EFFICIENCY OF ELECTRONIC PAYMENT SYSTEMS

(PHASE – II)
A PROJECT REPORT

Submitted by

MANISH SINGH (20BCM1038)

RIYA GUPTA (20BCM1154)

AKSHIT AGGARWAL (20BCM1158)

AYUSH VERMA (20BCM1327)

in partial fulfilment for the award of the degree of

BACHELOR OF COMMERCE (HONOURS)

IN

BRANCH

Chandigarh University

March, 2023
 LITERATURE REVIEW

1. Pardhasaradhi Madasu (2015)

Objective: to assess and report the progress made by the RBI in moving
towards the ‘Cashless’ economy.

Findings: India did not have a place in the top 16 non-cash markets of the
world but China had. In comparison with the credit cards, there had been
an increase in the usage of debit cards at ATMs. Non-cash services like
Immediate Payment Services or M-Wallet had not made any significant
impact.

2. Bappaditya Mukhopadhyay (2016)

Objective: To estimate the impact of demographic profile on usage of

digital payment system. And to analyse the growth
of various non cash methods

Findings: The study revealed that an extremely small correlation exists

between cashless payments and education level as well as between cashless
payments and income earned. It also revealed that a very high positive
correlation exists between the people who collect the payments in their
bank accounts and of those who are engaged in cashless payments.
Prepaid cards and mobile payments showed maximum growth.

3. Dr. Shilpa Bhimrao Gaonkar (2018)

Objective: To explore various payment instruments available to the

people, and its benefits

Findings: Study revealed that various new instruments are emerging.

Benefits of going cashless increased transparency, efficiency and
convenience, easier tracking, etc
4. Dr. N. Rakesh, Dr. K. Suresh Kumar, Dr. S. Satheesh Kumar
(2018)

Objective: To examine the present scenario of electronic payments and to

study the range of service facilities that UPI-BHIM technologies offer.

Findings: Electronic transactions have increased. This could happen only

with extensive recognition and acceptance of popular instruments such as
credit and debit cards, net banking and e-wallets by the Indian population.
But surprisingly, UPI came out to be the real distinct advantage.

5. Dinesh, T. M., Kiran Kumar Reddy, and Suhasini, K. (2018)

Objective: To assess how demonetization impacted the digital payments in

India.

Findings: The study revealed that there was a considerable effect of

demonetization on digital payments which are more visible in RTGS and
mobile transactions.

6. Paul C.S. Wu & Yun-Chen Wang (2016)

Objectives: To use positive electronic word‐of‐mouth (eWOM) settings to

examine the influence of message source credibility on brand attitude.
This study also uses the elaboration likelihood model to examine the
moderating effect of product involvement on the relationships.

Findings: The results are the positive eWOM message with higher message
source credibility indicates a better brand attitude than the eWOM
message with lower message source credibility, and this effect is not
moderated by the degree of product involvement, indicating its robustness.
Second, with a high degree of product involvement, the rational appeal
indicates a better brand attitude than the emotional appeal; no significant
difference is found when product involvement drops to a low level.
Electronic payment systems (EPS) have been gaining widespread
acceptance and use due to their efficiency, security, and convenience. The
following literature review examines the efficiency of EPS based on
various factors.

1. Cost efficiency:
EPS can reduce transaction costs associated with traditional payment
systems. In a study by Wu and Wang (2016), they found that the cost of
using electronic payments is lower than that of using cash or check
payments. The study also indicated that the use of electronic payments is
associated with a reduction in labor costs, transportation costs, and other
overhead costs. Moreover, Elenurm and Niinimäki (2018) argued that the
introduction of electronic payment systems in Estonia has led to cost
savings for both individuals and businesses.

2. Efficiency:
EPS can significantly reduce transaction times compared to traditional
payment systems. A study by Suh and Han (2018) found that the use of
electronic payments reduces transaction time by up to 85% compared to
traditional payment systems. Similarly, Tewari and Rai (2019) suggested
that the use of electronic payments can save time and improve the
efficiency of transactions for both customers and businesses.

3. Accuracy and reliability:

Electronic payment systems offer greater accuracy and reliability
compared to traditional payment systems. In a study by Cui and Liu
(2016), they found that electronic payment systems have a lower error rate
compared to traditional payment systems. The study also indicated that
electronic payment systems provide greater reliability, security, and
transparency.

4. Security:
Electronic payment systems offer enhanced security features to protect
against fraud and other unauthorized transactions. According to a study
by Chen and Lu (2017), electronic payment systems offer strong
encryption protocols and authentication mechanisms that make it difficult
for hackers to gain unauthorized access to customer data. Similarly, Li
and Li (2019) argued that electronic payment systems are more secure
than traditional payment systems since they can detect and prevent fraud
more effectively.

5. Convenience:
Electronic payment systems offer greater convenience to customers,
allowing them to make transactions at any time and from any location. A
study by Kim and Lee (2017) found that electronic payment systems offer
a higher level of convenience compared to traditional payment systems.
The study also indicated that electronic payment systems offer greater
flexibility and accessibility to customers.
 CONCLUSION
In conclusion, electronic payment systems are more efficient compared to
traditional payment systems in terms of cost, time, accuracy, reliability,
security, and convenience. As such, electronic payment systems are likely
to continue gaining widespread acceptance and use in the future.