1.

Introduction to the Topic

• Digital Payment:

A digital payment, sometimes called an electronic payment, is the transfer of value from
one payment account to another using a digital device such as a mobile phone, POS
(Point of Sales) or computer, a digital channel communication such as mobile wireless
data or SWIFT (Society for the Worldwide Interbank Financial Telecommunication).
This definition includes payments made with bank transfers, mobile money, and
payment cards including credit, debit and prepaid cards.

There is no single, universally accepted definition of digital payments because digital

payments can be partially digital, primarily digital, or fully digital. For example, a
partially digital payment is one in which both payer and payee use cash via third party
agents, with providers making digital bank transfers in the backend. A primarily digital
payment might be one in which the payer initiates the payment digitally to an agent
who receives it digitally but the payee receives the payment in cash from that agent.

So, the definition must be fit-for-purpose. One definition emphasizes the payer-payee
interface as the defining element. Another defines digital payments based on the
payment instrument, or some other variable. These definitional choices become
particularly relevant when the objective is to estimate the number or share of digital
payments in a specific use-case, organization, company, country, or region. The
definition of digital payments determines how they are measured. For more details
about definition and measurement Box 1 further down.

The Government of India has been undertaking several measures to promote and
encourage digital payments in the country. As part of the ‘Digital India’ campaign, the
government has an aim to create a ‘digitally empowered’ economy that is ‘Faceless,
Paperless, Cashless’. There are various types and methods of digital payments.

It’s safe to say that cashless transactions have revolutionized the financial outlook of
India. Utilizing mobile phones to make payments instead of opting for the traditional
modes of payment has increased tremendously since demonetisation.

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When the business operations of most SMEs came to a standstill during demonetisation,
the businesses that had shifted to cashless transactions managed to curb losses. The
convenience and security associated with these payment modes is an important factor
in the surge. With the recent introduction of several digital modes of payment in India,
business owners are slowly adapting to the shift.

In cashless transactions, payments are made or accepted without the use of hard cash.
This includes payments made via credit/debit cards, cheques, DD, NEFT, RTGS or any
other form of online payment that removes the need for cash. As a business owner,
customer satisfaction is your main goal. This is because you want your customers to
have a great experience and keep coming back to do business with you. But processing
the customer payments can become an arduous and time-consuming process. In most
cases, this is because the payment options you’ve offered are more convenient for you
than your customers.

Offering a variety of payment options will allow customers to choose their preferred
method of payment, which will get you paid faster. Adding online payments to your
options gives your customers the flexibility to pay through the option that is most
convenient for them. Business owners and consumers can both benefit from digital
payment modes in various ways.

The feasibility of making and receiving payments is the key factor for prioritizing
digital payments. Online payments rule out the necessity to carry cash, and they also
save time, as business owners and customers no longer have to queue up for ATM
services. Payment apps also help you keep track of your incoming and outgoing funds,
which comes in handy while filing returns.

Digital payment modes are made secure with varying levels of encryption and data
authentication. Most payment modes have enabled two-factor authentication (TFA) to
add an extra layer of security. Also, it’s always easier and safer to carry a smartphone
rather than carrying wads of cash.

To boost the move towards a cashless economy, the government has decided to offer
incentives and discounts for making online payments. The government is now
providing waivers on cashless transactions utilised for service tax payments, purchase
of fuel, train tickets, highway toll tickets, and insurance schemes.

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 • Evolution of Digital Payment Modes

The Payment and Settlement Systems Act, 2007 provides for the regulation and
supervision of payment systems in India. The Act appoints RBI to supervise the
payment systems in India. The payment system has been defined under the Act as “a
system that enables payment to be effected between a payer and a beneficiary, involving
clearing, payment or settlement service or all of them, but does not include a stock
exchange”.

Source: RBI

RBI has authorized various Payment System Operators (PSOs) such as NPCI, CCIL,
ATM networks, TReDS platform providers, to name a few, to operate payment systems
in India. National Payments Corporation of India (NPCI) was established in 2008 by
RBI and Indian Banks’ Association as an umbrella organization for operating retail
payment systems in India. The role of NPCI is to provide infrastructure to the banking
system in India for physical and electronic payment systems. It works on bringing
innovations in retail payment systems. Some retail payments products brought about by
NPCI are IMPS, RuPay card scheme, UPI, NACH, Aadhaar-enabled Payments System
(AePS), and BBPS. Even Cheque Truncation System (CTS) was transferred to NPCI.
With NPCI International Payments Limited, NPCI is also working towards the
internationalization of RuPay and UPI. With effect from January 2021, the RBI has
introduced the ‘Positive Pay System’ for cheques under which the issuer must enter
details like date, beneficiary’s name, payee, and amount in NPCI’s digital platform.

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 • Growth of Digital Payment

In the last ten years, there has been a shift in payment preference from paper clearing
to digital payment. RBI data indicates that in 2010-11, paper clearing constituted 60%
of the total retail payments and dropped to 3% in 2019-20 by volume, while retail
electronic payments increased from 18% to 61%. In terms of value, paper clearing
comprised 89% of the total retail payment system in 2010-11 which fell to 20% in 2019-
20. Digital payments have grown from 498 crore transactions with a value of Rs. 96
lakh crores in 2010-11 to 1623 crore transactions with a value of Rs. 3,435 lakh crores
in 2019-20.

This shift is attributed to the increased penetration of mobile phones and the internet in
the country which has helped in the quicker adoption of cashless transactions. The
report states that low-value payments dominate the volume/turnover, and products that
afford real-time, instantaneous transfers are the most preferred modes of payment as
revealed by data.

Source: RBI

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 • Modes of Digital Payments

After the launch of Cashless India, we currently have several methods of digital
payment available in India. Some methods have been in use for more than a decade,
some have become popular recently, and others are relatively new.

Banking Cards

People are widely using Banking cards, or debit/credit cards, or prepaid cards, as an
alternative to cash payments. Andhra Bank launched the first credit card in India in
1981.

Cards are preferred because of multiple reasons, including, but not limited to,
convenience, portability, safety, and security. This is the only mode of digital payment
that is popular in online transactions and physical transactions alike. Nowadays, many
apps are being launched with the sole purpose of managing card transactions like Cred,
Square, etc.

Unified Payment Interface

UPI is a payment system that culminates numerous bank accounts into a single
application, allowing the transfer of money easily between any two parties. As
compared to NEFT, RTGS, and IMPS, UPI is far more well-defined and standardized
across banks. You can use UPI to initiate a bank transfer from anywhere in just a few
clicks.

The benefit of using UPI is that it allows you to pay directly from your bank account,
without the need to type in the card or bank details. This method has become one of the
most popular digital payment modes in 2020, with October witnessing over 2 billion
transactions.

Mobile Wallets

Mobile Wallets, as the name suggests, are a type of wallet in which you can carry cash
but in a digital format. Often customers link their bank accounts or banking cards to the
wallet to facilitate secure digital transactions. Another way to use wallets is to add
money to the Mobile Wallet and use the said balance to transfer money. Nowadays,
many banks have launched their wallets. Additionally, notable private companies have
also established their presence in the Mobile Wallet space.

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Mobile Banking

Mobile banking refers to the act of conducting transactions and other banking activities
via mobile devices, typically through the bank’s mobile app. Today, most banks have
their mobile banking apps that can be used on handheld devices like mobile phones and
tablets and sometimes on computers.

Mobile banking is known as the future of banking, thanks to its ease, convenience, and
speed. Digital payment methods, such as IMPS, NEFT, RTGS, IMPS, investments,
bank statements, bill payments, etc., are available on a single platform in mobile
banking apps. Banks themselves encourage customers to go digital as it makes
processes easier for them too.

Internet Banking (Net Banking)

Internet Banking, also known as e-banking or online banking, allows the customers of
a particular bank to make transactions and conduct other financial activities via the
bank’s website. E-banking requires a steady internet connection to make or receive
payments and access a bank’s website, which is called Internet Banking.

Today, most Indian banks have launched their internet banking services. It has become
one of the most popular means of online transactions. Every payment gateway in India
has a virtual banking option available. NEFT, RTGS, or IMPS are some of the top ways
to make transactions via internet banking.

Point of Sales (PoS) Terminals

PoS (Point of Sale) is known as the location or segment where a sale happens. For a
long time, PoS terminals were considered to be the checkout counters in malls and
stores where the payment was made. The most common type of PoS machine is for
Debit and Credit cards, where customers can make payment by simply swiping the card
and entering the PIN.

With digitization and the increasing popularity of other online payment methods, new
PoS methods have come into the picture. First is the contactless reader of a PoS
machine, which can debit any amount up to Rs. 2000 by auto-authenticating it, without
the need of a Card PIN.

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 • Fast payments through IMPS & UPI are becoming popular

Fast payments are characterized by speed and continuous availability. IMPS and UPI
are the two fast payment systems existing in India. In 2010, India became the fourth
country to introduce IMPS with an Rs. 2 lakh limit. Even non-bank entities can
participate in these payments. On the other hand, UPI is a mobile-based fast payment
system under which bank details need not be shared with the remitter. It helps in money
transfer with persons, merchants, utility bill payments, and QR code-based payments.
Interoperability is also a factor that RBI considers important. As per the data with the
RBI, the two systems handled 8.35 crore transactions on a daily basis for a value of Rs.
22,854 crores in December 2020. The adoption of the two fast payment systems has
exponentially increased in the last few years with them becoming the preferred mode
of small payments for a majority of the people.

Source: RBI

7
 • Awareness and Adoption of Digital Payment among People

Digital payment system helps everyone to save time and energy and is more convenient
for instant money transfers all across the world. Further, there are many types of digital
payment systems available at present which includes Unified payment interface,
Aadhaar enabled payment service, Unstructured supplementary service data, Card
payments and electronic wallets. Digital payments are used for purchase and sale
transactions, ticket bookings and utility payments, banking and other investments and
taxation payments. It also helps the business organisations to increase their profits and
reduce transaction costs. It helps the government in prompt collection of taxes and e-
governance.

In digital India campaign, Indian government has stressed on speedy and substantive
reforms in digitalization for promotion of quality and excellence. Digital Payment is
one of these reforms. There are so many awareness programmes have been started to
spread Awareness regarding various modes of Digital Payment like Digi Shala-
Educational TV channel for digital payments, Digital finance for rural India creating
awareness and access through common service centres, Vittiya Sakshatra Abhiyan
(Visaka) by MHRD.

As Digital Payment is still in its infancy stage and general public being is an important
part of the system, it is essential to understand their perspective and to know how much
they are aware about this system. Here it is interested to examine particularly about the
Awareness level of Digital Payments among people in the present Indian setting due to
the intriguing developments that are currently taking place. It provides insights which
will lead to wider Digital Payments Acceptance of and use, to the extent that Digital

Digital payment system in India, has shown tremendous growth, but still has lot to be
done to increase its usage. 24*7 service, time saving, convenience and security factors
contribute to strengthen the digital payment system. Digital transactions and mobile
wallets, with more secured features, reduced cost of managing and ease of transaction
digital payments are the probable developments in digital payments all over the world.
There are fewer problems for the public to use cashless digital methods at present. But
the government’s efforts in creating awareness, building trust, providing cyber security
framework and necessary infrastructure will make it possible for faster acceptance
among the public to adapt towards digital payment systems.

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 Payment System Indicators – Annual Turnover (April-March)

Volume (Lakh) Value (₹ Crore)

Item
2018-19 2019-20 2020-21 2018-19 2019-20 2020-21
1 2 3 4 5 6 7

A. Settlement Systems

CCIL Operated Systems 36 36 28 11,65,51,038 13,41,50,192 16,19,43,141

B. Payment Systems
1. Large Value Credit
1,366 1,507 1,592 13,56,88,187 13,11,56,475 10,55,99,849
Transfers – RTGS
Retail Segment
2. Credit Transfers 1,18,481 2,06,506 3,17,852 2,60,90,471 2,85,62,857 3,35,22,150

2.1 AePS (Fund Transfers) 11 10 11 501 469 623

2.2 APBS 14,949 16,766 14,373 86,226 99,179 1,12,747

2.3 ECS Cr 54 18 0 13,235 5,145 0
2.4 IMPS 17,529 25,792 32,783 15,90,257 23,37,541 29,41,500
2.5 NACH Cr 8,834 11,290 16,450 7,29,673 10,43,212 12,32,714
2.6 NEFT 23,189 27,445 30,928 2,27,93,608 2,29,45,580 2,51,30,910
2.7 UPI 53,915 1,25,186 2,23,307 8,76,971 21,31,730 41,03,658
3. Debit Transfers and
4,914 7,525 10,456 5,24,556 7,19,708 8,72,552
Direct Debits

3.1 BHIM Aadhaar Pay 68 91 161 815 1,303 2,580

3.2 ECS Dr 9 1 0 1,260 39 0

3.3 NACH Dr 4,830 7,340 9,630 5,22,461 7,18,166 8,68,906
3.4 NETC (Linked to Bank
6 93 650 20 200 913
Account)
4. Card Payments 61,769 72,384 57,841 11,96,888 14,34,814 12,93,822
4.1 Credit Cards 17,626 21,773 17,641 6,03,413 7,30,895 6,30,414
4.2 Debit Cards 44,143 50,611 40,200 5,93,475 7,03,920 6,62,667
5. Prepaid Payment
46,072 53,318 49,392 2,13,323 2,15,558 1,97,695
Instruments

6. Paper-based Instruments 11,238 10,414 6,704 82,46,065 78,24,822 56,27,189

Total – Retail Payments

2,42,473 3,50,147 4,42,229 3,62,71,303 3,87,57,759 4,15,12,514
(2+3+4+5+6)
Total Digital Payments
2,32,602 3,41,240 4,37,118 16,37,13,425 16,20,89,413 14,14,85,173
(1+2+3+4+5)

Source: https://www.rbi.org.in/Scripts/AnnualReportPublications.aspx?Id=1322

9
 2. Literature Review
KM, S. (2021), in his study of A Study on Consumer Perception of Digital Payment
Methods in times of Covid Pandemic, he has observed the changes as per the mindset
of the consumers towards the digital payment in the pandemic. In this study they intend
to look at the consumer perception of digital payment methods in times of Covid
Pandemic on the basis of their demographic characteristics like gender, age, education,
profession, and income. In this pandemic the government have imposed the restriction
and due to this leads to the digitalization drive in the Indian economy caused a
tremendous leap in cashless transactions. With the onset of Covid Pandemic and
subsequent lockdown, online shopping was resulted by the massive population further
boosting online payments and also using the different modes of the digital payments.

Yang, M., Mamun, et al. (2021), in their study of Cashless transactions: A study on
intention and adoption of e-wallets, Sustainability, 13(2), 831, they have examined that
the mindset to use of the digital payments is totally depending on the consumers
attitudes and consumer perception. The positive attitude towards the digital payment is
in return to get the large number of the benefits among the people. The negative attitude
is to give just cash payment to reduce the process of digital payments and mindset to
not to show more entries in the bank.

Mohd, S., & Pal, R. (2020), in their study of Moving from Cash to Cashless: A Study
of Consumer Perception towards Digital Transactions, they have observed that the
consumers are adopting the various modes of the digital payment because of the various
benefits given by the government. In this they have mentioned that the people are
moving to the cashless transactions from the cash due to the demonetisation which also
leads to the biggest drive for the adoption of the digital payments among the people. It
has concluded that the cashless transaction system is reaching its growth day by day, as
soon as the market becomes globalised and the growth of banking sector more and more
the people move from cash to cashless system.

Hasan, A., AtifAman, M., & Ali, M. A. (2020), in their study of Cashless Economy
in India: Challenges Ahead, Journal of Commerce, 8(1), 21-30, they have examined
that there are totally 2 sides of the coin of the Digital Payments that is Positive and the
Negative. As the positive side is that the people were no need to take the lots of the

10
physical notes and it makes easy for the people to make the digital payments. On the
other hand, the negative side is that, some other crimes such as burglary, extortion, bank
robbery, etc. are also declining. One of the most important motives to implement and
motive cashless transaction is to take control on the illegal transactions and all activities
related to terrorism.

Sreenu, N. (2020), in his study of Cashless payment policy and its effects on economic
growth of India: An exploratory study, ACM Transactions on Management Information
Systems (TMIS), 11(3), 1-10, he has explored the use of cashless payment to card
payments, mobile banking and E-money in India. The paper has explained that the trust
determinations of online payment is increasing or advancing among the people but not
to E-payments. The massive expansion and encouragement of cashless payment
transactions is powered by the development of IT and new technological innovation in
mobile technology. In the near future, technology such as television, radio frequency
identification, and near-field communication will control the innovation in cashless
payment systems. The possibility of the completely cashless transactions will not
possible in India but maybe get increment in the use by 20 to 30 %. However, the use
of one kind of E-payment system will impact on another type of E-transaction system
in the short term.

Rudresha, C. E. (2019), in his study of Cashless Transaction in India: A

Study, International Journal of Scientific Development and Research, 4(2), 62-67, he
has examined like that the cashless economy is the such type of the economy in which
there is little amount of the cash flow and all the goods and services are brought online
and all the financial transactions are done on a digital platform and also mentioned
about the certain limitations and problems of digital payment to the general public.

Singhraul, B. P., et al. (2018), in their study of Cashless Economy–Challenges and

Opportunities in India, Pacific Business Review International, 10(9), 54-63., they have
evaluated with the major findings of the study show that India in terms of using digital
payment methods is still very poor in comparison to other developed countries in the
world. As many countries are already turned up with their electronic payment system,
India is in its beginning stage and all most of all population are mainly dependent on
paper cash based transaction because of unavailability of proper internet connectivity,
lack of awareness and knowledge of financial transaction, charges on card payments

11
and un operational bank accounts along with un operational digital payments systems
such as servers etc. and also the fear of the customers towards the digital payments.

Garg, P., & Panchal, M. (2017), in their Study on Introduction of Cashless Economy
in India 2016: Benefits & Challenge’s. IOSR Journal of business and
management, 19(4), 116-120, they have examined that many people actually positive
opinion about cashless transactions and usefulness of cashless economy as it helps to
fight against terrorism, corruption, money laundering but one major problem in the
working of cashless economy in India is cybercrimes and illegal access to primary data.
And also mentioned that the RBI needs to take various steps to motivate the people to
use the different modes of digital payments.

Davies, A. E. (2017), in his study of to study university student's Perceptions towards

their Cashless Financial Transactions (Doctoral dissertation, Cardiff Metropolitan
University), he has mentioned that mostly the cashless method is used by young people
as they are more aware of technology and also that they are more aware about the
systems and modes of payments. It was also clear that all participants compare methods
of payment to determine time consumed by each and also, they look after the charges
of the online payment from the different modes of payment. The study shows positive
perception towards cashless online and financial transaction. The thinking power of
university students was quite different from other generation people as they are more
aware of digital payments.

Sumathy, M., & Vipin, K. P. (2017), in their study of Digital payment systems:
Perception and concerns among urban consumers. IJAR, 3(6), 1118-1122, they have
examined the influence of motivational factors on the decision to adopt different modes
of the digital payments. Under this literature, the study finds that factors such as
nativity, security, ease of use, availability, convenience, intention to use, complexity of
the technology are among the factors influencing the use of digital payments. In this it
is also mentioned that due to the developments in digital world each and every activity
of human being had changed. As a part of policy change cash is no longer becoming a
mode of transaction as due to the development of digitalisation policy. The country
needs to move away from the cash-based towards a cashless (digital) payment system.

Malik, P., Singh, et al. (2017), in their study of Consumer Awareness of Digital
Payment with Special Reference to the Village Area, Pertanika Journal of Social

12
Sciences & Humanities, 25(4). In this study they have Recognised that Internet banking,
ATM, and phone banking and all other modes of digital payments can be the substitute
each other. There is a high probability that business may give more importance to one
of these choices, and less significance to the others in light of the fact that the client
profile of the channels is comparatively similar. So, according to this in this study they
had also mentioned about that the concept of the digital payment is very broad so in
this research they have clearly mentioned that all the consumers need to have the basic
idea and also the knowledge about adoption of the digital payments before use which
will give more help to village people.

Chaudhari, T. (2017), in his study of The critical analysis of awareness and the
adoption of cashless transaction, International Journal of Commerce and Management
Research, 3(3), 92-94, they have studied that Digital Payment transaction systems are
not possible without full amount of the internet facilities, so government must provide
the facilities which lead in infrastructure availing internet. Especially free wi-fi zones
should be made available at local market and in the mall areas. All the major banks
must have separate counter which will be particularly used for assistance and guidance
for cashless transaction system. Extra charges on Cashless transaction must be reduced
by 10 to 20%. It should be made compulsory to all cooperative societies to make
Cashless transaction specially cheque or demand draft which creates the big problem
towards the people. Some advantages must be given to the people who are using
Cashless transaction such as Cashback, Gifts, Free schemes given by the shop for the
encouragement of the Digital Payment.

Podile, V., & Rajesh, P. (2017), in their study of Public perception on cashless
transactions in India, Asian Journal of Research in Banking and Finance, 7(7), 63-77,
they have examined the impact of payment method on purchase behaviour. He found
that use of credit cards encourages more purchases than use of cash. They also
mentioned that there is the positive correlation between the digital payment and the
credit cards. As the use of number of the credit cards will increase will directly give
effect on the digital transactions and the vice-versa.

Kumar, P. (2015), in his study of An analysis of growth pattern of cashless transaction

system, International Journal of Research in Business Management, 3(9), 37-44, they
have examined that cashless transaction system is growing day by day due to the

13
continuous efforts of the Government and Financial Institutions. As soon as the market
become globalised and the growth of the banking sector and also the banking online
facilities and more the people move from cash to cashless system. The cashless system
is not only requirement but also a need of today’s society and also among the people.
All the online market basically depends on digital payments. The digital transactions
are not only safer than the cash transaction but is less time consuming and not a trouble
of carrying and have trouble like paper money. It also helps in record of the all the
transaction done and to help to maintain the budget.

Liébana-Cabanillas, F. J., et al . (2014), in their study of Comparative study among

new payment systems and new future trends in mobile payments, Electronic Payment
Systems for Competitive Advantage in E-Commerce, 223-259, they have recognised
that there are basically the positive relation between the Digital Payment and
Consumers because according to this study the providers of technological services will
make their businesses grow by developing elements which improve trust between
financial entities, mobile phone operators and the customers by providing much
features for the digital payments. As per this with regards to the potential clients and
markets, and given the globalization by the government of the international economy,
companies have had to facilitate as many payment tools as possible to assure their sales
as the consumer will not going to pay only by one method. This lead for the
development of different payment methods among the consumers.

Achor, P. N., & Robert, A. (2013), in their study of Shifting policy paradigm from
cash-based economy to cashless economy: The Nigeria experience, Afro-Asian Journal
of Social Sciences, 4(4), 1-16, they are displaying the change of the economy after the
acceptance of the digital payment among the people. As the study examined that the
many of the people are not in the favour of the digital payment irrespective of their
benefits and which directly reduction of the use of digital payment in the Nigeria
Economy. According to this study Males are significant and more comparing to the
woman class in the use of the Digital Payment. According to this Education and
Complete set of the Information is one of the important stage and step for the Digital
Payment among the people for the proper awareness and adoption of the Digital
Payments.

14
Ray, D., & Dutta, S. (2012), in their study of Mobile-the digital wallet & efficiency
booster for user-friendly banking system: Prospects & hurdles ahead, SIT J.
Manage., 2(2), 230-250, they have explored that there is more focus on Mobile and the
Internet Banking under the Digital Payment among the people of India. According to
this study during the last couple of years the fastest growing market of the smart phone
and other mobile devices & wireless network is one of the big revolutions for the
banking transactions to attract & retain customers towards the Digital Payments. These
wireless network & mobile gateways are playing a pioneering role in bringing mobile
banking strategy into the limelight as the digital payment space is constantly getting
crowed by more and more players so as to cash in the cashless future. As Mobile
banking is one of the safest modes of the E-Payment as it offers end-to-end encryption
security & data-confidentiality through cyberinformation being stored in SIM for
secured data transfer over mobiles. In order to prevent cyber-fraud and online security
threat, mobile banking is designed to ensure strong user-authentication, data-integrity
as per prescribed by banks/ financial institutions and the guidelines of the Government.

Shenbagavalli, R., Shanmugapriya , et al. (2012), in their study of Risk analysis of

credit card holders. International Journal of Trade, Economics and Finance, 3(3), 219,
they have recognised that time has come were the customers need to know the degree
of risk and also full knowledge of the risk that involved in the usage of plastic money,
and the study had helped to identify the factors and the degree of risk exposed and the
protective measures available to minimize the financial and operational risk. It’s clear
from the study that the awareness of the customer is comparatively less and the credit
card issuing banks are processing a strategy to educate the users of credit card and to
make the development of the Digital Payments. As per this Debit card is one of the
most widely used systems for e-payment than the credit card. The debit card method
combines the features of the Automatic Teller Machine (ATM) card with Internet
banking. As the consumers are just having basic knowledge of the credit cards
irrespective of their charges and other terms and conditions. So, according to this study
it is the sole responsibility of the consumers to know or be aware about the various
charges and cost of the credit cards.

15
Kim, C., Tao, W., Shin, N., & Kim, K. S. (2010), in their study of an empirical study
of customers’ perceptions of security and trust in e-payment systems, electronic
commerce research and applications, 9(1), 84-95, they have examined that the security
issues in the context of electronic payment system from the viewpoint of consumers.
Their findings show that both technical protections and security of the different modes
of the payments are significant factors for improving consumers security. Consumers
perceived security is positively related to consumers perceived trust and among the
different modes of the payment used by them. Finally, consumers perceived trust also
has a positive impact on the digital payment. As in this it is also mentioned that there
is a major relation between the security of the digital payments and the consumers.

Mallat, N. (2007), in her study of Exploring consumer adoption of mobile payments–

A qualitative study, The Journal of Strategic Information Systems, 16(4), 413-432, she
has examined that consumer awareness and the adoption of a new electronic payment
service, mobile payments and Internet Banking. According to this research the
consumers were willing to use mobile payments in specific situations and for specific
purchases but not to substitute them for existing payment systems. Banking
Applications and their features are one of the most important parts of the Mobile
Banking. According to these the new payment systems are a result of the Information
and Communication Technologies (ICT) and Government Approved payments sites
which leads to developments in the field of economic transactions between companies
and their customers.

16
 3. Research Gap
The concept of the digital payment is not new among the people as they were using
different modes of the digital payments since early 2000, but they are using it on an
optional basis or we could also say that it was the outcome of the different
technological, industrial advancement and socio-economic upliftment in the country,
and that too was a small proportion as mentioned above just few of all transactions were
digital. But now as all round there is a demand and call for the adoption of the digital
payments among the people, as also various schemes and various has also started by
the government to promote the digital payments such as Bharat Pay, Rupay etc. But
this is not possible at much in Rajkot city as some populations are below the poverty
line and also approximately from that population are not having their personal bank
accounts. So, these are the some peculiarly facts that stimulates me for this study to
make the awareness and to try to make the adoption of the different modes of digital
payments among the people of Rajkot City. In nutshell, after doing literature review
researcher found that particularly considering the objective mentioned in this research
and most specifically in Rajkot city as such no research is being carried out, which gave
significant scope to the researcher to conduct research on “A study on Awareness and
Adoption of Digital Payment Modes among people of Rajkot City”.

17
 4. Research Design and Research Methodology
This chapter introduces the objectives of the study and research methods adapted, sheds
light on the Hypotheses and sampling and data collection methods, the survey
instrument and the statistical analysis process.

Objectives of Study
• To understand the importance of digital payment modes available to people.
• To examine the level of awareness of Digital payment modes among people of
Rajkot City.
• To analyse the adoption and use of digital payment modes among people of
Rajkot City.
• To identify the challenges and benefits of using digital payment modes among
people of Rajkot city
• To identify reasons behind non-adoption of digital payment modes among
people of Rajkot city.

Research Questions

1. What is the importance of Digital Payment Modes which are available to the
people?
2. How many people of the Rajkot city are aware about the Digital Payment and
the Digital Payment Modes?
3. What is the ratio of the adoption and the use of the digital payment modes
among the people of Rajkot city?
4. What are the challenges and benefits by using the digital payment modes for the
people of the Rajkot city?
5. What are the reasons behind the non-adoption of digital payment modes among
the people of Rajkot city?

18
Period of Study

The period of the study for this study will be of approximately for the 5 Months starting
from 1st December, 2021 to 30th April, 2022.

Sample Design

1) Sampling Unit

Sampling unit is the aspect from which samples are going to be drawn for the study.
This study is based on Rajkot city so sampling unit will be of the people of the Rajkot
city.

2) Sample Size

Selection of appropriate sample size is of utmost important to derive reliable results.

For present study, approximate sample size will be 130 Responses which will be
selected from the responses which collected for the research.

Sampling Techniques

Non-probability sampling technique is being used for present study. Convenience

sampling method is being used to obtain information quickly and inexpensively.

Type of Research
Present study focuses on studying the level of Awareness and Adoption of the Digital
payment modes among people of Rajkot city so for it type of research will be
Descriptive research. As the main aim of descriptive research is to describe the current
situation including the study of various variables from the different perspectives.
Present study will represent the current level of the awareness and adoption of the
different modes of the digital payment and also represent the challenges and benefits
for the adoption of the modes of the digital payment among the people of Rajkot city.

19
Data Collection Method

For present study, both primary and secondary data have been used. The secondary data
has been collected through books, journals, published reports, newspapers, magazines,
other library and electronic data. The primary data has been collected through
conducting survey with the help of a questionnaire.

Research Instrument

Questionnaire will be used to collect primary data for the present study which will be
present among the people of Rajkot city.

Tools and Techniques for Data Analysis

Appropriate statistical test methods will be used to analyses the data.

Scope of Research

As present study focuses on studying the level of awareness and the adoption of modes
of the digital payment and also its factors and benefits, so it will be helpful to the
investors, banking, other financial institutions, government, and financial researchers
in understanding the awareness and adoption of digital payment modes among people
of Rajkot city.

20
 5. Limitations of Study

No study is free from limitations;

• This study is limited to the people of Rajkot city only.

• Period of study is less due to limitation of time and cost.

• There are other factors also which impact on the adoptions of digital payment modes
to the people of Rajkot City.

21
 6. Data Analysis and Interpretation

Basic Introduction:
Data analysis is a process of inspecting, cleansing, transforming, and modelling data
with the goal of discovering useful information, informing conclusions, and supporting
decision-making. Data analysis has multiple facets and approaches, encompassing
diverse techniques under a variety of names, and is used in different business, science,
and social science domains. In today's business world, data analysis plays a role in
making decisions more scientific and helping businesses operate more effectively.

The data is necessary as inputs to the analysis, which is specified based upon the
requirements of those directing the analysis (or customers, who will use the finished
product of the analysis). The general type of entity upon which the data will be collected
is referred to as an experimental unit (e.g., a person or population of people). Specific
variables regarding a population (e.g., age and income) may be specified and obtained.
Data may be numerical or categorical (i.e., a text label for numbers).Once data is
analyzed, it may be reported in many formats to the users of the analysis to support
their requirements. The users may have feedback, which results in additional analysis.
As such, much of the analytical cycle is iterative.

When determining how to communicate the results, the analyst may consider
implementing a variety of data visualization techniques to help communicate the
message more clearly and efficiently to the audience. Data visualization uses
information displays (graphics such as, tables and charts) to help communicate key
messages contained in the data. Tables are a valuable tool by enabling the ability of a
user to query and focus on specific numbers; while charts (e.g., bar charts or line charts),
may help explain the quantitative messages contained in the data.Effective analysis
requires obtaining relevant facts to answer questions, support a conclusion or formal
opinion, or test hypotheses. Facts by definition are irrefutable, meaning that any person
involved in the analysis should be able to agree upon them.

A data product is a computer application that takes data inputs and generates outputs,
feeding them back into the environment. It may be based on a model or algorithm. For
instance, an application that analyzes data about customer purchase history, and uses
the results to recommend other purchases the customer might enjoy.

22
Demographics Data:
• Gender

Gender Number of Respondents Percentage

Male 110 71%

Female 45 29%
Total 155 100%

Gender Analysis

29%

Male
Female

71%

Interpretation:
As per above table we can interpret in such a way that there are 71% Male Respondents
and 29% are the Female Respondents for this research. So, we can conclude that the
ratio of Male Respondents is more than Female Respondents. The main reason for this
that majority of the male respondents is from the business background and the digital
payment is one of the key points in the business transactions. Similarly, the female
respondents are using fewer digital payments because of the preference of more cash
payment, less awareness, fear of security, unavailability of proper knowledge of the
digital payment and the main reason from this research is they are finding various
disadvantages for the using digital payment.

23
 • Age

Age Number of Respondents Percentage

18-27 119 76.80%

28-37 18 11.60%
38-48 12 7.70%
49 and more 6 3.90%
Total 155 100%

Age Group Analysis

140

120

100

80

60

40

20

0
18-27 28-37 38-48 49 and More

Interpretation:
As per the above table we can analyzed that there are majority 117 Respondents in the
age group of 18-27. The main reason is the the craze of the digital payment modes are
more in the youngsters and they are also having particular knowledge and also due to
the reduction dependency on cash, fast transfer speed, and the ease of transacting make
online payments a preferred option. After that there are 18 and 12 Respondents in the
age group of 28-37 and 38-48 respectively as they are the respondents who are using
digital payment very occasionally. And there are very less number of the respondents
in the age group of 49 and Above that is only 6 because of various factors as less
awareness, Lack of Knowledge of Digital Payment and some of are Illiterate.

24
 • Occupation

Occupation Number of Respondents Percentage

Businessman 26 16.80%
Professional 17 11.00%
Student 87 56.10%
Self-Employed/Service 16 10.30%
Others 9 5.80%
Total 155 100%

Occupation Analysis
100
90
80
70
60
50
40
30
20
10
0

Interpretation:

As per the above data we can interpret that there are 26 Respondents are the
Businessman as the digital payment is one of the key points in the business transactions.
After that there are 17 Respondents are from Professional Background. In professional
background also the digital payments mode is using as for Salary, Bonus, Incentives
etc. The majority of the respondents are Students that is 87 Respondents as the students
are very fond of Digital Payments and they are using on a regular basis. After that we
have observed 16 Respondents who are Self-Employed/Service and 9 Respondents are
Others such as Housewives, working in NGO’s etc. as they are very less in numbers
because may be possible, they are not aware about different modes of digital payments
or have the preference of the cash payments.

25
 • Annual Income

Annual Income Number of Respondents Percentage

Less than Rs 2,00,000 98 63.20%

2,00,000 Rs to 5,00,000 Rs 30 19.40%
5,00,000 Rs to 8,00,000 Rs 16 10.30%

More than Rs 8,00,000 11 7.10%

Total 155 100%

Annual Income Analysis

120 70.00%
100 60.00%
50.00%
80
40.00%
60
30.00%
40
20.00%
20 10.00%
0 0.00%
Less than 2,00,000 Rs 2,00,000 Rs to 5,00,000 Rs to More than 8,00,000 Rs
5,00,000 Rs 8,00,000 Rs

Number of Respondents Percentage

Interpretation:

As per the above table we can interpret that majority there are 63.20% of the
respondents were there in the slab of the annual income whose slab are less than
2,00,000 Rs because many of them from this slab are student and still not working and
not doing job and also the respondents who are doing job are in the starting stage and
whose income is under 2,00,000 Rs. After that we have observed 19.40% and 10.30%
who fall in the slab of 2,00,000 Rs to 5,00,000 Rs and 5,00,000 Rs to 8,00,000 Rs
respectively who are doing business and who are working in big companies. And at
last, we have observed that there are very less respondents that is 7.10% are there in the
slab of More than 2,00,000 Rs because they are working or doing the business from
very long time and they are mostly more than 35 in age.

26
 Psychographic Questions

• Do you have your personal bank account?

Personal Bank
Number of Respondents Percentage
Account
Yes 140 90.30%
No 15 9.70%
Total 155 100%

Personal Bank Account Analysis

10%

Yes
No

90%

Interpretation:

As per the above data we can interpret in such a way that majority of the respondents
that 90.30% are having their personal bank accounts as because bank accounts are most
important requirement for the digital payment. As various modes of the digital
payments such as UPI, Phone pe, G Pay etc. are working through the bank accounts
only. As also the government also started the scheme Jan Dhan Yajna in which
everyone under this scheme the everyone can open their free bank account for the
various incentives benefits from the government. And only 9.30% respondents from
this research are not having their personal account as because they are that much not
using digital payments or using such applications such as Paytm in which there is no
requirement of the personal bank account or there is also the chance as they are using
their parents account for the digital transactions.

27
 • Are you aware about Digital Payment and Digital Payment
Modes?

Awareness about
Number of Respondents Percentage
Digital Payment
Yes 141 91.00%
No 14 9.00%
Total 155 100%

Chart Title

9%

Yes
No

91%

Interpretation:

As per the above data we can interpret in such a way that there are 90% of the
respondents are aware about the digital payment and also about digital payment modes
as because may be many of them are using digital payment and different modes on a
regular basis and also having particular knowledge about the digital payment and digital
payment modes and only 9% of the respondents are not aware about digital payments
as because they are illiterate, lack of knowledge about digital payment, not using smart
phones or may be not having proper internet facilities.

28
 • Which modes of Digital Payment you prefer and you aware
while making a payment?
Modes of Digital
Number of Respondents Percentage
Payment
Card Payments 82 52.90%
Applications 63 40.60%
UPI 96 61.90%
Mobile Banking 83 53.50%
Internet Banking 61 39.40%
Others 21 13.50%

Modes of Digital Payment

120 70.00%

100 60.00%
50.00%
80
40.00%
60
30.00%
40
20.00%
20 10.00%
0 0.00%
Card Payments Applications UPI Mobile Banking Internet Banking Others

Number of Respondents Percentage

Interpretation:

As per the data we can interpret that here are 52.90% are using Card Payments as this
method is very old and very secured to use for the digital payment. After that there are
40.60% and 61.90% are using various different applications and UPI method as this
method are very easy to use and this method is very trending as the money can directly
can be received in one’s bank account and they can also use this as digital wallet. There
are also 53.50% and 39.40% Respondents who are using Mobile Banking and Digital
Banking as these methods are directly connect with the respondent’s bank and they can
easily make contact to the bank in case if they found any problem or queries in digital
payment. Generally, these methods are more using in Business Units. Only 13.50%
respondents are using other payment modes such as Lazy Pay, Direct QR Code etc.as
per their convince.

29
 • Which applications do you use for making Digital Payments?

Different Applications
Number of Respondents Percentage
for Digital Payments

Google Pay 96 61.90%

Phone Pe 58 37.40%
Paytm 79 51.00%
Personal Bank
52 33.50%
Applications
Direct QR Code 42 27.10%

Differnt Applications
120 70.00%

100 60.00%

50.00%
80
40.00%
60
30.00%
40
20.00%
20 10.00%

0 0.00%
Google Pay Phone Pe Paytm Personal Bank Direct QR Code
Applications

Number of Respondents Percentage

Interpretation:

As per the above data we can interpret that there are 61.90% respondents are using
Google Pay for the digital payment as this mode of the payment is very safe, very easy
and giving more rewards than any other applications. After that 37.40% and 51%
Respondents are using Phone Pe and Paytm applications respectively as this apps are
also popular for digital payment but this are very difficult and required more
knowledge. However, 33.50% and 27.10% respondents are using Personal Bank
Applications and QR Code system respectively as due to the security purpose or their
trust issue on 3rd Party applications and Respondents are using QR Code system as this
method are directly connected with every possible applications for the digital payment.

30
 • Are you aware about various schemes given by the government
under digital payments?

Awareness about
Number of Respondents Percentage
Government Schemes
Yes 110 71.00%
No 45 29.00%
Total 155 100%

Government Schemes

29%
Yes
No

71%

Interpretation:

As per the above data we can interpret that majority of the Respondents that is 71% are
aware about various government schemes such as Jan Dhan Yojna, E-shram Card
Facilities etc. as many of the respondents are using these facilities or also chance that
they are aware because they have helped the others to opt these opportunities and also
governments are promoting these schemes through various print media and electronic
media. On the opposite side there are 29% respondents are not aware about government
schemes as because their annual income is too high for various government schemes
and may some respondents be not having knowledge or whether they are confused that
they can use or not.

31
 • Share your opinion about importance of Digital Payment.
Strongly Strongly
Particulars Agree Neutral Disagree
Agree Disagree
Digital Payment Systems save
90 49 11 2 3
you time and money
Digital Payment is safer than
65 46 31 9 4
cash payment
Digital Cards are very safe to
handle and also not having any 44 55 37 13 6
problem if it is lost
Digital Payment System can be
54 63 23 10 5
easily understood
Digital Payment is used in
every place to pay mobile, 70 49 27 7 2
electricity etc. bill very easily

Importance of Digital Payment

100

90

80

70

60

50

40

30

20

10

0
Digital Payment Digital Payment is Digital Cards are very Digital Payment Digital Payment is
Systems save you time safer than cash safe to handle and System can be easily used in every place to
and money payment also not having any understood pay mobile, electricity
problem if it is lost etc. bill very easily

Strongly Agree Agree Neutral Disagree Strongly Disagree

32
Interpretation

As per the above table we can interpret that many of the respondents are Strongly Agree
about the benefits of the digital payments such as it saves the time and money, it is safer
to handle and it can be done from any place because the digital payment is universal
system in which you can make payment to any place within the seconds from any digital
devices and it also saves the money of the certain charges to transfer physical cash
money and also they are strongly agree that digital payment can be used to pay certain
payments at 1 Point. However, some of the respondents share that they are agree in
some of the point that the digital system is easy to understood because digital payment
is not that much easy you need to learn that how to use the method and also certain
terms and the conditions of the Digital Payment. Apart from that around 37
Respondents have their neutral response in the benefits that it can be ok if lost and also
31 Respondents that it is easy to handle than cash because sometimes if your digital
card lost and it have wifi card system facility than it might chance that some people can
use that money and yes at some point it might be possible that it is easy to use to handle
in the form of Digital Wallet but still in many local places they are not accepting digital
payments. However, there are very less respondents whose opinion are Disagree or
Strongly Disagree in various benefits of the Digital Payment they have these responds
might be possible that they are not having proper knowledge about digital payment or
might be possible they have faced certain situation they had lost money while making
digital payment.

33
 • How often you are using the Digital Payment?
Often Use of Digital Number of
Percentage
Payment Respondents
On a Regular Basis 84 54.20%
Occasionally 71 45.80%
Total 155 100.00%

Often use of Digital Payment

46% On a Regular Basis

54% Occasionally

Interpretation:

As per the above table we can analyzed that the there is no vast difference between the
ratio of the respondents who are using Digital Payment and Different Modes of the
Digital Payment on a regular basis and occasionally. The difference between both the
criteria is just of 8.40%. There are 54.20% Respondents are using digital payment on a
regular basis for the various purpose for making regular payments, for shopping
purpose, for transferring the money etc. as they are aware and also having the complete
knowledge regarding the digital payment. On the opposite side there are 45.80%
respondents who occasionally using the digital payments as Weekly, monthly etc. as
they may be not aware, not having complete knowledge or preference of more cash
payment.

34
 • How often do you use the following payment methods?

Every 6
Particulars Daily Weekly Monthly Yearly Never
Months
Debit Card 22 33 40 28 6 26
Credit Card 7 14 28 21 6 79
Net Banking 22 27 41 13 11 41
Google Pay 38 35 24 9 9 40
Phone Pe 31 25 18 13 7 61
Paytm 35 37 29 9 8 37
QR Code 29 36 27 8 7 48
UPI 33 42 28 13 6 33

Payment Methods Analysis

90

80

70

60

50

40

30

20

10

0
Debit Card Credit Card Net Banking Google Pay Phone Pe Paytm QR Code UPI

Daily Weekly Monthly Every 6 Months Yearly Never

35
Interpretation:

As per the above data we can interpret that most of the people are using only one method
in which they had gain the trust in every place and at every time as per their choice and
as per their convince. In the above table we have observed that the majority of the
respondents are using Debit Cards method in Either on a weekly basis or monthly basis
because Debit Card method is very old method and also it requires to carry at all place
and also for that there is a requirement of swipe machine for payment. After that
Majority of the people (79 Respondents) are Never using Credit Cards Method as it is
very costly and this is not available to every people. Similarly, majority of the
respondents (41 Respondents) are using Net Banking Method on a Monthly Basis as it
is very difficult method and also limited method (for business purpose) and due to this
reason same number of Respondents that is 41 is never using Net Banking Method.
From this we can also conclude that the number of the users for the payment methods
on a every 6 month and yearly basis are very less compare to the other timeline but as
per the above data there are 28 Respondents who are using Debit Cards on a Every 6
Months and 11 people using Net Banking on a yearly basis which are very less compare
to other data.. There are majority of the Respondents that is 38,31 and 35 are using
Google Pay, Phone Pe and Paytm modes on a Daily Basis as this method is very easy,
secured and transparent at every place and this is All in One Method you can do any
financial transactions from these methods. However, out of this Phone Pe is less popular
due to some difficulty and security level so 61 Respondents are never using Phone Pe.
As per the above data QR Code and UPI is linked with every payment application so
the many respondents are using it either Daily, Weekly or Never as per their choice and
convince.

36
 • Which are the places in which generally you are using Digital
Payment?
Different Places of Number of
Percentage
Digital Payment Respondents
Online Website 111 71.60%
Shopping Mall 101 65.20%
Petrol Pump 83 53.50%
Super Market 70 45.20%
Others 61 39.40%

Different Places of Digital Payment

120 80.00%
70.00%
100
60.00%
80
50.00%
60 40.00%
30.00%
40
20.00%
20
10.00%
0 0.00%
Online Website Shopping Mall Petrol Pump Super Market Others

Number of Respondents Percentage

Interpretation:

As per the above table we can interpret that there are 71.60% respondents who are often
making digital payment on online website as in majority website online payment is
mandatory. After that there are 65.20% and 53.50% respondents are using digital
payment option at shopping mall and Petrol Pump respectively. As in shopping mall
and petrol pump many customers are getting discounts for using digital payment and
also they have the facility of their own company digital card like Bharat Petroleum
Card, Reliance Trend Card etc. for making payment online. After that 45.20% using
digital payment in Super Market as to purchase regular items in D-Mart, Bigg Bazar
etc. and 39.40% respondents using digital payment in Others places as to Purchase at
Local Shops, to have Subscriptions on Mobile, to avail various Government Schemes,
To Pay Insurance Premium etc. to make easy payment and safe payment.

37
• Are you using any government schemes which are fully affiliated
with Digital Payment?

Government Schemes Number of Respondents Percentage

Jan Dhan Yojna 21 13.50%

E-Shram Card Facilities for
7 4.80%
Monetary Benefits
Widow Payment Schemes 0 00.00%
Not any Schemes 127 81.90%
Total 155 100%

Government Schemes
Jan Dhan Yojna

14% 4%
E-Shram Card Facilities for
0% Monetary Benefits
Widow Payment Schemes
82%
Not any Schemes

Interpretation:

As per the above data we can interpret that there are only 13.50 Respondents are
using Jan Dhan Yojna Scheme in which free account opened by the government
and provide various monetary benefits because these schemes are only limited to
some income level class of the people. However, there are just 4.80% respondents
are using E-Shram Card Facilities for monetary benefits because this is very new
method and just for the people whose income level is less than 30,000 per year and
not having proper job. As we have observed Nil Respondents in the Widow
Payment Schemes as this method is very old and not getting that much monetary
benefits and also having lots of paper work so many people are not preferring this
scheme. However, majority of the respondents that is 81.90% Respondents are not
using any government scheme as because of high level of annual income, lack of
documents, lack of awareness or lack of knowledge.

38
 • As per you what are the main reasons from the following points
for not adopting Digital Payment?
Reasons for Not Adopting Number of
Percentage
Digital Payment Respondents
Internet is Compulsory 47 30.30%
Lack of Awareness and
66 42.60%
Information of Digital Payment
Fear of Security 69 44.50%
Personal Reasons for Not adopting
29 18.70%
Digital Payment
Others 54 34.80%

Reasons for not adopting of Digital Payment

80 50.00%

45.00%
70
40.00%
60
35.00%
50
30.00%

40 25.00%

20.00%
30
15.00%
20
10.00%
10
5.00%

0 0.00%
Internet is Lack of Fear of Security Personal Reasons Others
Compulsory Awareness and for Not adopting
Information of Digital Payment
Digital Payment

Number of Respondents Percentage

39
Interpretation:

As per the above table we can interpret that as pert the 30.30% respondents Internet is
Compulsory for Digital Payment as it is true for every mode such as Google Pay, Phone
Pe etc. the internet is compulsory except Debit and Credit Card payment. This problem
is very big in the past period but after the launch of Jio the internet is available at every
place. After that as per 42.60% Respondents and 44.50% Respondents Lack of
Awareness & Knowledge and Fear of Security are the main reasons for not adopting
digital payments respectively because it needs for the people to get aware and to have
the proper knowledge regarding the Digital Payment and also required knowledge about
various terms and conditions for the digital payment. If the person has proper
knowledge and proper awareness than there is the less chance for the fear of security.
After that as per very less respondents that is 18.70% there are personal reasons for not
adopting digital payment like Preference of Cash Payment, Illiterate, Not having
personal Bank Account etc. and at last as per 34.80% Respondents there are various
other reasons are there for not adopting digital payment and that are Not having
personal mobile phone, People belonging from Rural area where there is lack of
Facilities etc. So, this are the reasons from the respondents for not adopting Digital
Payment.

40
 • Are you having fear of security while using Digital Payment and
that's why you are not using Digital Payment?

Fear of Security Number of Respondents Percentage

Yes 93 60.00%
No 62 40.00%
Total 155 100%

Fear of Security

41%
Yes
No
59%

Interpretation:

As per the above table we can analyzed that majority of the respondents that is 60% of
the respondents having the fear of security such as Fraud, Double Payment, Lack of Pin
Secured, Lost of Debit Cards, Lost of Money etc. while making the Digital Payment.
On the opposite side 40% of the respondents are not having the fear of security as they
believe if the person has complete knowledge and complete awareness about various
Digital Payment methods than there is the less chance of any fraud in Digital Payment.

41
 • Have you faced and passed out from any security problems
while making Digital Payment?

Fear of Security Number of Respondents Percentage

Yes 63 47.10%
No 82 52.90%
Total 155 100%

Real Life Situation of Security

Yes
47%
53% No

Interpretation:

As per the above data we can interpret that there are 52.90% Respondents are there who
have not faced any security problem while making digital payments as because they
must have complete knowledge or they are aware about various terms and conditions
for digital payment. On the opposite side there are 47.10% Respondents who have faced
certain security problems such as Double Payment, Lost of Cards, Fraud Call etc. while
making Digital Payment.

42
 • Share your agreement level on various security problems while
making Digital Payment.
Strongly Strongly
Particulars Agree Neutral Disagree
Agree Disagree
Security on the Internet? (e.g people
reading your email, finding out what
websites you visit, etc.) Keep in mind that
56 60 32 5 2
"security" can mean privacy,
confidentiality, and/or proof of identity for
you or for someone else.
Conducting personal financial transactions
online such as household bills, purchases or 36 70 40 5 4
services online?
Phishing scam - Fraudulent e-mail
pretending to be from a bank (or other
legitimate business) and asking for you to 43 60 44 4 4
log in or give your bank account details or
security questions
Bank account/Credit-card fraud - Your
credit card number has been stolen or
36 65 40 6 8
money has been transferred or used without
your permission
Fake website - Fraudulent website that may
look like the legitimate bank, asking to click 46 59 35 6 9
the link and provide information

Security Level Test

80
70
60
50
40
30
20
10
0

Strongly Agree Agree Neutral Disagree Strongly Disagree

43
Interpretation:

As per the above data we can interpret that there are majority of the Respondents who
are Strongly Agree and Agree on the opinion about the security problem to publish the
personal information on Internet such as Mobile Number, E-Mail Id etc. on Unauthentic
Websites which creates the lots of the problem as all this personal data are directly
connected with the Digital Payment systems. After that the respondents are Agree and
in Neutral level of Agreement in the Problem of the reveal of the confidential data while
making online regular bill payments as this payment can be solved by using the
authentic websites only while making Digital Payment. After that only few respondents
are Disagree and Strongly Disagree on the matter of the Frauds by the Call or E-mail
from the person who claim that he is from bank and require particular information but
this can be in less matter in now a day because all the banks including RBI started
various awareness program to solve this matter. After that majority of the respondents
are Agree with the concern of the Reveal of Credit Card details as we have observed
the various credit cards fraud in the past years but this can be safe by only authentic use
of the Card and not to believe in fake calls. At last majority of the people have the fear
and they also Agree by the matter of the fraud by the fake websites and also from the
fake persons by creating fake accounts in the particular websites such as OLX. At from
this we can conclude that we must have full information to make 100% Successful
Digital Payment.

44
 • Share your answers for the following Statement.
PARTIAL PARTIAL CORRECT
Particulars TRUE FALSE
TRUE FALSE ANSWERS

Whether any bank

representatives will call
46 90 11 8 FALSE
you to ask for you Pin,
Passwords or OTP.

It is true to update your

bank accounts with Aadhar 115 24 12 4 TRUE
Card, Pan Card etc.

It is compulsory to have
PARTIAL
bank accounts for digital 96 28 26 5
FALSE
Payment.
It is right to give your all-
financial information in
41 87 16 11 FALSE
any app without reading
any terms and Conditions.
It is good to tick on Terms
and Conditions check box
46 83 17 9 FALSE
without reading
instructions.

Security Awarness Analysis

120

100

80

60

40

20

0
Whether any It is true to It is compulsory It is right to give It is good to tick
bank update your to have bank your all financial on Terms and
representatives bank accounts accounts for information in Conditions check
will call you to with Adhar Card, digital Payment. any app without box without
ask for you Pin, Pan Card etc. reading any reading
Passwords or terms and instructions.
OTP. Conditions.

TRUE FALSE PARTIAL TRUE PARTIAL FALSE

45
Interpretation:

As in this above question I have taken the security awareness level test of the various
respondents to know the security awareness level of the respondents. As per this test
we can interpret the level of the awareness towards the security while making the digital
payment among the Respondents. In the first question majority of the respondents that
is 90 Respondents have given correct answer that is FALSE that No Bank
Representative will call and ask for any Pin, Passwords or OTP while in this 46
Respondents have given TRUE answer that yes, the bank will call for OTP, Pin etc. so
they are less aware about the Security for Digital Payment. After that in this question
majority of the Respondents has given correct answer that it is TRUE to update Aadhar
Card and Pan Card details with bank as per rules of RBI. After that in this question
majority of the Respondents has given wrong answer that is TRUE to have compulsory
Bank Account for Digital Payment. Only 5 Respondents have given correct answer that
is PARTIAL FALSE that it is not compulsory requirement of the Bank Account for the
Digital Payment as there are certain apps that can be used without Bank Account such
as Paytm, Phone Pe etc. After that in last 2 Questions majority of the Respondents have
given correct answer that it is FALSE to give Financial Information with reading
instructions and it is also FALSE to Tick on Terms and Condition Box without reading
it which creates the Fraud like situation. But majority of them are Correct but there are
many respondents who are not aware about these instructions and given wrong answer
which creates the lots of problem to them while making digital payment so they need
to be aware about this.

46
 • Share your opinion about the various benefits of the Digital
Payments.
Strongly Strongly
Particulars Agree Neutral Disagree
Agree Disagree
Digital Payment is
very convince and 74 62 17 1 1
easy to use.
Digital Payment is
73 55 23 3 1
time savings.
Digital Payment is
58 49 41 6 1
safe and Secure.
In Digital Payment it
is easy to make the
72 49 28 4 2
records for the
Payment.
Digital Payment is
easy than cash
65 53 30 6 1
payment due to
handling of cash.
Digital Payment is
accepted and
54 44 46 9 2
available at every
place.

Benefits Analysis
80
70
60
50
40
30
20
10
0
Digital Payment is Digital Payment is Digital Payment is In Digital Digital Payment is Digital Payment is
very convince and time savings. safe and Secure. Payment it is easy easy than cash accepted and
easy to use. to make the payment due to available at every
records for the handling of cash. place.
Payment.

Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation:

47
As per the above table we can interpret that there are majority of the Respondents are
Strongly Agree and Agree that the Digital Payment is very easy and convince to use as
because of the launch of various applications such as WhatsApp Pay, Phone Pe, Google
Pay etc. After that majority of the Respondents are also Strongly Agree and Agree in
both the benefits as Digital Payment is Time Savings as you no need to go anywhere
and you just have to click and you can do various financial transactions and it is Safe
and Secure as it is fully protected by the Passwords and Pins. After that only few
respondents are Strongly Disagree and Strongly Disagree that Digital Payment it is easy
to make the records of financial transactions in the Digital Payments as in ever apps
you can access at any time for any transactions which you had made in the Past. After
that we have observed the Neutral Response along with Agree in that Digital Payment
is easy to handle rather than cash as because of the preference of the more Cash Payment
among the respondents and they also felt there is no difference in handling in Cash and
Digital Payment Appliances. And same response we have got that Digital Payment is
accepted and available at every place because there are still in various places where
they are preferring more cash payment rather than Digital Payment and it also happened
due to Technical Problems such as Network Issue, Server Problem etc. But overall,
there are various benefits are there for the Digital Payment.

48
 • Share your opinion about the various Challenges of the Digital
Payments.
Strongly Strongly
Particulars Agree Neutral Disagree
Agree Disagree
Financial con/scam (usually by
email) - e.g., winning a lottery or
being told you have inherited money 51 62 28 7 7
and asked to provide financial
information

A digital customer has to be alert to

security issues when using e- 55 63 31 3 3
Payment
Bank Security such as Fraud Calls,
62 58 31 2 2
Technical Problems etc.

As to give various financial data for

44 56 43 8 4
making Digital Payment
Fraud is only one of the most
important challenges while making 53 60 32 5 5
the Digital Payment

Internet Convince Fees and Various

45 58 42 5 5
Banking Charges

Challanges Analysis
70
60
50
40
30
20
10
0
Financial Scam A digital Bank Security As to give various Fraud Internet
customer has to such as Fraud financial data for Convience Fees
be alert to Calls, Technical making Digital and Various
security issues Problems etc. Payment Banking Charges
when using e-
Payment

Strongly Agree Agree Neutral Disagree Strongly Disagree

49
Interpretation:

As per the above data we can interpret that there are various challenges that respondents
need to take care while making Digital Payment. As majority of the Respondents are
Strongly Agree and Agree on the matter of Lottery Scams as Fraud Callers will call
them and ask for financial information. After that the Respondents are also have same
opinion as Strongly Agree and Agree that all the persons need to be aware and need to
be alert regarding various Security Problems while making Digital Payment. As after
that we have received the mixed response (Agree and Neutral) in the matter of Bank
Securities and to enter financial information in unauthentic websites while making
Digital Payments. This can be solved by getting full information of the bank and also
with the terms and conditions and also need to have habit to make payment through
Authentic Websites only. After that there are only few respondents are Disagree and
Strongly Disagree in the matter of the Fraud as the most important challenge this is
even in high trend after repetition programmes made by Reserve Bank of India related
to Frauds. At last, we have received again the mixed response (Agree and Neutral) for
the Internet Convince Charges to be paid while making Digital Payment. As some
people think it is more affected but some thinking as they need to pay to get better
service. At from this we can conclude that we must have full information to make 100%
Successful Digital Payment and to overcome the various challenges.

50