Professional Documents
Culture Documents
Volume 11, Issue 9, September 2020, pp. 1944-1950. Article ID: IJM_11_09_185
Available online at https://iaeme.com/Home/issue/IJM?Volume=11&Issue=9
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: https://doi.org/10.17605/OSF.IO/ANK3D
A. Yogalakshmi
Ph.D. Research Scholar, Department of Commerce,
Annamalai University, Annamalai Nagar, Tamil Nadu, India
ABSTRACT
The banking industry heavily relies on technology. One industry that consistently
looks for ways to use technology to improve customer services is banking. A growing
interchange route for the delivery of banking services is e-payment. India, the second-
largest telecom market in the world, has significant opportunity for growing online
banking services. The factors influencing the extent of e-payment system acceptance in
banking have been looked at in this paper. The survey captures the viewpoints of 225
customers of new generation private banks situated in the Cuddalore district. The level
of e-payment system acceptability in banking has been determined using factor analysis.
Accessibility was found to be the most important element on the acceptance level of e-
payment systems in banking in the study area, followed by adaptability, attentiveness,
and security, according to the study.
Key words: Financial inclusion, digital economy, cashless economy, e-banking, online
banking, mobile banking, e-payments.
Cite this Article: V. Dheenadhayalan and A. Yogalakshmi, Factors of Acceptance Level
of E-Payment System in Cuddalore District, International Journal of Management,
11(9), 2020, pp 1944-1950.
https://iaeme.com/Home/issue/IJM?Volume=11&Issue=9
1. INTRODUCTION
The conventional or traditional banking paradigm, which relies on human procedures, is no
longer followed by banks. The transition of banks from a distributed to a centralised
environment demonstrates the influence of technology on banks. In order to meet their clients'
needs and ensure their pleasure, banks are utilising innovative technologies and techniques and
providing them with specialised goods and services. Service providers are scrambling to bow
down to the client, who is king. The financial service providers are attempting to offer their
services to clients while they are at home. The convenience of e-banking has made it a popular
channel for these service providers.
E-banking, often known as electronic banking, is a service that enables users to access their
bank accounts online, carry out financial transactions, make deposits and withdrawals, and pay
bills without having to physically visit their bank. One of the most recent technical
advancements, e-banking, is becoming a "Need to Have" service since it is becoming a need
for the average person. It speeds up and expedites routine client interactions while requiring
little to no paper work. In order to better understand how the acceptance level of banking
customers in the Cuddalore District E-banking services, the current study is being conducted.
2. REVIEW OF LITERATURE
Dixit (2010) says that technology development is modernising the way business is done. It
seems like internet banking has conquered the banking transactions among banking customers.
It was noted that Internet banking is a form of self-service technology.
E-banking was recognised as a crucial delivery channel that provided all-inclusive services
and information units to acquire a competitive edge in the banking industry, according to Malek
and Nik Kamariah (2011).
Eriksson et al. (2005) examined whether the banks' websites gave information solely or also
provided the option to do any transactions that did not meet the criteria for online banking
services. Many banking customers accept internet banking services due to a variety of reasons.
Wungwanit-Chakorn (2002) stated that compatibility and complexity of web banking affected
the acceptance of the usage.
4. RESEARCH METHODOLOGY
The customers who use new generation private banking services in the Cuddalore area made
up the study's target group. The customers were chosen using the convenient sampling
technique. 225 people made up the sample. The core data was gathered using a well-structured
questionnaire. The information was gathered during May and June of 2018.
The present study is based on both primary and secondary data. Secondary data has been
collected from journals, magazines, and the internet. The collected data were analysed using
descriptive statistics, reliability analysis, and exploratory factor analysis with the principal
component method and varimax rotation.
Percentage
Percentage
Percentage
Percentage
Percentage
Frequency
Frequency
Frequency
Frequency
Frequency
Statements
Need internet
2 0.9 1 0.4 30 13.3 127 56.4 65 28.9
The study sought to establish the perceived usefulness of the e-payment system and the
findings show that the majority of the respondents (59.6%) strongly agree that the e-payment
system saves you time and money. 47.6 per cent agree that e-payment systems are better than
offline payment systems, 49.3 per cent strongly agree that e-payment systems are open 24 hours
a day, and 50.2 per cent strongly agree that exchanging money from one location to another is
very easy. Further, 36.9 per cent agree that a large number of users are satisfied with the use of
e-payments, 56 per cent agree that e-payments get quick response, 70.2 per cent strongly agree
that e-payments reduce paper work, and 48 per cent agree that e-payments are a very reliable
service. About 35.1 per cent agree that hackers can access the information and records of e-
payment and 49.3 per cent strongly agree that customers have to be alert; they must deal with
only secured sites in which they are using an e-payment system. 56.4 per cent agree that we
need the internet and e-payment systems to use the experience. 63.1 percent of respondents
agree that gateways play an important role in the e-payment system; 46.7 percent of respondents
agree that there is a chance of making mistakes; 54.7 percent of respondents agree that e-
payment gives individuals more freedom in paying their taxes, licenses, fees, funds, and so on;
and 58.2 percent of respondents agree that the e-payment system is easily understood and easily
adopted.
To investigate the appropriateness of factor analysis, Kaiser-Meyer-Olkin (KMO) and
Bartlett’s test statistics were used. If the KMO value is greater than 0.6, it is considered
adequate. A value of greater than 0.5 is desirable. Bartlett’s test measures the correlation of
variables. A probability of less than 0.5 is acceptable. We found that the value of the Kaiser-
Meyer-Olkin measure of sampling adequacy is 0.702. That is greater than 0.06, which indicates
the value of Kaiser-Meyer is acceptable and the value of Bartlett's Test of Sphericity is also
statistically significant and acceptable.
Table 4 highlights the prime four components which played a great role in adopting the e-
payment system. The rotated component helps in making a broad interpretation of five
parameters, namely, accessibility, adaptability, alertness, and security. The mean value of each
factor is calculated based on the mean value of all variables included under a particular factor
and presented in Table 4.
6. CONCLUSION
Over the past decade, a number of innovations have taken place in retail payments due to the
contribution of the telecommunication sector. These have reshaped payment processes and
changed the retail payments landscape by influencing users' choice of payment instruments. In
conclusion, e-payment systems have improved a number of factors that are crucial for the
competitiveness of banks, including the creation of new markets and the reduction of
operational, administrative, and manpower expenses. Therefore, banks should utilise these
benefits of e-payment in the Indian economy and offer their clients better services. Therefore,
the NGPS banks should concentrate and factor on the factors of accessibility, alertness, security,
and adaptability for the reach of banking facilities to the common people.
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