NAGINDAS KHANDWALA COLLEGE

OF COMMERCE, ARTS & MANGEMENT STUDIES

MALAD WEST, MUMBAI – 400064

PROJECT REPORT ON

IMPACT OF COVID-19 ON E-PAYMENT INDUSTRY

PRESENTED BY:

RONAK DHARMENDRA HINDOCHA

ROLL NO. : 5031

T.Y.BMS (MARKETING)

SEMESTER VI

PROJECT GUIDE

PROF. SHEETAL DESAI

SUBMITTED TO

NAGINDAS KHANDWALA COLLEGE

ACADEMIC YEAR 2020-2021

1
 EXECUTIVE SUMMARY

This research is based on the topic “Impact of Covid-19 on E-Payment Industry”.

It mainly focuses on the factors which influenced the Electronic Payment Industry during
the Covid-19 pandemic.

Technology has become an integral part in all walks of life. It has become an
integral part in each and every sector and the payment sector is not an exemption. Today
each and every function that we carry out in our daily lives is dependent on technology.
Technology has also changed the payment sector to a large extent. The dependency on
technology on technology is so much that carrying out a business function or any other
function without the help of technology is almost impossible.

The arrival of internet technology has changed the whole world. It brings the whole
world in our palms. The growth of Electronic Commerce in recent years has led to the
growth the growth of Electronic Payment. Electronic money, which is an electronic
replacement for cash, is a product of such technological advancement. The reasons for
growth of electronic payment in recent years is due to factors like growth of e-commerce
platforms, change in consumer mindset, change in consumer spending patterns, increase in
consumer’s disposable income, etc.

Globalization has also played a significant role in the growth of electronic

payments. With, the advent of globalization, the world started to become smaller and
smaller. The whole world had turned into a global village. People can now order across
borders and get their products delivered home. While ordering from foreign countries, one
of the most easiest and convenient mode of payment is electronic payment.

Covid-19 pandemic forced people to stay indoors which ultimately was being done
for our safety and security. As, people were forced to stay indoors, they could not go to the
market to purchase products required for daily consumption. As, a result of this they had
to order the products online which were required for their daily consumption. At the time

2
of making payment for the products ordered online, there were fears of the transmission of
virus over exchange of currency notes. So, people decided to use online payment (e-
payment) services which reduced the risk of transmission of virus. Also, one of the reasons
for this is that due to the lockdown, people had to stay indoors, which meant there was less
or no inflow of physical cash. The money was there in every individual’s bank account.
So, many people faced cash crunch or did not had exact change required. As a result of
which, many people were forced to use the online payment services.

The research also identifies the different modes of e-payment used by people. The
research also throws light on spending patterns of consumer and the factors which
encourages them to use e-payment. The research also helps us to find out that whether the
use of electronic payments have increased since the Covid-19 pandemic or not. It also
consists of conclusions and suggestions which will help to improve and increase e-payment
transactions.

After carrying out this research I came to know the importance of Cash. Cash
plays an important role in every individual’s life. Going for a digital/cashless economy
gives a lot of advantage to individuals as well as to the country as a whole. But this is
possible only when the country is ready and has sufficient resources and infrastructure with
it.

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 Nagindas Khandwala College of Commerce, Arts

and Management Studies,

Malad (west), Mumbai 400064

Certificate

This is to certify that Mr. Ronak Hindocha has worked

and duly completed his Project Work for the degree of Bachelor of Management Studies
under the Faculty of Commerce in the subject of Marketing and his
project entitled “ Impact of Covid-19 on e-Payment Industry “under my
supervision.

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

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

Prof. Sheetal Desai

(Project Guide)

Date of submission:

29th March 2021.

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 Declaration by learner

I, the undersigned Mr. Ronak Hindocha here by, declare

that the work embodied in this project title “ Impact of Covid-19 on e-
Payment industry “forms my own contribution to the research work carried
out under the guidance of Prof. Sheetal Desai is a result of
my own research work and has not been previously submitted to any other University for
any other Degree/ Diploma to this or any other University.

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

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

Ronak Hindocha

Certified by

Prof. Sheetal Desai

(Project Guide)

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so enormous and the depth is
so enormous. I would like to acknowledge the following as being idealistic channels and
fresh dimensions in the completion of the project.

I take this opportunity to thank the Nagindas Khandwala College for giving me chance
to do this project. I would like to thank my Principal Dr. Mrs. Ancy Jose for providing
the necessary facilities required for completion of this project. I would also like to thank
our Vice Principal Dr. Mona Mehta for providing valuable opportunity and guidance.

I take this opportunity to thank our Coordinator Prof. Gargi Dubey for her moral support
and guidance. I would like to express my sincere gratitude towards my Project Guide
Prof. Sheetal Desai whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books
and magazines related to my project. Lastly, I would like to thank each and every person
who directly or indirectly helped me in the completion of the project especially My
Parents and Peers who supported me throughout my project.

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 TABLE OF CONTENT

CHAPTERS PAGE NO.

Chapter 1: Introduction

1.1 What is Payment

1.2What is e-Payment
1.3 What is e-Revolution
1.4 There’s an App for That
1.5 Advantages and Disadvantages of e-payment
1.6 Issues of e-Payments
1.7 E-Payment Methods
9-35
1.8 Steps taken by government to promote e-Payment
1.9 Steps taken by Reserve Bank of India (RBI) and government of
India to encourage the use of digital payments
1.10 Steps that should be taken to promote Cashless Economy in rural
Areas
1.11 Challenges in making India a Cashless Economy
1.12 Difference between wallet and gateway
1.13 Digital Payment Trends

Chapter 2: Research Methodology

2.1 Statement of the problem

2.2 Objectives of Research
2.3 Methodology of Data Collection
36-39
2.4 Scope of the study
2.5 Significance of the study
2.6 Limitations of the study
2.7 Scope of further research

7
Chapter 3: Review of Literature 40-45

Chapter 4: Data Analysis 46-72

Chapter 5: Conclusion and Suggestions

5.1 Conclusion 73-77

5.2 Suggestions

BIBLIOGRAPHY 78-79

APPENDIX 80-84

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Chapter 1: Introduction

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 INTRODUCTION

1.1 WHAT IS 'PAYMENT'?

A payment is the transfer of one form of good, service or financial asset in exchange for
another form of good, service or financial asset in proportions that have been previously
agreed upon by all parties involved. Payment can be made in the form of funds, assets or
services.

Today's monetary system allows for payments to be made with currency. Currency, which
has simplified the means of economic transactions, provides a convenient medium through
which payments can be made; it can also be easily stored.

For example, in the past, if an egg farmer with a large surplus of eggs wanted milk, he
would need to find a dairy farmer who would be willing to take eggs as payment for milk.
In this case, if a suitable dairy farmer weren't found in time, not only would the egg farmer
not get his milk, but his eggs would spoil, becoming worthless. Currency, on the other
hand, maintains its value over time.

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1.2 WHAT IS e-PAYMENT?

Technology and Innovation has connected each part of our lives. Directly from the second
we awaken to the second we head to sleep at night, technology and innovation encompasses
us. Be it looking for goods, paying service bills, figuring out how to learn new things, hoe
to get the services required for day to day activities, getting food conveyed or so far
whatever else as that is concerned, technology and innovation offers an answer for nearly
all that we might actually envision.

Banking is certainly not an alien to technology and innovation. Web banking has simplified
life for a great many individuals around the planet. Particularly in India, where bank visit
suggests queuing up in endless lines, internet banking is certainly a gift. Internet banking
has made it workable for clients to do basic undertakings like getting to their investment
account wherever and whenever they want, monitor their record balance, get e-
articulations, take care of bills on the web, shop on the web, move assets and considerably
more in less than a couple of snaps and inside merely minutes.

The need for electronic payment is growing day by day. The need for electronic payment
started picking up the heat especially after demonetization took place. After
demonetization, many people started to use electronic payment methods due to cash crunch
faced by the people. So as the time passed many people became habituated or used to the
online payment methods. The need for electronic payment has grown significantly after the
growth of online shopping and development of e-commerce websites.

The online payment system offered convenience and also saved time of people. In today’s
busy world, time is the most important factor for everyone. As the online payment system
saved time of people, so the people started using it. Also, the online payment system offered
convenience to the people to make payments for any products or services at any time and
from any place. This convenience has also helped the businesses as it saves their time. It
also gives an opportunity to expand their business across geographic areas and cater to a
wide range of audience.

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We all agree to some extent that the Covid-19 pandemic has increased the need for the use
of electronic payment system as there were fears of the transmission of the virus through
the exchange of currency notes. We were also forced to stay at home for our safety and
security. So people were forced to buy goods and services online and were forced to use e-
payment options

E-Payment or Electronic Payment as the name itself is the way of making payments for
goods and services using an electric medium without using physical cash or cheques.

E-Payment is quite popular in metro cities and urban areas. It is still becoming popular in
semi urban and rural areas.

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1.3 THE e-REVOLUTION
While internet service and mobile phones also came to India in the 1990s, internet usage
and smart-phone ownership boomed only in recent years, in the 21st century. Thus, while
internet banking has been around in India for quite some time (ICICI purportedly
introduced it, in the late 1990s,) the advent of online/mobile payment systems such as
National electronic funds transfer, or NEFT, real time gross settlement, or RTGS and
interbank mobile payment system, or IMPS, is relatively new.

Mobile or digital wallets such as PayTM and MobiKwik, which allow users to maintain an
electronic wallet to which they can transfer money and transact online, are less than a
decade old. These technological advancements have transformed our lives in many ways,
allowing us to save time as well as money.

Many of us can remember the time when we used to get a pay cheque every month, for
which we would have to take time off to visit a bank, stand in line, deposit the cheque and
then wait for the money to be credited to our accounts. Compare that to an instant online
salary transfer by most employers.

Similarly, we remember lining up to pay our telephone or electricity bills not too many
years ago – all of which can now be done at the click of a mouse button or a tap on our
smart phones.

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1.4 THERE'S AN APP FOR THAT
However, though cash may be king, it is also costly since it entails printing and storing
currency. Moreover, cash also fuels the black-money economy, corruption and terrorism.
Aware of these pitfalls of a cash-based economy, the government and the RBI are slowly
changing the way payments are made in India. The government’s anti-corruption, pro-
technology stance is well known and can be seen in the importance given to initiatives
like JAM (the Jan Dhan, Aadhar, and Mobile), direct benefit transfers.

The RBI’s Vision 2018 document specifically mentions a “less-cash” society. Thus, there
is a concerted effort to reduce the role of cash in our lives. These efforts will pay off. The
United Payments Interface system is another page of the book. The system, allows users to
make payments directly through their smart phones, through the United Payments Interface
app, without having to key in their card details or any password. With time, the RBI hopes
that it is popularized to such an extent that citizens start using the app even to purchase
grocery and other small transactions. Several banks have begun to launch the app and many
more are likely to follow.

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1.5 ADVANTAGES AND DISADVANTAGES OF e-PAYEMENT

1.5.1 Advantages:

I. Time Saving –

E-Payment saves time as we can make the payment from any place. We need not have to
be physically present there. Also, it saves time as the receiver does not have to count the
cash given by the payer, especially when the amount is huge. The amount gets directly
transferred in the account of the receiver from that of the payer.

II. Helps to Track Expenses –

It helps us to keep a track of our transactions. Through this we can come to know how
much amount we have spent in a particular period of time and can plan our future
transactions accordingly. So, it helps us to keep our expanses in control.

III. Reduced Risk of Loss of Cash –

E-Payments reduces the risk of loss of cash as we do not have to carry physical cash with
us and the payment can be done from mobile, laptop or any other electronic device. It
especially helps us when we are travelling as we do not have to carry large amount of cash
with us which automatically reduces the risk of theft.

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 IV. Reaching Global Audience –

E-Payment helps us to reach audience across borders. The consumers have the option of
online payment so it makes it easier for them to shop from foreign countries. According to
a survey, approximately 56% of online shoppers favor shopping across borders.

V. Acceptance of different Payment Methods-

In the traditional Brick and Mortar stores, Consumers usually make payments using cash.
But in an online setup, Consumers usually get variety of payment options which
encourages them to buy from them and pay using the method which is convenient for them.

VI. Fast transaction Speed-

E-payment system offers fast transaction speed. The payment is transferred from the
buyer’s account to seller’s account within a minute or two and both of them would get a
message or SMS of the amount transferred or received.

VII. Convenience-

E-payment offers convenience to the people. People can pay at their own time and from
any place. They do not have to go the shop to make the payment. So, they can make the
payment in a way which is convenient to them.

VIII. Discounts-

People get various discounts when they pay using the online mode. Specially, there are
discounts offered when we choose to pay using a particular bank’s credit or debit cards.

16
1.5.2 Disadvantages:

I. Security Concerns-

People still do not completely trust e-payment systems and would prefer physical
transactions over digital transactions for majority of times. The major reason for this is
fraud.

II. Threat of Passwords-

Many times hackers hack our account and password and transfer or withdraw money from
our accounts. Many people say that online payments are safe but the possibility of our
account getting hacked still remains.

III. Necessity of internet access-

Internet access is required to complete the digital payment process. If internet connectivity
is not available, one cannot use the digital payment method. In India, today also internet
connectivity is not available in many rural areas. So, they cannot use the digital payment
method.

IV. Service Fees-

The sellers have to pay service fees for every transaction done through card. Because of
high service fees, many sellers do not keep the facility of making a card payment. As a
result of which customer has to compulsory make use of physical cash or UPI apps (if
available).

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 V. Technical Problems-

As electronic payment is dependent on technology, there are chances of having technical

problems. These problems can be downtime of apps or payment gateways, unable to
process the transaction, maintenance time of apps or payment gateways, technical glitch,
etc.

VI. Loosing Phone-

Today, almost all online payments are made through phone. In case, the phone is lost, then
we have to first find our phone in order to make online payments and to carry out other
functions. If our phone is lost, then there is a threat that our sensitive information like
passwords, bank account details, etc. can be accessed by anyone who finds our phone. We
many times leave our phone at one place and then forget to take it with us in return. This
especially happens when we go out to attend a function, a business meeting, etc.

VII. Overspending-

Often, we tend to overspend when we make payments through online mode. One of the
main reasons for this is that in online mode of payment, we do not have a list of how much
amount we have spent in a particular period of time. This happens because in online mode
of payment, the amount is directly deducted from our bank account. So, we do not get an
exact idea of how much amount of money we have spent during a particular period of time.

18
1.6 ISSUES OF e-PAYMENT

I. Fraud-

As e-Commerce operations expand, opportunities for fraudulent misuse of payments

information and data theft grow right alongside. Many people are not aware of how to use
e-payments and there are chances that they may leave their password unprotected which
may result in fraudulent activities.

II. Cross - Border Transactions-

Nowadays, cross – border transactions are increasing rapidly. Cross border transactions
can be expensive. They can be slow and ineffective at times. Also, the additional problem
of currency conversion is also faced by people many times. Also, the additional problem
of currency conversion is also faced by people many times.

III. Security Problem-

Sometimes, we hear that the database of a bank or government department has been hacked
and information of all the users is being leaked. Security problem is one of the main issues
of online payments and it is also one of the main reasons that we do not see rapid increase
in number of online payment transactions.

IV. Technical Integration-

At present, we do not possess required technological infrastructure to carry out the online
payment transactions smoothly. It is difficult to reach rural areas due to lack of
infrastructure and lack of awareness among people. Also, it is difficult to integrate with
retailers due to lack of technological knowledge or due to high transactional costs.

19
 V. Difficult To Use For Tech Unsavvy-

Many people find it difficult to use the e-payment apps or gateways. The people who are
not familiar with technology or are tech unsavvy, mainly refuse to use the e-payment
services. In rural areas, many people find it difficult to use it. As a result of which electronic
payment options are not usually available at all places in rural and semi-urban areas.

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1.7 e-PAYMENT METHODS

E- Commerce sites use the option of e-payment where physical money is not involved. E-
payment methods has revolutionized the business and changed the way of payments. Some
of the modes\methods of electronic payments are as follows:

I. Credit Card-

It is one of the common ways of making electronic payments. Credit Card is a small plastic
card with a unique number attached with the respective account. It has a magnetic strip
embedded in it which is used to read the credit card and the information stored in it. In this,
the customer has been given a specific amount of credit limit. It has nothing to do with the
balance in the account of the accountholder. He can use the credit card till the credit limit
give to him\her does not exceed. The accountholder has to repay the amount on monthly
or quarterly basis as decided in the agreement.

II. Debit Card-

Debit Card is similar to credit card with a unique number attached with the bank account
number. The major difference between debit card and credit card id that in case of debit
card, the accountholder needs to have sufficient balance in his account and the amount gets
deducted from his account immediately.

III. Unified Payments Interface(UPI)-

Unified Payments Interface (UPI) is a real- time Payment system developed by National
Payments Corporation of India which facilitates inter-bank transactions. It works by
transferring money from buyer’s bank account to seller’s bank account using mobile
platforms. It is being regulated by the Reserve Bank of India (RBI). There are many

21
platforms which provide UPI services. They are PayTM, Phone Pe, Google Pay, Amazon
Pay, Jio Pay, BHIM, etc.

IV. Electronic Funds Transfer(EFT)-

Electronic Funds Transfer (EFT) is a system of transferring money from one bank account
directly to another bank account without any physical exchange of money. The transactions
are processed by the bank through the Automated Clearing House (ACH) network. It
mainly includes online banking services like NEFT, RTGS, etc. The amount is also
transferred on the same day within few hours.

V. Mobile Wallet-

Mobile wallet is a virtual wallet that stores the card data on a cell phone. As opposed to
utilizing actual payment techniques, one can undoubtedly pay for anything by utilizing
mobile wallets. Mobile wallets have diminished the reliance over money for making
payments. Because of this, numerous FinTech organizations have began to emphasize on
making easy to use e-wallet payment interface for giving a consistent payment experience
to their clients. Mobile wallets have high-safety measures that can assist you against any
deceitful exercises.

VI. Mobile Banking-

Mobile Banking means banking activities carried out with the help of mobile. Mobile
Banking services are usually provided by the banks to their customers. Every bank has
their separate app which is developed by them for their customers. By using this app, one
can pay bills, transfer money, and carry out many other different banking activities.

22
VII. Internet Banking-

Internet Banking can also be termed as online banking or web banking. In this method, an
individual carries out transaction using the website of the bank. It is similar to mobile
banking.

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1.8 STEPS TAKEN BY GOVERNMENT TO PROMOTE e-PAYMENT

In the last few years, government of India has taken numerous measures to introduce, bring
awareness among people, to educate people and tried to popularize and promote e-payment
among people of India. Cashless economy is one of the main agenda of our honorable
Prime Minister Shri Narendra Modi and Government of India. To achieve the goal of
digital economy, Government of India launched Digital India Campaign with the slogan
of, “Faceless, Paperless and Cashless.”

On 29th February 2016, the Ministry of Finance (Department of Economic Affairs) came
out with the Guidelines for the Promotion of Payments through Cards and Digital Means.
The objectives of the guidelines are to:

• To make it easy for the people to carry out digital transactions.

• To reduce the costs incurred by government in maintaining and managing cash in
the economy.
• To enable people to build and track their transaction history.
• To reduce the risk of handling cash for every individual or organization.
• To reduce the avoidance of tax made by many people.
• To reduce the circulation of counterfeit or fake currency in the economy.

A special committee on Digital Payments was constituted in September 2016 by the

Ministry of Finance to review the current situations and suggest appropriate strategies
which would help the government to promote and encourage people in the country to use
digital payments.

A digital Payments Division has been set up in the Indian Computer Emergency Response
Team (Cert-In), Ministry of Electronics and Information Technology (Meit Y) in
December 2016 to work on safety and security aspects involved in the digital transactions.

The Bharat Interface for Money (BHIM) app was launched on 30th December 2016 by our
Honorable Prime Minister Shri Narendra Modi to promote digital transactions in the

24
country. The payments can be made through the mobile phones using Unified Payments
Interface (UPI) platform via Mobile App. BHIM can be integrated with the bank accounts
and other UPI applications providing similar services.

Ministry of Electronics and Information Technology has launched cashlessindia.gov.in

website by to bring awareness about digital transactions. The website provides information
about how to carry out digital transactions, what security or safety measures have to be
taken care of, what are the benefits of carrying out digital transactions, etc. It also provides
information about different payment methods which can be used to carry out digital
transactions.

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1.9 STEPS TAKEN BY RESERVE BANK OF INDIA (RBI) AND
GOVERNMENT OF INDIA TO ENCOURAGE THE USE OF
DIGITAL PAYMENTS

The Government is offering various incentives to promote and encourage people to use
digital payments. Some of the incentives are as follows:

• The government decided to waive off Service Tax of 15% on digital transactions
which amount up to Rs 2000
• A 0.75% discount was offered to people who would make the payment of fuel
through debit\credit cards, mobile wallets, UPI, e-wallets, etc.
• The Government is also providing a free accident insurance to people who buy
tickets online worth Rs 10 lakh.
• The Government also offers a discount of 8% to the people who purchases new
LIC policies online from the website of LIC.
• Many Other Companies are also participating against the spread of Cybercrimes.
For Eg. Microsoft Opened full scale Cyber security centre called Cyber Security
Engagement Center (CSEC) in India. This centre monitors the spread of viruses
from where the cyber attacks are made and thus helping the customers in protecting
their data.

26
1.10 STEPS THAT SHOULD BE TAKEN TO PROMOTE CASHLESS
ECONOMY IN RURAL AREAS

• A tax rebate of 1% to 3% can be given on Payments made digitally by the people

in rural areas.
• The government should focus on developing infrastructure that is required to carry
out digital transactions.
• The people Of Rural areas must be educated and made aware of how to use digital
platforms.
• Live demo should be kept demonstrating how one can use the option of digital
payments.
• Benefits of using digital payments and safety measures that needs to be taken while
using digital payments should be communicated to the people.
• All the welfare activities taking place in rural areas should be linked with bank
accounts of people in rural areas.

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1.11 CHALLENGES IN MAKING INDIA A CASHLESS ECONOMY

There are many challenges faced by the Government of India and Reserve Bank of India
(RBI) in making India a Cashless economy. Some of which are as follows:

I. Currency Dominated Economy-

The Indian Economy is mainly currency dominated economy. Currency Notes of

Denominations Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2000 exist in our
country.

II. Transactions are Mainly In Cash-

Majority people of India have the habit of carrying cash with them and making the payment
in cash. Online Transactions are also growing but it is very less when compared to cash
transactions. Also, people have the habit of storing cash in their house rather than
depositing it into bank accounts.

III. Use of ATMs For Cash Withdrawals-

People mainly use ATMs to withdraw cash whenever needed. They do not use other
Facilities provided by Banks like settling transactions through online mode etc.

IV. Lack Of Internet Connectivity in Rural Areas –

The internet connectivity in rural areas is quite weak and low. As a result of this, people of
rural areas are not able to make payments online.

28
 V. Low Literacy rate in rural areas –

People in rural areas are not that much educated. So, they find difficulty in using online
Payments. Hence, they rather prefer not to make use of online payment platforms.

VI. Limited Availability of Point of Sale Terminals(POS Machines)-

In India, there are very less number of people who prefer to pay online using cards. So,
because of low demand, many sellers do not prefer to keep POS Machines at their shops.
As a result of which there is limited availability of Point Of Sale Terminals (POS
Machines).

VII. Lack of Infrastructure In rural areas-

Ther is a lack of infrastructure in rural areas which is needed to make online payments.
There is lack of 24x7 Electricity, Lack of strong internet connectivity, Lack of availability
of Banks, Lack of Availability of smart phones, etc. Because of these factors it is difficult
to Increase the use of online payments in Rural Areas.

29
1.12 DIFFERENCE BETWEEN WALLET AND GATEWAY

1.12.1 What Are Payment Gateways?

Payment gateway is a term used for the E-commerce service which provides a channel to
authorize the credit/debit card payments from the customer’s bank to the online retailers.
In other words, payment gateways facilitate the transfer of funds from the customer to the
website through a secured portal.

There are two types of payment gateways, i.e. direct and external gateways. In the external
payment gateways, the customer is directed to another online portal to process the
transaction and can be redirected to the parent website once the transaction is confirmed.

However, in the direct payment gateways, the payment process is done on the parent site
itself.

Some of the popular payment gateways are PayPal, SecurePay, Fastcharge, and Paynova.

1.12.2 What Are Digital Wallets?

Digital wallets, on the other hand, allow customers to store their money in an online wallet,
which they can then use for various online transactions directly from the wallet. Digital
wallets help you save time and are more secure since you do not have to enter your card
details every time you do a financial transaction online.

There are many smart phone apps which offer digital wallets like PayTM, MobiKwik, and
FreeCharge. With digital wallets, you can pay utility bills, recharge mobile phones, and
DTH connections as well, the same way as you would through a traditional wallet.

30
1.12.3 Difference between Digital Wallets and Payment Gateways

Although digital wallets and payment gateways are a medium to make and accept
payments, they are different in terms of their usage and features. Some of the differences
between the two are:

You need to install the software/app of the digital wallet on your smart phone and enter
your details to start using it, whereas no such procedure is required to use payment
gateways. You can just select from the various payment gateways on the website, fill in
your credentials and the payment is done

The personal details entered in the digital wallets is a one-time process, whereas, in
payment gateways, you have to enter your credentials every time you do a financial
transaction online

You can deposit money in the digital wallets online and use it anytime and anywhere,
whereas no such feature is available with payment gateways

A digital wallet is just an intangible form of the traditional wallet, whereas a payment
gateway is the intangible form of the PoS machines

Considering that the payment gateways work as a channel for a financial transaction
between the buyer and the seller, it is evident that the payments through digital wallets
would require a payment gateway for the transaction to be successful. Payment gateways
are hence, the basis for every financial transaction online, while digital wallets are a mode
of payment.

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1.13 DIGITAL PAYMENT TRENDS

The digital payments world is advancing every day. Digital Payment frameworks will be
the eventual fate of advanced payments. Consequently, you need to have appropriate data
about current trends of digital payments to remain in front of your rivals. Here are the eight
most recent digital payment drifts that you need to know:

I. Mobile Wallet-

Mobile wallet is a virtual wallet that stores the card data on a cell phone. As opposed to
utilizing actual payment techniques, one can undoubtedly pay for anything by utilizing
mobile wallets. Mobile wallets have diminished the reliance over money for making
payments.

Because of this, numerous FinTech organizations have began to emphasize on making easy
to use e-wallet payment interface for giving a consistent payment experience to their
clients. Mobile wallets have high-safety measures that can assist you against any deceitful
exercises.

II. International Remittance-

International Remittances implies the exchange of cash by an unfamiliar specialist to its

family in its nation of origin. In numerous nations, international remittance has a lot of
Gross domestic product.

These days, mobile wallets have brought in cash moves simple with international
remittance. It offers various highlights to make the exchanges simple, quick and secure. By
utilizing mobile wallets, you can set fixed exchange rates for transferring cash. You can
likewise allow your clients to decide their trade rates already.

32
III. Peer to peer payment-

Peer to Peer payment permits the exchange between two gatherings by utilizing credit card
or debit cards through an e-wallet application. To set up a P2P payment system, you need
to join with your bank account connected with a credit card or debit card.

In the wake of setting up your record, you can transfer cash to your loved ones. The ideal
time difference for money transfer in peer to peer payment systems differs from one
company to another.

IV. Wearables-

Wearable gadgets are getting massively well known for installments. Wearables are those
gadgets that are joined to some body part and are used to make payments. Smart watches
and movement trackers are a few instances of wearables.

These gadgets utilize the payment administrations for associating with the client's ledger.
Samsung Pay, Apple Watch, Fit bit, etc. are a few instances of wearable gadgets.

V. Biometric Payments-

Biometric payments are the method of making payments by utilizing different pieces of the
body. Eye tracking, unique finger impression checking, facial acknowledgment, and so on
are some generally utilized biometric payment strategies.

The principle benefit of utilizing biometrics for payments is that as opposed to entering a
similar PIN, over and over, you simply need to contact the finger impression scanner to
make payments. After the entered unique finger impression gets coordinated with the
registered finger impression the installment will be endorsed. On the other hand if there is

33
 any mismatch between the unique finger impression and registered finger impression, the
payment won't get processed further.

VI. QR Codes-

QR means Quick Response. For making payment, you simply need to scan the QR code
with your wallet application. It will get the payment information and send that to the client.
This is the strategy for making payments at the retail location by means of an online
payment terminal.

VII. Contactless Payments-

Contactless payment is the method of making payment by utilizing latest technology and
innovation. In this technique, one needs to tap the payment gadget or card close to the POS
terminal. Contactless payments are also called tap and go payments.

There will be no requirement of any cards or entering any sort of PIN while utilizing
contactless electronic payment gadgets. At the point when the seller’s framework prompts,
the client needs to bring his gadget or card nearer to make payments. At that point the data
gets communicated from the magnetic chip to the bank.

VIII. Payments using artificial intelligence-

There is a huge spread of artificial intelligence based payment innovation. For example,
chat bots, speakers, profound learning programming projects and AI devices has made an
upset in the electronic payment industry.

With the assistance of chat bots, customers can undoubtedly get the arrangement of their
inquiries. Additionally, they can utilize chat bots for putting orders.

34
Speakers can likewise be a decent wellspring of tolerating payments. Clients simply need
to utilize the mic symbol to start. The in-fabricated arrangement of the speakers will bring
the information and start the payment right away.

Utilization of artificial intelligence into electronic payments has made it simpler for
organizations to look after straightforwardness of e-payments.

35
Chapter 2: Research Methodology

36
2.1 Statement of the Problem:

The statement of Problem for the research is, “Impact of Covid-19 on E-Payment Industry”.

2.2 Objectives of Research:

The objectives of research are as follows:

1. To understand the changes in the methods of payment used by people during and
after Covid-19.
2. To understand the impact of Covid-19 on e-payment industry with reference to
increase or decrease in online transactions.
3. To understand whether people prefer online or offline payments
4. To evaluate the Changing trends in the payment sector of Indian Economy.
5. To determine the future outlook of Indian E-Payment Industry.

2.3 Methodology of Data Collection:

The data for the analysis is collected from a total of 116 respondents using purposive
sampling which is a non-probability sampling method where specific informants are
selected based on the criteria that they have the basic technology necessary for making
online payments and also have some knowledge about how to make online payments. This
is also known as deliberate sampling. The data is collected with the help of Google forms
where the questionnaire was distributed to each individual respondent over the internet.

37
2.4 Scope of the Study:

1. The targeted audience for the collection of data is dispersed between two to three
cities.
2. A total of 116 people are surveyed for the analysis.
3. This research is aimed at studying the preference of different payment options used
by the people.
4. This research aims at identifying the direct and indirect effects of pandemic
situation on online payment with determining the extent of changes in the number
of online transactions of the people.
5. This research will help to identify the different factors responsible for the change
in consumer behavior with respect to online payments.

2.5 Significance of the Study:

1. This research helps us to determine the aspects that lead the consumer to make
payments online.
2. It also helps us to know whether the people using online payment services are
satisfied with the services provided by online platforms or not.
3. This research aims at studying the behavior of people making online payments.
4. It helps us to identify which method of online payment is most likely used by
the customers.
5. This research will help to know the perception of customers towards e-payment
platforms.

38
2.6 Limitations of the Study:

1. The research ignores the views of those individuals who do not make online
payment or who do not have adequate knowledge required to make online payments
or who do not have the necessary facilities required to make online payments.
2. Also, as only 116 respondents are surveyed, we cannot come to a proper conclusion
as the sample size is small.
3. The data is collected from two to three cities. So, it excludes the collection of data
from other cities where online payments is emerging.
4. The data is collected through digital means that is with the help of Google forms,
which means that there are chances of breach of authenticity of data.

2.7 Scope of Further Research:

1. Further research on this topic can be done all over the world.
2. A research can be undertaken on factors which influence online payments other
than Covid-19.
3. A study can be undertaken to see the impact of Digital India Campaign and
increase in the number of users using e-payments.
4. A comparative study can be done comparing the use of e-payment methods
between male and female, between different age groups, etc.

39
Chapter 3: Review of Literature

40
 REVIEW OF LITERATURE

Sangitha Roy, Dr. Indrajit Sinha (2014), told that e-payment system have shown
spectacular growth in India but they think that still the use of e-payments can be
increased in the country. They found out that only 10% of the transactions are digital
based transactions. In a country, which a majority of youth population, easy availability
of mobile phones, easy availability of internet, only 10% share of digital transactions
is considered very small. So, a lot has to be done to encourage people to make payments
digitally as much as possible and to reduce the usage of cash. They had used technology
acceptance model for the purpose of study. During their study, they found factors like
innovation, customer convenience, legal framework, incentives, etc. which according
to them could contribute to strengthen the e-payment system in the country.

Slozko and Pello (2015), in their research paper stated that e-payments systems used
by individuals and organizations are important mechanisms to them. They can be
considered as convenient and secured way of making payments digitally by the means
of using internet. It is also considered as a gateway to technological advancement in
the field of world economy.

Rakesh H M and Ramya T J (2014) in their research paper titled,” A study on factors
influencing consumer adoption of Internet banking in India” tried to study and make a
list of factors which could influence one to adopt internet banking services. They found
that many people or organizations were influenced by perception of mainly three
factors. They are:

i. Perceived ease of use of internet banking services

ii. Perceived Reliability i.e. How much one can trust or rely on internet banking
service

41
iii. Perceived Usefulness i.e. it is really beneficial to them if they use internet banking
services.

In this entire process of internet banking, they said that experts from the banking sector
should bring awareness in the society regarding the use of internet banking services, to
explain the benefits of using internet banking services, etc. This can be done to
encourage the consumers to use internet banking services.

Kartikeya Bolar (2014) in his research paper,” End-user acceptance of technology

interface in transaction based environment” stated that the makers and investors of
technology need to first study about the customers perception towards their
product\services. They should also study the literacy level of customers. They should
also study the willingness of the customers to use their technology and should also take
feedback from customers regarding the features of their technology, the quality of their
technology, the performance of their technology interface which will help them to make
changes to their technology if required and will also help them to improve their
product\services and also will help them to take better decisions keeping in mind the
future plans and strategies.

Nitsure (2014) in his paper observed that developing countries like India face many
problems in becoming a cashless economy. The main reasons behind this are as
follows:

i. Lack of Education:
In India, the illiteracy rate is very high even today. Many people in rural areas
do not go to school in their life. Some does not get the minimum primary
education which is declared as mandatory by the government. Some have to
drop out of school due to some reasons or economic crisis. Some middle aged
people did not receive education. So, due to lack of Education, It is difficult for
us to change to a cashless economy.

42
 ii. Lack of Internet Connectivity:
In India, today also despite of the availability of 4G services and the likely
advent of 5G services in the near future, the internet connectivity is quite poor
in semi-urban and rural areas. The internet connectivity is also very poor in
some parts of urban and metropolitan areas. There are villages in India where
there is no availability of mobile network and internet connectivity.

iii. Lack of Technology Infrastructure:

In India, the technological infrastructure required to promote digital payment is
lacking. We do not have more number of good technological engineers required
to make a good website, app, etc. We many times experience downtime of the
webpage or apps. This is because of poor technological infrastructure. The user
interface of some websites or apps is not user friendly. So, an individual does
not get motivated to use that particular website or app. We are developing in
the information and technology sector but it is not sufficient.

iv. Lack of Awareness:

In India, still many people are not aware of online banking services provided
by banks. This is especially seen in rural and semi-urban areas. It is also known
that if people are aware of online banking services, they might not be aware of
the benefits of using the online banking services. Some people might be aware
of online banking services provided by banks and its benefits but they might
not know how to use those services. In order to promote online payments, the
government need to spread awareness regarding online payments, their benefits
how to use it, etc.

The paper highlighted many problems\barriers which do not encourage people to use
digital payments frequently. The problems are rules and regulations, chances of fraud,
security concerns, management, issue of privacy, etc. There are many cases where privacy
of the user id not maintained. There are also cases of fraud in which the money is not

43
received by the receiver but it is credited to third party’s bank account. The researcher also
stated that in India, the poor are excluded from internet because of low internet
connectivity, lack of accessibility, etc. The researcher also stated that in India, the poor are
also excluded from the financial system and this could act as a major barrier for the
development of digitalization in India.

Balazs Vinnai, General manager, Digital Channels, Misys(April 25,2016) says that,
“It is critical for banks to consider new digital channels as part of an integrated strategy
and evolves from first to second generation digital banking; switching digital from a
supporting role, to the primary sales and communication channel for banks,” says Vinnai.
“Re-engineering processes around the customer is not easy, but banks must embrace digital
banking to remain competitive and relevant.” says Vinnai.

Mukherjee (2011) the author has found out that the role of Information and
Communication Technology is very important to develop the rural economies. There is a
possibility of growth in rural economies if information and communication technology can
be improved. The researcher further says that the development in technology sector is
helping the economy to achieve the goal of cashless economy. More and more people have
started using online services. In today’s world, technology is playing a very important role
in each and every segment of society as today nothing can be done without the help of
technology and we have become very much dependent on the technology. The researcher
further says that the improvements and innovations must be brought keeping in mind the
changing customer needs and requirements.

Akinola(2012) The researcher tries to examine that whether cashless society is reliable or
not, whether cashless society is safe or secure, whether it is trustworthy, etc. Cashless
society may have many advantages like it may reduce corruption in the society; it may
reduce crimes like theft in the society and the government will also be able to track
everyone’s transaction which can increase revenue for the government. The researcher also

44
identified the downfall of digital transactions due to factors like security threat, lack of
awareness among people, lack of understanding among people regarding how to use these
services, etc. The researcher said that in order to increase digital transactions and move
towards cashless society, the government must be able to win the confidence of the people.

Singh (2013) The researcher says that the use of internet is growing continuously in rural,
semi-urban, and urban areas. The researcher said that the availability of mobile phones
have improved significantly in the country but the availability of internet and its usage have
not improved significantly as compared to that of the mobile phones. This is because of
lack of lack of awareness, lack of infrastructure, lack of familiarity with technology, etc.
The researcher said that internet connection can be made available to everyone if proper
arrangements are made for the same. The researcher found out that many factors such as
age, gender, income, educational qualification, etc. play an important role in the usage of
digital banking facilities. In order to increase the number of digital transactions, the bank
should prepare a strategy keeping these factors in mind.

Midha (2016) The researcher discussed the issue of digitalization process and
effectiveness of Digital India Campaign. The researcher says that the Digital India
Campaign is a good initiative taken by the government of India and it will also largely help
the government to achieve the goals of cashless economy. The researcher says that the
Digital India Campaign has its own advantages and disadvantages. The researcher says that
the most problematic phase in this campaign would be the implementation phase. It is
because of lack of awareness, lack of technological infrastructure, new concept, etc. The
researcher further says that in order to move towards cashless economy, this is the right
time to discuss the issues with the customers and come out with the best possible solutions.

45
Chapter 4: Data Analysis

46
Q .1 Gender of the Respondents

Chart 1: Question 1

The total number of respondents was 116. Out of which male respondents were 53.4% i.e.
62 respondents and female respondents were 46.6% of total which is 54 respondents. Here,
male respondents are more than female respondents. It is difficult to get equal number of
respondents for both male and female. Here, the difference between male respondents and
female respondents is not too big. So, it should not cause a lot of problem. Our purpose of
research is to find the actual data.

If we try to get equal number of respondents for both male and female, there are chances
that we would not get the actual or real data and there is a possibility that our research
purpose will not get fulfilled. If we try to get equal number of respondents for both male
and female then there is a possibility of our research getting biased and also it would not
help us to achieve our goal. As, the difference between both the genders id minimal in this
case, the data obtained can be considered for analysis.

47
Q.2 Age of the Respondents

Chart 2: Question 2

From the total 116 respondents, 9.5% of respondents i.e. 11 respondents were below the
age of 18 years. 56% of respondents were in the age group of 18 to 24 years which is equal
to 65 respondents. The age group of 18 to 24 years received the highest number of
respondents i.e. 65 respondents. The next age group which is from 25 to 34 years received
18.1% of total responses i.e. 21 responses. It is the 2nd highest number of responses after
responses from age group of 18 to 24 years.

I received 13 responses from the age group of 35 to 44 years i.e. equivalent to 11.2% of
the total responses. I also received 6 responses from the age group of 45 to 54 years i.e.
equivalent to 5.2% of total responses. There are no responses received for the age group of
55 and above. So to conclude, I would like to say that I got majority of responses from the
age group of 18-24 i.e. from generation-z and second highest response received is from the
milennials.

48
Q.3 Occupation

Chart 3: Question 3

The next question is occupation of the respondents. Out of 116 respondents 69.8% of them
were students which are equal to 81 respondents. The remaining 30.2% of respondents
were working i.e. 35 respondents. Number of student’s responses is more than double than
that of working individuals. One of the main reasons for this is the age factor. As 65
respondents (56%) are in the age group of 18 to 24 years, majority of which are students
so the number of student respondents are more. Looking at the number of responses
received in the age group it is quite obvious that number of students will be more than
number of people who are working.

49
Q. 4 Do You Make Online Payments?

Chart 4: Question 4

The next question is whether you use online payments or not and I have received 97
responses (83.6 %) people who said yes they are using online payments. Remaining 19
respondents (16.4 %) said they are not using online payments. Majority of these 19
respondents could be below 18 years of age or in the higher age groups. In today’s time
mainly everyone uses online payment. According to a study, one of the main users of online
payments is youth. Many people use online payments because it offers a lot of advantages
to the people. With the growth in e-commerce and online shopping, everyone is almost
forced to use online payments.

50
Q.5 When Did You Start Online Payments?

Chart 5: Question 5

From 116 respondents surveyed, 53.4% i.e. 62 respondents started using online payments
before Covid-19 pandemic. 28.4% i.e. 33 respondents started using online payments during
the lockdown and 18.1% i.e. 21 respondents started using online payments after the
lockdown. Many people started using online services after demonetization due to the cash
crunch faced at the time of demonetization. As the time passed, slowly and gradually
people became habituated using online payments. 28.4% respondents started using online
payments during the lockdown. One of the main reasons for this is during the lockdown
we were not allowed to go out from our home because of safety reasons. So people started
ordering online the products and services of their daily use and also started to pay online
amid the fear of transmission of virus through the exchange of currency notes. 18.1% i.e.
21 respondents started using online payment services after the lockdown.

51
Q.6 Has The Pandemic Situation Increased The Extent Of Online
Payments Made By You?

Chart 6: Question 6

On asking has the pandemic situation increased the extent of online payments made by
you, Almost half of the respondents which is equal to 59 respondents i.e. (50.9 %) said that
the pandemic situation has increased the extent of online payments made by them. 30
respondents i.e. (25.9%) said that the pandemic situation has not affected the amount of
online payments made by them. The amount spent by them on online payments before and
during the pandemic situation is the same. 27 respondents i.e. (23.3 %) respondents are not
sure of the fact whether the pandemic situation has increased the extent of online payments
made by them.

Almost 50% respondents agreed to the statement that pandemic situation has increased the
overall amount spent by them on online payments. This is mainly because of increase in
contactless delivery, contactless payments, online shopping, etc. during the pandemic
amidst the fear of transmission of virus on using the traditional way of delivery, payment,
shopping, etc.
52
Q.7 Which Mode Do You Often Use To Make Online Payments?

Chart 7: Question 7

It can be observed that 62.9% of respondents use Unified Payments Interface (UPI)
services to make online payments. 62.9% respondents account for 73 respondents out of
116 respondents. 20.7% of respondents i.e. 24 respondents use net banking to carry out
their online payment transactions. 16.4% of respondents i.e. 19 respondents use various
cards for making the payments online. Majority of surveyed respondents use UPI to make
their payments. This is because UPI apps are easy to use. You only need a bank account
and your aadhar card should be linked with your bank account and with your UPI platform.
Net Banking is another emerging mode of e-payment. In net banking, you can transfer the
money from your bank account to receiver’s bank account using the bank’s app or website.

There are many types of banking cards but credit cards and debit cards are the most popular
ones among all other banking cards. In order to use the banking card services you need to
have a card which is issued by your respective bank. The concept of banking cards is not

53
very much popular in India as compared to western countries. In western countries, people
mainly rely on credit cards to purchase products and services required for their daily use
and also used for shopping. So, many people do not have banking cards sand those who
have a banking card are not totally dependent on it to carry out online payment transactions.
The concept of banking cards is becoming popular in metro cities but still it is at a lower
stage of development.

So, it can be concluded that UPI (62.9%) is most popular mode followed by net banking
(20.7%) which is followed by banking cards (16.4%).

54
Q.8 Which UPI Apps Do You Use?

70 65
63
60

50
41
40

30
23
20

10
1 1 1
0
Paytm Phone Pe Google Pay Amazon Pay Jio Jio Yono

Different UPI apps used by respondents

Chart 8: Question 8

This question shows us different UPI apps used by different respondents. Majority of
respondents use Google Pay i.e. 65 respondents which is equivalent to (56%) of total
respondents. The second most used UPI app by respondents is Paytm. 63 respondents use
Paytm which is equivalent to (54.3%) of respondents. The third most used UPI app by
respondents is Phone Pe. It is used by 41 respondents accounting for (35.3%) of
respondents. After Phone Pe, the next UPI app is Amazon Pay. Almost 19.8% respondents
used Amazon Pay which is equal to 23 respondents.

Jio Pay is used by 2 respondents which is equivalent to (1.8%) of respondents. And,

YONO by SBI is used only by 1 respondent which is (0.9%) of the total respondents.

Here, we can see that majority of people use Google Pay followed by Paytm followed by
Phone Pe followed by Amazon Pay, Followed by Jio Pay which is followed by YONO
from SBI. The reason why UPI apps like Google Pay and Paytm are preferred most by
people over other UPI apps is because of its popularity, good brand image in the minds of

55
people, widely available, advertising, etc. Other apps like Phone Pe, Amazon Pay, Jio Pay,
etc. are also growing in the market. But we can say that Google Pay and Paytm are the
most preferred and most used UPI apps by people in the present times.

56
Q.9 For Which Transactions Do You Use Online Mode Of Payment?

80
72 70
70
58
60 54
49
50
42
40

30

20

10
1
0
Bill Pyment Money Shopping Tickets Mobile Fee Insurance
Transfer Booking Recharge Payments Payment

Online mode of payment use to carry out different transaction

Chart 9: Question 9

This question was asked to know for which different transaction people use online mode
of payment. As it can be seen that majority of people use online mode of payment for the
purpose of shopping. It accounts for 72 respondents i.e. (62.1%) of total respondents. For
making mobile recharge, it is used the most by people after shopping. Mobile recharge is
made online by 70 respondents out of 116 respondents i.e. (60.3%) of respondents. The
third highest transaction done by people is that of bill payment. Around 58 respondents pay
bills online which is (50%) of total respondents. The next one is online money transfer.
Money transfer is made by 54 respondents i.e. (46.6%) of total respondents. The fifth in
the list of different transactions is the transaction of booking tickets online. 49 respondents
book tickets online which is equivalent to (42.2%) of the respondents. The second last in
the list is paying fees online. 42 respondents use online mode of payment for fees payment
which is equivalent to (36.2%) of respondents. The last but not the least is insurance
payment. 0.9% respondents i.e. equal to 1 respondent uses online mode of payment to make
payments online.

57
Q.10 How Often Do You Make Online Payments?

Chart 10: Question 10

This question was asked to know how often people make online payments. It is known that
13.8% of people i.e. 16 respondents make online payments once in a day. 45 respondents
out of 116 respondents which is equivalent to (38.8%) of total respondents make online
payments once in a week. 25 respondents out of 116 respondents make payment once in a
month which is equivalent to (21.6%) of total respondents. 15.5% respondents i.e. 18
respondents make payment once in three months. 10.3% respondents i.e. equal to 12
respondents make online payments for once in six months.

Through this graph we can see that there are different categories of respondents. Some
make payments once in a day, some make payments once in a week, some make payments
once in a month, and some make payments once in three months and some make payments
once in six months.

58
Day by day the usage of online payments is increasing. This statement is true because
almost 52% of respondents out of total (100%) respondents make online payments either
once in a day or once in a week. On the other hand, there are also respondents who make
payments once in three months or even once in six months. So, both trends can be seen
from this particular graph. Hence, we can conclude that the importance and usage of online
payments is increasing day by day.

59
Q.11 How Much Amount Do You Spend While Making Online Payments
In A Month?

Chart 11: Question 11

This question was asked with the purpose to know the total amount spent by individuals
while making online payments in a month. 55.2% of respondents which is equal to 64
respondents out of total 116 respondents spend Rs 1 – Rs 5,000 in a month while making
online payments. 13 respondents which is equivalent to 11.2% spend Rs 5,000 – Rs 10,000
in a month. 10.3% of respondents i.e. 12 respondents spend in between Rs 10,000 – Rs
15,000 per month on online payments. 10 respondents out of 116 respondents which is
equivalent to (8.6%) of respondents spend in between Rs 15,000 – Rs 20,000 in a month.
There are 7 respondents i.e. (6%) of respondents are in the group who spend Rs 20,000 –
Rs 25,000 in a month. There are 10 respondents which is equivalent to (8.6%) of total
respondents spend more than Rs 25,000 per month while making online payments.

60
Hence, we can conclude that majority of people spend reasonable amount i.e. Rs 1 – Rs
5,000 in a month while making online payments. We can also see that there are also people
who spend more than Rs 25,000 in a month while making online payments in a month. So,
we can conclude that many people spend less on online payments but the amount spent
while making online payments can increase in future.

61
Q.12 Which Feature Of Online Payment Attracts You The Most?

Chart 12: Question 12

This question discusses which features attracts the respondents the most to make online
payments. The discount feature attracts (14.7%) of respondents to make online payments
which is equal to 17 respondents out of 116 respondents. The next feature i.e. cashback
offers attracts (20.7%) of respondents to make online payments. (20.7%) is equal to 24
respondents. The next feature is convenience. Convenience encourages 1/4th people (25%)
of respondents to make online payments. 1/4th people account for 29 respondents out of
total 116 respondents.

The next feature is time saving. It attracts almost 27.6% respondents i.e. 32 respondents
which is highest among all other features. The last but not the least is the feature of hassle

62
Free. Hassle Free feature attracts 14 respondents that is (12.1%) of the total surveyed
respondents.

So, we can conclude that the feature of time saving attracts majority of respondents. It is
because in today, time is as important as money. And people do not have time to physically
go and make the payment. As online payments save time of people, they prefer to pay
online. Hassle Free is the feature which least attracts people to use online payments.

63
Q.13 Rate The Following Questions:

A) Online Payments is prone to frauds

Online Payment is prone to frauds

35 33
31
30

25
21
19
20

15 12
10

0
Strongly Agree Agree Neither Agree Disagree Strongly
Nor Disagree Disagree

Online Payment is prone to frauds

Chart 13: A)

A question was asked do you think that online payment is prone to frauds. 21 respondents
i.e. (18.1%) strongly agree to the statement that online payments are prone to frauds. 31
respondents i.e. (26.7%) agree to the statement that online payments are prone to frauds.
28.4% respondents i.e. 33 respondents out of total respondents neither agree nor disagree
to the statement. 19 respondents i.e. (16.4%) disagree to the statement that online payment
is prone to frauds. And 12 respondents i.e. (10.3%) strongly disagree to the statement that
online payment is prone to frauds.

So, we can conclude that 52 respondents believe that online payment is prone to fraud. 33
respondents are not sure whether online payments are prone to frauds or not. 31

64
respondents do not think that online payments are prone to frauds. But majority of the
people think that online payment is prone to frauds.

B) Maintenance of privacy is difficult in online mode:

Maintenance of privacy is difficult in online

mode
40
34
35
29
30 26
25
20
14 13
15
10
5
0
Strongly Agree Agree Neither Agree Disagree Stongly
Nor Disagree Disagree

Maintenance of privacy is difficult in online mode

Chart 13: B)

14 respondents i.e. (12.1%) strongly agree to the statement that maintenance of privacy is
difficult in online mode. 26 respondents i.e. (26%) agree to the statement. 29 respondents
i.e. (25%) neither agree nor disagree to the statement. 34 respondents i.e.(34%) disagree to
the statement and 13 respondents i.e. (11.2%) strongly disagree to the fact.

So, we can conclude that majority of respondents i.e. 47 respondents believe that
maintenance of privacy is difficult in online mode. They think that privacy cannot be easily
maintained in online mode of payments.

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C) Online Payments are safe and secure

Online Payments are safe and secure

60
48
50

40
28 27
30

20

10 7 6

0
Strongly Agree Agree Neither Agree Disagree Strongly
Nor Disagree Disagree

Online Payments are safe and secure

Chart 13: C)

28 respondents i.e.(24.1%) strongly agree to the statement that online payments are safe
and secure. 48 respondents i.e. (41.3%) agree to the statement. 27 respondents i.e. (23.3%)
neither agree nor disagree to the statement. 7 respondents i.e. (6.1%) disagree to the
statement and 6 respondents i.e. (5.2%) strongly disagree to the statement.

So, we can conclude that 76 respondents believe that online payments are safe and secure
and only 13 respondents feel that online payments are not safe and secure.

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D) Online Payments are more convenient compare to offline payments

Online Payments are more convenient

comapred to offline payments
50 45
45
40
35 30
29
30
25
20
15
9
10
3
5
0
Strongly Agree Agree Neither Agree Disagree Strongly
Nor Disagree Disagree

Online Payments are more convenient comapred to offline payments

Chart 13: D)

29 respondents i.e. 1/4th (25%) strongly agree to the statement that online payments are
more convenient compared to offline payments. 45 respondents (38.8%) agree to the
statement. 30 respondents (25.9%) neither agree nor disagree to the statement. 9
respondents (7.8%) disagree to the statement and only 3 respondents i.e. (2.5%) strongly
disagree to the statement.

So, we can conclude that majority 74 respondents believe that online payments are more
convenient compared to offline payments. On the other side only 12 respondents think that
offline payments are more convenient compared to online payments.

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E) You can make payment at your own time in online mode

You can make payment at your own time in

online mode
40 38 37
35
30
24
25
20
15 12
10
5
5
0
Strongly Agree Agree Neither Agree Disagree Strongly
Nor Disagree Disagree

You can make payment at your own time in online mode

Chart 13: E)

38 respondents i.e. (32.8%) strongly agree to the statement that you can make payment at
your own time in online mode. 37 respondents i.e. (31.9%) agree to the statement. 24
respondents i.e. (20.7%) neither agree nor disagree to the statement. 12 respondents i.e.
(10.3%) disagree to the statement and only 5 respondents i.e. (4.3%) of the total
respondents disagree to the statement.

So, we can conclude that majority i.e. 75 respondents think that they can make payment at
their own time in online mode. Only 17 respondents think that they cannot make payment
at their own time in online mode. Also 24 respondents are not sure that whether they can
make payment at their own time or not in online mode.

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Q.14 On A Scale Of 1 To 5, Rate Your Overall Experience Of Making
Online Payments (1 Being The Lowest And 5 Being The Highest)

Overall experience of making online

payments
Overall experience of making online payments

5 23

4 38

3 28

2 20

1 7

Chart 18: Question 14

This question was asked to know the overall experience of people who use online
payments. The scale for this question is kept from 1 to 5 (1 being the lowest and 5 being
the highest). 7 respondents i.e. (6%) have had very bad experience while making online
payments as they have selected the scale of 1 which is the lowest. 20 respondents i.e.
(17.2%) have selected the scale of 2 which means that their experience was not very good.
28 respondents i.e. (24.1%) feel that they have average experience i.e. neither too bad nor
too good. 38 respondents i.e. (32.8%) feel that they have had good experience while
making payments online. 23 respondents i.e. (19.8%) felt that they had very good
experience while making online payments as they have selected the scale of 5.

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So, we can conclude that majority of respondents i.e. 61 respondents have either had good
or very good experience while making online payments. This may be because of user
friendly technology, convenience, less waiting time, etc. which may have led them to good
or very experience. 27 respondents felt that they had bad or very bad experience while
making online payments. This may be because of downtime of server, technical glitch, and
error while making payments or any other factors which may have led them to not so good
experience.

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Q.15 Do You Think, The Use Of Online Payment Has Increased Since
The Covid-19 Pandemic?

Chart 19: Question 15

77 respondents which is equivalent to (66.4%) of the total respondents said “yes” that their
use of online payment has increased since the Covid-19 pandemic. 18 respondents i.e.
(15.5%) people said “no” that the Covid-19 pandemic has not increased the use of online
payments made by them. 21 respondents i.e. (18.1%) are not sure whether the pandemic
situation has increased the use of online payments made by them or not.

So, we can conclude that the Covid-19 pandemic has forced people to increase the use of
online payments made by them. One of the main reasons behind the increase in online
payments is due to online purchase of goods and services, fear of transmission of virus
through exchange of currency, etc. Also people have become habituated of making online
payments since the emergence of Covid-19 pandemic.

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Q.16 If Given An Option, Which Mode Of Payment Will You Use?

Chart 20: Question 16

The respondents were asked that if they are given an option which mode of payment they
will use. 73 respondents i.e. (62.9%) have said that if they are given and option they will
choose online mode of payment over offline mode. 43 respondents i.e. (37.1%) have said
that they will use offline mode of payment over online mode if they are given an option
between the two.

So, we can conclude that majority i.e. 73 respondents are willing to pay online if they get
an option between online and offline mode. One of the main reasons for this is that people
are used to making online payments since they are using it for a long period of time now.
Also it can be due to other benefits of online payments like discounts, time saving,
convenience, etc.

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CHAPTER 5: CONCLUSION AND SUGGESTIONS

73
 CONCLUSION AND SUGGESTIONS

5.1 Conclusion:
A large number of respondents 97(out of 116) use online payment services. More than
50% of the people were using the online payment service before the Covid-19 pandemic.
One of the main reasons for this is Demonetization. Other reason include growth of e-
commerce, increase in online shopping, changing in spending habits of the consumers, etc.
More than 50% of the respondents agree that the pandemic situation has increased the
extent of online payments made by them. This is mainly because of lockdown and safety
and security measures taken by people. Other reasons include contactless delivery,
contactless payment, increase in online shopping (mainly for daily household needs), etc.

Majority of the respondents often use UPI mode to make online payments. One of the
main reasons for this is that Unified Payments Interface (UPI) is easy to use and is easily
available at local stores as compared to Point of Sales (POS) machine. People mainly use
Paytm and Google Pay for UPI based transactions. People also use other UPI apps but its
usage is less as compare to Paytm and Google Pay. Paytm being one of the pioneers of UPI
based transactions is widely used because of its brand name, easy availability at all places,
etc. Google in itself is a brand and it is also easily available at many shops. So. Paytm and
Google Pay are preferred more by consumers over other UPI apps. People mainly use
online mode of payment for shopping, followed by Mobile Recharge. People also use
online mode of payments like money transfer, ticket booking, bill payment, fees payment,
etc. The main reasons for wide use of online mode of payment for shopping are growth of
e-commerce, Increasing trend of online shopping, easy tracking and shipment, change in
consumer purchasing habits, etc.

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 Online mode of payment is also used for mobile recharge. This is because people get
coupons if the recharge online. By redeeming the coupon, a particular amount gets
deducted as a result of which consumer has to pay less than the actual amount. Majority of
people make online payments once in a week. This is because of change in consumer
mindset, lack of time to carry out physical transactions, willingness of consumer to pay
through online mode, etc. Majority of respondents spend upto Rs 5,000 in a month on
online payments. It can be seen that slowly and gradually, amount spend by consumers on
online payments in a month is increasing. This is because of increase in consumer’s
disposable income, increase in needs and wants of consumer, increasing trend of online
shopping, etc.

Majority of people use online mode of payment because it save their time. As we do
not have to physically go to the shop and make payment, it saves our time. The next reason
is that it provides convenience. Customer can make the payment as per his/her
convenience. He can make payment from his workplace, home, or any other place as per
his time and convenience. Majority of people disagree to the statement that maintenance is
difficult in online mode. They think that privacy can be maintained in online mode of
payment also. This may be because of increase in security, role of OTP (One Time
Password), etc. Majority of the people agree to the statement that online payments are safe
and secure.

Majority of the people agree to the statement that online payments are more convenient
compared to offline payments. This is because people can make payments online at
anytime and from anywhere as per their convenience. Almost 66% of respondents think
that the use of online payment has increased since the Covid-19 pandemic. One of the
reasons is that since the pandemic, people have used to making online payments and also
safety and security is another important aspect in increase in online payment since the
Covid-19 payment. Almost 63% of people said that if they are given an option, they will

75
choose online mode of payment over offline mode. This is because of safety and security,
convenience, time saving and becoming habituated towards making online payments.

5.2 Suggestions:

• The government should increase the awareness of online payments among people
especially in rural and semi-urban areas. They should spread awareness about how
to make online payments, benefits of making online payments, etc.
• The government should encourage people to make online payments by carrying out
various campaigns. Digital India Campaign is one of the examples of this.
• The app designers/ companies, banks, etc. should give better security to the ones
using online payment services as this will help reduce the online frauds taking place
and also it will help the customers to trust online payment services which in turn
will encourage them to use the same.
• The software companies, banks, etc. providing online payment services should
create an app or website which is user friendly and easy to use for common people.
• The companies or banks should focus on creating a strong and good website which
cannot be hacked by hackers and also the server should be able to process a large
number of transactions at a time which provides better user experience to people
using online payment services.
• The customer should be aware of the online frauds taking place. So, he should not
transfer money to any unknown bank account over receiving a phone call from
unknown number saying you have received a jackpot. In order to get the amount
you have to first deposit a specific amount in this bank account.

76
• The customer should not give his bank account details to any unknown person as
he can misuse that information to withdraw money from our account without
informing us.
• The customer should never give his internet banking password, ATM password or
any other password to an unknown person as he can misuse it for carrying out
unethical activities.
• The customer should also keep a check on the expenses incurred by them in a
particular period of time. Unlike, the physical transaction where customer pays
through his hands, in online payment the amount gets directly deducted from the
customer’s bank account. So, many times customer does not have an idea of the
amount spent by him in a particular period of time and as a result of which
sometimes customer tends to overspend.
• The government should make sure that there is a strong internet connection
available everywhere even in rural areas as strong internet connection is a must in
carrying out online payment transactions. Without strong internet connection,
online payment cannot be made as strong internet connection is the “heart” of
online payment without which it could not function.

77
 BIBLIOGRAPHY

• Dinesh, T.K. (2018). Demonetization and its Effects on Digital Payments.

Economic Affairs.
• Gaonkar, D. S. (2018). Moving Towards Cashless India. SANSMARAN
Management Research Journal.
• KP, D. M. (2017). Digital payment systems: Perception and concerns among
urban consumers. International Journal of Applied Research.
• Dr. N. Rakesh, D. K. (2018). UPI - THE GROWTH OF CASHLESS
ECONOMY IN INDIA. Arabian Journal of Business and Management Review.
• Dr. Preeti Singh (2013); Am Exploratory Study on Internet Banking Usage in Semi-
Urban Areas in India, International Journal of Scientific and Research Publications
• Olalekan S. Akinola (2012): Cashless Society, Problems and Prospects, Data
Mining Research Potentials, International Journal Of Computer Science and
Telecommunications
• PardhasaradhiMadasu. (2015). India’s Progress Towards Cashless Economy –
An Assessment. Gavesana Journal of Management.
• Nath, L.-d. C. (2008). Determinants of Mobile Payments: An Empirical
Analysis. Journal of International Technology and Information Management.

• https://www.ques10.com/p/19918/what-are-common-electronic-payment-
methods-discu-1/
• https://brainly.in/question/13333083
• https://blog.dpogroup.com/top-5-challenges-in-online-payments-and-how-to-
overcome-them/
• https://blog.2checkout.com/advantages-and-challenges-of-accepting-payments-
online/
• https://webstor.srmist.edu.in/web_assets/srm_mainsite/files/2018/cashless-
economy-research.pdf
• http://euroasiapub.org/wp-content/uploads/2017/05/13ESSApril-4791-1.pdf
• https://en.wikipedia.org/wiki/E-commerce_payment_system

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• http://cashlessindia.gov.in/

79
 APPENDIX

Questionnaire:
1) Name

_________________

2) Gender

o Male
o Female
o Other

3) Age

o Below 18
o 18-24
o 25-34
o 35-44
o 45-54
o 55 and above

4) Occupation

o Student
o Working

5) Do you make online payments?

o Yes
o No

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 6) When did you start making online payments?

o Pre Covid-19 pandemic

o During the lock down
o Post lock down

7) Has the pandemic situation increased the extent of online payments made by
you?

o Yes
o No
o Maybe

8) Which mode do you often use to make online payments?

o UPI
o Net Banking
o Card Payment

9) Which UPI apps do you use?

Paytm
Phone Pe
Google Pay
Amazon Pay
Other________

10) For which transaction do you use online mode of payment?

Bill Payment
Money Transfer
Shopping
Tickets Booking
Mobile Recharge
Fees Payments

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 Other__________

11) How often do you make online payments?

o Once in a day
o Once in a week
o Once is a month
o Once in three months
o Once in six months

12) How much amount do you spend while making online payments in a month?

o Upto Rs 5,000
o Rs 5,000 – Rs 10,000
o Rs 10,000 – Rs 15,000
o Rs 15,000 – Rs 20,000
o Rs 20,000 – Rs 25,000
o More than Rs 25,000

13) Which feature of online payment attracts you the most?

o Discount
o Cashback Offers
o Convenience
o Time Saving
o Hassle Free

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14) Rate the following Questions:

Strongly Agree Neither Disagree Strongly

Agree Agree Disagree

Nor

Disagree

1) Online Payment is prone

to frauds

2) Maintenance of privacy

Is difficult in online mode

3) Online Payments are safe

and secure

4) Online payments are more

convenient compared to

offline payments

5) You can make payment at

your own time in online

mode

83
 15) On a scale of 1 to 5, rate your overall experience of making online
payments

(1 being the lowest and 5 being the highest)

1 2 3 4 5

16) Do you think, the use of online payment has increased since the

Covid-19 pandemic?

o Yes
o No
o Maybe

17) If given an option, which mode of payment will you use?

o Online
o Offline

84