A Study Of Preferences Of Individuals Of Mumbai Towards E-Commerce

Payment System

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor in Commerce (Accounting and Finance)

Under the Faculty of Commerce

By

Khut Raj Bhupesh

Under the Guidance of

Prof. Mamta Chhajer

RSET’s

Ghanshyamdas Saraf College

of Arts and Commerce

Affiliated to University of Mumbai

Reaccredited by NAAC with ‘A’ Grade

S.V. Road, Malad (W)

Mumbai – 400064

MARCH 2021
 CERTIFICATE

This is to certify that Master. Khut Raj Bhupesh has worked and duly
completed her/his Project Work for the degree of Bachelor in Commerce
(Accounting & Finance) under the Faculty of Commerce in the subject of
Accounting & Finance and her/his project is entitled, “A comparative study of
Mutual funds of Axis bank and State bank of India” under my supervision.

I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree or
Diploma of any University.

It is her own work and facts reported by her/his personal findings and
investigations.

Project Guide Principal

Prof. Mamta Chhajer

External Examiner

Date:
 DECLARATION

I the undersigned Master Khut Raj Bhuepsh hereby, declare that the work
embodied in this project work titled “A Study Of Preferences Of Individuals Of
Mumbai Towards E-Commerce Payment System”, forms my own contribution
to the research work carried out under the guidance of Prof. Bhumika Shah is a
result of my own research work and has not been previously submitted to any
other University for any other Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography.

I, hereby further declare that all information of this document has been obtained
and presented in accordance with academic rules and ethical conduct.

Student

Master. Khut Raj Bhupesh

Certified by

Project Guide

Prof. Mamta Chhajer

 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal, Dr. Jayant Apte for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Course Co-ordinator, Prof. Mamta Chhajer for her
moral support and guidance and I would like to express my sincere gratitude towards her for
my project guide, under her guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me
throughout my project.
 ABSTRACT

The changing scenario of financial payment system by virtue of globalisation and liberalisation
in the last 5 years had introduced various payment system. The concept of ecommerce payment
system is changing the pattern of transaction in India. The increase in the technology and
innovation in ideas has lead to the economic and social growth of the nation. Thus, it become
crucial to study the different ecommerce payment system and changes with their uses and
adoption.

By this research, the researcher finds out the changes and difference in the use of ecommerce
payment system by behaviours of individual due to individual psychological differences in
terms of their looking and adoption of the system. The research attempts to see the growth of
the e-commerce payment application as there are many e-commerce payment system
introduced by various sectors. The researcher seeks that the large number of people are
approaching towards the various online payment system. In line with description, people now
wants to be less tedious are using different online payment system and contribute towards the
less paper work.

The significant benefits of this findings of this study is that this can be use by then ecommerce
payment companies for their advantage and changes. The different e-commerce payment
companies should use this results to help for the problems faced by the people and the need of
the upgrade in such e-commerce payment system. It may also help the fellow researchers in
initiating fresh research or furthering the existing research for study. It also has a potential for
providing inputs to the decision makers policy makers, innovators, government, research
companies, and other institutions.
 INDEX

Chapter
No.
Title of the Chapter Page
No
1 Introduction 1

2 Research Methodology 50

3 Review of Literature 53

4 Data Analysis, Interpretations and Presentation 63

5 Conclusion 78

Bibliography
 CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION
In today’s digital era the usage of the internet has increased drastically. All counts of age are
consuming and producing loads of data each second. Many organizations are analyzing and
altering based on the study that they been able to capture from the consumer analysis. With the
ease of smartphones and virtual accessibility of products, services and payments online have
boosted the way people are shopping and making payments online. The ecommerce industry
initially started with the Cash on Delivery basis for the people to get the feel of the new online
industry and also to build up their trust. After the customers are well versed with the
organization ns, the company started introducing various platforms of the online payments. E-
Payment has given access to various financial platforms like debit card, credit card, net
banking, digital wallets, etc. Cash has become a less common mode of transaction as the
appearance of e-payments has allowed consumers and buyers with greater convenience, but at
the same time it has raised a doubt or a threat as there has always been increasing issues
regarding the fraud and privacy concern that has been the top fear in the minds of internet users.
We all have witnessed that the traditional payment modes have been replaced by various types
of e-payments that are quick and efficient. In e-payment process both buyer and seller uses
digital modes to send or receive money, it is an automatic process where seller and the buyer
can avoid visiting their bank. It eliminates the physical cash that is risky to handle at times.
Today consumers can make payment through electronic modes by using cards and other
platforms that are made available through all types of smart devices. The acceptance of
particular payments by sellers and businesses has an important influence on the purchases made
by their clients, as the availability of the various modes help the consumer to choose that is
suitable or available to them as well. Past few years’ smartphones are having a tremendous
growth due to accessibility and availability of the internet. The mobile wallet providers like
Paytm, PayPal, Mobikwik, etc. with the payback schemes also attracting many consumers to
use epayment modes aiding the organisations with significant growth. The digital wallets are
further enabling economies to a cashless society. Electronic wallets and mobile wallets are
moreover digital version of the hard cash in physical wallet with more features and functions.
E-payments wallets reduce cost of cash holding and handling for the retailers. Retailers on
online platform have introduced lucrative discounts and cashback offers to get payment orders
for all the cashless payments. The online platform retailers have encouraged more customers
to choose a payment mode other than Cash on Delivery, it also helps a business to retain their
customer. Consumers will return to the same website where his or her details are stored for
making payments, this way the transaction process reduces making the online shopping
smoother.

Payment and settlement systems in India are payment and settlement systems in India for
financial transactions. They are covered by the Payment and Settlement Systems Act, 2007
(PSS Act), legislated in December 2007 and regulated by the Reserve Bank of India and
the Board for Regulation and Supervision of Payment and Settlement Systems. India has
multiple payments and settlement systems, both gross and net settlement systems. For gross
settlement India has a Real Time Gross Settlement (RTGS) system called by the same name
and net settlement systems include Electronic Clearing Services (ECS Credit), Electronic
Clearing Services (ECS Debit), credit cards, debit cards, the National Electronic Fund
Transfer (NEFT) system, Immediate Payment Service and Unified Payments
Interface (UPI).The Reserve Bank of India is doing its best to encourage alternative methods
of payments which will bring security and efficiency to the payments system and make the
whole process easier for banks. The Indian banking sector has been growing successfully,
innovating and trying to adopt and implement electronic payments to enhance the banking
system. Though the Indian payment systems have always been dominated by paper-based
transactions, e-payments are not far behind. Ever since the introduction of e-payments in
India, the banking sector has witnessed growth like never before.
Mobile payment platforms are built on an interdependent network of companies which
adopt different market approaches and are regulated in specific areas, such as the financial
and the telecommunication sectors. In view of this, the establishment and management of
these highly complex and interdependent networks makes mobile payment platforms an
object of study of particular interest for Information Systems research. The continuous
emergence of new technologies, lack of clarity in the regulatory framework, and the need
for compliance with the competition rules emerging from the diversified market sectors, are
some of the challenges that must be faced when establishing mobile payment platforms.
Financial services that are provided by means of digital mobility technologies have multiple
configurations, goals, and characteristics. A combination of agents, technologies and
objectives enables them to acquire certain banking features, which are known as mobile
banking. They may also display the features involved in transaction payments, which are
recognized as mobile payments. Finally, they may be able to replicate the concept of digital
currencies, which is then called mobile money. According to the information, the ratio of e-
payments to paper-based transactions has considerably increased between 2004 and 2008.
This has happened as a result of advances in technology and increasing consumer awareness
of the ease and efficiency of internet and mobile transactions. In the case of India, the RBI
has played a pivotal role in facilitating e-payments by making it compulsory for banks to
route high value transactions through Real Time Gross Settlement (RTGS) and also by
introducing NEFT (National Electronic Funds Transfer) and NECS (National Electronic
Clearing Services) which has encouraged individuals and businesses to switch.
India is clearly one of the fastest growing countries for payment cards in the Asia-Pacific
region. Behavioural patterns of Indian customers are also likely to be influenced by their
internet accessibility and usage, which currently is about 32 million PC users, 68% of whom
have access to the net. However, these statistical indications are far from the reality where
customers still prefer to pay "in line" rather than online, with 63% payments still being made
in cash. E-payments have to be continuously promoted showing consumers the various routes
through which they can make these payments like ATM's, the internet, mobiles phones, other
systems it also include as well drop boxes Due to the efforts of the RBI and the (BPSS) now
over 75% of all transaction volume are in the electronic mode, including both large-value
and retail payments. Out of this 75%, 98% come from the RTGS (large-value payments)
whereas a meagre 2% come from retail payments. This means consumers have not yet
accepted this as a regular means of paying their bills and still prefer conventional methods.
Retail payments if made via electronic modes are done by ECS (debit and credit), EFT and
card payments. As commerce moves to mobile, so will payments. The volume of mobile
money transactions is expected to reach US$780 billion by 20172 globally, and more than
85% of point-of-sale (POS) systems are expected to accept contactless payments by 2016.
Mobile payment platforms are built on an interdependent network of companies which adopt
different market approaches and are regulated in specific areas, such as the financial and the
telecommunication sectors. In view of this, the establishment and management of these
highly complex and interdependent networks makes mobile payment platforms an object of
study of particular interest for Information Systems research. The continuous emergence of
new technologies, lack of clarity in the regulatory framework, and the need for compliance
with the competition rules emerging from the diversified market sectors, are some of the
challenges that must be faced when establishing mobile payment platforms. Commerce is
going mobile. In 2014, smartphones became the dominant internet access tool around the
world, replacing desktop and laptop computers, and by 2020, there will be 2.6 billion
connected smartphones in the world. Metcalf’s law, the law that “the value of a
telecommunications network is proportional to the square of the number of connected users
of the system,” has never had a more powerful example than the growth of the smartphone.
With every new smartphone user, the potential for interconnectivity through chat apps such
as WeChat and social media such as Facebook and Snapchat increases exponentially, and
it’s changing the fabric of global society. Along with the social change enabled by mobile,
commerce is being impacted at the same pace. E-commerce is growing at a rate of
32%.Financial services that are provided by means of digital mobility technologies have
multiple configurations, goals, and characteristics. A combination of agents, technologies
and objectives enables them to acquire certain banking features, which are known as mobile
banking. They may also display the features involved in transaction payments, which are
recognized as mobile payments.
Mobile payments is a mode of payment using mobile phones. Instead of using methods like
cash, bank cheque, and credit card, a customer can use a mobile phone to transfer money or
to pay for goods and services. A customer can transfer money or pay for goods and services
by sending an SMS, using a Java application over GPRS, a WAP service, over IVR or
other mobile communication technologies. In India, this service is bank-led. Customers
wishing to avail themselves of this service will have to register with banks which provide
this service. Currently, this service is being offered by several major banks and is expected
to grow further. Mobile Payment Forum of India (MPFI) is the umbrella organization which
is responsible for deploying mobile payments in India. Mobile Payment Forum of India
(MPFI) has been set up with the joint initiative of the Institute for Development and
Research in Banking Technology (IDRBT), Hyderabad and Rural Technology Business

Incubator (RTBI), IIT Madras in 2006 with a mission to enable mobile payments and
mobile financial services by everyone in digital India through secure, efficient and low
cost transactions. India has a vast non-banking population, most of whom reside in the rural
areas. The traditional banking industry cannot cater to the needs of India's large rural
population. Setting up a conventional bank branch in a rural area would require considerable
amounts of money to be spent in infrastructure and additional personnel. Most of rural
Indians are cut off from access to basic financial services, which include deposits and
withdrawals from a trusted source. Mobile telephony has had an impact mainly by allowing
for agents in information restricted areas to engage in more optimal arbitrage. The adoption
of mobile phones resulted in a dramatic reduction in price dispersion, the complete
elimination of waste, and a near-perfect adherence to the law of one price. Both consumer
and producer welfare increased. Mobile payments can have a positive impact on welfare by
easing operational aspects and associated costs of cash-based transactions related to cash
handling, storage and transfer, and by providing a strong platform for financial inclusion.
The rapid rise in the growth of mobile technology throughout the world is a phenomenon
that has been particularly remarkable among poor people, largely because of the prepaid
model. As a result, all classes of society now have access to financial services as people
become increasingly familiar with a mobile-money system. In fact, mobile technology,
viewed as a payment or banking channel, has the potential to allow two important questions
to be addressed at the same time: on the demand side, it represents an opportunity for
financial inclusion among a population that is underserved by traditional banking services.
On the supply side, it opens up possibilities for financial institutions to deliver a great
diversity of services at low cost to a large clientele of the poorest sections of society and
people living in remote areas. Although there are more than 120 mobile money projects
being undertaken in about 70 emerging markets mobile payment has only become a normal
practice in a few countries, despite its huge potential. The lack of worldwide dissemination
of a service with such a huge potential shows that successful cases are not clearly
understood, and as a consequence, are not being easily replicated. This suggests that lessons
are not being learnt from the places where the system has been successfully adopted.
Furthermore, we suspect that the obstacles to its adoption in most countries are not being
investigated deeply enough to allow implementation strategies to be employed on the basis
of reliable business models. If these issues can be clarified, the potential social and economic
impacts of mobile money can be more effectively measured and this can persuade policy-
makers to create favourable regulatory environments for fostering the practice of digital
payments. Digital payments in India have been experiencing exponential growth and with
growth of internet and mobile penetration, in coming years the country is ready to witness a
huge rush in the adoption of digital payments. According to Ratan Watal, principal advisor
Niti Aayog and former finance secretary, digital payments grew 55% by volume and 24.2%
by value in 2016-17 over the previous year. Data from the Reserve Bank of India (RBI)
indicates that the rate of adoption of digital payments had accelerated following
demonetization last year but has slowed in recent months of 2017. Total digital transactions
in April 2017 of Rs109.58 trillion are 26.78 lower from Rs149.58 trillion in March2017.

1.2 DEFINITION
The Payment and Settlement Act, 2007 has defined Digital Payments. As per this any
“electronic funds transfer” means any transfer of funds which is initiated by a person by way
of instruction, authorization or order to a bank to debit or credit an account maintained with
that bank through electronic means and includes point of sale transfers; automated teller
machine transactions, direct deposits or withdrawal of funds, transfers initiated by
telephone, internet and, card payment.

1.3 ONLINE PAYMENT SYSTEM

An online payment system is an Internet-based method of processing economic transactions.
It allows a vendor to accept payments over the web or over other Internet connections, such
as direct database connections between retail stores and their suppliers--a common method
of maintaining just-in-time inventories. Online payment systems greatly expand the reach of
a business and its ability to make sales. Online payment systems typically are run by third-
party corporations, such as PayPal, Google .
These companies make a profit by taking a small percentage of every transaction, or by
signing contracts with institutions that need to make a large number of transactions. A large
Internet storefront, such as Amazon.com, could not exist without the ability to take online
payments. Online payment systems have levelled the playing field between large and small
companies, as any of them can accept the same payment methods once they sign up with
third-party payment processors. The reach of online payment is as large as the Internet, but
many payment methods are restricted by national law or by the unwillingness of some
vendors and consumers to work with residents of countries where national regulation is lax.
For example, Nigeria is infamous for having no enforceable fraud protection, which leads
many vendors to disallow transactions originating from country.
1.4 ONLINE PAYMENT TERMINOLOGY
There are several terms that are used almost interchangeably when describing online
payments:
• Payment Gateway
• Payment Processor
• Payment Provider
• Payment Service or Payment System
• Merchant Account
Though they are distinct, with subtle differences, they all refer to a company, service, or
application that acts as a financial middleman between your website and your customer, and
between both of you and your bank accounts. Each facilitates the completion of online
transactions, and the processing of online payments.

Payment Gateway

A payment gateway is what keeps the

payments ecosystem rolling smoothly, as it enables online payments for consumers and
businesses. If you’re an online merchant, you don’t need to be a payment gateway expert, but
it’s worth understanding the basics of how an online payment flows from your customer to
your bank account. The definition of a payment gateway is the technology that captures
and transfers payment data from the customer to the acquirer and then transfers the
payment acceptance or decline back to the customer. A payment gateway validates the
customer’s card details securely, ensures the funds are available and eventually enables
merchants to get paid. It acts as an interface between a merchant’s website and its acquirer. It
encrypts sensitive credit card details, ensuring that information is passed securely from
the customer to the acquiring bank, via the merchant.

In other words, the payment gateway works as the middleman between your customer and
the merchant, ensuring the transaction is carried out securely and promptly. An online payment
gateway can simplify how merchants integrate the necessary software. As the middleman
during the payment processing, the gateway manages the customer’s sensitive card details
between the acquirer and the merchant.

Payment Processor
A payment processor is a company that facilitates communication between the bank that issued
a customer’s debit or credit card and the seller’s bank. The processor’s job is to verify and
authorize payment. Should the customer use a third-party payment gateway, such as PayPal,
the payment processor carries out its tasks by communicating with the payment gateway and
the seller’s bank. In online transactions that do not go through a third-party payment gateway,
the payment processing company relays information back and forth between the bank that
issued the customer’s credit or debit card and the seller’s bank. As long as the processor
determines the card is valid and the account in question has enough funds to complete the
transaction, it can be finalized in seconds. Payment processors should be vetted carefully to
ensure that they can meet PCI-DSS compliance and security standards and have strong
transaction-processing capabilities. In selecting a payment processor, merchants should
consider what types of payments the processor accepts, what fees will be charged and on what
platforms transactions can take place. Merchants should also select payment processors that
can provide a good user experience; picking the wrong providers could have a negative impact
on the seller's profits. Software as a service (SaaS) payment processors typically offer an
electronic portal that enables a merchant to scan checks, process single and recurring credit
card payments (without the merchant storing the card data at the merchant site), process single
and recurring automated clearing house (ACH) and cash transactions, process remittances and
Web payments. These cloud-based features are often delivered through an integrated
receivables management platform to facilitate customer experience management (CXM), help
lower costs and improve time-to-market and transaction processing quality.

Payment Provider
The payment provider (or payment service provider) is the company that operates the
payment gateway or payment processor services. In some cases, the payment gateway and
payment processor are combined into a single service known by either name.
Typically, a PSP can connect to multiple acquiring banks, card, and payment networks. In
many cases, the PSP will fully manage these technical connections, relationships with the
external network, and bank accounts and therefore takes care of the technical processing of
payment methods for online shops. This makes the merchant less dependent on financial
institutions and free from the task of establishing these connections directly, especially when
operating internationally. By negotiating bulk deals they can often offer cheaper fees.

Furthermore, a full-service PSP can offer risk management services for card and bank based
payments, transaction payment matching, reporting, fund remittance and fraud protection in
addition to multi-currency functionality and services. Some PSPs provide services to process
other next generation methods (payment systems) including cash payments, wallets, prepaid
cards or vouchers, and even paper or e-check processing.

Payment Service or Payment System

Payment service means a service enabling cash deposits and withdrawals, execution of payment
transactions, issuing or acquisition of payment instruments, the provision of money transfer
services or any other service functional to the transfer of money and includes the issuance of
electronic money and electronic funds transfers but does not include the provision of solely
online or telecommunication services or network access

Where a payment provider offers multiple types of payment gateways – with different
features and pricing – each type is referred to as a payment service or payment system. For
example, PayPal is a payment service provider that offers a number of payment services or
payment systems such as PayPal Pay flow Pro and PayPal Express Checkout.

Merchant Account
A merchant account is another important term to understand. When an online transaction is
successfully completed, the funds are transferred from the purchaser’s account to your
merchant account, a special kind of bank account used exclusively to hold funds received
from credit and debit card transactions. To accept online payments, you usually need to set
up a merchant account with your payment provider. Funds accumulating in your merchant
account are transferred to your organization’s bank account on a regular basis.
Merchant accounts are marketed to merchants by two basic methods: either directly by the
processor or sponsoring bank, or by an authorized agent for the bank and additionally directly
registered with both Visa and MasterCard as an ISO/MSP (independent selling organization /
member service.Marketing details are by card issuers like Visa and MasterCard, and are
enforced by various rules and fines. A few of the largest processors also partner with warehouse
clubs to promote merchant accounts to their business member

Marketing by banks A bank that has a merchant processing relationship with Visa and
MasterCard, also known as a member bank, can issue merchant accounts directly to
merchants.To reduce risk, some banks limit approval to merchants in its geographical area,
those with a physical retail storefront, or those that have been in business for two years or more.

Marketing by independent sales organizations (ISO)/MSPs To market merchant accounts,

an ISO/MSP must be sponsored by a member bank. This sponsorship requires that the bank
verify the financial stability and suitability of the company that will be marketing on its behalf.
The ISO/MSP must also pay a fee to be registered with Visa and MasterCard and must comply
with regulations in how they may market merchant accounts and the use of trademarks of Visa
and MasterCard. One way to verify if an ISO/MSP is in compliance is to check a website or
any other marketing material for a disclosure "company is a registered ISO/MSP of bank, town,
state. FDIC insured".This disclosure is required by both Visa and MasterCard and will cause a
penalty of up to $25,000 if it is not clearly visible. In almost all cases, if there is no disclosure,
the company is likely to be an uninformed fourth party or worse
1.5 ONLINE TRANSACTION: THE PROCESS
To get started with online payments, you typically need:
 • A merchant account – though some payment systems (such as PayPal) do not require a
merchant account or can provide you with one
• an account with a payment service provider
• A web page with a button (e.g. Join, Donate, Buy) that initiates the transaction process
you can use code provided by your service provider or specialized shopping cart

software as well other options metioned in the web page.

Once you’ve set up your web page and connected it to an online payment service,

visitors to your site will be able to pay online for products or services. The online
payment process begins when the visitor clicks the button to pay online for

membership fees or an event registration, or to make a donation or purchase

something from your online store.

On the online payment form that appears, the visitor enters their credit card information then
submits the transaction request. Depending on your online payment service provider, the

form may appear on your website, or your purchaser may be redirected to a form on your
service provider’s website or can call a helpline on the website.
An electronic payment (e-payment), in short, can be simply defined as paying for goods or

services on the internet. It includes all financial operations using electronic devices, such as
computers, smartphones or tablets, ipad, laptops, and other media of financial operations. E-

payments come with various methods, like credit or debit card payments or bank transfers.
Note that one of the most popular and common online payment methods nowadays are credit

cards. A specific process is involved while dealing in online payment apps.

We will see how the app PAYTM actually works.

Crores of Indians use Paytm today and they are adding an incredible 5 lac new users daily. A
simple step-by-step guide would help this vast user-base familiarize with us.

Paytm is India’s largest mobile payments and commerce platform. We help you transfer
money instantly to anyone at zero cost using the Paytm Wallet. This money can then be used

to pay seamlessly at several places like taxi and autos, petrol pumps, grocery shops,
restaurants, coffee shops, multiplexes, parking, pharmacies, hospitals and Kirana shops

among others. You could also use it to pay for online recharges, utility bill payments, book
movie or travel tickets among other things on the Paytm app or website.Paytm users can add
money to their Paytm Wallets in a few easy clicks. Tap on the ‘Add Money’ option on the
Paytm app home screen, enter the amount and pay using Debit/Credit Cards or Net

Banking.Paytm customers can pay, receive and shop with just a smartphone at zero extra
cost.Users can simply scan the recipient’s QR code or entering their mobile number in the

‘Pay’ option in the Paytm app to instantly pay virtually anyone with a smartphone and the
Paytm app. Accepting money using Paytm is easy. Tap in the ‘Accept Payment’ option in the

Paytm app home screen, and request the sender to scan your Paytm app and can call the
helpline for any futher assistance.

Alternatively, you could take a screenshot of this screen and WhatsApp or e-mail it to the
sender. They can then select ‘Scan Paytm QR Code from Gallery’ option in their Paytm app,

and pay you instantly. There are two ways of receiving this money. You can accept it into
your Paytm Wallet and enjoy instant settlement. Alternatively, choose ‘Bank Account’ in the

Accept Payment option. The amount would be settled at midnight every day. Money stored
in the Paytm Wallet can be taken to your bank account. Tap on the ‘Passbook’ icon in your

Paytm app home screen and select ‘Send money to Bank’. Once you tap on the ‘Transfer’
button, please enter the amount, account holder’s name, account number, IFSC Code and

press ‘Send’.

1.6 DIFFERENT PAYMENT APPLICATION

As shopping patterns continue to evolve, so does the Payment Platform and Payment
Gateway Industry that propels the former. Mobile Point of Sales Machines have of course

existed for a long time. Mobile wallet is a new concept in India that has been surpassing credit
card usage and is slowly beginning to replace the traditional payment methods. A mobile
wallet, in simple terms, is a virtual mobile-based wallet where one can store cash for making

mobile, online or offline payments. There are various types of mobile wallets in India, such
as open, semi-open, semi-closed and closed – depending on the type of usage and payments

that can be made. Wallets are growing rapidly as they help in Increasing the Speed of
Transaction, Especially for Ecommerce Companies and all Ecommerce Marketplaces have

integrated with such mobile wallets too.

1. Paytm

Paytm is one of the largest mobile

commerce platforms in India, offering its customers a
digital wallet to store money and make quick payments. Launched in 2010, PayTM works on
a semi-closed model and has a mobile market, where a customer can load money and make
payment’s to merchants who have operational tie-ups with the company. Apart from making
e-commerce transactions, PayTM wallet can also be used to make bill payments, transfer
money and avail services from merchants from travel, entertainment and retail industry.
Capitalizing on the scope and growth of India’s education market segment, they recently
partnered with premium educational institutions in India to introduce cashless payments for
fees, bills and other expenses. Number of installs: 100,000+
Paytm 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.

2. Momoe
 Momoe is a Bengaluru based mobile payments start-up
that focuses on changing how
customers pay while eating out, travel and shop. Using the Momoe app, one can store their
credit card details and make mobile payments at various restaurants, grocery stores, apparel,
salons and other retail outlets. The app’s initial foray was into restaurants which attracted
many installs due to the ease of payment options. The users were able to see live tabs, split
bills and pay directly, without having to wait for a physical bill to arrive. Number of
installs: 100,000+
Online marketplace ShopClues, the newest member of the billion-dollar valuation club, has
acquired Bengaluru-based startup Momoe as it looks to build a payments business.The deal
will also help ShopClues establish an office in the startup capital and all five Momoe founders
are expected to join its senior management team across functions like design, corporate
development and technology. The deal size is pegged at $10-12 million, with consideration
being paid in both cash and stock. ETfirst reported about the deal on March 14.Investors in
Momoe — which raised $1.2 million from India Quotient, IDG Ventures India and Jungle
Ventures — will get both cash and stock in ShopClues as a part of the transaction.

Two-year-old Momoe was founded by Utkarsh Biradar, Karthik Vaidyanathan, Ganesh

Balakrishnan, Neelesh Bam, and Aiman Ashraf, mostly graduates of IITs and IIMs, and is
present in Bengaluru. All five are joining ShopClues in senior management positions.Biradar
will join as vice-president heading design and product on the merchant side; Balakrishnan will
lead platform monetisation and services; Bam will head merchant acquisition helping
ShopClues expand base in South India; Ashraf will head technology for payment and
Vaidyanathan will work on strategic initiatives with ShopClues cofounder Radhika Aggarwal.
Besides the team, the deal will also help ShopClues kickstart a paysemi-closed wallet and
solutions for merchants.

4. Mobikwik

Mobikwik is an independent mobile

payment network that supposedly connects 25 million users with 50,000 retailers and more. It
was founded in 2009 Guru gram. It provides a digital wallet and mobile based payment
services. MobiKwik allows its users to use cards, net banking and even cash on delivery service
for the purpose of paying bills, recharge and shop in the market. Recently MobiKwik has tied
up with grocery, restaurants and other offline merchants which are large and small time. There
are total 10,000,000+ numbers. MobiKwik is an independent mobile payment network that
supposedly connects 25 million users with 50,000 retailers and more. This mobile wallet lets
its users add money using debit, credit card, net banking and even doorstep cash collection
service, which can in turn be used to recharge, pay utility bills and shop at marketplaces. Owing
to the growing need for convenience, MobiKwik has also recently tied up with large and small-
time grocery, restaurants and other offline merchants. Number of installs: 10,000,000+
MobiKwik launched an e-wallet system in 2012 that enabled users to deposit money online to
use for bill payments and other features. MobiKwik provides financial services
including loan, accident insurance, life insurance, fire insurance, IMPS money transfer, credit
card bill payment, mutual funds, and DTH recharge. They also introduced the feature of
sending and receiving money via a mobile app. In September 2014, Express Computer reported
how MobiKwik was partnering with GoDaddy and other international companies to help them
comply with Indian payment regulations. In June 2017, 80 percent of India's mobile wallet
transactions market was performed by Paytm, and Mobikwik. In March 2017, MobiKwik's
largest competitor was Paytm.

In April 2015, MobiKwik was used by 15 million users and claimed to be adding one million
new customers every month, according to Forbes India Magazine. In a partnership with
CashCare, MobiKwik began providing small loans between ₹500–₹2,500 to customers in May
2016. In November 2016, MobiKwik had over 1.5 million merchants using its service and 55
million users. Following the 2016 Indian banknote demonetisation in November 2016,
MobiKwik realized a 400% increase in financial transactions using the service by late
December 2016. In February 2017, the company announced plans to invest approximately $45
million to expand its user base from 50 million to 150 million users in 2017. In 2019,
MobiKwik announced a new partnership with DT One to expand their service
internationally. Also in 2019, the company began offering loans, insurance and investment
advice.

5. Citrus

Citrus is a new UPI app that

lets you pay through direct account transfers. All transactions are secure as you will only share
a virtual payment address with us, ensuring that your money is in safe hands.

Citrus Pay is a popular e-wallet app for cash storage, payments and money transfers. Besides
tying up with online service providers from varied sectors, they are now collaborating with
Woohoo, a gifting and shopping portal to let its customers shop at more than 5000 offline stores
listed with them. Number of installs: 100,000+

6.State Bank Buddy

The State Bank of India on 18 August launched Buddy

- a mobile wallet in 13 languages. Simply put, a mobile wallet is a semi-closed prepaid wallet
which you can use to transfer money to other wallet users and bank accounts. The wallet has
been launched with Accenture as technology partner and MasterCard as service providers.
While every second bank seem, to launch some or the other offering these day, here's all you
need to know about it.

As a name suggest it's a mobile wallet application which you need to install on your smart
phone. To be eligible to download the app, you need to be an Indian national, have a valid
mobile number and above the age of 10 years. You can register to the app, via Facebook or
Sign up for the app via your mobile number, PIN or password. One you have registered on the
app, you get option to add money online via your net banking, debit card or IMPS via your
mobile number. Keep in mind, since this is a pre-paid wallet, you will need to fund the wallet
before using it. You, can be used irrespective of the bank or card you use. You can send money
via this app to a registered and new user as well. Buddy allows you to set reminders to settle
dues, transfer cash into an account of your choice via this app, to name a few. This wallet can
also help you to recharge and pay your bills like DTH connection, electricity and gas instantly.
The app allows you to even book movie tickets, flights, hotels as well as shop.The service is
free of cost and you get to view a mini-statement of last transaction you have made on your
mobile wallet. You can download the app via Google Play Store and will be soon available via
Apple App Store.

7.Citi MasterPass
Citi Bank India and MasterCard recently launched ‘Citi MasterPass’, India’s first global
digital wallet for faster and secure online shopping. By using this, Citi Bank Debit And
Credit Card Customers become the first in this country to be able to shop at more than
250,000 ecommerce merchants. It ensures faster checkout with a single click or touch and
stores all your credit, debit, prepaid, loyalty cards and shipping details in one place.

8.ICICI Pockets

ICICI Bank Limited is an Indian multinational banking

and financial services company with its registered office in Vadodara, Gujarat and corporate
office in Mumbai, Maharashtra. It offers a wide range of banking products and financial
services for corporate and retail customers through a variety of delivery channels and
specialised subsidiaries in the areas of investment banking, life, non-life insurance, venture
capital and asset management. The bank has a network of 5,275 branches and 15,589 ATMs
across India and has a presence in 17 countries.Pockets by ICICI is a digital bank that offers a
mobile wallet for its customers. It provides the convenience of using any bank account in India
to fund your mobile wallet and pay for transactions. With Pockets, one can transfer money,
recharge, book tickets, send gifts and split expenses with friends. This wallet uses a virtual
VISA card that enables its users to transact on any website or mobile application in India and
provides exclusive deals or packages from associated brands.

9. HDFC Chillr
 Chillr is an instant money transfer app
created by HDFC to simplify money transfer and payment process for its customers. Using
this mobile payment app, one can transfer money to anyone in their phone book, thereby
cutting out on the hassles of adding a beneficiary. It is currently available only for HDFC
Bank customers and can be used to send money, recharge, split bills, request funds or
transfer and will soon be able to pay at online & offline stores. Number of installs:
100,000+

Chillr is a multi-bank mobile banking app. Chillr lets users send and receive money from
anyone in their phone book without the need of a virtual third-party wallet.
Chillr is directly linked to your bank account. There is no need to load money in any wallet.
Users can directly transfer money to beneficiaries and pay utility bills.

10. LIME
 Axis Bank, the third-largest private sector bank launched
‘LIME’, an application that offers a mobile wallet, payments, shopping and banking facilities.
This mobile wallet is available for both account & non-account holders and lets a user add
money using his or her credit, debit and net banking details. One can also share the wallet with
their loved ones or pool in funds into a shared wallet for a particular purpose (Example: Gifts,
vacations, etc.)
Axis Bank, India’s third largest private sector bank, today announced the launch of LIME, the
country’s first mobile app that offers Wallet, Shopping, Payments & Banking. LIME will act
as an independent app, empowering any person to open individual, shared mobile wallets and
make seamless peer to peer as well as online, offline merchant payments. Users can also
experience the convenience of in-app shopping that allows them to compare and buy products
and services. LIME will enable individuals to open a full-fledged savings account digitally, by
completing the KYC process, using their mobile. Commenting on the launch, Ms. Shikha
Sharma, Managing Director and CEO, Axis Bank said, “Customer preferences are changing
rapidly and technology is transforming the way these preferences are being met. Our effort has
been to constantly innovate through the use of smart technology to meet these evolving needs.
LIME is the next big step in this journey." Further, Mr. Rajiv Anand, Group Executive & Head
Retail Banking, Axis Bank, added “Given the boom in smartphone ownership across India,
people are interacting with their banks digitally. LIME is an integrated mobile app that offers
high customer engagement through new digital and financial behaviours. It offers a connected
suite of services designed specifically to address the users’ shopping, payment and banking
needs. LIME will change the way people manage their money and set financial goals.”
Leveraging the strength of the expertise available in-house at Axis Bank, LIME is a fresh take
on the way people interact with their money. The LIME suite of services creates value by
connecting an ecosystem of consumers and partners with the Bank.
11.PAYPAL

PayPal Holdings, Inc. is an American company

operating an online payments system in the majority of countries that support online money
transfers, and serves as an electronic alternative to traditional paper methods
like checks and money orders. The company operates as a payment processor for online
vendors, auction sites, and many other commercial users. It charges a fee in exchange for
benefits such as one-click transactions and password memory.

Established in 1998 as Confinity, PayPal had its initial public offering in 2002. It became a
wholly owned subsidiary of eBay later that year, valued at $1.5 billion. In 2015, eBay spun
off PayPal to eBay's shareholders. The company ranked 204th on the 2019 Fortune 500 of the
largest United States corporations by revenue.

An American company is operative in a global online payments system that supports online
money handovers and serves as an electronic alternative to traditional payments methods. EBay
is the parent company of PAYPAL. PayPal is the faster, safer way to send money, make an
online payment, receive money or set up a merchant account. PAYPAL operates as a payment
processor for online vendors, auction sites, etc.

12.BHIM

BHIM (Bharat Interface for Money) is

an Indian mobile payment App developed by the National Payments Corporation of India
(NPCI), based on the Unified Payments Interface (UPI). Named after B. R. Ambedkar and
launched on 30 December 2016, it is intended to facilitate e-payments directly through banks
and drive towards cashless transactions. The application supports all Indian banks which use
UPI, which is built over the Immediate Payment Service (IMPS) infrastructure and allows the
user to instantly transfer money between bank accounts of any two parties. It can be used on
all mobile devices.

BHIM allow users to send or receive money to or from UPI payment addresses, or to non-UPI
based accounts (by scanning a QR code with account number and IFSC code or MMID
(Mobile Money Identifier) Code). Unlike mobile wallets (PayTM, MobiKwik, mPesa, Airtel
Money, etc.) which hold money, the BHIM app is only a mechanism which transfers money
between different bank accounts. Transactions on BHIM are nearly instantaneous and can be
done 24/7 including weekends and bank holidays.BHIM also allows users to check the current
balance in their bank accounts and to choose which account to use for conducting transactions,
although only one can be active at any time. Users can create their own QR code for a fixed
amount of money, which is helpful in merchant-seller-buyer transactions. Users can also have
more than one payment address.If the 12-digit Aadhaar number is listed as a payment ID, the
BHIM app will not require any biometric authentication or prior registration with the bank or
UPI. Version 1.3 allows users to use mobile numbers from their contact book to send money
and also save payment addresses for future use without needing to type the address again. User
can also check the transaction history, which only shows transactions through BHIM. The
company rolled out new feature called BHIM Aadhaar Pay allowing users to send or receive
digital payments through Aadhaar authentication. It is a mobile app, developed by the National
Payments Corporation of India. It is based on the Unified Payment Interface (UPI), where the
bank details or even internet is not required to make payments. Simply using mobile number,
aadhar card number, name or any banks UPI ID anyone can send or receive money in any
preferred language.
1.7 CAUSES OF GROWTH OF PAYMENT APPLICATION

A new generation of apps is introducing millions of consumers to the idea of using their phones
as payment tools. This is especially true in the context of peer-to-peer payment transactions.
These include money transfers between friends and family, international remittances, and even
fees and wages paid to independent workers. Globally, the market is well over $1 trillion. In a
new report from BI Intelligence, we explain why mobile peer-topeer (P2P) payment apps offer
consumers significant advantages over cash and check transactions. They make transferring
money faster, less expensive, and more precise. They also reduce the hassle of going to a money
transfer agency, remembering a check book, finding an ATM.
A cashless society describes an economic state whereby financial transactions are not
conducted with money in the form of physical banknotes or coins, but rather through the
transfer of digital information (usually an electronic representation of money) between the
transacting parties. Cashless societies have existed from the time when human society
came into existence, based on barter and other methods of exchange, and cashless
transactions have also become possible in modern times using digital currencies such as
bit coin. However this article discusses and focuses on the term "cashless society" in the
sense of a move towards, and implications of, a society where cash is replaced by its digital
equivalent - in other words, legal tender (money) exists, is recorded, and is exchanged only
in electronic digital form. Such a concept has been discussed widely, particularly because
the world is experiencing a rapid and increasing use of digital methods of recording,
managing, and exchanging money and credits in commerce, investment and daily life in
many parts of the world, and transactions which would historically have been undertaken
with cash are often now undertaken electronically. Some countries now set limits on
transactions and transaction values for which non-electronic payment may be legally used.
The trend towards use of noncash transactions and settlement began in daily life during the
1990s, when electronic banking became popular. By the 2010s digital payment methods
were widespread in many countries, with examples including intermediaries such as
PayPal, digital wallet systems operated by companies like Apple, contactless and NFC
payments by electronic card or smartphone, and electronic bills and banking, all in
widespread use. By the 2010s cash had become actively disfavoured in some kinds of
transaction which would historically have been very ordinary to pay with physical tender,
and larger cash amounts were in some situations treated with suspicion, due to its
versatility and ease of use in money laundering and financing of terrorism, and actively
prohibited by some suppliers and retailers, to the point of coining the expression of a "war
on cash”. By 2016 in the United Kingdom it was reported that 1 in 7 people no longer
carries or uses cash. The 2016 United States User Consumer Survey Study claims that 75%
of respondents preferred a credit or debit card as their payment method while only 11% of
respondents preferred cash. Since the founding of both companies in 2009, digital
payments can now be made by methods such as Venmo and Square. Venmo allows
individuals to make direct payments to other individuals without having cash accessible.
Square is an innovation that allows primarily small businesses to receive payments from
their clients.
1.8 BENEFITS OF CASHLESS ECONOMY

o Reduced business risks and costs

Cashless payments eliminate several risks, including counterfeit money (though stolen cards
are still a risk), theft of cash by employees, and burglary or robbery of cash. The costs of
physical security, physically processing cash (withdrawing from the bank, transporting,
counting) are also reduced once a business goes completely cashless, as is the risk that the
business will not have enough cash on hand to make change. Reducing transmittal of disease
via cash

o No more bulky wallets

You need not have to face further discomfort while sitting with those heavy wads of paper
bills in your back pockets. Deposit your cash into the bank and join the millions who are
enjoying the ease of digital transactions using credit cards, debit cards, mobile wallets, UPI
apps and USSD Banking. Having these also means that you don't need to stand in the long
queues of ATMs anymore. Just swipe your plastic money or flash the QR code while
making payments for your purchases.

o Ease of transactions

Once you get hang of the digital payment and transactions system, you are sure to become
a fan of online shopping. One of the most lauded benefits of going cashless is the ease with
which all the payment transactions can be performed. Digital and cashless transactions
have paved way for e-commerce where you can shop for any object right from the comfort
of your home. According to Mr. Jayant Pai, Head, Marketing, PPFAS Mutual Fund a major
advantage of adopting digital payments systems is that one will have the freedom to
transact whenever and wherever they want. A person doesn’t need to be physically present
to conduct a transaction or be forced to do so only during office hours.

o Freebies, discounts and lucky draws

Your decision to adopt the digitization process and to go cashless can help you enjoy many
incentives, freebies, and discounts. While government themselves have announced a list
of incentives for going cashless, one should not forget the offers, discounts, and cashbacks
provided by various mobile wallet operators like PayTM, Mobikwik etc. A lot of
ecommerce websites provide you special discounts when you make the payment digitally
instead of going for COD option. If those were not enough, then you should know that
government has launched special lottery and lucky draw schemes especially for consumers
who indulge in less of cash transactions and more cashless transactions.

o No hassles of odd change

Remember the last time your auto rickshaw meter was 47 Rs. but the auto walla didn’t
have that 3 Rs. change? What had you done? I know what you did then. You begrudgingly
succumbed to the situation and left without the 3 Rs. This kind of situations arises in our
daily lives. While some may argue that leaving 3 Rs. may not make much of a change, but
let me remind you, these small and odd changes over a longer period of time make a lot of
money. Well, as an Indian, a major benefit of going cashless would be to not worry about
the odd change. The beauty of cashless transactions is that you can make the exact payment
to the last paisa, be it 0.90 Rs. or 0.01 Rs.

o No tension of counterfeit currency

Just like stolen cash never comes back same is with the counterfeit ones. Every economy
in this world faces the problem of counterfeit currencies. While the government is taking
stringent actions against the counterfeiters, once the counterfeit currency comes into
circulation, it is the general public that faces the loss once the counterfeit is identified. If
you decide to adopt financial digitization then you need not worry about the counterfeit
currency at all. The debit cards and credit cards cannot be counterfeited and thus going
cashless keeps you away from the hassles of handling counterfeit currency.
o Convenience
The ease of conducting financial transactions is probably the biggest motivator to go
digital. You will no longer need to carry wads of cash, plastic cards, or even queue up
for ATM withdrawals. It’s also a safer and easier spending option when you are
travelling. “The benefits are enormous if you leave out the low-income group, which
will face a huge challenge,” says Kartik Jhaveri, Director, Transcend Consulting. “For
the rest of the country, it is constructiv and simple It will be especially useful in case
of emergencies, say, in hospitals,” he says. Adds Jayant Pai, Head, Marketing, PPFAS
Mutual Fund: “You have the freedom to transact whenever and wherever you want.
You don’t have to be physically present to conduct a transaction or be forced to do so
only during office hours.”

o Discounts
The recent waiver of service tax on card transactions up to Rs 2,000 is one of the
incentives provided by the government to promote digital transactions. This has been
followed by a series of cuts and freebies. It’s a good time to increase your savings if
you take advantage of these. For instance, 0.75% discount on digital purchase of fuel
means that the petrol price in Delhi at Rs 63.47 per litre can be brought down to Rs
62.99/l with digital payment.
Similarly, saving on rail tickets, highway toll, or purchase of insurance can help cut
your costs. Add to these the cashback offers and discounts offered by mobile
wallets like Paytm, as well as the reward points and loyalty benefits on existing credit
and store cards, and it could help improve your cash flow marginally.

o Tracking spends
“If all transactions are on record, it will be very easy for people to keep track of their
spending. It will also help while filing income tax returns and, in case of a scrutiny,
people will find it easy to explain their spends,” says Manoj Nagpal, CEO, Outlook
Asia Capital. “Besides the tax, it will have a good impact on budgeting,” says Pai.
o Budget discipline
The written record will help you keep tabs on your spending and this will result in
better budgeting. “Various apps and tools will help people analyse their spending
patterns and throw up good insights over a couple of years,” says Jhaveri. Controlled
spending could also result in higher investing. If the same amount of cash does not
flow back into circulation and people continue to use mobile wallets and cards, it is
also likely to bring down the latte factor. This means that the Rs 10 you spent on
candy or chips, or that regular cup of coffee office is likely to take a hit since you will
be short of loose change and smaller currency notes. There’s a lesser chance of
budgetary leaks and unaccounted for spends sneaking into your budget at the end of
the month.

o Lower risk
If stolen, it is easy to block a credit card or mobile wallet remotely, but it’s impossible
to get your cash back. “In that sense, the digital option offers limited security,” says
Pai. This is especially true while travelling, especially abroad, where loss of cash can
cause great inconvenience. Besides, if the futuristic cards evolve to use biometric
ID (finger prints, eye scan, etc), it can be extremely difficult to copy, making it a very
safe option.

o Small gains
It may not seem like much of an advantage, but being cashless makes it easy to ward
off borrowers. Another plus is that you can pay the exact amount without worrying
about not having change or getting it back from shopkeepers.
1.9 DRAWBACKS OF ONLINE PAYMENT

o PRODUCT QUALITY
This is the most common problem faced by customers who shop online regularly. The
quality of the product is often not up to the mark with what is presented in the pictures.
With the competition growing in the e-commerce industry, as many websites become a
marketplace for sellers to sell their products, and the issue of fraudulent sellers is
increasing. The checks on registration are poor and selling poor-quality in the name of
brands is becoming increasingly common. Even worse, quality-checks have become so
rare with the magnitude of online sales which is soaring high.

o SECURITY
Security is one of the most significant challenges for online banking marketers. This is
because, in the past, if a robber was going to steal a person’s bank savings, he or she would
have to break into the bank vault, and make a daring escape with the money. This was an
extremely difficult prospect and involved a lot of danger and risk.

o TIME CONSUMING
It can be significantly more difficult and time consuming to deposit or withdraw money
from an online bank. Not only do online banks often have fewer ATM’s than their
traditional counterparts, but it also can simply take longer amounts of time for deposits to
be processed and put into a bank account.

o TRASNSACTION DIFFICULTY
For example, it takes roughly 3-5 days for deposit to show up in accounts for PayPal one
of the largest online banks. This is an issue that online banking marketers will most likely
struggle with, until online banks speed up their transaction times.

o TECHNICAL ISSUES
Because online banks rely so heavily on their online platforms, this means that they can generate
substantial losses if their systems crash or if there are bugs in their code. A single technical issue
that causes a bank to be down for a day could cost the bank millions in losses. It can also wreak
havoc for the bank customers who may not be able to make payments or conduct transactions
during the time that the site is down.54% of consumer now use a mobile banking app. So, it is key
not just for banks to have their online platforms running smoothly, but also, their mobile apps. A
loss of funds or data due to a crash is something that can be very worrisome for bank customers.
So, marketers should prioritize alleviating this worry by explaining how account funds will not be
lost if technical issues occur.

o E-CASH
The main problem of e-cash is that it is not universally accepted because it is necessary
that the commercial establishment accept it as payment method. Another problem is that
when we makes payment by using e-cash, the client and the salesman have accounts in the
same bank which issue e-cash. The payment is not valid in other banks.

1.10 IMPACT OF DIGITAL PAYMENTS

In a cashless economy most of the transaction will be done by digital means like e banking,
debit and credit cards, POS (point of sales) machines, digital wallets etc. In simpler words no
liquid money or paper currency will be used by the people in a given country. In a cashless
economy the third party will be in possession of your money. He will allow you to transact that
money whenever it is needed. If it is not needed then the third party can use that money. Third
party can be a government or any other public or private sector bank. In the beginning people
thought that this is a great idea and the country will become corruption free. But as the time
passes people are getting weary about the ban. Both sides, people who favour cashless economy
and people who don’t are putting their arguments forward.

o Positive Impact on Society

We are seeing the impact of cashless economy on the society when it comes to crime rates.
According to Union Defence minister after demonetization the crime rates in Mumbai has
dropped to half. Not just Mumbai but Delhi is seeing a substantial decline in crimes related
to financial motive. Bank robbery, burglary, extortion are declining because of
demonetization.
 o Attack on Parallel Economy
This is one of the most important reasons why a cashless society is must. People who hoard
money under their bed (also known as black money), people who launder money bypassing
banking channels, terrorist who need money to finance their terror will run out of business
now. Size of Parallel economy will reduce substantially.

o Financial Inclusion
Digital economy will help to enhance our current banking system. There will be increased
access to credit for people who did not fall in any banking network. Financial inclusion
will automatically reduce poverty.

o Increase the Tax Net

All the transactions that are done can be monitored and traced back to a given individual.
If officials from tax department smell something fishy then they can trace the money
transaction back to the individual. Hence it will be really difficult for someone to evade
tax. Increasing tax net is very important for any government.

o Boost in Consumption
There would be no incentive for people keeping money in the bank. So they would love to
spend on things that they like. It will help to boost consumption that is really good for any
economy. More jobs will be created and income level of people will rise.

o Security and Convenience

Last but not the least is security and convenience. You don’t have to carry a wallet with
money in it. You just use your mobile phone or credit card for transaction. It is very hassle
free and already going on in urban areas of the country. If we look at the overall scenario
of establishing the cashless economy, its benefits and uses in the present system it can be
said that cashless economy is the need of the hour. It has become not only important but
necessary for the country to go cashless for the systematic development in the economy.
This is to be done in a very systematic way some of the initiatives that should be taken are
People should be educated adequately. The use of cards in the ATM should be described
to the people so that they can easily use the card.

1.11 OTHER PAYMENTS

People have started to trust online payments these days due to a lot of reasons. After
studying and researching on this topic, we may clearly understand whether country like
India really needs such patterns of payment.

In simple terms, online payment involves modes like:

• debit/credit cards

• internet/mobile banking

• bank prepaid cards

• Point-of-Sale (POS) machines

• mobile wallets

• digital payment apps

• Unified Payments Interface (UPI) etc.

In the effort to enable customers to make payments the electronic way banks have
developed many channels of payments viz. the internet, mobiles, ATM’s (Automated
Teller Machines) and drop boxes.The internet as a channel of payment is one of the most
popular especially among the youth. Debit and credit payments are made by customers on
various bank's websites for small purchases,(retail payments) and retail transfers( ATM
transfers).

ATM's serve many other purposes, apart from functioning as terminals for withdrawals
and balance inquiries, such as payment of bills through ATM's, applications for cheques
books and loans can also be made via ATM's.Banks also provide telephone and mobile
banking facilities. Through call agents’ payments can be made and as the number of
telephone and mobile subscribers are expected to rise, so is this channel of payment
expected to gain popularity. Drop boxes provide a solution to those who have no access to
the internet or to a telephone or mobile. These drop-boxes are kept in the premises of banks
and the customers can drop their bills along with the bill payment slips in these boxes to
be collected by third party agents. India is one of the fastest growing countries in the plastic
money segment. Already there are 130 million cards in circulation, which is likely to
increase at a very fast pace due to rampant consumerism. India's card market has been
recording a growth rate of 30% in the last 5 years.

Card payments form an integral part of e-payments in India because customers make many
payments on their card-paying their bills, transferring funds and shopping.

Ever since Debit cards entered India, in 1998 they have been growing in number and today
they consist of nearly 3/4th of the total number of cards in circulation.

Credit cards have shown a relatively slower growth even though they entered the market
one decade before debit cards. Only in the last 5 years has there been an impressive growth
in the number of credit cards- by 74.3% between 2004 and 2008. It is expected to grow at
a rate of about 60% considering levels of employment and disposable income. Majority of
credit card purchases come from expenses on jewellery, dining and shopping.

1.12 CHANGES AFTER DEMONETISATION (% AND IN RUPEES)

Adoption of cashless transaction has been significantly pushed by Prime Minister Mr. Narender
Modi as part of government reforms after demonetization of high value currency of Rs. 500
and 1000 (86% of cash circulation). The demonetization resulted in unprecedented growth in
digital payment. By February this year, digital wallet companies had shown a growth of 271
percent for a total value of US$2.8 billion (Rs. 191 crores) , Indian government and private
sector companies such as Paytm, Freecharge and Mobikwik had been aggressively pushing
several digital payment applications, including the Aadhaar Payment app, the UPI app, and the
National Payments Corporation of India (NPCI) developed the Bharat Interface for Money
(BHIM) app. Digital transfers using apps has brought behavioural change and helped in the
adoption of digital payment. This has resulted in ease of transfer of money in rural areas which
was not touched earlier by the digital payment method. Now many foreign investors want to
invest in digital payment industry which is new attractive destinations because of scope of
tremendous expansion in India. Though not part of the digital family, cheque transactions —
another preferred mode for transactions for a good number of Indians — rose to 130 million in
volume and Rs 6.8 lakh crore in value in December from 87 million and Rs 5.4 lakh crore in
November. But, in May this year, the volume and value stood at 97 million and Rs 6.7 lakh
crore.
The volume trend shows that more people opted for non-cash modes when cash-shortage was
at its peak, even for small transactions. Post this, a part of this group has continued to use non-
cash instruments while others returned to good old cash. But such improvement has not shown
any dramatic rise as seen across channels such as NACH/NEFT and PPI.

1.13 Global ecommerce payment system

Global eCommerce payment methods

Whether they’re shopping from a desktop browser or from your mobile app, consumers
nowadays expect different payment methods to be featured in online stores, so they can choose
the one that suits that specific need. In order to be relevant to the widest audience you need to
ensure your site has capabilities to support those payment means which are most popular
online.

So if you’re casting a wide net and are targeting any of the 4.57 billion internet users worldwide
your site list of payment methods should definitely include:

Credit & debit cards

Credit cards remain one of the most popular choices globally for online purchases, although
their market share has been dented in recent years by eWallets. Worldwide, cards accounted
for 41% of ecomerce transactions in 2018, with a clearer preference in longstanding
eCommerce markets, such as Europe and the Americas.

Cards’ popularity as online payment methods was built on the protection features offered –
card transactions have been regulated for many years by global or regional compliance
standards and also by consumer protections issued by payment processors, such as those upheld
by American Express, Mastercard and visa

Credit cards have a slightly more marked preference in Western markets vs debit cards, given
some of their additional features. For example, some shoppers are incentivized to use credit
cards to have access to the bank’s reward programs. In the US, more so, credit card spending
impacts the user’s credit scoring and serves as an extra motivation to opt for it as an online
payment method.

Card’s claim to the number one spot in consumer preferences for eCommerce payment methods
has been seriously challenged in recent years, as we’ll see going forward.

eWallets
Also known as digital wallets, eWallets are one of the fastest growing online payment methods
in B2C eCommerce all over the world, projected to account for 50% of global ecommerce sales
by 2022. Some reports are even finding that use of ewallets has overpassed that of cards last
year on a global level – in some markets, Asia Pacific, for example, this online payment method
had a share of almost 60% of transactions in 2019.

This alternative payment method works like a prepaid credit account, and stores the customer’s
personal data and funds. When using an eWallet, the user no longer has to input his bank
account details to complete the purchase, being redirected from the checkout to the eWallet’s
page where they simply have to log in with their username and password to conclude a
purchase.
The most popular digital wallets include PayPal (predominantly in the Western world), AliPay
(popular in Asia Pacific), ApplePay, GooglePay, WeChat or Venmo. eWallets also work in
combination with mobile wallets, employing a smartphone’s biometric options, which help the
customer authenticate faster thus finishing their payments faster.

Bank transfers
This online payment method involves the customer paying from their banking account with
their own funds. It is perceived as having an extra layer of security, as transactions require
authentication through the customer’s bank. Basically, when chosen as payment method during
checkout, a bank transfer redirects the user to their internet banking portal, where they have to
log in and authorize the transaction.

Bank transfers accounted for 9% of worldwide ecommerce transaction volumes last year,
chosen primarily in Europe.

Buy now, pay later

An online payment method that has gathered attention lately and which has registered a 162%
growth in the past two years is Buy Now, Pay Later. This is a form of instant lending which
more and more young consumers are turning to, as Teen vogue also reports. When choosing
this option, shoppers have the option to pay later, over time, without having to open up a credit
card for this. Availability of this option during checkout has been reported to persuasding 30%
extra buyers to finalize a purchase they wouldn’t have otherwise.

While this alternative payment method is still in its infancy, with just over 1.5% of global
ecommerce transactions in 2019 it is expected it will rise over the next 3 years. Some of the
options for this payment method include Klarna, AfterPay and Bread.

Prepaid cards
Another alternative online payment method are prepaid cards, chosen primarily by unbanked
users or minors. Customers opt for a prepaid card from a set of predefined available values and
then they use the details on that card for online transactions.

Market penetration of prepaid cards is currently at just around 1% of all global eCommerce
transactions, some of the most popular cards chosen by users including Paysafecard or Mint.
Usage of this payment method is more marked in the gaming industry, driven most likely by
audience demographics.

Electronic checks
Use of e-checks, an online payment method regulated by ACH, involves drawing money from
a checking account. The user himself authorizes the payment directly from his internet bank
account and processing is similar to that done in the case of regular paper checks, but faster.

Electronic checks are popular among American merchants with large sales volumes and a high
average amount and they are perceived as an affordable online payment method. Apparently,
e-checks were the first Internet based payment used by the US Treasury for making large online
payments, which can explain their popularity in this category of users.

Local eCommerce payment methods

While understanding best payment methods for online businesses targeting global markets is
essential, in order to enter some local markets, you have to understand how preferences vary
in each region. Some markets, for example, have a stronger preference for cards, whereas in
others the eWallet is king.

And, beyond the payment methods detailed above, certain markets also employ online methods
developed specifically for citizens in that jurisdiction. Local payment methods can range
anywhere between 10% to 50% in adoption in a country, so be sure to consider local flavors
when setting up an eShop there.

Maestro cards

Maestro debit card, owned by MasterCard is not as popular as Visa or MasterCard, but still…
on some markets (especially on European markets, in Brazil, or Australia) lots of people own
this card. Worth to have on your website, especially if you are going to sell in Europe.

PayPal

The most popular alternative payment method in the world (at least in my opinion). In some
countries it’s really popular when it comes to online purchases (e.g. United States or Germany),
in some countries it’s not (e.g. in the CEE region). Some of the people love this system, others
simply hate it. Worth to have as an alternative to “typical online payment methods”,
specifically if you have a not so well-known website, because if you are not well known not
many people are willing to leave their credit card data.

American Express cards

Very popular payment card. Especially in North America. If you are going to sell in an
American market – that’s the must-have payment method for you. What’s really great in this
card anyway? They are not as restricted when it comes to amounts (in most cases you will be
able to process bigger amounts at once from customers with Amex cards, than from customers
with any other cards).

Diners Club cards

Diners Club is the next well recognized worldwide card brand. Owned by Discover Financial
Services it’s quite popular in certain countries (such as North American countries, Germany,
UK) and in some specific industries (travel, entertainment). If you want to sell, let’s say in the
USA, or you have a web business that sells something related to travel – worth a mention.
Sofortbanking

Quite an interesting payment method. Currently it works in 10 or 11 countries. Really a

valuable recommendation if you want to sell your services in some European countries
(because of its popularity e.g. Germany, Austria, Switzerland, Belgium, the Netherlands).
However I wouldn’t recommend this payment method if you want to sell in other countries (for
example – it doesn’t have a good opinion in Poland). In other (which are not supported by
them) it’s simply not known by anyone, so it’s better not to show them this payment method at
all.With this new found information, find the right payment provider for you (which has all
these payment methods). If you need more information of have questions, contact us! Good
luck in going global with your business!

Europe

Overall, most European consumers opt for cards or eWallets for their online shopping, with
some marked preference for different online payment methods in different markets.In
Germany, PayPal is used by 32% of online shoppers, whereas just 16% of French opt for it.
SEPA Direct debit is also a popular option among Germans, used for one time and for recurring
payments as well.

In the Netherlands, the most popular payment method is iDEAL, with 44% of shoppers
choosing it as 2Checkout’s 2019 digital benchmarks report shows. On a market with a high
adoption rate for internet banking, it comes natural that shoppers prefer iDEAL, a standardized
online banking-based payment method.

By contrast, in Russia, where banking penetration is lower, we see a higher adoption rate for
eWallets. Qiwi wallet, Yandex and WebMoney are popular payment methods here.

In France, a market with a high banking penetration rate, shoppers may opt for their cards, but
as a merchant you still have to know their preferences. 2Checkout’s benchmark study found
that 14% of shoppers here favor their Cart Bancaire, a local payment method available only in
this market.

Over in Turkey, 17% of shoppers also prefer local cards, however, they do so because these
local cards come with installment features. 80% of card transaction here are recorded through
installment cards such as Maximum or Bonus Card.
North America and Latin America
Credit cards and debit cards remain the most popular online payment methods in the Americas,
with more than 50% of market share in each region, but, beyond cards, preferences diverge.

Where North Americans are more likely to opt for their PayPal or other preferred digital wallet,
South Americans are more likely to use a local credit cards with installments. In Brazil, for
example, local credit cards with installments are a top choice for almost a third of online
shoppers. If you’re selling on the Brazilian market and you’ve not yet enabled payments for
Boleto Bancario, you might as well close up shop now. 12% of Brazilian shoppers pay with
their Boleto Bancario and 28% others prefer local cards with installments. Only 20% of cards
used here support international currencies so, unless your payment provider accepts these
payments, you’ll need a local partnership with a domestic processor to be relevant in Brazil.

Asia Pacific
Asia-Pacific leads global preferences for mobile/ digital wallets, with more than 50% of this
region’s online transactions being wallet based.

Chinese consumers are the biggest fans of this online payment method, on a market dominated
by AliPay and WeChat Pay. 42%, almost half of all online transactions in China are paid via
AliPay. Cards come second in preference in Asia Pacific, followed by bank transfers.

In terms of local preferences, about 5% of Japanese opt for Konbini, a local cash-based
payment method in that country, which allows shoppers to order online and then pay in a
convenience store. Given Japanese people’s propensity to visit convenience stores often, ATM
payments at these stores became quite popular for shoppers here. JCB card payments are also
a shopper favorite in Japan, given the card’s wide usage – 55 million JCB cards were being
used in Japan three years ago.

Africa
Given that the majority of African American online shoppers don’t have access to traditional
banking services, mobile payments as an alternative online payment method are on the rise in
these markets.
Consumers who buy online in Africa have a propensity to pay with mobile wallets, though in
countries such as Egypt cash on delivery is preferred, and others still opt for prepaid cards.

If you’ve made it this far, you now have a much stronger grip on what are the most popular
payment methods online and you have a good start on how to approach each market. Getting
to know the different online payment methods will allow you to adapt locally, which in time
will lead to better conversion rates on your site. Keep cultural preferences in mind while
tailoring local strategies and choose those digital tools that will ease your entry into new
eCommerce markets.

For a comprehensive understanding on how 2Checkout can help with entering new markets,
read our How to Localize Your Digital Business for Global Commerce guide.

2020 E-commerce Payments Trends Report: India

India is widely recognized as one of the most dynamic emerging e-commerce markets. While
accounting for only 3 percent of total retail sales in the country, e-commerce is nevertheless
already an INR4,299 billion (US$61.1 billion) market.3, 4

With 80 percent of the 1.4 billion population yet to make their first online purchase,5, 6 India’s
growth potential is huge. Major marketplaces Amazon, JioMart and Flipkart are all key
platforms competing for market share. Global merchants are attempting to capitalize on India’s
e-commerce growth story: Walmart made a $1.2 billion investment in Flipkart in 2020, after
buying a majority stake in 2018.7

Both urban and rural India are rapidly integrating the internet into everyday life. There are 293
million active internet users in urban India, and approximately 200 million active users in rural
India. Growth is driven by rural India, which registered a 35 percent increase in internet users
in 2019.8

India is becoming a test bed for international brands to trail innovative e-commerce services.
For example, India was the first market for Mastercard’s® Identity Check Express, the card
brand’s new mobile-first 3D secure solution.9 India is a launch market for Instagram’s
forthcoming TikTok-style video function, Instagram Reels, which will enable brands to work
with influencers to market products.10
High Growth set to Stabilize to 2023

The Indian e-commerce market has experienced explosive growth since 2017, jumping from a
total $38.5 billion value to $61.1 billion in 2019. Looking ahead, this growth is expected to
stabilize to a compound annual growth rate (CAGR) of 12.1 percent to 2023.The most popular
product segments are travel (47 percent of total e-commerce value), fashion (21 percent) and
consumer electronics (14 percent). Travel will be negatively impacted in the short to mid-term
by the effects of the COVID-19 pandemic.11 During India’s lockdown period, spending
patterns shifted. Online bill payments increased, taking a 72.5 percent share of online spending,
up from 55 percent pre-lockdown. Gaming and entertainment purchases remained steady,
whilst travel purchases shrank.12

Internet penetration in India is at 48.5 percent and is expanding quickly. 13 The government is
undertaking a series of schemes, such as Digital India and Skill India, to improve
connectivity,14 and corporates including Google are rolling out programs designed to ramp up
connectivity in rural areas.15
Rapidly Rising Smartphone Penetration Drives Confident Mobile
Commerce Prediction
Mobile commerce is expected to grow at a compound annual growth rate of 20.1 percent to
2023, outperforming overall e-commerce, to become an INR4,412 billion ($62.7 billion)
market by that point.16

Over two-thirds of the population do not own a smartphone. India has 27.3 percent smartphone
penetration.17 However, it is the fastest-growing smartphone market globally. Smartphone
shipments in India increased 14.5 percent year-on-year to reach 142.3 million units in
2018.18 Smartphone users in India are expected to reach 442 million by 2022. Android devices
dominate the Indian smartphone market, taking 95.61 percent of all phones. Apple’s iOS
operating system takes a 3.35 percent share.19

The value of mobile commerce in India has increased six-fold since 2015. The 2020 entry in
the e-commerce space of Reliance, the largest home-grown conglomerate to challenge Amazon
and Walmart’s Flipkart, is expected to drive sales and price competition. JioMart, Reliance’s
e-commerce platform, delivers groceries and essential items from local stores in 200 Indian
towns and cities via WhatsApp orders.

Apps Surge Ahead of Browsers as Preferred Way to Shop via

Mobile commerce accounts for just under half (49 percent) of all completed e-commerce in
India.20 Mobile is the preferred device to access e-commerce (74 percent), followed by
desktops (25 percent) and tablets (1 percent).21
Apps are used more than browsers to complete a purchase, accounting for 62 percent of
completed mobile commerce. Amazon India and domestic brands Flipkart and Tata are the
most popular shopping apps as of the second half of 2020.22

Social commerce is taking shape in India. In 2020, JioMart launched a video-based social
commerce platform, 2GUD, which allows shoppers to get shopping advice from influencers
and post videos of fashion content.

Cards and Digital Wallet Share Indian Payment Market, as Cash Declines

Card is currently the most-used method to pay online, taking 31 percent of transactions. RuPay
is India’s domestic debit and credit card payment scheme, with wide acceptance across the
country. Debit cards are preferred over credit, with 0.67 debit cards per capita, compared with
0.04 credit cards.23

International card brands including Visa®, Mastercard and Amex are also widely accepted.
During the COVID-19 pandemic, spending volumes across all card brands declined, but RuPay
performed better than international brands. Spend via RuPay fluctuated between 87–98 percent
of normal spending volumes, while Visa and Mastercard purchases were lower at 70–86
percent of pre-lockdown volumes.

Card use is set to be eclipsed by digital wallets by 2023, which are expected to take a 38 percent
market share by that point, up from 29 percent in 2019. 24 Key digital wallet brands include
Amazon Pay and domestic QR-code-based Paytm, which has 11–13 percent market share.
Google Pay and PayPalä also exist in the market, taking 2–4 percent market share each.

Cash is still an important channel, taking a 15 percent share of the market, but is in decline as
the state encourages citizens to switch to electronic payment methods. Major brands including
Amazon still offer this payment option.25

Import Tax Regulations set to Become Stricter and More Streamlined

Cross-border e-commerce takes a sizeable 20 percent stake of the overall e-commerce market
in India, and 34 percent of online shoppers have already made a purchase from abroad. 26 Use
has dropped as import processes have become more stringent, and India has recently clamped
down on shoppers ordering goods from China via incorrect ‘gift’ channels to circumvent import
taxes.27

Large, well-developed international markets are preferred by Indian consumers. The U.S. is
the most popular overseas market, followed by China and Australia. India has a complex import
tax system, which it is planning to streamline with the introduction of a prepaid tax and customs
model. Merchants will have to pay duties through a state portal before products are released
for shipment.28

As of July 2020, under India’s new Consumer Protection Act 2019, merchants must make it
explicit which country they are shipping a product from, so consumers can make an informed
choice about cross-border shopping. Price gouging has also been made illegal under the Act.29

Wide-Ranging Online Consumer Protections are now in Force

Regulation/trends
India’s Consumer Protection Act 2019 came into force in July 2020. The Act requires e-
commerce merchants to provide information on their sites outlining their return, refund,
exchange, delivery, payment, security and complaints procedures.

The Act also means merchants must acknowledge receipt of a complaint within 48 hours and
address it within a month.30

Barriers or benefits to e-commerce market entry

Delivery challenges are still prevalent across India. International and domestic couriers can
have difficulties fulfilling deliveries to remote locations and villages, which can slow down
international shipments. India Post is experienced in reaching remote locations, so many
merchants favor using it to reach these regions.31

The Reserve Bank of India sets the country’s exchange-control policy and administers foreign
exchange regulations in consultation with the government of India. The country’s foreign
exchange control regime is governed by the Foreign Exchange Management Act (FEMA). 32

Factors driving the cost of payment acceptance

In January 2020, the government removed the merchant discount rate on RuPay and real-time
payment system Unified Payments Interface. This was charged by banks to merchants for
electronic payments processing in an effort to promote digital payments.33 It also mandated
digital acceptance by this means for all businesses with a turnover greater than $7K under
The Central Board of Direct Taxes (CBDT) guidelines.
Key Takeaways

India is one of the fastest growing e-commerce markets, and one with the
greatest untapped revenue pools globally. International merchants including Amazon, Walmart
and Facebook are investing in the market to establish their brand early on.1

Increased bandwidth availability, affordable data plans and increased

awareness driven by government programs is rapidly bridging the digital gap between urban
and rural India. Consequently, potential customers can be found across India’s vast geography. 2

India is sharpening its customer protections in an effort to regulate its

burgeoning e-commerce market and to offer consumers a sophisticated customer experience in
line with more developed Western e-commerce markets. Merchants must abide by the new
Consumer Protection Act to avoid falling foul of the law.
 CHAPTER 2
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY: -
Research Methodology is a systematic process used to collect information and data,
perform a careful investigation and statistically analyze it for the purpose of making
business and economic decisions. The methodology could comprise of publication
research, data collection methods, how to conduct interviews and surveys and other
research approaches. Research may include information from present and historical
studies. The research methodology is integral and the most crucial component as it
focuses on different types of research techniques and demonstrates the different
methods, methodologies and important dimensions followed in the research study and
help us to make a choice between them depending upon our research problem and
preferred approach. It is imperative to include a basis of the concepts and theories that
underlie these methods. There are many different ways to approach the research that
fulfills the requirements of a dissertation. The methods and techniques are chosen in
order to fulfill the research objectives successfully.

2.1 NATURE OF THE STUDY: -

This particular study would help to understand the present and future scenario of online
payments through apps by Earning Population and also helps to determined how much
percentage of earning population are using this service.

2.2 SCOPE OF THE STUDY: -

This study would help to know how many peoples are aware about online payments
apps. It also helps to know how many peoples are moving towards digitalization. This
research would help to know the benefits or threats of using online payments services.
2.3 SIGNIFICANCE OF THE STUDY: -
• To bring out solution in the form of applications to uproot electronic system.
• To understand the frequency of usage and the problems faced while using online
payments apps.
• To analyses and enhance payments done with the help of mobile devices at POS
terminals and the success and trustworthiness of mobile wallets used. The usability
and enhancement of the mobile wallets designed and developed.
• To understand the usage of latest method of transactions.

2.4 RESEARCH PROBLEM

The research project is about understanding the growth of online payments in India and also
the impact in the Indian economy.
• Problem statement: Causes and effects of growth of payment apps
• Unit of analysis: Consumers who use online payment apps.
• Characteristics of interest: Perception of people towards the usage of online payments.
• Environmental condition: The emergence of demonetization in the economy.
• Time and space boundary: Time span is approximately 1.5 months. Space boundary is
specific areas of Mumbai i.e. from Borivali to Andheri.

2.5 RESEARCH OBJECTIVES

The objective of the study was to find out the customer perception and impact of
demographic factors on adoption of digital mode of payment
• To know how many customers, use online payment apps for their daily transactions.
• To understand whether the usage of such apps affect them in any way.
• To learn the causes and effects of the sudden growth of the online payment apps.
• To know how some payment apps actually work.
• To understand whether demonetization was the major cause for the increase.
• To analyse the past and current usage pattern of customers.

2.6 RESEARCH DESIGN

There are basically two types of research design:

Research Design

Exploratory conclusive

This is an exploratory type of research.

• In this report, the things have been explained in detail.
 • Also, the nature and format as well as characteristics are included.
• They include ascending concepts to see the causes, nature and effects of using online
payment apps.

2.7 SOURCES OF DATA

Sources Of Data

Primary Data Secondary Data

This project is based on both primary and secondary sources of data.

PRIMARY DATA
Primary source of data used is the Questionnaire.

SECONDARY DATA
The secondary source of data was also from various other resources such as: Research
journals
• Magazines
• Textbooks
• Companies websites
• Newspapers
Data collected was analysed, tabulated and percentages were calculated by using pie charts
for the purpose of easy understanding.

2.8 SAMPLES
• Sampling Method: Convenient Sampling Method
• Sampling Units: Customers using the online payment apps
• Sample Size: Number of respondents is 70.
• Research Instruments: Structured Questionnaire is used as an instrument, to collect
valid primary data.
 CHAPTER 3
REVIEW OF LITERATURE

Nikki Hesford (2004) is a convert to person-to-person payment (P2P) apps, using PayPal
to pay for services and Venmo to pay back friends. "The only time in the last year I've drawn
out cash is for the school fete cake stall and to pay my manicurist," says Ms Hesford, who runs
her own marketing support company for small businesses."If I go for a meal with friends, I
can't be bothered messing about with two, three or four cards," she says."One person will pay
on a card and the others will transfer through an app. It takes seconds rather than minutes
fussing around with who owes what."Such P2P apps, like PayPal-owned Venmo, Apple Pay,
Facebook Messenger, WeChat Pay, and Square Cash, let you pay someone in seconds because
they're hooked up to your bank account, credit card or debit card. They are proving popular
with young people wanting a convenient, cash-free way to pay friends back for coffees,
takeaways or cocktails, but are also being used for larger payments.

A Study on the Perception of Customers towards E-Commerce and E-

Payments in Local Survey’ (2009)the authors S. Kowsalya, Swetha Krishnan, Mridhula.
R, Sowmya. A. M. mentioned that the trust in Ecommerce mainly depends upon the online
payment system which allows a customer to make payment to the online merchant or service
provider. Consumers are becoming more and more comfortable in making online transactions
and are concerned about conducting electronic business transactions and the risks involved that
have a vital impact on the transition of electronic business. Increasingly more consumers are
migrating to e-commerce to make electronic bill payments, to pay for information online, to
purchase products, services. According to the authors E-Payments refers to the technological
breakthrough that enables us to perform financial transactions online, thus avoiding hindrances
and other hassles. E-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.
“The Future of the Mobile Payment as Electronic Payment System” (2011)
the author Zlatko Bezhovski states that with all the security and convenience provided by
mobile electronic payment method, we can expect further growth of mobile payments
worldwide even surpassing payments made by credit and debit cards. However, there are
several barriers identified to the adoption of this payment method; so certain measures should
be taken to grant this industry a promising future ahead. This study finds that customers are
increasingly using mobile payment methods for their routine online purchases and for their on-
site purchases as well. With growing advanced technology that supports mobile transactions
and makes them transparent and more convenient, consumers have developed their trust and
habits on using mobile payment systems.

‘A Study on Usage of PayTM’(2016) the authors Abhijit M. Tadse and Harmeet Singh
Nannade mentions that Digital wallets are quickly becoming mainstream mode of online
payment and mobile users can nowadays use their smartphones to make money transaction or
payment by using applications installed in the phone. The aurthors through their survey states
that the PayTm has to work upon the Payment gateway to improve the transaction efficiency
as 70% people faced problem with payment gateway. Only 5% people claim to have got
assistance every time they had a failure so the service could be improved to cater the needs of
maximum customers. PayTm is currently performing well in terms of privacy but it has to work
upon discounts/offers, transaction time and bring about innovation to increase customer
satisfaction.

“E-Payment System on E-Commerce in India”(2017) the authors Karamjeet Kaur,

Dr. Ashutosh Pathak mentioned that the reliable and cashless payment system offers immunity
against theft of paper and e-money, and adopting e payment solutions or systems for different
reasons. In addition to cost reduction, reference was made to a number of other benefits,
including improved customer service, improved working capital, increased operational
efficiencies and cycle times processing efficiencies and enhanced compliance organizational
policies and procedures. This study also states that online e-payment provides greater reach to
customers. Personal attention can be given by bank to customer also quality service can be
served. Various strengths of epayment systems such as quality customer service, greater reach,
time saving customer loyalty, easy access to information, 24 hours access, reduce paper work,
no need to carry cash easy online applications etc. Balakrishnan having analyzed the various
Indian Payment Systems from 2003 to 2009 and estimated that there would be a saving of US$
10 billion annually if India were to move its entire physical payment to electronic payment. He
suggested that it will be beneficial if India could bring over the 1,55,000 post office branches
and about 1,69,000 branches of cooperative institutions into the electronic payment network.

“ S Fatonah et al 2018 J. Phys” E-commerce grows rapidly and provides an opportunity

for companies to increase sales over the internet. Nowadays, every individual and company
familiar with e-commerce to make sales and purchase products and services . The advent of e-
commerce has created new financial needs that are not effective in many cases met traditional
payment systems. An electronic payment system comes to replace a cash payment system .
Sales of goods and services increased significantly with the adoption of the use of e-payment
systems so that electronic payments became an increasingly important part of the payment
system . E-Payment is a system that provides tools for payment of services or goods carried on
the internet . E-payment system provides the ease of transaction processing in e-commerce
between consumers and sellers . Using the E-payment System has many benefits for payers,
payees, E-commerce, banks, organizations and governments. These benefits can lead to
widespread electronic payment systems in the world . An efficient and reliable e-payment
system enables faster payouts, better tracking, transparent transactions, reduced time use, cost
savings and increased trust between sellers and buyers. The development and adoption of
technology in the e-payment system involve financial transactions, assimilated users and
quality e-payment technology tend to shape their own perceptions and expectations. Electronic
payment systems are now commonly used such as transactions via ATM machines, use of
credit or debit cards, through online banking and mobile banking. E-payment provides
significant cost savings on paper-based payments . The online payment system has many
financial risks that may occur during the transaction process. The negative impacts of online
payments can occur because of many things. Because of the nature of the internet, authenticity
and security of payments can’t be guaranteed by technologies that are not designed for e-
commerce. We require an electronic payment (e-payment) system that are not only provides
secure payments system but also must have properties such as online customers and seller
authentication, proof of transactions authorized by customers to both sellers and banks,
customer privacy and transactional data security. For some cases, it raises a sense of uncertainty
and takes risks when buying online. Over the years there have been many e-commerce
technologies that developed. The security of their hardearned money is still unanswered.
Electronic payments will be discussed in this paper starting from the definition, type, evolution,
to the risks that might occur in the use of electronic payment systems. The final result in this
paper is an analysis of various studies conducted on the application of electronic payment
systems in various countries based on the methods used, factors that can influence, and the
scope so that this research can be a reference for future research.

“Gyamfi-Yeboah Kwabena December(2019)” Small and medium enterprises can

employ a digital payment system to increase the trade and satisfy the trading partners and other
stakeholders. The use of digital payment system faster the business transactions, and decrease
the cost among parties. This study conducted to examines the effects of the digital payment
system on SME's performance. This study used a technology-organizational-environmental
framework to investigate the effects of the digital payment system. This study used a closed-
ended self-administered questionnaire to collect data. Data collected from September 2019 to
November 2019. The respondents of the study were executives and owners of SMEs. The
partial least squares structural equation modeling approach utilized to analyze the data. The
findings of the study include significant effects of technology, organizational, environmental,
and use of digital payment systems on SME's performance. This study helps the owner of
SME's to execute the digital payment system to foster trade and relationship with stakeholders.

“Jurnal Esensi (DEC 2019)” In business and financial transactions generally, the
introduction of Electronic-based payment system (EPS)-exchange of an electronic worth of
payment from the buyer to the seller by means of an online payment channel that permits clients
to remotely access and deal with their financial accounts and exchanges over an electronic
system (Teoh et al., 2013)-has shifted financial operations from the traditional relatively stable
environment to an electronic-based operation, without visiting a brick-and-mortar institution
(Asiimwe, 2015), which guarantees faster transactions, due to reduction of queues at points of
sales; improve hygiene (eliminating the bacterial spread through handling notes and coins);
increased sales; ease in cash collection (elimination of time spent on collecting, counting and
sorting cash); and managing of staff entitlements (Ugwueze & Nwezeaku, 2016). The benefits
of the adoption of electronic based payment systems also includes the facilitation of secured
and faster access to capital resources (Khan et al., 2017), faster pay-outs, better tracking,
transparent transactions, reduced time use, cost and time savings, increased number of clients,
more service for customers, greater efficiency, enhancement of bank's reputation (Yang et al.,
2018), larger customer coverage, international products and services, promotion and branding,
increase in customer satisfaction and personalized relationship with customers, and easier
documentation and transaction tracking (Ugwueze & Nwezeaku, 2016), increased trust
between sellers and buyers (Fatonah et al., 2018), ease-up of difficulties and securities
associated with the conventional cash-based and cheque payment systems, and the added
advantage of pliability in usage which placed the electronic-based payment system options on
a celebrated stride than the paper-based payment options (Khan et al., 2017), thus decreasing
the relative importance of using cash as the only means of exchange.

“Omer Faruk Derindag et al 2019” The development of information and

communication technologies has reached a level where their use in business and governance is
becoming not only expedient but also inevitable. The Internet and ICT have created the
technical and technological foundation that can significantly improve the efficiency of public
administration, provide businesses and citizens with access to necessary information, simplify
bureaucratic procedures and reduce the time for decision making. The paper describes the new
conditions in which the business is developing. The article presents the features of the
interaction of e-government and business, the impact of e-government on the development of
the economy as a whole. The authors analyzed the process of development of technologies for
e-governance and e-commerce. The authors identified the tasks that are solved by means of e-
government. Also, the authors set up indicators for evaluating the effectiveness of the e-
governance. The implementation of the e-government demonstrates advantages for the further
development of the economic sector and the whole state in general.
“Sanghita Roy, Dr. Indrajit Sinha (2014)”. stated that E- payment system in India,
has shown tremendous growth, but still there has lot to be done to increase its usage. Still 90%
of the transactions are cash based. Technology Acceptance Model used for the purpose of
study. They found Innovation, incentive, customer convenience and legal framework are the
four factors which contribute to strengthen the E- payment system. E-payment systems are
important mechanisms used by individual and organizations as a secured and convenient way
of making payments over the internet and at the same time a gateway to technological
advancement in the field of world economy (Slozko & Pello, 2015).

“Rakesh H M & Ramya T J (2014)” in their research paper titled “A Study on Factors
Influencing Consumer Adoption of Internet Banking in India” tried to examine the factors that
influence internet banking adoption. It is found that internet banking is influenced by its
perceived reliability, Perceived ease of use and Perceived usefulness. In the process of internet
banking services expert should emphasize the benefits its adoption provides and awareness can
also be improved to attract consumers‟ attention to internet banking services.

“Kartikeya Bolar (2014)” In his research paper “End-user Acceptance of Technology

Interface In Transaction Based Environment “stated that Creators and investors of technology
need information about the customers‟ evaluation of their technology interface based on the
features and various quality dimensions to make strategic decisions in improving technology
interfaces and compete on various quality dimensions.

“Nitsure (2014)” in his paper observed that the problem being faced by developing
countries like India in the adoption of E-banking initiatives due to low dissemination of
Information Technology. The paper highlighted the problems such as security concerns, rules,
regulation and management. In India there is a major risk of the emergence of a digital split as
the poor are excluded from the internet and so from the financial system.
“Balazs Vinnai, general manager, Digital Channels, Misys(April 25, 216)”
says that “It is critical for banks to consider new digital channels as part of an integrated
strategy and evolve from first to second generation digital banking: switching digital from a
supporting role, to the primary sales and communication channel for banks,” says Vinnai.
“Reengineering processes around the customer is not easy, but banks must embrace digital
banking to remain competitive and relevant.”

“Pardhasaradhi Madasu (2015)” to assess and report the progress made by the RBI in
moving towards the ‘Cashless’ economy. Data collected from RBI database related too cashless
transactions from the year 2004-05 to 2014- 15. India did not have a place in the top 16 non-
cash markets of the world but China had. In comparison with the credit cards, there had been
an increase in the usage of debit cards at ATMs. Non-cash services like Immediate Payment
Services or M-Wallet had not made any significant impact

“Bappaditya Mukhopadhya Y (2016)” To estimate the impact of demographic profile

on usage of digital payment system. And to analyse the growth of various non cash methods.
For getting the estimation of cashless transactions that are prevailing in India, the study used
data from World Bank’s Global Findex from the surveys that were conducted in year 2011.
And it also used data from the household and enterprise surveys which were conducted in year
2009-2010. The study revealed that an extremely small correlation exists between cashless
payments and education level as well as between cashless payments and income earned. It also
revealed that a very high positive correlation exists between the people who collect the
payments in their bank accounts and of those who are engaged in cashless payments. Prepaid
cards and mobile payments showed maximum growth
“Dr. Shilpa Bhimrao Gaonkar (2018)” To explore various payment instruments
available to the people, and its benefits. Conceptual Study. It has used data from reports of
RBI, GOI, NPCI, MEDIANAMA etc. Study revealed that various new instruments are
emerging. Benefits of going cashless increased transparency, efficiency and convenience,
easier tracking, etc

“Dr. N. Rakesh, Dr. K. Suresh Kumar, Dr. S. Satheesh Kumar (2018)” To

examine the present scenario of electronic payments and to study the range of service facilities
that UPIBHIM technologies offer. Analytical and critical method of research is used in the
study. And data is collected from the secondary sources such as journals, government websites
and news articles. Electronic transactions have increased. This could happen only with
extensive recognition and acceptance of popular instruments such as credit and debit cards, net
banking and e-wallets by the Indian population. But surprisingly, UPI came out to be the real
distinct advantage.

“Dinesh, T. M., Kiran Kumar Reddy, and Suhasini, K. (2018)” To assess how
impacted the digital payments in India. Exploratory data analysis was conducted and data for
the study was collected from NPCI web portal for the period May-2016 to October-2017. The
study revealed that there was a considerable effect of demonetization on digital payments
which are more visible in RTGS and mobile transactions.

“Lei-da Chen and Ravi Nath (2008)” To identify factors that influence consumer
mPayment adoption in the United States. Data was collected from 299 respondents and
analyzed using Confirmatory Factor Analysis and ANOVA. Perceived Transaction, Perceived
Transaction Speed, Privacy Concerns, Security Concerns The results suggested that higher
transaction speed, transaction convenience, and compatibility perceptions would lead to high
propensity to adopt mPayment while grater security and privacy concerns would lead to lower
propensity to adopt mPayment. Among all the constructs, Compatibility has the highest
correlation with Intention to Adopt.

“Sevgi Ozkan, Gayani Bindusara and Ray Hackney (2010)” Through theoretical
constructs and an empirical analysis, the study aims to inspect the various critical factors that
may ensure consumer adoption of e- payment. Technology acceptance model and Theory of
reasoned action were used. A questionnaire was framed and was sent to 200 people out of
which 155 responded. Data was analysed through Pearson’s correlation analysis and Multiple
regression analysis using SPSS software. Perceived risk, security, Perceived advantage, trust,
Web assurance seals, usability. The study revealed that three of the critical factors were
necessary (security, advantage, web assurance seals) and three were relatively sufficient
(perceived risk, trust and usability) through customer intentions to adopt an e-payment system.

“İkramDaştan and CemGürler (2016)” The study aims to examine the factors which
affect the adoption of mobile payment systems by the consumer. Convenience sampling
method was used to survey 225 respondents online. Developed a research model and tested the
proposed relationships by SEM. Perceived Reputation, Environmental Risk, Mobility, Trust,
Perceived Usefulness, Perceived Ease of Use A negative relationship was found between
environmental risk and perceived trust whereas a positive relationship was found between firm
reputation and perceived trust. Perceived usefulness and perceived ease of use are the factors
which do not have any effect on Adoption of MPS. Perceived Trust, Perceived Mobility and
Attitude have a positive effect on the adoption of MPS.

“Maryam Barkhordari, Zahra Nourollah, Hoda Mashayekhi, Yoosof

Mashayekhi, Mohammad S. Ahangar (2017)” The study investigates factors
influencing trust in e-payments systems in Iran. Reviewed the literature and decided on a set
of factors influencing security and trust. Then they are tested by empirical work using SEM.
Potentially determinant factors of trust are developed which are technical and transaction
procedures, usability and access to security guidelines Findings revealed that technical &
transaction procedures, and access to security guidelines are significant factors for improving
consumers’ perceived security, while the most important factors influencing trust are access
to security guidelines and security. Finally, consumers’ perceived trust also has a positive
impact on EPS adoption

“Dr. M Sumathy and Vipin KP (2017)” The research aims to study the determinants
of safety perception and the attitude, awareness level of people towards digital payments. The
data was collected from 100 urban respondents in Malappuram District of Kerala using
Convenient sampling survey. And the tools which were used for analysis were Percentage
analysis, one way Anova, independent sample t-test, etc. Level of awareness, gender, education
level and attitude towards digital payment There found to be no significant difference between
level of awareness towards digital payment systems between male and female. Also no
relationship existed between education of the respondents and their level of awareness towards
digital payment systems.
 CHAPTER 4
DATA ANALYSIS, INTERPRETATION AND PRESENTATION

Maximum number of people answered the survey was 90% from 18-25. The list number of
people answered the questionnaire belongs to the age group from18-25. The responses shows
that the people of all ages had started using online payment application.
The male’s were dominating in the questionnaire with 61.40%. The female were 38.60% in
the reponse

Majority of the people use the online payment apps on day to day basis.

62.90% the approx. 44 people use online apps for payments on a daily basis.

17.10% the approx. 12 people often use it on daily basis.

20% the approx..14 people do not use it daily.

This indicates that people had started using online payment application in day to day work
this indicates this is good for the nation economy and development.
22.86% i.e. 16 out of 70 people of the crowd use Paytm as an online payment medium for
their transactions.

2.86% i.e. 2 of them use PayPal for online payments. 65.71% use Google pay and others.

The Google pay had the large number of the users as it was ahead of others application in
marketing and indicates the proper use of the market situation.
54.3% people use online apps for about 20-40% in their daily life.

28.6% of the crowd use it for about 40-60% in their daily life.

17.1% people use it for about 60-80% and others for majority of their transactions.

4.3% people ues is for about 80-100% .

This specifies still now also majority of people does not completely rely on the online
payment systems on daily basis….it still need times to be completely evaluated in our daily
life. The reasons for not evaluating can be many such as safety, technical error, complex uses
etc…..the government with the payment companies need to work on it.
This question very clearly shows what people think are the causes of the growth of online
payment apps. Among which, 58.6% of the people think online apps are used because it is a
safety cash.

The other important factors following it are demonetization and less tedious task purposes.
The safety of cash is still a point to be changed to be made people reliable on online payment
system. The online payment application also helped some in case of emergency as it can be
used for 24*7 hours.
The above graph clearly states what online payment apps are frequently used for. Where,
Online payments rank the highest.

This had made the life easier to do the payment rather than cheque or going to the specific
office for the payment. Time, money and stress is reduced with the payments using the online
application
54.3% of the crowd have used payment apps just a few days or weeks ago for their online
transactions. 8.6% have used it months ago and others since a years ago.

This is very good to see as majority of the had started using it frequently and still some are
not using but a using after an interval of approx. 1 month.
On a rank of 1-5, where 1 being not affected in any way and 5 being highly affected by the
payment apps. Majority of the people have been affected by the growth of online payment
apps.

The online payment application had affected people life as it reduce the time, money, stress
and the other complex to be rested off.
The above graph shows 1 as strongly agree and 5 as strongly disagree, 30.0% people strongly
agree that the growth of online payments was necessary for an Indian economy.

This is important as government can have a record of the information and can be easily
collected and the paper work will be reduced
People were less aware of online payments in the past. After the growth, 45.7% think they
have got a clear view of online payment apps.

More awareness programmes shall be conducted as it should be known to urban as well as

rural people.
The above graph shows 1 as strongly agree and 5 as strongly disagree, where 42.9% people
are neutral about the above stated fact that India should fully convert from cash to cashless
economy.
After the growth of such payments, the online apps have gradually shown increase and
majority of 64.3% people think the present payment apps like Paytm, Google pay, etc are
doing quite a good job.Though people come to know about the existence of these online
payment apps
Knowing about the procedure involved in making the payment is also very important.

In the above pie chart, 81.4% are well aware of the online payment system and process of use
of online payment system
Q.13 Lastly, mention any changes you think is necessary in the present
payment pattern

Security

I don't feel any changes are required until now!

No comments

None as of now.

Don't think so any changes are required!

Nothing

Should be more secured

No

Banks should go paperless.

No changes required

Not sure

Refund should be quick if the transaction fails

Payment should be effected even when the internet connection fluctuates a bit as a reliable
payment channel for smooth transfer of funds.

None so far.

There should be more payment safety during online transactions

A little more secure

Need prefect security system

KEEP CUSTOMER'S DATA SECURE

Transaction need more securities

Not much.

Instant solutions rather than 4-5 days

I don't think any change is necessary.

Nothing.

Online transactions are not secure for large payements so it should get much more better in
terms of large payments

No changes

Should be more secure

No they are perfect

Better security

Less cash more digital payment

It should be done online

There has to be a function where we'll get to know is it a fraud payment or not
 CHAPTER 5

CONCLUSION

There had been an increase in the number of users of online payment systems. The increase
in number due to people does not want to stand in line, waste their time. The work of doing
all the formalities is also quite tedious. The people had started working online as it saves their
time and is rather simple and easy. The people in the village has started using the online
payment apps but in less numbers. A lot of changes and awareness had to spread in the rural
area for the use of online payment applications. The problems in transaction such as money
deducted but amount not received, technical issues, still robbery of the money is still a
problem. The government, private companies and institution should try to outsource the
security of the application to the companies that provide total solution to this problem.eg
apple, google. The ecommerce payment system had resulted in numbers due to the support of
government and rbi. The complexity of the application is still a problem with the people that
are uneducated, people of the rural areas etc. The companies should try to make easier and
simple use of the application that will increase the number of users of online payment system.

There had been increase in use of e-payment application due to demonetization as the there
were less supply in the economy. The online payment application had also increase the
number of employment in the IT sectors. The online payment companies should also provide
the safeguard to the people regarding their data ie their credit card numbers, phone numbers
etc. The paytm seems to have the higher number of the users, so the other payment
application companies need to think innovative and to the problems of the people of the
safety and the needs.

Still the people are not totally rely on online payment application because of the different
cases, frauds, complex structure etc. The companies should also mentioned them the details
of the upgradation of the application to the people so that the people should know the changes
after the upgradation. The online payment applications also had to increase the discounts and
cashback offers etc, so that large number of the people use such application. The payment
application had also made the government to maintain the record with the help of the
payment companies for the tax, transactions, withdrawal to make any changes in the
economy.

The people should be made aware of the advantages of using such application and their
implementation in their daily life. The users should be given cashback and other offers for
any transaction done…as there should be no limit. The online payment application had made
the life of the people easier as it can be done 24*7 hours as there is no time restriction in the
physical presence. The views of the People should also be included in the process of the
online payment application. Even there should be more transparency of the data so that the
people can start believing to the online payment application that includes what is the
procedure that they go with, the follow up of the details in each time of the transaction. The
rural people tends to does not want the space in the village to be occupied for the offices and
bank and rather wants the place to be used for the agricultural puprpose. Try to get regurality
in the feedback of the people and acoording to the changes make the feedback.

Thus alot of changes had to be done in the online payment application as assurance should be
given to the safety, working, data etc. The india will become total digital if the government,
online payment companies as well as other institution make people aware of the use of the
application and provide the application in simple way with less complexity and assurance of
safety of their money and after making the people knowledge from head to toe about the
online application and should made it mandatory to the people to go cashless and start using
online payment system.
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DIA

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A STUDY OF PREFERENCES OF INDIVIDUALS OFMUMBAI

TOWARDS E-COMMERCE PAYMENT SYSTEMS

* Required

Name *

Your answer

Age *
o 18-25
o 26-35
o 36-45
o 46 and above

Gender *
o Female
o Male

Q.1 Do you frequently use different payment apps for your day to day transactions? *

o Yes
o No
o Maybe

Q.2 what kind of payment apps do you often use? *

o Paytm
o Paypal
o Google pay
o Other:

Q.3 How frequently do you use them in your day to day life? *
o 20-40%
o 40-60%
 o 60-80%
o 80-100%

Q.4 What do you think has caused people to use such apps? *
o Demonetization
o Less tedious task
o Safety cash
o Emergency
o Others

Q.5 What kind of transaction do you use payment apps for? *

o Daily chores
o Online payment
o NEFT / RTGS
o Other:

Q.6 When is the last time you used any payment app for a transaction? *
o Day to day
o Few days-weeks
o Months ago
o A year ago

Q.7 On a scale of 1-5, rank wether the use of payment apps has affected you in any way?

Not affected

Highly affected

Q.8 The growth of such payments was necessary for an economy in a country like India. *

Strongly agree

3
4

Strongly disagree

Q.9 The growth of payment apps has made people more aware about online transaction. *
o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree

Q.10 Mumbai should fully convert itself from a cash-based to a cashless City *

Strongly agree

Strongly disagree

Q.11 Do you think the present payment apps are doing a good job?*
o Yes
o No
o Maybe

Q.12 Are you well aware of the process of using the payment apps?*
o Yes
o No
o Maybe

Q.13 Lastly, mention any changes you think is necessary in the present payment pattern. *

Your answer