“PERCEPTION OF STUDENTS TOWARDS

ONLINE DIGITAL PAYMENT SYSTEM WITH SPECIAL

REFERENCE TO COLLEGES UNDER CALICUT
UNIVERSITY”

Project Report submitted to

CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF COMMERCE

Submitted by
MARIYA MOL N.P
(CCATBCM113)

Under the supervision of

Ms. JISHA V.P

DEPARTMENT OF COMMERCE
CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA
UNIVERSITY OF CALICUT
MARCH 2022
 CHRIST COLLEGE (AUTONOMOUS),
IRINJALAKUDA
UNIVERSITY OF CALICUT

DEPARTMENT OF COMMERCE
CERTIFICATE

This is to certify that the project report entitled “PERCEPTION OF

STUDENTS TOWARDS ONLINE DIGITAL PAYMENT SYSTEM
WITH SPECIAL REFERENCE TO COLLEGES UNDER CALICUT
UNIVERSITY” is a bonafide record of project done by MARIYA MOL N.
P, Reg. No. CCATBCM113, under my guidance and supervision in partial
fulfilment of the requirement for the award of the degree of BACHELOR OF
COMMERCE and it has not previously formed the basis for any Degree,
Diploma and Associateship or Fellowship.

Prof. KJ JOSEPH Ms. JISHA V.P

Co-ordinator Project Guide
 DECLARATION

I, MARIYA MOL N.P, hereby declare that the project

work entitled “PERCEPTION OF STUDENTS TOWARDS
ONLINE DIGITAL PAYMENT SYSTEM WITH
SPECIAL REFERENCE TO COLLEGES UNDER
CALICUT UNIVERSITY” is a record of independent and
bonafide project work carried out by me under the supervision
and guidance of Ms. Jisha V.P, Department of Commerce,
Christ College, Irinjalakuda.

The information and data given in the report is authentic to the

best of my knowledge. The report has not been previously
submitted for the award of any Degree, Diploma, Associateship
or other similar title of any other university or institute.

Place: Irinjalakuda MARIYA MOL N.P

Date: CCATBCM113
 ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere

gratitude to all people who have helped me with sound
advice and able guidance.

Above all, I express my eternal gratitude to the Lord

Almighty under whose divine guidance; I have been able to
complete this work successfully.

I would like to express my sincere obligation to Rev.Fr. Jolly

Andrews, Principal-in-Charge, Christ college Irinjalakuda
for providing various facilities.

I am thankful to Prof. K.J.Joseph, Co-ordinator of B.Com

(Finance), for providing proper help and encouragement in
the preparation of this report.

I am thankful to Mrs. Siji C.L, Class teacher for her cordial

support, valuable information and guidance, which helped
me in completing this task through various stages.

I express my sincere gratitude to Mrs. Jisha V.P, Assistant

Professor, whose guidance and support throughout the
training period helped me to complete this work successfully.

I would like to express my gratitude to all the faculties of the

Department for their interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library

staffs of my college for their wholehearted cooperation.

I express my sincere thanks to my friends and family for their

support in completing this report successfully.
 TABLES OF CONTENTS

CONTENTS PAGE NO:

CHAPTER 1 INTRODUCTION 1-5

CHAPTER 2 REVIEW OF LITERATURE 6-9

THEORETICAL FRAME
CHAPTER 3 10-15
WORK

DATA ANALYSIS AND

CHAPTER 4 16-35
INTERPRETATION

FINDINGS, SUGGESTIONS
CHAPTER 5 36-38
& CONCLUSION

BIBLIOGRAPHY

ANNEXURE
 LIST OF TABLES
TABLE TITLE PAGE
NO NO:
4.1 Table showing age of respondents 16
4.2 Table showing gender wise classification of 17
respondents
4.3 Table showing usage of E-Payment system 18
4.4 Table showing use of electronic transactions 19
4.5 Table showing response towards payment stuck due 20
to internet traffic
4.6 Table showing preference towards modes of 21
payments
4.7 Table showing response towards E-Payment system 22
are better than cash
4.8 Table showing response towards E-Payment system 23
can be understood and easily adopted
4.9 Table showing response towards E-Payment 24
system saves time and money
4.10 Table showing response towards security issues 25
when using E-Payment
4.11 Table showing response towards hidden transaction 26
costs
4.12 Table showing response towards debit card stolen 27
or lost
4.13 Table showing response towards privacy in E- 28
Payment
4.14 Table showing response towards E-Payment cause 29
cyber crime
4.15 Table showing response towards E-Payment 30
requires literacy
4.16 Table showing response towards instant money 31
transfer
4.17 Table showing response towards emergency 32
payment
4.18 Table showing response towards the speed of E- 33
Payment is more than traditional payment
4.19 Table showing response towards safe information 34
delivery
4.20 Table showing response towards risk involved in E- 35
Payment
 LIST OF FIGURES
FIG TITLE PAGE
NO: NO:
4.1 Figure showing age of respondents 16
4.2 Figure showing gender wise classification of 17
respondents
4.3 Figure showing usage of E-Payment system 18
4.4 Figure showing use of electronic transactions 19
4.5 Figure showing response towards payment stuck 20
due to internet traffic
4.6 Figure showing preference towards modes of 21
payments
4.7 Figure showing response towards E-Payment 22
system are better than cash
4.8 Figure showing response towards E-Payment 23
system can be understood and easily adopted
4.9 Figure showing response towards E-Payment 24
system saves time and money
4.10 Figure showing response towards security issues 25
when using E-Payment
4.11 Figure showing response towards hidden 26
transaction costs
4.12 Figure showing response towards debit card stolen 27
or lost
4.13 Figure showing response towards privacy in E- 28
Payment
4.14 Figure showing response towards E-Payment cause 29
cyber crime
4.15 Figure showing response towards E-Payment 30
requires literacy
4.16 Figure showing response towards instant money 31
transfer
4.17 Figure showing response towards emergency 32
payment
4.18 Figure showing response towards the speed of E- 33
Payment is more than traditional payment
4.19 Figure showing response towards safe information 34
delivery
4.20 Figure showing response towards risk involved in 35
E-Payment
 CHAPTER : 1
INTRODUCTION
1.1 Introduction
Modern era has technologically well developed because of E-commerce. E-
Commerce is doing business electronically where there is no scope for physical
or traditional system of transaction. More and more people opt for e commerce
mechanism because it ensures accuracy of transaction. When people are
engaging in purchase and sale of goods and services there is need for medium of
payment. Paper transactions are losing its importance as people want to go
cashless. Digital payment system is a way of dealing through electronically
equipped medium which helps in making transaction and ensures the safety of
the transactions. Urgency of a man and shortage of a time makes this system
important. In digital payment both payer and payee use digital modes to send and
receive money. Generally no hard cash involved in digital system. Making cash
payment is a time consuming process and to avoid this digital payment system
came into existence. Various modes of digital payment includes mobile wallet,
banking cards such as debit and credit cards, UPI ,mobile banking etc. digital
payment system works effectively because they are linked to users bank account.

Whenever the payment is made user will be identified through notification and
similarly if can credit is made to users account he will get an intimation. Mobile
wallets are popular among youths as it gives attractive rewards such coupons,
cash back, discount etc. Smart card looks like a plastic card with microprocessor
that can be loaded with funds to make transaction. Benefits of using online modes
includes it attracts clients from all over the world. More efficient transaction can
be made with one click. Over the years bank cards are more popular because they
are user friendly. Debit card is generally linked to customer’s bank account and
it is issued to every account holder of the bank. Debit card has details such as
name, expiry, CVV for security of transactions. Indian government has also
taken a step to make India digitally sound and as result promoting cashless India
motive. Nowadays almost everyone has a Smartphone and man is more
dependent on technology.
Most of the online transaction can be executed with the help of mobile
applications. If a person wants to buy cloth from online firstly he will visit online
shopping sites such as Amazon, flip cart etc. there he will be provided with the
item of his choice then a user make whether to buy a product or not. If he wants
buy the product he needs to place an order and needs to make payment. Payment
could through cash or most of the times using cards such as debit or credit or
with the help of mobile wallet. For making transaction through internet customer
need to pay internet handling fees. Suppose if you want to get movie ticket and
if you use application like book my show you need to pay for the service
provided. Immediate transfer of money from one account to another account is
possible through net banking where customer is given with unique user id and
password to ensure the safety of the transactions. Train ticket, bus ticket, flight
ticket could booked online and by mere presentation of electronically generated
tickets you can make a journey. Digital payment system influenced man to think
differently. It forced a change in man’s traditional approach. More companies
are now coming with digital payment applications for better access such as
Google pay, phone pay, PayPal etc. Users of electronic payment are increasing
year after year. Most of the people are satisfied with digital mode as it is
convenient to them. Digital payment considerably reduced the work of a man as
most of the banks we see digital modes of depositing and receiving cash.

Digital payment is a financial exchange that takes place online between buyers
and sellers. 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. So, there is a need to widen the scope of digital payment. Innovation,
incentive, customer convenience and legal framework are the four factors which
contribute to strengthen the E-payment system. Studies show that Kerala has
96.97% literacy rate but has this helped in improvement of digital payments and
similar transactions.
1.2 Statement of the problem
The aim of this study is to explore the problems, challenges and perception of
digital payment system. The study also focuses on the different modes of digital
payment system. Hence the problem is stated as “Perception of students towards
online digital payment system with special reference to colleges under Calicut
University.”

1.3 Significance of study

One of the most significant advantages of digital payment is the seamless
experience they provide to customers. Reduced dependency on cash, fast transfer
speed, and the ease of transacting make online payments a preferred option.
Electronic payment systems allow financial institutions, businesses and the
government to offer a variety of payment options to their customers. These
systems include automated teller machines, debit cards, credit cards, mobile
banking and payment of bills through the phone.

1.4 Scope of the study

The scope of this study is very wide because there are so many opportunities for
digital transactions in the future. India is among the fast emerging as one of the
largest and strongest economies. For sustained development and growth with
robust economic development, certain integral factors like improved
transparency, corporate governance etc, play a major role. All developments
could be feasible only when the population embraces the digital payments and
digital transactions. Hence, this study focus on the problems, challenges and
perception of customers regarding e-payment system among students under
Calicut University.

1.5 Objectives of the study

➢ To know the perception of students towards online digital payment.
➢ To recognize the accessibility and usability of digital payment system.
➢ To know the factors enhancing and restraining the use of digital payment.

1.6 Research design

1.6.1 Nature of the study
The study is descriptive in nature.

1.6.2 Nature of the data

The study is based on both primary and secondary data.

1.6.3 Sources of data

▪ Primary data that is collected from respondents through questionnaire
▪ Secondary data gathered from published and unpublished records like
books, websites, journals etc.

1.7 Sample design

A sample design is a definite plan for obtaining a sample from a given
population.

1.7.1 Nature of population

The students under Calicut University are the population of the study and the
population is finite.

1.7.2 Sample unit

53 students selected from different colleges under Calicut University.

1.7.3 Sampling method

Since the population of the study is finite so simple random sampling is used.

1.7.4 Sample size

Sample size of 53 respondents is selected for the study.

1.8 Tools for analysis

Statistical tools used for the study including percentage analysis. Bar diagrams
and Pie diagrams are used for presentation of data.

1.9 Limitations of the study

❖ Personal bias and prejudice may affect the study.
1.10 Chapterization
Chapter 1: Introduction

Chapter 2: Review of literature

Chapter 3: Theoretical framework

Chapter 4: Data analysis and interpretation

Chapter 5: Findings, suggestions and conclusions

 CHAPTER 2
REVIEW OF LITERATURE
➢ Peter Gomer(2017) in his research article stated that the financial
industry has experienced a continuous evolution in service delivery due
to digitalization. This evolution is characterized by expanded connectivity
and enhanced speed of information processing both at the customer
interface and in back-office processes. Digital Finance encompasses a
magnitude of new financial products, financial businesses, finance-related
software, and novel forms of customer communication and interaction to
the end users. Digital Investments support individuals or institutions in
investment decisions and in arranging the required investment
transactions on their own by use of the respective devices and
technologies. Digital Investments include mobile trading, social trading,
online brokerage, and online trading in the B2C area and high-frequency
and algorithmic trading in the B2B context.
➢ Kalina S Staykova(2015) stated the payment market has been stable for
a number of decades with well defined roles (acquirers and issuers),
profitable business models (the card schemes) and a dominant design in
which the merchants absorb the costs associated with payments.
However, numerous digital payment solutions, which rely on new
disruptive technologies, are emerging on the payment market,
transforming the payment area from being established into a state of flux.
This article investigates the various factors that determine the success of
a given solution. To this end, we build a framework to analyze the entry
and expansion strategies of the digital payment solutions. Paper claims
that the timing of entry of the first-mover speeds up the timing of entry of
the early follower, thus determining the order of entry.
➢ W Ming Yen Teoh(2013), Study was conducted to view the promising
growth of e-payment in Malaysia. The use of e‐payment by the majority
of respondents confirms that there is a great potential for future expansion
of such payment devices. The challenge is to ensure that it continues to
meet consumers’ expectations which will subsequently lead to its
 increased adoption and use. Study uses the multiple linear regressions; it
reveals that benefits, self‐efficacy, and ease of use exert significant
influences on consumers’ perception towards e‐payment. However, the
insignificant results obtained for trust and security warrant further
investigation.
➢ C Kim (2010) identified It is commonly believed that good security
improves trust, and that the perceptions of good security and trust will
ultimately increase the use of electronic commerce. In fact, customers’
perceptions of the security of e-payment systems have become a major
factor in the evolution of electronic commerce in markets. The paper
examines issues related to e-payment security from the viewpoint of
customers. The study proposes a conceptual model that delineates the
determinants of consumers’ perceived security and perceived trust, as
well as the effects of perceived security and perceived trust on the use of
e-payment systems. To test the model, structural equation modeling is
employed to analyze data collected from 219 respondents in Korea. This
research provides a theoretical foundation for academics and also
practical guidelines for service providers in dealing with the security
aspects of e-payment systems.
➢ Abdullai Besim (2009) The given economy on payment play vital role in
the payment system as mean electronic payment instruments. Electronic
payment system supports the e-commerce activities in general. There are
numerous types of electronic payment instruments in the market today
such as credit cards, debit cards as well as electronic banking. The
available ATM machines, can participate to better use of Debit cards from
citizens to withdraw money. Withdrawing money from ATM machines
can lead to extra savings from banks, because, they use less paper to
document transactions uses more and more cards in everyday payments
and other transactions, there are many other factors that influence the use
of electronic payment instruments.
➢ Sumanjeet S (2009) EFT based payment system came into existence. It
was first electronic based payment system, which does not depend on a
central processing intermediary. An electronic fund transfer is a financial
application of Electronic Data Interchange (EDI), which sends credit card
numbers or electronic cheques via secured private networks between
banks and major corporations. To use EFT to clear payments and settle
accounts, an online payment service will need to add capabilities to
process orders, accounts and receipts. But a landmark came in this
direction with the development of digital currency the nature of digital
currency or electronic money mirrors that of paper money as a means of
payment. As such, digital currency payment systems have the same
advantages as paper currency payment, namely anonymity and
convenience.

➢ Sujith T S, Julie C D (2017) the article entitled “Opportunities and

Challenges of E-Payment System in India”. This investigation aimed to
identify the issues and challenges of electronic payment systems and offer
some answers for improve the e-payment system. E-payment system
provides more opportunities as well as. The examination found that,
Digital revolution has provided an easy approach for digital payments.
The investigation additionally found that, the reach of mobile network,
Internet and electricity is likewise expanding digital payments to remote
areas. This will surely increase the number of digital payments.
➢ Mamta, Prof. Hariom Tyagi and Dr. Abhishek Shukla (2016) the
article entitled “The Study of Electronic Payment Systems”. This
investigation aimed to identify the issues and challenges of electronic
payment systems and offer some answers for improve the e-payment
system quality. The successful implementations of electronic payment
systems depend on how the security and protection dimensions perceived
 by consumers just as sellers are famously managed, thus would improve
the market confidence in the system.
➢ Preeti Garg and Manvi Panchal (2016) the article entitled “Study on
Introduction of Cashless Economy in India 2016: Benefits and
Challenges”. This paper contemplated the perspectives on individuals on
presentation of cashless economy in India. The investigation was led in
Delhi area and information was gathered with the assistance of organized
poll and examined utilizing basic rate technique. Reactions from
respondents shows that cashless economy will help in checking dark cash,
counterfeit’s counterfeit money, battling against illegal intimidation,
diminish money related burglary, helps in improving financial
development of our nation. Significant difficulties that can upset the
execution of the strategy are digital extortion, high ignorance rate,
disposition of individuals, absence of straightforwardness and
effectiveness in digital payment system. The investigation found that, the
presentation of cashless economy in India can be viewed as a stage right
way. It helps in development and advancement of economy in India.
➢ Vidya Shree DV, Yamuna N. and Nitua Shree G (2015) the article
entitled “A Study on new Dynamics in Digital Payment System -with
special reference to Paytm and Pay U Money”. The research paper is
zeroing in on the effect of the new digital payments systems on clients
and issues experienced assuming any. The research found that,
individuals are more mindful about the online payments through portable
applications and there is a more extensive expansion in development rate.
The research likewise found that, Paytm and Pay U cash is giving simple
payment structures contrasted with Digital payment system.
 CHAPTER 3
THEORETICAL FRAMEWORK
3.1 Introduction

Digital payments are transactions that take place via digital or online modes, with
no physical exchange of money involved. This means that both parties, the payer
and the payee, use electronic mediums to exchange money.
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.
Please note that digital payments can take place on the internet as well as on
physical premises. For example, if you buy something from Amazon and pay for
it via UPI, it qualifies as a digital payment. Similarly, if you purchase something
from your local Kirana store and choose to pay via UPI instead of handing over
cash, that also is a digital payment.

3.2 Advantages of digital payment

3.2.1 Instant payment
Electronic payments are much faster than the traditional methods of payments
such as cash or cheques. In the case of online payments, you do not have any
constraint of time or location. You can easily make payments at any time from
anywhere across the globe.
E-payment systems have eliminated the need for going to the banks to make
payments. Now your customers do not have to waste their time standing in the
long lines at banks. They can easily pay you by using an electronic payment app.

3.2.2 Higher payment security

Despite its robust features, electronic payments systems has not become so
popular among the merchants. They are still using the same old methods for
accepting payments. Due to which, they are missing out the opportunity for
serving more customers.
Electronic payment systems offer you multiple ways of securing your payments
such as tokenization, encryption, SSL, etc. Now your customers do not have to
enter their card details every time as they can save their card details or complete
their transactions by using a One Time Password.

3.2.3 Better customer convenience

Electronic payments can help you to provide convenient payment experience to

your customers. It allows your customer to purchase goods on credit by offering
them with the pay later facility. Instead of sending constant reminders for
payment to your customers, you can automatically collect money after a specific
period.

3.2.4 Saves processing costs

If you want to provide payment services to your customers then you first need to
tie up with a card processor. The processor will provide you with a payment
gateway for processing and in exchange, it will charge a fixed cost from you.
This cost is very high.

On the other hand, if you are using an electronic payment system in your business
then you do not have to incur such high charges. You just have to pay a fixed
subscription to your service provider.

3.2.5 Low risk of theft

The phrase ‘Cash is the king’ is popular in the business world, but this king has
also had some limitations. If you are using cash for accepting payments from
customers, chances are there it can be stolen. Also, you need to take high safety
measures in depositing cash into your bank account.

But this risk can be decreased if you are using a secure electronic payment system
in your business. By using it, you do not have to worry about your payment
record. You can easily get an accurate record of all your transactions at the end
of the day.
3.2.6 Transparent

Transparency becomes an essential factor when it comes to payments. And when

you are using the digital medium for accepting payments, then it becomes
essential for you to maintain transparency in your transactions.

In the case of electronic payments, you do not have to worry about the record of
your payment details. Also, you can provide the payment details to your
customers beforehand. So that there will be fewer chances of confusion.

3.2.7 Contactless

In the times of the COVID-19 pandemic, people have started finding ways of
avoiding human touch to save themselves from getting affected by the
coronavirus. Due to this, the need for contactless payments has increased.

You can use contactless POS terminals in your business to avoid the human
touch. In this system, the payee needs to hold his phone near the terminal and his
payment will get automatically processed. Also, you can enable your customers
to make payments by using QR codes or One Time Passwords (OTP).

3.3 Challenges of digital payment

3.3.1 Slow internet speed

India is plagued with very low internet speeds, which continue to inch up but are
lower than global benchmarks. As per the Akamai reports Q4 2016 the average
internet speed in India is 5.6mbps which is still behind when compared to other
countries in Asia Pacific region. India’s global rank is 97, a little behind China
and Indonesia out of 149 qualifying countries.

3.3.2 Risk of piracy

The digital media industry has not been able to fully monetize the content due to
rampant piracy in India. Weak IP regulations and ineffective enforcement has
discouraged players to produce original content and IP.
3.3.3 Online payments

One of the primary forces impeding the growth of subscription and pay-per-view
revenue models are the hassles that the consumer faces while making payments
on digital platforms, even when they are willing to pay. This is on account of
low credit card penetration, fear of using net banking and credit cards online due
to security threats and the lack of experience of transacting online.

3.3.4 Risk of cyber fraud

As the digital channel in financial services continues to evolve, cyber security

has become a business risk, rather than simply a technical risk. Security breaches
can damage reputations and destroy trust, thereby jeopardizing the investments
made in digital solutions. A single hack can ensure millions of accounts being
compromised, as it happened in October when 3.2 million card details were
stolen in a malware related security breach. These cards from customers of State
Bank of India, HDFC Bank, ICICI Bank, Axis Bank and others, were used at
ATMs. The stolen debit cards were used in China. The heist is still under
investigation, but is almost forgotten in the scramble for a digital payments
future.

3.4 Different modes of payment

3.4.1 Banking cards

Banking cards offer consumers more security, convenience, and control than any
other payment method. The wide variety of cards available – including credit,
debit and prepaid. These cards provide 2 factor authentications for secure
payments e.g. secure PIN and OTP. RuPay, Visa, MasterCard are some of the
example of card payment systems.

3.4.2 Internet banking

Internet banking or e-banking is the latest series of technological wonders in the

recent past which involves use of internet for delivery of banking products and
services. It is the service being utilized intensively by most of the consumers of
the digital world. It enables customers of a bank or other financial institution to
conduct different financial transactions through the financial institution's
website.

3.4.3 Mobile banking

Mobile banking is a service provided by a bank or other financial institution

which allows its customers to conduct different types of financial transactions
using a mobile device through software called an app. It fulfills the ability and
the increasing demand of consumers, to perform more and more sophisticated
financial transactions on a smartphone or tablet with one or two taps of a finger.
Examples: Axis mobile, ICICI mobile, state bank anywhere, state bank buddy,
kotak bank and many more.

3.4.4 Unstructured supplementary service data (USSD)

It is a service which allows mobile banking transactions using basic feature

mobile phone, without having mobile internet data facility. This innovative
payment service *99# works on National Unified USSD Platform (NUUP)
channel. The key services offered under this service include, interbank account
to account fund transfer, balance enquiry, mini statement besides other services.
Account in a bank and any mobile phone on GSM network are required for
activation. There is a transaction limit of Rs. 5000 per day per customer.
Registered mobile number with any phone, Mobile Money Identifier (MMID)
and Mobile PIN (MPIN) will pave way for transactions.

3.4.5 Aadhaar enabled payment system(AEPS)

It is a bank led model which allows online interoperable financial transaction at

Point of Sale / Micro ATM through the Business Correspondent /Bank Mitra of
any bank using the Aadhaar authentication without any pin or password. There
is no limit on transactions. Only linkage of Aadhaar with bank account is needed
for transactions. It enables Services like Balance Enquiry, Cash Withdrawal,
Cash Deposit, Aadhaar to Aadhaar Funds Transfer.
3.4.6 UPI-Unified payment interface

UPI is a system that combines multiple bank accounts into a single mobile
application (of any participating bank), merging several banking features,
seamless fund routing & merchant payments into one hood. A Smartphone with
internet facility and Bank Account details, are required for registration. Virtual
payment address and UPI pin enables transactions. Example: Phone pay, Google
Tez, and BHIM etc.

3.4.7 Mobile wallets

Mobile wallet is a path to carry digital cash. This can be done by linking credit
card or debit card information in mobile device to mobile wallet application or
you can transfer money online to mobile wallet. The Basic Requirements to Start
Using a Wallet are Bank Account, Smartphone, internet Connection and A Free
Wallet App. For Consumer the Wallet Limits are: Rs.20,000/month for all. Rs.1
lakh/month with KYC(know your customer) and for Merchants the Wallet
Limits are Rs.50,000/month with Self Declaration and Rs.1 lakh/month with
KYC. e.g. Paytm, Freecharge, Mobikwik, Oxigen, mRuppee, Airtel Money, Jio
Money.
 CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION
Table 4.1 Showing age of respondents
ANSWER NO.OF PERCENTAGE
RESPONDENTS
18-22 51 96
22-24 1 2
24-26 1 2
TOTAL 53 100
(source, primary data)
Figure 4.1 Showing age of respondents

AGE
18-22 22-24 24-26
2%2%

96%

Interpretation:
Table 4.1 shows age wise classification of respondents. It reveals that 96% of the
respondents are aged between 18-22 years. 2% of the respondents aged between
22-24 years. And 2% of the respondents aged between 24-26 years.
Table 4.2 Gender wise classification of respondents
GENDER NO.OF PERCENTAGE
RESPONDENTS
Male 21 40
Female 32 60
others 0 0
Total 53 100
(source, primary data)
Figure 4.2 Showing gender wise classification of respondents

GENDER
Male Female Others

0%

40%

60%

Interpretation:
Table 4.2 shows gender wise classification of respondents. It reveals that 60% of
the respondents are female and 40% of the respondents are male. It is clear that
majority of the respondents are female.
Table 4.3 Showing usage of E-payment system
ANSWER NO.OF PERCENTAGE
RESPONDENTS
Yes 49 93
No 4 7
Total 53 100
(source, primary data)
Figure 4.3 showing usage of E-payment system

USAGE
Yes No

7%

93%

Interpretation:
Table 4.3 showing the usage of E-payment system among respondents. 93% of
the respondents has used E-payment system. 7% of the respondents have never
used E-payment.
Table 4.4 Showing use of electronic transactions
ANSWER NO.OF PERCENTAGE
RESPONDENTS
Daily 20 15
Weekly 19 38
Once in a month 8 36
Once in 3 month 5 9
Once in 6 month 1 2
Once in a year 0 0
Total 53 100
(source, primary data)
Figure 4.4 showing use of electronic transactions

ELECTRONIC PAYMENT
Daily Weekly Once in a month Once in 3 month Once in 6 month Once in a year

2%
9% 15%

36%

38%

Interpretation:
The table above shows how often the respondents use electronic
transactions.15% of the respondents use electronic transactions daily.38% of the
respondents use e-transactions weekly. 36% of the respondents use electronic
payment once in a month. 9% use electronic payment once in 3 month. 2% use
electronic payments only once in 6 month. No one responded to once in a year.
Table 4.5 Showing response towards payment stuck due to internet
traffic
ANSWERS NO.OF PERCENTAGE
RESPONDENTS
Yes 35 66
No 4 8
Maybe 14 26
Total 53 100
(source, primary data)
Figure 4.5 Showing response towards payment stuck due to internet
traffic

PROBLEMS
Yes No Maybe

2%
10%

88%

Interpretation:
Above table showing the response towards payment stuck due to internet traffic.
66% of the respondents already felt it before. 8% of the respondents seems like
they don’t have any issues. 26% seems like they are not agreeing with both.
Table 4.6 Showing preference towards mode of payment
ANSWER NO.OF PERCENTAGE
RESPONDENTS
Google pay/Phone pay 43 81
Verified bank application 2 4
Debit card 8 15
Credit card 0 0
Total 53 100
(source, primary data)
Figure 4.6 Showing preference towards mode of payment
PREFERENCE
Google pay/phone pay Verified bank application Debit card Credit card

0%
15%

4%

81%

Interpretation:
81% of the respondents mostly prefer Google pay/phone pay. 4% preferred
verified online application. 15% of the respondents choose debit card as their
most preferred method. No one has chosen credit card.
Table 4.7 Showing response towards E-payment system are better
than cash
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 23 43
Agree 21 40
Neutral 8 15
Disagree 1 2
Strongly disagree 0 0
Total 53 100
(source, primary data)
Figure 4.7 showing response towards E-payment system are better
than cash
25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
Out of 53 respondents, 43% respondents strongly agree that E-payment system
is better than cash. 40% of the respondents agree that E-payment is better than
cash. 15% respondents have neutral opinion about E-payment. 2% of the
respondent disagree that E-payment is not better than cash. So based on the
response, it is clear that e-payment system are better than cash. Strongly
disagreed respondents are nil.
Table 4.8 Showing response towards E-payment system can be
understood and easily adopted
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 17 33
Agree 24 44
Neutral 10 19
Disagree 1 2
Strongly disagree 1 2
Total 53 100
(source, primary data)
Figure 4.8 Showing response towards E-payment system can be
understood and easily adopted
30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
33% of the respondents strongly agree that E-payment can be understood and
easily adopted. 44% of respondents do agree that e-payment is easy and
understandable. 19% of the respondents have neutral opinion about that.2%
respondent disagree that e-payment is not easy. 2% respondent strongly disagree
that too.
Table 4.9 Showing response towards e-payment system saves time
and money
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 24 45
Agree 20 38
Neutral 9 17
Disagree 0 0
Strongly disagree 0 0
Total 53 100
(source, primary data)
Figure 4.9 Showing response towards e-payment system saves time
and money
30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
45% of the respondents strongly agree that e-payment saves time and money.
38% of the respondents agree that e-payment saves time and money. 17%
respondents have neutral opinion about it. No one responds to disagree and
strongly disagree. So it is clear that the majority experienced e-payment system
save their time
Table 4.10 Showing response towards security issues when using e-
payment
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 27 51
Agree 16 30
Neutral 8 15
Disagree 2 4
Strongly disagree 0 0
Total 53 100
(source, primary data)
Figure 4.10 Showing response towards security issues when using e-
payment
30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
51% of the respondents strongly agree that they faced security issues while using
e-payment. 30% respondents agree that they had deal with security issues. 15%
of the respondents have neutral opinion about that. 4% respondents disagree to
security issues. Strongly disagreed respondents are nil.
Table 4.11 Showing response to hidden transaction costs
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 15 28
Agree 16 30
Neutral 15 28
Disagree 7 14
Strongly disagree 0 0
Total 53 100
(source, primary data)
Figure 4.11 Showing response to hidden transaction costs
18

16

14

12

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
Out of 53 respondents, 28% respondents strongly agree that e-payment
transaction costs are hidden. 30% respondents agree that transaction costs are
hidden. 28% of the respondents have neutral opinion about hidden costs. 14%
respondents disagree to it. Strongly disagreed respondents are nil. So it is clear
that there is hidden transaction cost while using e-payment.
Table 4.12 Showing response towards debit card stolen or lost
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 14 26
Agree 22 41
Neutral 13 25
Disagree 4 8
Strongly disagree 0 0
Total 53 100
(source, primary data)
Figure 4.12 Showing response towards debit card stolen or lost
25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
26% of the respondents strongly agree that problem will arise if the debit card is
stolen or lost. 41% respondents do agree that problem will arise if the card is
stolen. 25% respondents have neutral opinion about that. 8% of the respondents
disagree. No one responded to strongly disagree. So majority responds that debit
card stolen is a serious issue while dealing with e-payment.
Table 4.13 Showing response to privacy in e-payment
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 16 30
Agree 23 43
Neutral 12 23
Disagree 2 4
Strongly disagree 0 0
Total 53 100
(source, primary data)
Figure 4.13 Showing response to privacy in e-payment
25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
30% of the respondents have strongly agree that there is privacy in e-payment.
43% respondents agreed to privacy in e-payment. 23% of the respondents have
neutral opinion about that. 4% of the respondents have disagreed about privacy.
Strongly agreed responds are nil. So majority of the respondents feel privacy
when making their payment in online mode.
Table 4.14 Showing response towards E-payment cause cyber crime
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 15 28
Agree 23 43
Neutral 13 25
Disagree 1 2
Strongly disagree 1 2
Total 53 100
(source, primary data)
Figure 4.14 Showing response towards E-payment cause cyber crime
25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
28% of the respondents strongly agree that e-payment causes cyber crime. 43%
respondents do agree that e-payment causes cyber crime. 25% respondents have
neutral opinion about that. 2% respondent disagreed to it. And 2% strongly
disagreed to it. So chance of cyber crime related with e-payment is high.
Table 4.15 Showing response towards e-payment requires literacy
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 16 30
Agree 24 45
Neutral 8 15
Disagree 2 4
Strongly disagree 3 6
Total 53 100
(source, primary data)
Figure 4.15 Showing response towards e-payment requires literacy
30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
Out of 53 respondents, 30% respondents strongly agree that e-payment requires
literacy. 45% of the respondents do agree that e-payment needs literacy. 15%
respondents have neutral opinion about that. 4% of the respondents have
disagreed that e-payment requires literacy. 6% respondents strongly disagreed to
it too. So it can be interpret that literacy is required for e-payment transaction.
Table 4.16 showing response to instant money transfer
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 26 49
Agree 18 34
Neutral 7 13
Disagree 2 4
Strongly disagree 0 0
Total 53 100
(source, primary data)
Figure 4.16 showing response to instant money transfer
30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
49% of the respondents have strongly agreed that e-payment helps to transfer
money instantly. 34% respondents agreed that instant money transfer is possible.
13% respondents have neutral opinion about it. 4% respondents have disagreed
and no one is strongly disagreed. So it can be concluded that e-payment system
helps to instant money transfer.
Table 4.17 Showing response to an emergency payment
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 26 49
Agree 21 40
Neutral 4 7
Disagree 2 4
Strongly disagree 0 0
Total 53 100
(source, primary data)
Figure 4.17 Showing response to an emergency payment
60

50

40

30

20

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
Out of 53 respondents, 49% respondents strongly agree that e-payment plays a
major role at the time of an emergency payment. 40% respondents agreed that e-
payment helps in making an emergency payment. 7% respondents have neutral
opinion about that. 4% respondents have disagreed to it. No one responded to
strong disagreement. So e-payment definitely a convenient way to meet
emergency payment.
Table 4.18 Showing response towards the speed of e-payment is more
than traditional payment
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 26 49
Agree 18 34
Neutral 6 11
Disagree 3 6
Strongly disagree 0 0
Total 53 100
(source, primary data)
Figure 4.18 Showing response towards the speed of e-payment is
more than traditional payment
30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
49% of the respondents strongly agree that the speed of electronic payment is
more than traditional payment. 34% respondents do agree with that e-payment is
faster than traditional mode of payment. 11% respondents have neutral opinion
about which one is faster. 6% respondents disagreed and no one strongly
disagreed to it. Based on the data it is clear that the speed of e-payment is more
than the traditional payment.
Table 4.19 Showing response towards safe information delivery
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 15 28
Agree 26 49
Neutral 10 19
Disagree 2 4
Strongly disagree 0 0
Total 53 100
(source, primary data)
Figure 4.19 Showing response towards safe information delivery
30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
28% of the respondents strongly agreed that confidential information is delivered
safely to customers. 49% respondents agreed e-payment provides information
safely to customers. 19% of the respondents have neutral opinion about that. 4%
respondents disagreed to it. No one strongly disagreed to it. Majority of the
respondents agreed that e-payment delivers confidential information safely to its
customers.
Table 4.20 Showing response towards risk involved in E-payment
AGREEMENT NO.OF PERCENTAGE
RESPONDENTS
Strongly agree 15 28
Agree 23 43
Neutral 10 19
Disagree 4 8
Strongly disagree 1 2
Total 53 100
(source, primary data)
Figure 4.20 Showing response towards risk involved in E-payment
25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Percentage

Interpretation:
28% of respondents strongly agreed that there is risk involved in e-payment
system. 43% respondents agreed that risk involved is low. 19% respondents have
neutral opinion about it. 8% respondents disagreed to it. 2% respondent strongly
disagreed to the statement. There is a chance of risk while dealing with e-
payment.
 CHAPTER 5
FINDINGS, SUGGESTIONS AND
CONCLUSION
5.1 Findings

• 96% of the respondents are aged between 18-22 years.

• 60% of respondents are female and 40% are male. Majority of the
respondents are female.
• Majority of the respondents are using electronic payment.
• 38% of respondents use electronic payment weekly.
• 66% of respondents agree that their payment got stuck due to internet
traffic.
• Most preferred mode of payment chosen by respondents are google pay
and phone pay. Second most preferred is debit card.
• Majority of the respondents strongly agree that E-payment system is
better than cash.
• 44% of the respondents agree that E-payment can be understood and
easily adopted.
• Majority of the respondents agree that E-payment saves time and
money.
• Most of the respondents agreed that they faced security issues while
using E-payment.
• 30% agreed that E-payment transaction costs are hidden.
• Majority of the respondents agree that problems may arise when the
debit card is stolen or lost.
• 43% of the respondents agree that they feels privacy when making their
payment in online mode.
• Majority of the respondents agree that E-payment cause cyber crimes.
• Majority of the respondents agree that E-payment requires literacy.
• 49% of the respondents strongly agree that E-payment helps in instant
money transfer.
• Majority of the respondents strongly agree that E-payment plays a
major role at the time of an emergency payment.
 • 49% of respondents strongly agree that the speed of electronic payment
is more than traditional payment.
• Most of the respondents strongly agreed that confidential information
is delivered safely to customers.
• Majority of the respondents agree that there is a chance of risk while
dealing with E-payment.
5.2 Suggestions

Awareness programs must be done at educational sector in order to educate

people about digital payment system.

As respondents are well aware of the digital payment system as per our
findings steps must be taken to minimize the deficiencies involved in digital
payments like security issues, trustworthiness etc.

Many people use cards for all their needs but there is an additional charge on
the use of debit or credit cards. In order to encourage people to engage in digital
modes it is important to remove additional charges for just mere use of cards.

Service provider of mobile wallet, net banking must take into consideration
user experience and take their valuable feedback in order to better their services.

Different customers have different needs so it is necessary to provide them

with number of payment methods so it gives option to user to select the mode of
payment which is best suited to him.

While making payment customer needs to give essential information. There

must be a better mechanism for maintaining the privacy of the information
provided by the user.

User friendly atmosphere must be created so that user can be retained to one
particular mode of payment.

Reduce security issues. Banks or the institutions should take proper care to
reduce the security issues while using E-payment system.
 Banks should reveal the transaction cost for E-payment to avoid the system of
charging hidden cost for E-payment system.

To provide more security to transactions and strengthen the existing security

measures.

5.3 Conclusion

Technology has arguably made our lives easier. One of the technological
innovations in banking, finance and commerce is the Digital Payments. Digital
Payments refers to the technological breakthrough that enables us to perform
financial transactions online, thus avoiding hindrances and other hassles. Digital
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.

As a part of policy change cash is no longer becoming a mode of transaction.

The country needs to move away from the cash-based towards a cashless (digital)
payment system. This will provide multiple advantages like, reduce currency
management cost, track transactions, check tax avoidance or fraud etc., enhance
financial inclusion and gradually integrate the parallel economy with the main
stream.

The findings reveal that while people are getting comfortable with cashless
payments, some kind of negative perceptions are holding back many from
adopting the new system. The negative perceptions are like security problems,
poor network coverage, and lack of merchant willingness, high transactional
costs, lack of users’ knowledge on technology, defunct POS machines, delayed
reimbursement in case of failed transactions, procedures and financial limits.
Convenience in use of cashless transactions and incentive system are the positive
signs for the progress of cashless payments in India. Finally the study concludes
that India may not become a cashless economy unless the perception of the
people will be rightly addressed by the government and the banking institutions.
They should pave the way for the safe and secure mean to cashless transactions.
BIBLIOGRAPHY
References
• Gomber, P., Koch, J.A. & Siering, M. (2017). Digital Finance and
FinTech: current research and future research directions. Journal of
business economics. Springer. pp 537-580.
• Staykova, K. S. (2015). The race to dominate mobile payments platform:
Entry and Expansion Strategies. Electronic Commerce Research and
Applications. pp 319-330.
• Wendy, M. Y. T. (2013). Factors affecting consumer’s perception of
electronic payment: An Empirical Analysis. Emerald group publishing
limited. pp 465-485.
• Kim, C. (2010). An Empirical study of customers perceptions of security
and trust in e payment systems. Electronic Commerce Research and
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• Abdullai Besim (2009)., Net pay: An offline, decentralized micro
payment system for their client applications. Electronic Commerce
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Web resources

• www.google.com
• www.bankbazar.com
• www.googlescholar.com
ANNEXURE
SURVEY QUESTIONNAIRE
The survey is conducted by Farhan and Mariya of 3rd B.COM A BATCH of
Christ college (Autonomous) Irinjalakuda. We are conducting a survey and
study on the topic” Perception of students towards online digital payment
system with special reference to colleges under Calicut University”. I ensure
you that the data collected for this purpose will remain confidential and will be
used only for research purpose.
1. Name:
2. Age:
• 18-22
• 22-24
• 24-26

3. Gender
• Male
• Female
• Others
4. Do you use E-payment system?
• Yes
• No
5. How often do you use Electronic transactions?
• Daily
• Weekly
• Once in a month
• Once in 3 month
• Once in 6 month
• Once in a year
6. Did your payments get stuck due to internet traffic?
• Yes
• No
• Maybe
7. Which of the following do you prefer most?
• Google pay/phone pay
• Verified bank application
• Debit card
 • Credit card
8. Express your thoughts regarding the following statement
Particulars Strongly Agree Neutral Disagree Strongly
agree disagree
1.E-payment system are
better than cash
2.E-payment system can
be understood and easily
adopted
3.E-payment system saves
time and money
4.A digital customer has
to be alert about the
security issues when
using E-payment
5.E-payment transaction
costs are hidden to
customers
6.Problem will arise if
your debit card is stolen
or lost
7. E-payment gives more
privacy to customers.
8. E-payment cause cyber
crime
9. E-payment requires
literacy.
10. E-payment helps to
transfer money instantly
11. E-payment plays a
major role at the time of
any emergency payment
12. Speed of electronic
payment system flow is
more than traditional
payment system
13. Confidential
information is delivered
safely to customers
14. I feel the risk
associated with electronic
payment system is low