The International journal of analytical and experimental modal analysis ISSN NO: 0886-9367

A STUDY ON CUSTOMER PERCEPTION TOWARDS PAYTM

DR.(Mrs.) K. Sounthara Priya, Assistant Professor of Commerce, The Standard Fireworks
Rajaratnam College for Women, Sivakasi.
Dr.A.Josephine Stella, Assistant Professor of Commerce, The Standard Fireworks Rajaratnam
College for Women, Sivakasi.
1.1 INTRODUCTION
Information Technology Sector in India is making progress at rates way beyond what was
expected 30 years back. The new India is educated and everybody in the nation needs the best
and most upgraded methodologies for their self-business. Paytm was launched as a mobile
website but today it is India’s leader in e-commerce. There are various other payment platforms
like Paytm has managed to dominate the market with its high security features, it is highly
secured because it is approved wallet by Reserve Bank of India.
India has the second-largest user base in theworld however the presentation of e-
commerce is quite low. The Indian e-commerce market till 2015had home-grown giants like
FLIPKART and SNAPDEAL along with American major Amazon. When Paytm was just in its
initial stages these giants had their roots deep in the India market. Theyhad already invested
millions of dollars into building the supply chain, if back-end logistics and customer support. It
has done well to rise in theseenvironment however, if Paytm wants to remain as its position its
strategy of offering zero commission to vendors may not be enough, it will have to build strong
backend logistics to facilities fast and smooth delivery for minimal consumer complaints. Also
interest shown by giants such as Alibaba in the Indian market may threaten Paytm’s position in
the future.
1.2. PAYTM IN INDIA’S DEVELOPMENT
The e-commerce has been mentioned earlier has seen an outstanding growth in 2014-
2016. The growth was because of the high rate of technology adoption led by the increasing use
of devices such as smartphones, tablets and notebooks, and access to the internet. Because of
ecommerce companies like Paytm this sector in India has grown by a compound annual growth
rate (CAGR) of 34% since 2009. That is why to get the maximum benefit, public sector firms
like "Delhi Jal Board", "South Bihar Power Distribution, "BSNL", etc, have adopted e-commerce
by partnering themselves with Paytm. A company like Paytm Is making India digital nation with
an approach towards corruption less society. The number of middlemen involved when you buy
a product is reduced as companies like Paytm have a transparent system of knowing the seller.
Government can ensure right taxes on every product. It becomes difficult for one to evade taxes
with all the transaction data available online.
Paytm is not only used online but offline as well. Most of the people are using their
mobile app of Paytm as it is very convenient an easy to use others are using various other
electronic devices. Paytm has to work on its problems and it can even grow better after solving

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the problem. It has to bring some innovative 1deas to improve its efficiency and also to increase
the customer satisfaction.

1.3. STATEMENT OF THE PROBLEM

Digitalization is increasing in our country and our Government is encouraging a cashless

society. Perhaps the main thought behind demonetization was first, to control the black money in
the economy and anti money laundering which has been used extensively by terrorists and
second to increase E-transactions in the country. Though, result of the above will come in due
course of time but it 1s sure that all developed countries are moving towards cash- less
transactions. Large number of purchases by consumers 1s made online while Cash on Delivery
option 1s available, many prefer to make payments online through these Mobile Banking
Applications. Understanding the prevailing situation, many mobile banking applications offer
different benefits which induce the i consumers to use their wallets. Though, the breakdown in
the cash economy Is causing major disruptions to the supply of produce to India's cites with
payment alternatives such as Paytm on Smartphone 's gain widespread acceptance. Thus this
research Is undertaken to know and understand the customers perception towards Paytm.

1.4. SCOPE OF THE STUDY

The study undertaken only in Sivakasi. The study is confined to the users of Paytm. The
respondents are the customers of these apps and the number of respondents totals to 50. The
Primary data is collected through Interview Schedule. Secondary Data is collected from various
books and websites. The study is undertaken to understand their perception and satisfaction level
of consumers towards Paytm. The research is carried by means of descriptive research.

1.5 OBJECTIVES OF THE STUDY

 To know the factors influencing the PAYTM usage.
 To study the factors affecting the PAYTM Services.
 To analyze the level of satisfaction towards Paytm.
2.1 CUSTOMER PERCEPTION TOWARDS PAYTM SERVICES
2.1.1. GENDER WISE CLASSIFICATION
The gender of the respondents is included as one of the profile in the present study. Since
the gender shapes knowledge, ability and expectations of the paytm services. The classification
of the respondents based on gender is shown in the following Table 1.1.

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Table 1.1
GENDER WISE CLASSIFICATION
Gender No. of Responds Percentage
Male 29 58
Female 21 42
Total 50 100
Source: Primary Data
The above Table1.1 shows the Gender Wise Classification of the respondents .It is
observed from the table that 58%of the respondents are male and 42% of the respondents are
female.
2.1.2 AGE WISE CLASSIFICATION OF THE RESPONDENT
The age of a person influences the level of knowledge, exposure and working experience
which in turn would influence their views on various aspects related to the paytm services .The
distribution of the respondents based on their age is given in the following Table 1.2
Table 1.2
AGE WISE CLASSIFICATION
Age No of respondents Percentage
Below 30 years 30 60
30 to 40 5 10
40 to 50 9 18
Above 50 years 6 12
Total 50 100
Source: Primary Data
The above Table1.2 reveals that, out of 50 respondents as much as 60percent of the
respondents are in the age group of below 30 years, followed by 18 percentage of the
respondents are in the age group of 40 to 50 years, 12percent of the respondents are above 50
years and 10 percentage of the respondents are in the group 30 to 40 years.
2.1.3EDUCATIONAL QUALIFICATION
Education refers to the process of acquiring and gaining knowledge through learning
something. The following Table 1.3 exhibits the education level of the of the respondents using
the paytm

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Table 1.3
EDUCATIONAL QUALIFICATION CLASSIFICATION
Educational qualification No the respondents Percentage
Diploma 2 4
Under Graduate 31 62
Post Graduate 11 22
Doctorate 2 4
Others 4 8
Total 50 100
Source: Primary Data
The above Table 1.3 indicates that, 62 percentof the respondents are under graduate,
nearly 22 percent of the respondents are post graduate, 8 percent of the respondents belongs
other category, percent of the respondents have completed their doctorate and other 4 percent
have completed their diploma level of education.
2.1.4 OCCUPATION OF THE RESPONDENTS
Occupation is definitely influence by paytm usage. Occupation wise distribution of the
sample respondents in the study unit is given in the following Table 1.4
Table 1.4
OCCUPATION OF THE RESPONDENTS
Current Occupation No. of Respondents Percentage
Student 14 28
Self Employed 15 30
Professional 13 26
Home Maker 8 16
Total 50 100
Source: Primary Data
It is observed from the above Table 1.4, out of 50 respondents 30 percent of the
respondents are self-employed, 28 percent of the respondents are student,26 percent of the
respondents are professional and 16 percent of the respondents are Home Maker.
2.1.5 INCOME WISE CLASSIFICATION
Income of a person determines the purchasing power and the standard of living of
respondents. The monthly income of the respondents is shown in the following table 1.5

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Table 1.5
INCOME WISE CLASSIFICATION
Monthly Income No the respondents Percentage

Below Rs.10,000 9 18
Rs.10,000 to Rs.20,000 14 28
Rs.20,000 to Rs.30,000 16 32
Above Rs.30,000 11 22
Total 50 100
Source: Primary Data
The above Table 1.5shows that out of 50 respondents 32percent of the respondents earn
between Rs.20,000 to Rs.30,000,28 percent of the respondents monthly income is Rs.10,000 to
Rs.20,000, 22 percent of the respondents earn aboveRs.30,000 and 18 percent of respondents
earn below Rs.10,000.
2.1.6 REASONS FOR CUSTOMERS PREFERRING PAYTM
Paytm offers wide variety of services and it is the character that attracts many users to use
paytm. The paytm customers use paytm for different reasons. The following table 1.6 shows the
reasons for customers preferring paytm.
Table 1.6
REASONS FOR CUSTOMERS PREFERING PAYTM
Particulars No. of Responses Percentage
Time Saving 16 26
Easily Accessible 15 25
Low Cost 7 11
24 Hour Service 18 29
Safety 5 7
Others 1 2
Total 61 100
Source: Primary Data
The above Table 1.6 depicts that, out of 50 percent 29 percent of the respondents prefer
paytm as it provide 24 hours service, 26 percent of the respondents choose paytm as it saves
time, 25 percent of the respondents feel that paytm is easily accessible, 11 percent of the
respondents prefer as its cost is very low, 7 percent of the respondents prefer paytm as they
consider it as safe and 2 percent of the respondents prefer the option others. It is clearly shows
that the customers use paytm because of twin reasons like timesaving and easy accessibility.
2.1.7 FACTORS INFLUENCING THE PAYTM USAGE
In recent years, the growth of paytm has increased tremendously as our payment system
progress to next level. At paytm, we have various service and it is equipped with a secure online

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application. The researcher has analysed the various factors that influenced the respondents to
use paytm using Likert’s five point scale. The factors which influencing the customers to use
paytm in that it is user friendly and there are many factors. The following Table 1.7 shows the
factor influencing the paytm usage
Table 1.7
FACTORS INFLUENCING THE PAYTM USAGE
Factors Strongly Agree Neutral Disagree Strongly TWS Mean
Agree Disagree Score
NR WS NR WS NR WS NR WS NR WS
Easy to 37 185 12 48 1 3 0 0 0 0 236 4.72
Download
SMS Alerts 33 165 12 48 3 9 1 2 1 1 225 4.50
Availability 17 85 22 88 11 33 0 0 0 0 206 4.12
and
acceptances at
different stores
Advantage of 14 70 21 84 11 33 2 4 2 2 193 3.86
loyalty/reward
points and
discounts
Prudence of 21 105 20 80 8 24 0 0 0 0 210 4.19
time
Replaces 10 50 26 104 11 24 1 2 2 1 191 3.82
traditional
system
Easy refund of 11 55 23 92 12 36 2 4 2 2 189 3.78
money to bank
Encrypted 11 55 23 92 9 18 6 12 1 1 17 3.56
security logic
Ease of 29 145 18 72 3 9 0 0 0 0 226 4.52
trasaction
Pay to person 25 125 20 80 5 15 0 0 0 0 220 4.40
to person
Money can be 14 70 20 80 11 33 3 6 2 2 191 3.81
reloaded every
time
Cannot be 10 50 16 64 17 51 4 8 2 2 175 3.50
duplicated
Data retention 12 60 25 100 11 33 2 4 0 0 197 3.94
Flexibility 16 80 20 80 10 30 4 8 0 0 198 3.96
Brand loyalty 21 105 20 80 8 24 0 0 1 1 210 4.20
Infinite 15 75 22 88 7 21 4 8 2 2 194 3.88
lifetime

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Marketing 15 75 19 76 8 24 7 14 1 1 190 3.80

strategy

Source : Computed data

It is vivid from the above Table 1.7 that, easy to download has the highest mean score of
4.72,followed by ease of transaction with mean score 4.52,SMS Alerts secure third place with
mean score 4.50, followed by pay person to person with mean score4.40,brand loyalty is the next
with mean scoreof 4.20,prudence of time secure the next rank with mean scoreof 4.19,4.12 mean
score of respondents feel that paytm is availability and acceptances in different scores , followed
by flexibility with mean score of 3.96,the users with mean score of 3.94 feel that the data
retention is safe in paytm ,users with mean score of 3.81 feels that money canbe reloaded any
every time, marketing strategy secure the next place with mean score of 3.80,users with mean
score of 3.78 feels that paytm refund the money to bank, followed by users with mean score
of3.56 feel that paytm follows the encrypted security logic and paytm cannot be duplicated
secures the last rank with low mean score 3.50
It is clear from the above table that, the main factors influencing the paytm usages are
easy to download, ease of transaction, SMS alerts and prudence of time.
2.1.8 FACTORS AFFECTING THE PAYTM SERVICES
An attempt has been made to analyze the various factors affecting the Paytm services by
using Garrett ranking method. Garrett technique is used to evaluate the problems faced by the
researchers. The orders of merit given by the respondents were converted in to rank by sung the
formula. To find out the most significant factor which influences the respondent, Garrett s
ranking technique was used. As per this method, respondents have been asked to assign the rank
for all factors and the outcomes of such ranking have been converted into score value with the
help of the following formula:
Percent position = 100 (Rij-0.5) /Nj
Where Rij = Rank given for the ith variable by jth respondents
Nj= Number of variable ranked by jth respondents
Table 1.8
Factors affecting the Paytm services

FACTORS TOTAL GARRETT RANK

SCORE SCORE
Inconvenience in completing 4083 81.66 X
online transaction
Paytm is not supported by all 4137 82.74 IV

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mobile phones
The cost of data access to your 4090 81.80 VIII
network is high
Nonavailability for international 4049 80.98 XV
transaction
Payment GatewayFailure 4080 81.60 XII

Slow Paytm server 4127 82.54 V

Security 4103 82.06 VII

Problem with barcode detection 4319 86.38 II

Time Consuming Procedures 4052 81.04 XIV

Danger of Losing Money 4672 93.44 I

Difficult to use Paytm 4167 83.34 III

Non availability or non 4069 81.38 XIII

acceptance of Paytm in different
stores
Needs are met without using 4026 80.52 XVI
Paytm

Loss of Human Touch 4087 81.74 IX

Inconvenient for offline sales 4085 81.70 XI

Credit scores are less 4114 82.28 VI

Source : Computed Data

It is observed from the Table 1.8 that, “Danger of losing money “ (93.44) is given the
first rank that is people feel that they will lose their money while using Paytm and last rank is
secured by needs are met without using paytm with Garrett score of 80.52.
It is understood from table that, the factors affecting paytm services are danger of losing
money, problem with barcode detection, difficult to use paytm and paytm is not supported by all
mobile phones.

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2.1.9 OVERALL SATISFACTION OF THE RESPONDENTS TOWARDS PAYTM

Though Paytm faces difficulties, it is the application that boosts Digital India.Paytm has
brought a paradigm shift in the retail industry by completely transporting their payment method
Table 1.9
Overall satisfaction of respondents towards Paytm.
Performance No. of Respondents Percentage
Best 12 24
Better 14 28
Good 24 48
Worst - -
Total 50 100
Source: Primary Data
Table1.9 proves that out of 50 respondents,48 percent of respondents is of
perception that Paytm is good,28 percent of respondent is of perception that Paytm is better and
24 percent of respondents is of perception that Paytm is Excellent.
3.1 FINDINGS OF THE STUDY
 58 per cent of respondents are male.
 60 per cent of the respondents are in the age group below 30 years.
 62 per cent of the respondents are under graduate.
 30 per cent of the respondents are self employed.
 32 percent of the respondents earn between Rs 20,000 to Rs. 30,000.
 Reasons for using the Paytm is user friendly.
 Ease of transaction and SMS alert are the major factors influencing the customers to use
Paytm .
 Danger of losing money is the major factors affecting the customers to use Paytm.
 Customer Perception towardsthat Paytm services is excellent.
4.1 CONCLUSION
The present study has made an attempt to understand and customer perception regarding
Paytm. Paytm In the wake of termination of physical money to unravel the issues being sweet-
faced by common public. Paytm app is a familiar app used for e- transactions. I he app has both
pros and cons. It is true that Paytm definitely faced a successful growing path after
demonetization. Even the smaller vendors have introduced Paytm to promote cashless payment
methods. Therefore we could generalize the trends that we are moving to a cashless economy. It
indicates that adoption of Paytm isinfluenced by the education level of the customer. It a person
has studied beyond matriculation and internet savvy, he or she will be inclined to use the Paytm.
It was also found that in the areas/region where education level its high such as Delhi NCR and
other metropolitan area, the possibility of acceptance of digital payment is much higher. Paytm

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app should be made available to the different sections of the community so that we can achieve
the goal of Digital India.

References
1.Nazimsha.S., Rajeswari.M.,(2018), “A Study on Paytm Services in Promoting Cashless
Economy after demonetization in India and an outline on its support towards making India
Digital”, International Journal of Pune and Applied Mathematics, Volume 119, No.7.
2. Priyanka Bhatia (2018), “Project Dissertation Report on Study of Digital Market at
paytm digital india”, Delhi School of Management, Delhi Technological University, Delhi.
3. www.ijrat.org., Usha.M., Ramesh Kumar.K (2019), “Consumer Perception towards
Paytm with special reference to Karur District”, International Conference “ICFTWF – 19”
February 4 and 5.
4. Senthil.M (2017), “A Study on Customer Satisfaction towards paytm users in
Dhamapuri District”, International Journal of Scientific Research and Review.
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6. http://www.researchgate.net
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