they know mobile payment application.
Q6. Do you use Mobile Payment Applications?

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of respondents %

Yes 84 84%

No 8 8%

Maybe 8 8%

Total 100 100%

Table 5.6

Chart 5.6

Interpretation: From the given chart it can be easily said that 84% of the total respondents were
fully known and using mobile payment application. 8% of the respondent said they don’t use the
mobile payment application while 8% of the people said they may be or may be not use it.
Q7. Which Mobile Payment Applications you are aware of?

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of respondents %

Paytm 34 34%
Phonepe 10 10%
GoogleTez 7 7%
Mobikwik 0 0%
Freecharge 1 %
BHIM UPI 3 3%
All the above 45 45%
Other 0 0%
Total 100 100%
Table 5.7

Chart 5.7

Interpretation: When it was asked to the respondents that which payment application they are
aware of, 45% of the respondent said that they use all the available application such as paytm,
phonepe, googletez, mobikwik, freecharge, BHIM UPI. Around 34% of the respondents said that
they are highly aware of paytm, 10% respondents said they know phonepe while 10% and 7% of
the total respondents said they are known of freecharge, BHIM UPI.
Q8. Which Mobile Payment Applications you use?

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of respondents %

Paytm 40 40%
Phonepe 18 18%
GoogleTez 11 11%
Mobikwik 1 1%
Freecharge 1 1%
BHIM UPI 3 3%
All the above 27 27%
Other 2 2%
Total 100 100%
Table 5.8

Chart 5.8

Interpretation: 40% of the respondents use paytm which is very according to rest of the
application. Then 27% respondents use all of the mentioned application. The 18% of the
population use phonepe and 11% of the respondents are the users of googletez application.
Freecharge and mobikwik got equal very low percentage when compared to others that is 1%.
Q9. How often do you use Mobile Payment Applications?

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of respondents %

I hardly use them 21 21%

more than 5 times a month 24 24%

5 to 10 times a month 17 17%

10 to 15 times per month 12 12%

more than 15 times a month 26 26%

Total 100 100%

Table5. 9

Chart 5.9

Interpretation: Majority of the respondents which is 26% use the mobile payment application
more than 15 times a month. 24% of the respondent use the application more than 5 times per
month but less than 15 times. 12% and 17% of the respondents use it either 5 to 10 times or 10 to
15 times a month while 21% of the whole respondents hardly uses the mobile payment
application for transaction.
Q10. Where do you use Mobile Payment Applications for?
TOTAL NUMBER OF RESPONDENTS=100

No. of respondents %
Everyday item such as grocery 39 39%
For meals 20 20%
Event ticket 10 10%
Public transport 6 6%
Taxi fares 10 10%
None 6 6%
Others 9 9%
Total 100 100%
Table 5.10

45

40

35

30

25

20

15

10

0
EVERYDAY ITEMS FOR MEALS EVENT TICKET PUBLIC TAXI FARES NONE OTHERS
SUCH AS TRANSPORT
GROCERY

NO. OF RESPOMDENTS

Chart 5.10

Interpretation: Most of the respondents have been using mobile payment application for
everyday items which is 39%. 20% of the respondents where using mobile payment application
for paying for their meals while 10% and 6% of the respondents use it for event tickets and
public transport. 10% of the population use the application for taxi fares. Around 6% of the
respondents do not use the application for any purpose while 9% of the respondents use the
application for recharge, money transfer, and utility bills and for purchasing goods.
Q11. What is the reason that motivates you to use Mobile Payment Applications?

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of respondents %

I like to try new technologies 11 11%

Saves time 24 24%

Access to coupons/rewards/discount 12 12%

More convenient to make purchase 14 14%

More secure than cash/card 3 3%

Cost saving 4 4%

Can roam cashless 6 6%

All the above 24 24%

Others 2 2%

Total 100 100%

Table 5.11
 30

25

20

15

10

NO. OF RESPONDENTS

Chart 5.11

Interpretation: 11% respondents like using the new technology which is why they are using the
mobile payment application. 24% of the people gets motivated to use the mobile payment app
because it saves a lot of time. 12% of the respondents were motivated to use the mobile payment
application because of its added benefits like coupons, rewards or discounts. The fact that mobile
payment application makes the purchasing of goods and services keeps 14% of the respondent’s
motivated. 3% and 4% of the people get the motivation from the security and cost saving
features of it. Around 6% of the respondents use the application because it helps them to roam
cashless anywhere and they can make transaction without having any cash. 24% of the people
feels that all of the mentioned reasons altogether motivates them to use mobile payment app
while only 2% of the respondents either don’t use the application or have no point of view about
it.
Q12. How much do you spend through Mobile Payment Applications on weekly basis?

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of respondents %
50-100 15 15%
100-500 27 27%
500-1000 24 24%
1000 and above 34 34%
Total 100% 100%
Table 5.12

15%

34% 50-100
100-500
500-1000
27%
1000 and above

24%

Chart 5.12

Interpretation: 34% of the respondents spend more than 1000 rupees through preferred mobile
payment application weekly while 15% of the respondent spent around 50 to 100 rupees through
it. Around 27% of the respondents spend 100 to 500 rupees and 24% of the respondents spend
500 to 1000 rupees through mobile payment application on a weekly basis which is a moderate
condition.
Q13. Please rate the following listed benefits of Mobile Payment Applications from most
important (5) to least important (1)
Total number of respondents=100
Particulars Mean Score

More convenient to make purchase 3.44

More secure than cash/card 3.24

Cost saving 3.39

Can roam cashless 3.57

I like to try new technologies 3.23

Saves time 3.44

Access to coupons/rewards/discount 3.45

Table 5.13

Access to coupons/rewards/discount

Saves time

I like to try new technologies

Can roam cashless

Cost saving

More secure than cash/card

More convenient to make purchase

3 3.1 3.2 3.3 3.4 3.5 3.6

Mean Score

Graph 5.13
Interpretation: Out of 100 respondents 28% of the respondents are gives slightly more
importance to the factor that they can roam cashless. About saving time and access to coupons,
rewards or discount more or less people have same opinion. They are neutral about the benefits
that they are getting from mobile payment application whereas respondent gave slightly less
importance to the factor that the mobile payment application are more convenient while
making any king of purchases regarding goods and services as well as the cost saving aspect
of it. A very less importance was given to the factor by the respondents that people love using
new technologies or that the payment gateway are more cost saving in terms of any purchase
or transaction made.
Q14. In your view what are the main disadvantages of using Mobile Payment Applications?

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of respondents %

Too complicated/confusing 10 10%

Security concerns 48 48%

My preferred retailer do not offer this payment 18 18%

option

Cost 6 6%

Fear of losing mobile phone 16 16%

Other 2 2%

Total 100 100%

Table 5.14

60%

50%

40%

30%

20%

10%

0%

No. of respondents
 Graph 5.14

Interpretation: From the above graph it is found out that 10% of the respondents find the
application very complicated and confusing to use while majority of the respondents which is
48% find security concerns as the major drawback of the mobile payment application. According
to 18% of the respondents, their preferred retailer do not provide the digital payment option
while 16% of the respondents have fear of losing their mobile phone.
Q15. What can be safely shared when you use Mobile payment application?

TOTAL NUMBER OF RESPONDENTS=100

Particulars Number of respondents %

Adhaar card 29 29%

PAN card 6 6%
Bank account number 8 8%
Credit/debit card 11 11%
All of these 26 26%

None of these 20 20%

total 100 100%
Table 5.15

35%

30%

25%

20%

15%

10%

5%

0%
Adhaar card PAN card Bank account credit/debit card all of these none of these
number

no. of respondents

Graph 5.15

Interpretation: 29% of the respondents are not hesitant while sharing their adhaar card details.
6% respondents feel free while giving their PAN card details and 8% and 11% of the respondents
feel safe while sharing their bank account or credit or debit card details while using mobile
payment application. 26% of the respondents feel totally safe and can share any of their details
while 20% of the respondents not at all feel safe while sharing their details.
Q16. Which security feature would make you consider using Mobile Payment Applications?
Q16. A. No payment detail store in phone

Particulars Number of respondents %

Must have 30 30%

Nice to have 41 41%

Makes no difference 29 29%

Total 100 100%

Table 5.16.1

14%

Must have
20% Nice to have
Makes no difference
66%

Graph 5.16.1

Interpretation: The majority of the respondents which is 66% thinks that the no payment detail
makes no difference whether the payment detail is stored in phone or not. It could be dangerous
if by any chance the phone gets lost. 20% of the respondents thinks that the feature would be
nice to have while 14% of the respondents think that the feature must be available in our phone
so that there will be no record of any transaction saved in the phone.
Q16. B. Payment details encrypted

Particulars Number of respondents %

Must have 35 35%

Nice to have 42 42%

Makes no difference 23 23%

Total 100 100%

Table 5.16.2

23%
35%
Must have
Nice to have
Makes no difference

42%

Graph 5.16.2

Interpretation: 42% of the respondents thinks that it is nice to have a feature where the details
of the payment will be encrypted. This would reduce the risk of security theft. While 35% of the
respondents says that the payment encryption facility should be there in phone, 23% respondents
think that it does not make any difference.
Q16. C. PIN code required for every transaction

particulars Number of respondents %

Must have 45 45%

Nice to have 41 41%

Makes no difference 14 14%

Total 100 100%

Table 5.16.3

14%

Must have
45%
Nice to have
Makes no difference
41%

Graph 5.16.3

Interpretation: According to 45% of the respondents PIN code is very much required for each
and every transaction and 41% respondents is happy to have this facility. Still 14% of
respondents says that it does not make any difference.
Q16. D. Facial/voice recognition on mobile phone

Number of respondents %

Must have 25 25%

Nice to have 50 50%

Makes no difference 25 25%

Total 100 100%

Table 5.16.4

25% 25%
Must have
Nice to have
Makes no difference

50%

Graph 5.16.4

Interpretation: 50% of the respondents say that facial/voice recognition on mobile phones is
very necessary and 25% respondents says that it is a must have feature of a mobile phone while
equal amount of people that is 25% of people says that it does not make any difference.
Q16. E. Mobile wallet providers guarantees any financial losses

Particulars Number of respondents %

Must have 37 37%

Nice to have 46 46%

Makes no difference 17 17%

Total 100 100%

Table 5.16.5

17%

37%
Must have
Nice to have
Makes no difference

46%

Graph 5.16.5

Interpretation: 46% of the respondents agree with the statement and according to 37% of the
people it is a must have but 17% respondents says that it does not makes any difference.
Q17. Do you agree or disagree with following statements

Particulars Mean Score

Mobile payments are growing and are expected to 3.6
continue
In a few years people will hardly use cash to make 3.48
any purchase
Credit cards and debit cards are most preferred 3.74
payments
Mobile payment applications cannot be used for 3.01
international transaction
Mobile apps can help you classify your purchase 3.52
for budgeting
For quick high value transaction, mobile payment 3.42
application is best
Table 5.17
For quick high value transaction, mobile payment application is
best

Mobile apps can help you classify your purchase for budgeting

Mobile payment applications cannot be used for international

transaction

Credit cards and debit cards are most preferred payments

In a few years people will hardly use cash to make any purchase

Mobile payments are growing and are expected to continue

0 0.5 1 1.5 2 2.5 3 3.5 4

Mean Score

Graph 5.17

Interpretation: Respondents have agreed to the given statement that credit and debit card are still
the most preferred while making any kind of transaction. Respondents also agree to the statement
that that mobile payment industry is growing rapidly and expected to keep growing in the future
while, respondents also agreed to the statement that Mobile apps can help you classify the purchase
for budgeting. Few respondents agreed slightly on the statement that in a few years’ people will
hardly use cash to make any purchase and for quick high value transaction, mobile payment
application is best where some of the respondents were totally neutral which means they do neither
agreed nor disagree with the statement that the mobile payment application cannot be used for
international transaction.
Q18. How do you rate the mobile payment application you have used?

TOTAL NUMBER OF RESPONDENTS=100

Particulars No. of respondents %

Very satisfied 36 36%

Satisfied 53 53%

Neutral 11 11%

Unsatisfied 0 0%

Highly unsatisfied 0 0%

Total 100 100%

Table 5.18

11% 0% very satisfies

satisfied
36% neutral
unsatisfied
highly unsatisfies

53%

Chart 5.18
Interpretation: 36% of the respondents are very satisfied with the mobile payment application
they use while 53% of the respondents which is the majority feels satisfied with it. 11%
respondents are neutral about their point of view regarding mobile payment application. They are
neither very satisfied nor unsatisfied with it. No respondents have rated the usage of any mobile
payment application as unsatisfied or highly unsatisfied which is a very good news for the
mobile payment industry.
 CHAPTER-6

KEY FINDINGS&CONCLUSIONS
KEY FINDINGS

 From the conducted survey we get to know that 91% of the total respondents are fully
aware of mobile payment application whereas 4% of the people are not at all aware of the
mobile payment application and 5% of the respondents said they may or may not know
about it.
 We get to know that the major part of the respondents which is 84% use the mobile
payment application while only 8% of the respondents do not use it.
 Indian mobile market application have many players who are competing against each
other. Players like paytm, phonepe, mobikwik, freecharge googletez, BHIM UPI are the
current market leaders. Among all these option paytm is the most famous application
among consumers.
 There are so many options available in the market for mobile payment application and
major part of the respondents use all of the application which is widely present such as
paytm, phonepe, googletez,freecharge and many more. But among all these option paytm
have the majority followed by phonepe.
 People who are using mobile payment use it at least five times a day. 26% of the
respondent use application more than 15 times per weekly where 21% of the respondents
hardly use the application for payment.
 Mobile payment applications are highly used for everyday items. 20% of the respondents
said that they use it for paying for their meals while around 6% of the respondents do not
use the application for any purpose while 9% of the respondents use the application for
recharge, money transfer, and utility bills and for purchasing goods.
 We found out that there are many factors that motivates consumers to use mobile
payment application. Majority of the respondents use application because of all the
features it has, the main feature which motivates them is saving time.
  34% of the respondents spend more than 1000 rupees per week and 15% of the
respondents spend less than 100 rupees.
 The majority of the respondents find the benefit of roaming cashless very beneficial
while they gave slightly less importance to the fact that it is more secure than cash or
card.
 The major drawback of mobile payment application is the security concern. Users are
concerned about their security.
 From the survey it is found out that people do not have any issue with sharing their
valuable documents while using the payment application
 53% of the respondents said that they are satisfied with mobile application they are using.

CONCLUSION

Today’s generation youth are much more digitalized and wants to roam around world without
having any burden of keeping cash. So it is very important for the eMarketers to work on their
disadvantages and make a reliable application on which youth can depend totally. Most of the
youth has access to smart phones and mobile payment applications are very convenient way to
make the payment. Making any transaction becomes very easy. One can pay for any goods or
services from anywhere very easily. From small transactions to big amount transaction, everything
can be done sitting at one place. Everything has its merit and demerit. Having all the great features,
mobile payment application still suffers in terms of security and gaining trust of the people. Many
people are still following the traditional method of payment while many of the people don’t use
mobile payment application even knowing it. People are satisfied with this technology but they
are not able to adapt it properly. They are hesitant in using it mainly because of security risk. Even
having mobile payment application and knowing how to use it, some people don’t use it as they
have habit of paying cash from their wallet instead of e-wallet.
 CHAPTER-6

RECOMMENDATION
Even though a large part of the country is using the mobile payment applications, there is still few
percentage of people who either don’t know how to use the application or don’t have any access
to that application. Mobile payment industry should focus on those people as well. That part of the
population should not be ignored. Companies should focus on those people make them use their
application. They should make people aware about their app.

Mobile payment application companies should keep their application easy to use so that less
educated people can also use without having any problem. They should not make their application
so complex that normal people find it easy to operate.

From the above survey it can be said that the security concern is the biggest issue when it comes
to mobile payment application. People are trying hard to trust the company so companies should
try to enhance their security features by implementing authentication attempts and time out
features, monitoring all the transaction done by the customer, protecting the sensitive data like
personal data, educating customers and assisting them to use their mobile phones securely.