PROJECT REPORT

ON

“A study on awareness and usage of digital payments in india

with respect to paytm in thane region”

A PROJECT REPORT SUBMITTED TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF
THE DEGREE OF
BACHELOR IN COMMERCE (BANKING & INSURANCE)
UNDER THE FACULTY OF COMMERCE

BY
SHIREEN AKHTAR ALI ANSARI
ROLL NO. - 67

UNDER THE GUIDANCE

Mrs. SIPRA ROUTARY

VIDYA PRASARAK MANDAL’S K.G. JOSHI COLLEGE OF ARTS &

N.G.BEDEKAR COLLEGE OF COMMERCE CHENDANI BUNDER
ROAD, THANE – 400601
ACADEMIC YEAR
2020-2021
INTRODUCTION
India is moving on the path of a major digital revolution. Digitalization of the payment
mechanism will be considered as a milestone in the era of a cashless future economy. The
growth of the Indian digital payments space is expected to be driven by four trends that are
also likely to impact how this industry looks in the future. India's digital, favourable regulatory
environment, emergence of next generation payment service providers and enhanced
customer experience are the four drivers that contributed to the growth of Indian digital
payment systems.
The mobile wallet is a new application of mobile payment that has functionality to displace a
conventional wallet and more. Mobile payments are a top investment priority for banks.
Infact, the world’s biggest banks continue to focus most of their announced IT initiatives on
mobile financial services (including payments) and online banking.
During the last decade, a reasonable amount of research was carried out in the field of retail
payments to better understand market participants’ behaviour and their underlying
motivations. However, research into consumers’ attitudes towards attitude, safety perception
on digital payment behaviour is scarce. The objective of this study is therefore to investigate
the determinants of safety perception and the attitude, awareness level towardS.
India is in the second position in the world in population.Still Indian economy is developing
economy in the world. So the government of India taking some initiative to develop our
economy, our honourable prime minister introduces digital India for adopting the technology
and maintains all transactions should be digital transactions in our country. In order to
accelerate the execution of the concept of digital economy there are a number of digital
payment systems introduced. These payment systems can make changes in the standard of
living of people. In India, many cashless payment systems were launched such as E-
Payments, online payments, IMPS, NEFT and mobile wallets etc… In this research the
researcher article indicates various cashless payments through in India and its impact after
demonetization.
The usage of electronic transactions was rapidly increased during Covid19 lockdown period
to mitigate the physical visit to the bank branch in the country (Oliver-Balch 2020). The
footfalls to the bank branch were also simultaneously reduced due to Lockdown. Global
Payment Gateways Processing Solutions Market forecasted the trend of payment gateways
industry up to 2024, amid and aftermath of Covid19 and global payment market is expected
to increase 23.45 USD billion in the year 2020 - 2024 due to growth of e-commerce and
increase in use of digital payment methods.
E-wallet facilitates the users to perform the cash transactions with the help of mobile
applications instead of physical transactions. The e-wallets can be used in three types
namely open e-wallet, semi-closed e-wallet and closed e-wallet and some ewallet
applications are need not to have bank account and user can perform the digital transaction
with the help of digital money transferred to particular application (Octal IT Solution, 2020).
The growth of smartphone users across the globe will be a useful key driver to increase the
number of e-wallet users in near future. E-wallets and other electronic fund transfer methods
are very useful especially, during pandemic conditions and lockdown periods (RBI Governor
2020). There are many players providing ewallet services to the customers such as Google
Pay, Paytm, FreeCharge, PayPal, Banking Mobile Wallet Applications, PhonePe,
PayUMoney and MobiKwik are few famous digital wallet service providers to customers in
India. Further, e wallets will help to eradicate the physical touch during pandemic conditions
and eliminate the importance of visiting branches of the bank to transfer or remit the money
from the bank account during lockdown period.
The Indian economy is an economy which was traditionally based on cash transactions.
However, after the midnight of November 8, 2016, India moved towards cashless
transactions. The present study deals with Indian consumer’s perception towards mobile
wallet app Paytm. For this common people from India belonging to major cities were
requested to participate in this study. The field work of the study was conducted during
January to February, 2018. The Paytm app has both pros and cons among common
respondents. One group of consumers opined that the Paytm app is both easy to use and
wallet free. The other group felt Paytm app had connectivity issues i.e., it cannot be
connected without internet facility. To overcome these cons and increase the pros of Paytm
app, the app can be improvised to work without internet. This will pave way towards making
digital India a reality
FEATURES OF DIGITAL PAYMENTS:-

Flexibility
Alternative forms of payment are needed, depending on the guarantees needed by the
parties to a transaction, the timing of the payment itself, requirements for auditability,
performance requirements, and the amount of the payment. The payment infrastructure
should support several payment methods including instruments analogous to credit cards, 34
personal checks, cashier's checks, and even anonymous electronic cash. These instruments
should be integrated into a common framework.

Convertibility:

Users of the Internet will select financial instruments that best suit their needs for a given
transaction. It is likely that several forms of payment will emerge, providing different trade offs
with respect to the characteristics just described. In such an environment it is important that
funds represented by one mechanism be easily convertible into funds represented by others.

Ease of use:

Users should not be constantly interrupted to provide payment information and most
payments should occur automatically. However, users should be able to limit their losses.
Payments beyond a certain threshold should require approval. Users should be able to
monitor their spending without going out of their way to do so.

Customer base:

The acceptability of a payment mechanism is affected by the size of the customer base, i.e.
the number of users able to make payments using the mechanism. Merchants want to sell
products, and without a large enough base of customers using a payment mechanism, it is
often not worth the extra effort for a merchant to accept the mechanism.
Reliability:

As more commerce is conducted over the Internet, the smooth running of the economy will
come to depend on the availability of the payment infrastructure, making it a target of attack
for vandals. Whether the result of an attack by vandals or simply poor design, an interruption
in the availability of the infrastructure would be catastrophic. For this reason, the
infrastructure must be highly available and should avoid presenting a single point of failure.

Scalability:

As commercial use of the Internet grows, the demands placed on payment servers will grow
too. The payment infrastructure as a whole must be able to handle the addition of users and
merchants without suffering a noticeable loss of performance. The existence of central
servers through which all transactions must be processed will limit the scale of the system.
The payment infrastructure must support multiple servers, distributed across the network.
Types of Digital Payment Methods in India
1.BANKING CARDS:

Cards are among the most widely used payment methods and come with various features
and benefits such as security of payments, convenience, etc. The main advantage of
debit/credit or prepaid banking cards is that they can be used to make other types of digital
payments. For example, customers can store card information in digital payment apps or
mobile wallets to make a cashless payment. Some of the most reputed and well-known card
payment systems are Visa, Rupay and MasterCard, among others. Banking cards can be
used for online purchases, in digital payment apps, PoS machines, online transactions, etc.

How to get Banking cards?

Apply with your respective bank and provide Know Your Customer (KYC) details.
The card will get activated within a week and you will be allotted a 4-digit pin, which
can be used for all transactions

● Credit Card: A feature of a credit card is that the issuer of the card creates aline of
credits (usually called a credit limit) for the cardholder on which the cardholder can
draw (i.e., borrow) for payment to a merchant in making a purchase or as a cash
advance to the cardholder. Most credit cards are issued by or through local banks
or credit unions, but some non-bank financial institutions also offer cards directly
to the public.
● Debit Cards: A feature of a debit card (also known as abank card, check card or
some other description) is that when a cardholder makes a purchase funds are
withdrawn directly from either the cardholder’s bank account or from the
remaining balance on the card.
● Charge Card: A feature of a debit card (also known as abank card, check card or
some other description) is that when a cardholder makes a purchase funds are
 withdrawn directly from either the cardholder’s bank account, or from the
remaining balance on the card.
● ATM card: An ATM card (known under a number of names) is any card that can
be used in automated teller machines (ATMs) for transactions such as deposits,
cash withdrawals, obtaining account information, and other types of transactions,
often through interbank networks.
● Stored- Value Card: A feature of a stored-value card is that a monetary value is
stored on the card, and not in an externally recorded account and differs from
prepaid cards where money is on deposit with the issuer similar to a debit card.
● Fleet Card: A fleet card is used as a payment card most commonly for gasoline,
diesel and other fuels at gas stations. Fleet cards can also be used to pay for vehicle
maintenance and expenses at the discretion of the fleet owner or manager.
● Smart Card: A smart card is a plastic card about the size of a credit card, with an
embedded microchip that can be loaded with data, used for telephone calling,
electronic cash payments and other applications and then periodically refreshed for
additional use.
● RuPay Card: RuPayis an Indian domestic card scheme conceived and launched
by the National Payments Corporation of India (NPCI). It was created to fulfill the
Reserve Bank of India’s desire to have a domestic, open loop, and multilateral
system of payments in India.
● MasterCard: Worldwide credit card corporation that works with financial
institutions to issue credit cards. The credit cards distributed by the company are
done so under the MasterCard brand, which is one of the three major credit cards
accepted at vendors across the world. MasterCard converted from a privately held
company to a public company on May 25, 2006.
2. . Unstructured Supplementary Service Data (USSD):

Another type of digital payment method, *99#, can be used to carry out mobile transactions
without downloading any app. These types of payments can also be made with no mobile
data facility. This facility is backed by the USSD along with the National Payments
Corporation of India (NPCI). The main aim of this type of digital payment service is to create
an environment of inclusion among the underserved sections of society and integrate them
into mainstream banking. This service can be used to initiate fund transfers, get a look at
bank statements and make balance queries. Another advantage of this type of payment
system is that it is also available in Hindi.

How to Use *99#?

● This service can be used by dialling *99#, after which the customer can
interact with an interactive voice menu through their mobile screen.To use the
service the mobile number of the customer should be the same as the one
linked to the bank account.
● The next step is to register for USSD, MMID (Mobile Number Identifier) and
MPIN.

3. Aadhaar Enabled Payment Service (AEPS):

Expanded as Aadhaar Enabled Payment System, AEPS, can be used for all banking
transactions such as balance enquiry, cash withdrawal, cash deposit, payment
transactions, Aadhaar to Aadhaar fund transfers, etc. All transactions are carried out
through a banking correspondent based on Aadhaar verification. There is no need to
physically visit a branch, provide debit or credit cards, or even make a signature on a
document. This service can only be availed if your Aadhaar number is registered with
the bank where you hold an account. This is another initiative taken by the NPCI to
promote digital payments in the country.
How to use AEPS?
● It is very simple to use AEPs, all you need to do is to provide the accurate
Aadhaar number and the payment will be successfully made to the concerned
merchant

4. Unified Payments Interface( UPI):

UPI is a type of interoperable payment system through which any customer holding any bank
account can send and receive money through a UPI-based app. The service allows a user to
link more than one bank account on a UPI app on their smartphone to seamlessly initiate
fund transfers and make collect requests on a 24/7 basis and on all 365 days a year. The
main advantage of UPI is that it enables users to transfer money without a bank account or
IFSC code. All you need is a Virtual Payment Address (VPA). There are many UPI apps in
the market and it is available on both Android and iOS platforms. To use the service one
should have a valid bank account and a registered mobile number, which is linked to the
same bank account. There are no transaction charges for using UPI. Through this, a
customer can send and receive money and make balance enquiries.

How to use UPI?

● Download the app on Android or iOS platform
● Register for the service by providing bank account details
● Create a VPA, get an MPIN

5. Mobile Wallets:

A mobile wallet is a type of virtual wallet service that can be used by downloading an
app. The digital or mobile walletstores bank account or debit/credit card information
or bank account information in an encoded format to allow secure payments. One
can also add money to a mobile wallet and use the same to make payments and
purchase goods and services. This eliminated the need to use credit/debit cards or
remember the CVV or 4-digit pin. Many banks in the country have launched e-wallet
services and apart from banks, there are also many private players. Some of the
mobile wallet apps in the market are Paytm, Mobikwik, Freecharge, etc. The various
services offered by mobile wallets include sending and receiving money, making
payments to merchants, online purchases, etc. Some mobile wallets may charge a
certain transaction fee for the services offered.

How to use a mobile wallet?

● Download the app
● Register for the service by following instructions and providing all details
● Load money

6. Bank prepaid cards:

A prepaid card is a type of payment instrument on which you load money to make
purchases. The type of card may not be linked to the bank account of the customer.
However, a debit card issued by the bank is linked with the bank account of the
customer.

How to Use a Prepaid Card?

● Apply for the card
● Get pin
● Load money from your bank account/debit card

7. PoS terminals:

Traditionally, PoS terminals referred to those that were installed at all stores where
purchases were made by customers using credit/debit cards. It is usually a hand held
device that reads banking cards. However, with digitization the scope of PoS is
expanding and this service is also available on mobile platforms and through internet
browsers. There are different types of PoS terminals such as Physical PoS, Mobile
PoS and Virtual PoS. Physical PoS terminals are the ones that are kept at shops and
stores. On the other hand, mobile PoS terminals work through a tablet or
smartphone. This is advantageous for small time business owners as they do not
have to invest in expensive electronic registers. Virtual PoS systems use web-based
applications to process payments.

8. Internet Banking:

Internet banking refers to the process of carrying out banking transactions online.
These may include many services such as transferring funds, opening a new fixed or
recurring deposit, closing an account, etc. Internet banking is also referred to as e-
banking or virtual banking. Internet banking is usually used to make online fund
transfers via NEFT, RTGS or IMPS. Banks offer customers all types of banking
services through their website and a customer can log into his/her account by using a
username and password. Unlike visiting a physical bank, there are two time
restrictions for internet banking services and they can be availed at any time and on
all 365 days in a year. There is a wide scope for internet banking services.

a. National Electronic Fund Transfer (NEFT):

National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating

one_to-one funds transfer. Under this Scheme, individuals, firms and corporates can
electronically transfer funds from any bank branch to any individual, firm or corporate having
an account with any other bank branch in the country participating in the Scheme.

b. Real Time Gross Settlement (RTGS):

RTGS is defined as the continuous (real-time) settlement of funds transfers individually on an

order by order basis (without netting). 'Real Time' means the processing of instructions at the
time they are received rather than at some later time; 'Gross Settlement' means the
settlement of funds transfer instructions occurs individually (on an instruction by instruction
basis).
c. Immediate Payment Service (IMPS):

IMPS offers an instant, 24X7, interbank electronic fund transfer service through mobile
phones. IMPS is an emphatic tool to transfer money instantly within banks across India
through mobile, internet and ATM which is not only safe but also economical both in financial
and non-financial perspectives.

d. Electronic Clearing System (ECS):

ECS is an alternative method for effecting payment transactions in respect of the utility-
bill_payments such as telephone bills, electricity bills, insurance premia, card payments and
loan repayments, etc., which would obviate the need for issuing and handling paper
instruments and thereby facilitate improved customer service by banks / companies /
corporations / government departments, etc., collecting / receiving the payments.

e. CBLO:

CBLO refers to a money market instrument called Collateralized Borrowing and Lending
Obligation (CBLO). Clearing Corporation of India Ltd. (CCIL) has developed and introduced
27 this instrument with effect from January 20, 2003 .CBLO facilitates unwinding of both
borrowing and/or lending positions before maturity and substitution of security given as
collateral for borrowing. It also does not entail physical transfer of respective securities from
borrower to lender or vice versa being a blend of hold-in-custody and tripartite repo.

f. Government Securities:

A Government Security (G-Sec) is a tradable instrument issued by the Central Government

or the State Governments. It acknowledges the Government‘s debt obligation. Such
securities are short term (usually called treasury bills, with original maturities of less than one
year) or long term (usually called Government bonds or dated securities with original maturity
of one year or more.
g. Retail Payments:

Under the Retail Payments segment which has a large user base, there are three broad
categories of instruments. They are Paper Clearing, Retail Electronic Clearing and Card
Payments.

9. Mobile Banking:

Mobile banking is referred to the process of carrying out financial

transactions/banking transactions through a smartphone. The scope of mobile
banking is only expanding with the introduction of many mobile wallets, digital
payment apps and other services like the UPI. Many banks have their own apps and
customers can download the same to carry out banking transactions at the click of a
button. Mobile banking is a wide term used for the extensive range or umbrella of
services that can be availed under this.

Mobile Banking Trends

❖ Consumers expectations around mobile banking are higher than ever as use of
mobile banking increases at the expense of desktop banking.
❖ 100% of the banks surveyed support both iPhone and Android devices, with 60%
supporting Windows and fewer financial institutions investing in Blackberry
support.
❖ 24% of banks surveyed allow balances to be viewed before login, 29% allow
mobile blocking of a credit or debit card, and 68% allow the viewing of future
transactions post login.
❖ 72% of banks allow a user to save their ID on the mobile app while only 26%
require mobile specific login details.
❖ While the vast majority of banks integrate savings, overdraft and credit cards
within the mobile banking app, far fewer include loans or investments.
 ❖ 91% of banks allow consumers to make payments to an existing payee, roughly
half allow the payment to a new payee or mobile phone number, while only 14%
allow payment to an email address and 2% using social media.
❖ Sales and marketing as well as the ability to buy products within the mobile
banking app is available at fewer than 30% of the banks monitored.
❖ Secure messaging is available at 30% of the organizations, with live chat only
provided by 7% of the institutions.

Tips for Safe Mobile Banking

● Use a safe network connection

● Licensed anti-virus
● Subscribe for push message notification
● Avoid signing in via a third-party website or promotional emails

Bharat Interface for Money (BHIM) app:

The BHIM app allows users to make payments using the UPI application. This also
works in collaboration with UPI and transactions can be carried out using a VPA. One
can link his/her bank account with the BHIM interface easily. It is also possible to link
multiple bank accounts. The BHIM app can be used by anyone who has a mobile
number, debit card and a valid bank account. Money can be sent to different bank
accounts, virtual addresses or to an Aadhaar number. There are also many banks
that have collaborated with the NPCI and BHIM to allow customers to use this
interface.

How to Use BHIM App?

❏ Download and install the BHIM app
❏ Choose a language
❏ Register for the service by providing mobile number linked to bank account
❏ Add bank-related information and set up a UPI PIN by following the given
instructions
Paytm:
Paytm (a partial abbreviation for "pay through mobile") is an Indian e-commerce payment system
and financial technology company, based in Noida, Uttar Pradesh, India. Paytm is currently
available in 11 Indian languages and offers online use-cases like mobile recharges, utility bill
payments, travel, movies, and events bookings as well as in-store payments at grocery stores,
fruits and vegetable shops, restaurants, parking, tolls, pharmacies and educational institutions
with the Paytm QR code.California-based PayPal filed a case against Paytm in the Indian
trademark office for using a logo with a similar color combination to its own on 18 November
2016. As of January 2018, Paytm is valued at $10 billion.

As per the company, over 7 million merchants across India use their QR code payment system to
accept payments directly into their bank account. The company also uses advertisements and
paid promotional content to generate revenues.

History of paytm:
Paytm was founded in August 2010 with an initial investment of $2 million by its founder Vijay
Shekhar Sharma in Noida, a region adjacent to India's capital New Delhi. It started off as a
prepaid mobile and DTH recharge platform, and later added data card, postpaid mobile and
landline bill payments in 2013.

By January 2014, the company had launched the Paytm Wallet, which the Indian Railways and
Uber added as a payment option.It launched into e-commerce with online deals and bus ticketing.
In 2015, it unveiled more use-cases like education fees, metro recharges, electricity, gas, and
water bill payments. It also started powering the payment gateway for Indian Railways.

]
In 2016, Paytm launched movies, events and amusement parks ticketing as well as flight ticket
bookings and Paytm QR. Later that year, it launched rail booking and gift cards.

Paytm's registered user base grew from 11.8 million in August 2014 to 104 million in August
2015. Its travel business crossed $500 million in annualised GMV run rate, with 2 million tickets
booked per month.

In 2017, Paytm became India's first payment app to cross over 100 million app downloads. The
same year, it launched Paytm Gold, a product that allowed users to buy as little as ₹1 of pure
gold online. It also launched Paytm Payments Bank and ‘Inbox’, a messaging platform with in-
chat payments among other products. By 2018, it started allowing merchants to accept Paytm,
UPI and card payments directly into their bank accounts at 0% charge. It also launched the
‘Paytm for Business’ app which is now called Business with Paytm App, allowing merchants to
track their payments and day-to-day settlements instantly. This led its merchant base to grow to
more than 7 million by March 2018.

In January 2018, Paytm entered into a joint venture with Alibaba Group-owned gaming company
AGTech Holdings to launch Gamepind, a mobile gaming platform. Gamepind was later rebranded
as Paytm First Games in June 2019.

In March 2018, Paytm Money was set up with an investment of ₹9 crore to bring investment and
wealth management products for Indians.

In March 2019, Paytm launched a subscription based loyalty program called Paytm First.

In May 2019, Paytm partnered with Citibank to launch Paytm First credit card

In July 2020, Tata Starbucks partnered with Paytm allowing its customers to order food online
during a coronavirus (COVID-19) pandemic.

During the COVID-19 pandemic in India, Paytm decided to contribute ₹10 to every
single user who pays to the PM CARES fund via their app. It aims to donate ₹500 crore, and
within ten days they have collected ₹100 crore in their app. Their 1,200 employees have
contributed their 15 days or even a few months of their salaries to the fund.

Google Pay:

Google Pay (stylized as G Pay; formerly Pay with Google and Android Pay) is a digital wallet
platform and online payment system developed by Google to power in-app, online, and in-
person contactless purchases on mobile devices, enabling users to make payments with
Android phones, tablets, or watches. Users in the United States and India can also use an
iOS device. In addition to this, the service also supports passes such as coupons, boarding
passes, student ID cards, event tickets, movie tickets, public transportation tickets, store
cards, and loyalty cards.
As of January 8, 2018, the old Android Pay and Google Wallet have unified into a single pay
system called Google Pay.] Android Pay was rebranded and renamed as Google Pay.
PhonePe:

PhonePe is an Indian digital wallet platform and online payment company headquartered in
Bangalore, India PhonePe was founded in December 2015.
The PhonePe app is available in over 11 Indian languages. Using PhonePe, users can send
and receive money, recharge mobile, DTH, data cards, make utility payments, pay at shops,
invest in tax saving funds, liquid Funds, buy insurance and mutual funds and gold. In addition
PhonePe also allows users to book Ola rides, pay for Redbus tickets, and book flights and
hotels on Goibibo through the Switch platform.
PhonePe is accepted as a payment option at over 10 million] offline and online merchant
outlets across 400 cities in India covering food, travel, groceries, medicines, movie tickets
etc. The app crossed 100 million user marks in June 2018] and also crossed 5 billion
transactions in December 2019. It currently has over 200 million users. The company
launched the PhonePe ATM in January 2020. The PhonePe ATM allows neighbourhood
Kirana stores to dispense cash in real-time to customers.
PhonePe is licensed by the Reserve Bank of India for issuance and operation.

What is more secure: Google Pay, Paytm, PhonePe?

Experts suggest that all the three digital transaction apps,more or less, are equally secure.
While Google's brand image definitely does some good to Google Pay, Paytm and PhonePe
continue to be an easy pick for others due to their many features. Notably, all three apps also
have similar ratings on the Google Play Store and Apple App Store.
However, Google Pay has long been leading in the UPI transactions while Paytm is usually
more advisable for merchant payments. It seems a close battle between Google Pay and
Paytm for digital transaction users. On the other hand, PhonePe grabbed the headlines in
January for its unique feature of PhonePe ATM that allows users to withdraw.
WhatsApp Payments:

WhatsApp Payments (marketed as WhatsApp Pay) is a peer-to-peer money transfer feature

that is currently only available in India. WhatsApp has received permission from the National
Payments Corporation of India (NPCI) to enter into partnership with multiple banks in July
2017 to allow users to make in-app payments and money transfers using the Unified
Payments Interface (UPI). UPI enables account-to-account transfers from a mobile app
without having any details of the beneficiary's bank. On 6 November 2020, Whatsapp
announced that it had received approval for providing a payment service, although restricted
to a maximum of 20 million users initially. The service was subsequently rolled out.
Benefits of Digital Payments:

1. Faster, easier, more convenient:

Perhaps, one of the biggest advantages of cashless payments is that it speeds up the
payment process and there is no need to fill in lengthy information. There is no need to stand
in a line to withdraw money from an ATM or carry cards in the wallet. Also, with the move to
digital, banking services will be available to customers on a 24/7 basis and on all days of a
year, including bank holidays. Many services like digital wallets, UPI, etc, work on this basis.

2. Economical and less transaction fee:

There are many payment apps and mobile wallets that do not charge any kind of service fee
or processing fee for the service provided. The UPI interface is one such example, where
services can be utilized by the customer free of cost. Various digital payments systems are
bringing down costs.

3.Waivers, discounts and cashbacks:

There are many rewards and discounts offered to customers using digital payment apps and
mobile wallets. There are attractive cash back offers given by many digital payment banks.
This comes as a boon to customers and also acts a motivational factor to go cashless.

4.Digital record of transactions:

One of the other benefits of going digital is that all transaction records can be maintained.
Customers can track each and every transaction that is made, no matter how small the
transaction amount is.
5.One stop solution for paying bills:

Many digital wallets and payment apps have become a convenient platform for paying utility
bills. Be it mobile phone bills, internet or electricity bills, all such utility bills can be paid
through a single app without any hassle.

6.Helps keep black money under control:

Digital transactions will help the government keep a track of things and it will help eliminate
the circulation of black money and counterfeit notes in the long run. Apart from this, this may
also give a boost to the economy as the cost of minting currency also goes down.
Digital payments are slowly gaining popularity in India and there are many apps that are
being launched in this sector. It has become a hassle-free and secure way to make
payments.
Disadvantages of digital payments:

1. Password Threats:

In case of e-banking or online financial transactions, you need to be a registered user with
the respective website. Though most transactions involve the use of one-time passwords
thus ensuring safety to a considerable extent, some parts of a transaction, or your personal
details and bank account information is accessible through your credentials for the online
portal. This gives rise to the need of password protection when handling financial accounts
online.

2.Limitations on Amount and Time:

For withdrawal or fund transfer, certain banks may impose limits on the amount or the
number of daily transactions, whereby an amount exceeding a certain figure cannot be
withdrawn at once, or only a certain number of transactions are allowed per day. While this is
taken as a safety measure, some may find it inconvenient.

3.Risk of Being Hacked:

When transacting online, your personal or account information and credit card number is
exposed over the Internet. This leads to the risk of your account being hacked. Hackers may
use your identity for fraudulent activities or make huge fund transfers from your account,
which could mean financial losses for you.

4.False Identity:

There are no means to verify if the person entering information online is the same person he
claims to be. This is because unlike physical transactions, the individual is not present in
person, and one’s identity is not verified using a photograph or a physical signature.
5.Privacy Concerns:

All the transaction and user details are recorded by the payment systems you are using, and
stored in their database. This leads to lack of anonymity. Cases of identity theft have raised
privacy concerns in electronic payments.

6.Additional Cost and Effort:

Some electronic transaction services may require you to pay processing fees and the like,
thus leading to increased costs. Electronic payment systems need Internet access, which
may invite additional costs. Setting up the account, accessing the Internet, familiarizing
oneself with the interface and operating it efficiently, involves additional effort, and may be
cumbersome for some.

7.Loss of Smart Cards:

Electronic payments involve the use of smart cards (credit and debit cards, ATM cards,
identity cards, etc.) And this involves the risk of their theft or loss.
Processing online payments:

Online payments are usually automatic.

1. Our business has a website with online purchase facilities to sell our goods and services.
2. A customer visits our website and finds some products they want to buy.
3. The customer checks out the products from our website and goes to the payments
section.
4. Our website lets our customer know the total cost of the products they want to buy as
well as their payment options.
5. The customer selects and completes their preferred payment method.
6. Our website automatically sends our confirmation of payment to us and our customer
and sends a request to our business to ship the product.
7. Our website automatically gives our customer a receipt and/or a GST tax invoice. If GST
applies, we must provide a GST tax invoice within 28 days if our customer requests one.

FUTURE OF DIGITAL PAYMENTS IN INDIA:-

It seems that it will take enough time in India to become a completely cashless economy. It
will require complete support from people and more awareness and knowledge among
people. The problem of lack of education and digital literacy needs to be solved first to have
more numbers of digital transactions. Further, cash back offers are working well at present
but it will require a committed, secure and highly reliable payments network to boost digital
transactions in India to have transparency in the transactions, eradication of black money and
to have long run economic development by a cashless economy. By doing this, we can
surely have a great future of digital payments in India.
IMPACT OF COVID-19 ON DIGITAL PAYMENTS:-

Digitization of payments in India has witnessed a rapid uptick in the last few years. Be it
demonetization or the various customer-friendly offerings, many people turned to digital
payments and UPI-based apps, and as a result, fintech companies flourished. India
witnessed around Rs 4141-crore worth of digital transactions in FY 2019-20. While Digital
India kept its stride consistent, these unprecedented times have further brought forth the true
value of digitization and digital payments as consumers increasingly adopt the same. There
is no doubt that digital payments play a big role in enabling consumers to maintain social
distancing. Hence it is no surprise that consumers are opting for contactless deliveries of
their products, food services, essentials, and other day-to_day activities. Looking at this new
normal, this trend can be touted as the beginning of the next big wave in the adoption of
digital payments in the country. According to the latest report by IAMAI, Internet adoption in
rural India has been growing rapidly in recent years. As of November 2019, India had more
internet users in rural areas (Rs 227 million) than in cities (Rs 205 million), and the
hinterlands hold potential for even greater growth in the future. Internet consumption is
primarily driven by entertainment, online gaming, and educational content, among other
types. Some content and service providers are using regional languages to make their
content more relevant and their user interfaces simpler and easier for rural consumers. All
this has resulted in a steady rise of digital payments in these markets over the past few
years. The lockdown has led many first-timers and new-to-internet users to embrace digital
payments. Moreover, many e-commerce players, retailers, service providers, and utilities are
encouraging contactless services and online payments to minimize the risk of exposure from
handling cash. This is in line with what institutions like the Reserve Bank of India and the
National Payments Corporation of India have been encouraging consumers to do. The
pandemic could well be the watershed moment for online transactions in both urban India
and rural Bharat – the turning point where digital payments become not just a safeguard, but
also a way of life.46 Already, e-commerce players are coming up with many, different
payment options with the objective of extending credit facilities for shoppers across all market
segments in the country. One such facility allows the shopper to bunch multiple transactions
under a single bill and make the payment on a later date after the products have been
received and used. Some e-commerce platforms extend easy EMI options which can be
availed not just on credit cards, but on debit cards as well. In addition to the usual incentives
such as cash backs and redemptions, companies are also coming up with distinct and
innovative value-added financial services in the form of insurance covers for customers and
microloans for their sellers. The latter proves very beneficial to MSMEs and small sellers,
who otherwise face difficulties with securing financial assistance through mainstream means.
India is taking big leaps to become a cash-lite--- economy. And as we progress along this
path, it is our collective responsibility, as stakeholders in interconnected business
ecosystems, to ensure that this process is both consumer-centric and inclusive.
2.RESEARCH METHODOLOGY

A research methodology involves specific techniques that are adopted in the research
process to collect, assemble and evaluate data. It defines those tools that are used to gather
relevant information in a specific research study. Surveys, questionnaires and interviews are
the common tools of research.

2.1 Objective:

1. To examine the age of respondents' impact on digital payments

2. To analyze the impact of customers' education on usage of digital payments.
3. To analyze the impact of customers income status on usage of digital payments.
4. To find out the attitude of people towards adoption of digital payments in India.
5. To find out the most popular method of digital payments.
6. To find out the problems faced by people in making digital transfers.
7. To analyse the impact of customers income status on usage of digital payments.

2.2 Hypothesis:
H0 People are not using digital payment services.
H2 People are using digital payment services.
H0 People are not aware about digital payments services.
H1 People are aware about digital payment services.

2.3 SCOPE OF THE STUDY:

1. Brings awareness about digital payments among people.
2. Time saving of the people.
3. To create a cashless economy.
4. To create awareness in the society and to remove misunderstanding, misinterpretation or
misperception among people towards e-banking.

2.4 LIMITATIONS OF THE STUDY:

The study is limited only in Thana city, near station road. Thane west.

2.5 SIGNIFICANCE OF THE STUDY:

Digital payments allow buyers to pay directly from their banks.
Digital payments offer cash backs or reward points.
Tracks and maintains the digital record of every transaction.
It brings awareness among people.
To understand people's view towards digital payments.

2.6 Selection of the problem:-

The main motive towards selecting this problem is to create awareness about digital
payments among people. Digital payments are the easiest way to transact money between
two people. It is really time saving and convenient to use. Many people do not use digital
payment because some are not aware about it and some are afraid to use it . so I wanted to
make people aware about it.

2.7 Sample size:

For this research I take a sample size of 30 people by using a random sampling method.So
from that I would get to know that among the collected data from 30 people.

2.8 Sample technique:

Technique used in my sampling is random sampling.

2.9 Data collection:

1.primary data:

Primary data is the data collected for the first time through personal experiences or evidence,
particularly for research. It is also described as raw data or first-hand information. Mostly the
data is collected through observations, physical testing, mailed questionnaires, surveys,
personal interviews, telephonic interviews, case studies and focus groups, etc.

2.secondary data:

Secondary data are second-hand data that is already collected and recorded by some
researchers for their purpose. This method of gathering data is affordable, readily available,
and saves cost and time.
Review of Literature

1.Prof Trilok Nath Shukla (2016): has discussed mobile wallet, working, types and its
advantages and disadvantages. His analysis included perception of consumers and retailers
about mobile wallets. He concluded that mobile wallets will be used to engage with the
customer by the marketers and digital businesses. Irrespective of the market status of these
mobile wallets, marketers should take advantage of the emerging opportunities.

2.Dr. Poonam Painuly, Shalu Rathi (2016): The paper explains the importance of mobile
wallet for Banks, Customers and Companies. In future scope it talks of mobile wallets
becoming a latest marketing channel in near future. And contribute highly in a seamless
shopping experience for the customers that increase their tendency for frequent and more
repurchases with delightful experiences. To conclude they speak of the importance and
growth of mobile money in business, social and economic perspective. The presence of
mobile wallets spreading from urban to rural areas on a large scale. Hence, wallet money
sees a high bright future in near time.

3.Varda Sardana and Shubham Singhania(2018):This paper reviews the theoretical

literature on the growth of digital and information technology in the Indian banking industry.
The stupendous advancements in digital technology have transformed the way banks
operate. The commencement of the age of digital business has been disrupting the business
environment and breaking out innovative and singular ways of doing business. One of the
latest outcomes of this is digital banking. Digital banking technologies have escalated over
the years, with the availability of a large portfolio of products such as deposits, ATMs, debit
cards, mobile payments, and the like. There is an immense possibility of using the
infrastructure of the digital age to create opportunities - both local and global.

4.Arpan Kumar Kar(2020):The objective of this study is to identify the determinants of usage
satisfaction of mobile payments which could enhance service adoption.The study establishes
that cost, usefulness, trust, social influence, credibility, information privacy and
responsiveness factors are more important to increase the usage satisfaction of mobile
payments services. Also methodologically, this is an endeavour to validate a new approach
which uses social media data for developing an inferential theoretical model.
5.P.Sarika, S.Vasantha(2019):The paper aims to review the literature on the effect of mobile
wallet on cashless transaction and usage of various kinds of mobile wallets at present.Due to
technology, mobile users can nowadays use their smartphones to make money transaction
or payment by using applications installed on the phone. The growth of mobile payment
increased the usage of electronic payment where goods and services are transacted without
the use of physical cash. After demonetization e-payment system especially mobile wallet
has developed as the popular medium through which no physical presence of transactions
was made.

6.Ashish Jaiswal(2020):Digital India programme of Government of India has promoted and

encouraged the usage of digital payments for the various goods and services being availed
by the citizens. The Government wants to develop a Digitally Empowered economy through
the cashless transactions. As far as government agencies are concerned, mobile based
payment is a noteworthy development in various domains, because it is going to increase
ease and productivity for both the agencies and citizens themselves. Citizens who are using
the Government services are concerned about the privacy of the data and information.

7.Dixit, Ruchi V; Singh, R N; Chaturvedi, Satyam(2017):Ever since Indian Prime Minister

Mr.NarendraModi has demonetized Rs. 500 and Rs. 1000 notes on 8th November’2016,
there was a lot of buzz in Indian market regarding alternate mode of payment. People and
merchants who were initially reluctant or not using electronic payment modes such as
Electronic-wallet or Mobile-wallet, credit card, debit card or net banking e.t.c had started
using these heavily to combat the difficult problem of cash crunch during that phase. The
government is now taking various initiatives towards making India digital which would help
the society in multifarious manner. In this scenario for the sustainable future there is a need
to focus in achieving a balanced mobile ecosystem environment. This study explores the
factors leading to user’s adoption of Mobile-wallet specifically and assesses the level of
acceptance among people.

8.Gaonkar, Shilpa Bhimrao(2018):Cashless societies have existed since time immemorial,

based on barter and other methods of exchange, and cashless transactions have also
become a partial reality in the form of digital currencies such as bitcoins. Where countries
around the world are catching up in the race of going cashless, India too has plunged in this
race with the aim of digitizing the economy through Modiji 's ambitious Digital India
Programme. Cash is still a king in India with less than 5% of the payments are made
electronically. In line with other developed economies of the world, India is now trying to shift
its preference of transactions from cash driven to cashless economy.Digitization of the
economy becomes extremely inevitable and necessary for the Indian economy if it has to
keep pace with the fast-developing cashless global economy.

9.Unnikrishnan, Roshny; Jagannathan, Lakshmi.(2017):The mobile payment adoption in

India has not grown at the rate of growth of the mobile phone industry. There is a need to
examine the underlying factors among consumers, which influence behavioral intention
towards adoption of mobile payments. Six constructs, Perceived ease of use, perceived
usefulness, trust, risk, social influence, facilitating conditions are studied to understand the
attitude and behavioral intention of consumers towards mobile payments adoption.

10. Subho CHATTOPADHYAY(2018):As the small retailers form the bulk of the Indian Retail
sector, their ability to go cashless, their psychological preparedness and their willingness to
adopt cashless transactions become an issue of prime importance in the movement towards
cashless. The Study was conducted in Bareilly, an important city in the state of Uttar
Pradesh, with a population of around ten lakhs. The study found that though a significant
number of small retailers were aware of the possibility of the cashless transaction and its
modes,their frequency of engaging in cashless transactions was abysmally less as compared
to that of cash based transactions. They were found to believe that dealing with cash was
easier in comparison to handling cashless transactions.

11.Upendra Lele(2019):The demonetization of 500- and 1000- rupees’ currency notes by the
Government of India in November 2016 was argued to be a drive towards cashless
Economy, for curbing corruption. This sudden removal of currency and the time taken to
introduce new currency created a temporary cash crunch and prompted the consumers and
sellers to look for alternative modes of payment. The small (unorganized) retailers were
particularly affected by this phenomenon. This gave rise to the evolution of cashless options
such as POS(point of sale) machines for card mobile phones in the country and cheap data
packages further increased the popularity of cashless transactions among customers and
small retailers, who also saw this as a useful tool for retaining their customers.
12.Satinder Bal Gupta,Raj Kumar Yadav(2020):The use of the E-payment system is
increasing at a very fast rate. Day by day the numbers of users are moving towThe use of the
E-payment system is increasing at a very fast rate. Day by day the numbers of users are
moving towards online payment systems instead of using plastic money like cash ecards
online payment systems instead of using plastic money like cash etc.

13.Bhatt, Pushpa.Vinimaya(2019):Researchers have been profiling the sector by

enumerating the e-payment instruments. An attempt made in this study to provide a
theoretical basis for the digital payments sector. Globally technology, enabling regulations,
demanding consumer expectations and new space of payment service providers are the
drivers for digital payments. India follows this trend. The study helps the payment service
providers in identifying business opportunities, policy makers in designing proactive policies
and academicians in addressing the research needs of the sector.

14.Uwe Hack(2016):We find that the technical skills and requirements for mobile payments
are widely available and the intention to adopt mobile payment services is high if the
providers include features that are perceived to be useful for customers. The most trusted
partners for mobile services are the traditional banks and credit card organizations. Cultural
background also explains differences in people’s intention to use mobile payments.

15.Bansi Patel and Urvi Amin (2012):- Plastic Money :Road map Towards CashLess
Society" examined that now days in any exchange Plastic cash winds up noticeably
unavoidable piece of the exchange and with it life turns out to be all the more simple and
advancement would assume better position and alongside the plastic cash it ends up plainly
conceivable that control the cash clothing and viable usage of budgetary framework would
end up noticeably conceivable which would likewise accommodating for charge enactment.

16. Kumar Shwetu, Vijay Yadav, Atiqu-Ur-Rahman, Aditi Bansal (2014): Made a study on
― PayTM‖, it studied about its achievements, technical architecture of PayTM, working and
technologies of PayTM which include a study on supply chain management, web
technologies of PayTM, web based tool of PayTM and also described about electronic
payment system.
17.Nayak, Tapan Kumar and Manish Agarwal (2008):In their paper "Buyer's conduct in
choosing Mastercards" talked about the elements impacting the choice of charge cards
among customers. The central points called attention to by them are 58 benefit offers, limited
time offers, premium advantages, money benefits, simplicity of installments, installment
charges, card advantages and time advantage.

18.Patil Sushma (2014):- Effect Of Plastic Money On Banking Trends In India" is inspected
that Indian clients think that its less demanding to make physical installment (Visa or charge
card installments) as opposed to conveying excessively money adding to the development of
plastic cash in the nation. It benefits the buyer through improved item offerings at a lower
cost and that too with lucrative arrangements enchanted with rewards conspire,
steadfastness extra focuses, limited time battles and so forth. The landing of shopping
centers, multiplexes, web based shopping stores and shopping buildings urge the clients to
make use of plastic cards.

19.Madhurima Khosla,Harish Kumar(2017): E-commerce is one of the fastest growing

segments in the Indian Economy. Though marked by high growth rate, the Indian e-
commerce industry has been behind its counterparts in many developed and emerging
economies, primarily due to a relatively low internet user base. Availability of low cost
smartphones and the extension of internet and broadband to the remotest corners will boost
the augmentation of the internet user base, effectively bridging the gap between potential
online buyers and actual buyers. The demographic dividend of the country also seems to
encourage and favor the growth of E-commerce.

20.Das Ashish and Rakhi Agarwal, (2010):- Cashless Payment System in India-A
Roadmap" Cash as a method of installment is a costly suggestion for the Government. The
nation needs to move far from money based towards a cashless (electronic) installment
framework. This will help diminish money administration cost, track exchanges, check charge
evasion/misrepresentation and so forth., upgrade budgetary consideration and incorporate
the parallel economy with standard.

21. Kaur.k & Dr. Pathak. A(2015):-Electronic Payments provides greater freedom to
individuals in paying their taxes, licenses, fees, fines and purchases at unconventional
locations and at whichever time of the day, 365 days of the year.
22.Kumari D. N.(2016):-The paper meets an attempt to raise awareness about smartphones
and the use of Smartphones in rural India. The low literacy rates in rural India, along with the
lack of infrastructure like internet access and Power make things extremely difficult for people
to adopt e-transaction routes.

23.Amrita Singh & Poonam Tiwari(2018): Demonetization on 9th November 2016 forced
the buying habits of the Indian consumer. People have no other option for transactions, so
they started adopting the cash to digital transaction system.This study focuses on the change
in buying behavior of consumers after demonetization and also analyzes how the people who
have never used ATM, payTM,, online shopping etc. have become digitized.

24.Gourab Ghosh(2021):Digitalization not only improved trade and commerce but it also
made transaction of payment smooth and fast. The entire paper is based on literature review
of various authors which talks about various methods of digital payments why they are being
adopted, how frequently it’s being used, what is the future of digital payment in the coming
years, etc. It is also a great way to make the Digital India initiative taken by the government to
make it a successful programme and make our country a cashless economy. Post
demonetization there has been and hike in digital payment which opened the gate for
multiple digital wallets to enter India and have a successful run in the long run. The aim of the
study is to see the reasons examined by different authors for adoption of digital payment by
people.

25.Kaushal Tapan(2019): It can be used to make payments and transactions without the
difficulties of carrying cash physically. M-wallets have provided a number of options to the
customer like payment of bills, recharge, fees paying option etc and also benefits customers
with cash backs offers and number of rewards it raises which makes it even more beneficial
to go cashless.

26.Dr.Ramesh Sardar(2016): M-wallets have emerged as the most significant contributor in

pushing cashless and electronic payments. The surge of smartphones and internet
connectivity of 3G and 4G is reflected in the robust growth of Mobile-wallets in India. The
present study is focused on preference towards mobile wallets among the urban population
of Jalgaon city and effectively analyzed the impact of demographic variables on the usage of
Mobile wallets. A total of 60 respondents were analyzed from the urban area of Jalgaon city
and their responses This study will help in devising appropriate strategies for Mobile wallet
companies to tap the potential customers. were analyzed.
27.Balaji K. C. and Balaji K. (2016):- A Study On Demonetization And Its Impact On
Cashless Transactions" considered that the development of the cashless exchange
framework is achieving new statures. Individuals tend to move to cashless exchanges. It is
on the right track to state that the cashless framework is a prerequisite as well as a
requirement for the general public. However, then again, the danger of digital wrongdoing is
especially higher as all the cashless exchanges are done over the web. So appropriate and
finish mindfulness must be made to the general population to keep their charge and
MasterCard’s safe and to utilize the we saving money and the advanced wallet in a most
secure manner. So as to rebuff the digital lawbreakers, the legitimately organized digital
police compel with top of the line criminological labs and innovation must be made.

28.Garg & Panchal ( 2017):- Her paper led light on the views of people on the cashless
economy in India. Responses from respondents shows that cashless economy will help in
curbing black money, counterfeit‘s fake currency, fighting against terrorism, reduce cash
related robbery, helps in improving economic growth of our country. Major challenges that
can hinder the implementation of the policy are cyber fraud, High illiteracy rate, attitude of
people, lack of transparency & efficiency in digital payment systems. The study shows that
the introduction of a cashless economy in India can be seen as a step in the right direction. It
helps in growth and development of the economy in India.

29.Deepak Chawla, Himanshu Joshi (2020): The purpose of this paper is to examine the
factors that influence the attitude and behavioral intention towards mobile wallet adoption and
to examine the moderating effect of gender and age between antecedents of mobile wallet
adoption and user attitude and intention.

30.Piyush Kumar Mallik Deepak Gupta: Mobile payment is a system in which we do online
transactions of money, using devices like smartphones or point of sale machines etc. instead
of cash. Mobile wallet or digital wallet is one of the popular mediums of mobile payment
systems. There is much research that focuses on mobile wallets and consumers’ intention to
use them. However, the mobile wallets are being increasingly replaced by UPI-based
Payment Apps such as BHIM, PhonePe, and Google Pay, and little is known about the
drivers for this adoption. Considering this gap, our study was conducted to understand the
consumers’ behavioural intention with respect to UPI-based Payment Apps. Based on the
literature review a conceptual model was proposed using an extended UTAUT2 framework.
This was tested using a pan-India survey with 224 valid responses.