“A STUDY ON CONSUMER BEHAVIOR TOWARDS DIGITAL PAYMENTS”

A project submitted in partial fulfillment of the requirements for the award of

the Degree of
MASTER OF BUSINESS ADMINISTRATION OF
BANGALORE UNIVERSITY

Submitted By
MS. BHAGYA.S
Reg. No: P03CT21M0074
Under the Guidance of
Ms. SWETHA.P.NAIK
Assistant Professor
Department of Management

EAST WEST COLLEGE OF MANAGEMENT

No.63, Off Magadi Road, Vishwaneedam Post, Bharath Nagar, Bangalore- 560091
Bangalore University 2021-2023
 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 the aim to create a ‘digitally empowered’ economy
that is ‘Faceless, Paperless, Cashless’.

The growth of modern civilization depends on payments. Systems of payment have substantially changed over time, from the stone age barter system, to
coins and currencies and to virtual payment. This chapter discusses the theoretical model developed for the present study. Indian economy is one of the
fast-growing economies in the world. Despite global turbulences of economic conditions, the Indian economy has been focusing on development. In the
recent past, there are significant developments that have taken place in the Indian financial system, which have led to huge transformations, trends, and
changes in the business dynamics. Though the government of India has been focusing on digital transaction initiatives for the last few years, the actual
impact of electronic payments has taken place in India in a significant manner post-demonetization period. India’s economy has the intrinsic structure of
rural and urban economic developments.

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 – offers enormous flexibility, as well. These cards provide 2-factor authentication for secure payments e.g., secure PIN and OTP.
Ropy, Visa, and MasterCard are some examples of card payment systems. Payment cards give people the power to purchase items in stores, on the
Internet, through mail-order catalogs, and over the telephone.
 COMPANY PROFILE

Paytm was founded in August 2010 with an initial investment of US$2 million by its founder Vijay Shekhar Sharma in Noida, Delhi NCR. It
started off as a prepaid mobile and DTH recharge platform and later added data card, postpaid mobile, and landline bill payments in
2013.Paytm is a leading bill payments app for mobile recharges, DTH recharge facilities, Utility bill payments, Movie Bookings, Travel
Bookings (Train, Flight, Metro), and more that offers financial solutions also to its customers through its platform.The parent organization
of Paytm is One97 Communications and their tagline is “Paytm Karo”.

The Paytm company was founded by Vijay Shekhar Sharma in 2010 and is based in Noida, Uttar Pradesh. This was initially designed to
cater to merchants and customers to help them send and receive money online. The company rapidly grew popular and expanded to include
wallet services, banking facilities, e-commerce facilities, and more to make life easier for Indians. They started the platform for the sale of
purchase of Shares, Mutual Funds, and Digital Gold named ‘Paytm Money’ is regarded as the biggest investment platform and contributes
to Systematic Investment Plans (SIP) in the Mutual Funds Industry.
 REVIEW OF LITERATURE

• Deepika Kumari, (2020)., in her studies of Cashless Transaction: Methods, Applications, and Challenges concluded that the as the
demonetization applied by the government of India, the Government trying to aware its people of the cashless transaction through various
kinds of advertisement methods but still a large number of people are waiting for the introduction of cashless transaction. This paper is a
study of cashless transactions and their different methods, advantages, and challenges. This paper will help to understand the basics of the
cashless transaction

• Subramanian. S., (2018)., the study Paper- free payment systems in India - an analytical study concluded that Banks and other financial
institutions should concentrate further on efforts to encourage corporate, individual /retail customers and also noted that the gaps in the bill
payments eco-system for lack of interoperability, high cost of cash, cheque /draft collection and poor accessibility in semi-urban and rural
areas to ensure efficient innovative paper-free electronic payments and settlement systems form the backbone of the economic well-being of
the nation. In addition, simplifying documentation requirements, increasing the role of non-banks in the payment systems, innovation and
competition, uniformity, and addressing risks could facilitate more usage of the innovative efficient paper-free mode.
• Ashish Das, and Rakhi Agarwal, (2017), in their article “Cashless Payment System in India- A Roadmap” Cash as a mode of payment is an
expensive proposition for the Government. The country needs to move away from cash-based towards a cashless (electronic) payment
system. This will help reduce currency management costs, track transactions, check tax avoidance/fraud, etc. enhance financial inclusion,
and integrate the parallel economy with mainstream

• Balakrishnan, (2016)., in his article Working capital management – Impact of emerging electronic payment Options in India published that
the adoption of new-age electronic payments systems and the use of new practices in inventory and production management help
companies achieve a long-term reduction in working capital management requirement.
 STATEMENT OF PROBLEM

To curtail the rise in the circulation of black money in the country, Prime Minister Narendra Modi, on November 8, 2016, initiated the demonetization
policy, following which there had been a ban on currency notes of the denomination Rs 500 and Rs 1,000. Thus, the central government put its first step
toward a cashless economy. In a cashless economy, most of the transactions will be done by digital means like e-banking, debit and credit cards, Po’s (point
of sales) machines, digital wallets, etc. In simpler words, no liquid money or paper currency will be used by the people in a given country. It not only eases
our life but also authenticates and formalizes our transactions. In this context, it is felt necessary to undertake a study to know the factors influencing and
the satisfaction level of consumers towards digital payment and also identify the problems in the adoption of digital payment.
OBJECTIVE OF THE STUDY
• To find out the factors influencing consumer behaviour towards platform of Paytm.

• To measure the satisfaction level of the customers from the service quality of platform Paytm.

• To identify the problems faced by consumers in the adoption of Paytm payments.

 RESEARCH METHODOLOGY

Descriptive research aims to accurately and systematically describes a population, situation, or phenomenon. It can answer what, when, where, and how
questions. a descriptive research design can use a wide variety of research methods to investigate one or more variables.

DATA COLLECTION

• Primary data: In this study, primary data was collected through a structured questionnaire.

• Secondary data: secondary data was collected from early research, internet, books, magazines etc.

SAMPLING DESIGN

A convenience sample technique is used for the study. It is the method of non-probability sampling here the samples comprise subjects who are simply
available in a convenient way.

SAMPLING METHOD

sampling technique was used to collect the data is probability sampling and will be used simple random technique in order to get accurate data.
 SAMPLING FRAME

• Working professional

• Customers
FINDINGS

• The research reveals that most of the users of Paytm are females in comparison to males. about 54% of females are interested in using Paytm.

• Majority of respondents use Paytm and few do not use it because of a lack of awareness about Paytm.

• Majority of users use Paytm for recharge and making payments, transferring money, booking tickets, and online shopping.

• Respondents would like to use Paytm at roadside vendors, retail shopkeepers, traveling, and restaurants and to make government payments.

• The reason behind people still using Paytm is the lack of awareness, lack of trust or security, lack of infrastructure to accept Paytm, and slow and
unstable interest.

• Majority of people think mobile wallets can replace cash.

• Out of the sample respondent’s majority 60% of people use Paytm,30% of people do not use Paytm followed by 10%of people not knowing about
Paytm because of a lack of awareness about Paytm.

• Out of all the respondents, 27% of users would like to use Paytm at roadside vendors,27%users like to use Paytm at retail shopkeepers where 22%
users like to use Paytm while like to use Paytm at retail shopkeepers 22% users like to use Paytm while traveling 14% would like to use at
restaurant and remaining 10% would like to make government payment through Paytm.
SUGGESTIONS

• There is a 4% interest charge on services provided by Paytm so to avail more customers Paytm should minimize or avoid charges.

• Paytm should provide internet or Wi-Fi facility to vendors who provide Paytm facilities to their customers,

• Paytm should look into recharge coupons being available in rural areas so people can use Paytm even if they do not have bank accounts.

• Always check the type of transaction, check the name of the payee initiating the transaction.

• If the user suspects fraud or sees an incorrect amount for the collect request he/she was expecting, reject the request. The user can always
ask the sender for the request
CONCLUSION

• Paytm is one of the best mechanical advancements in the present century and the administrations offered by Paytm help in Time
utilization furthermore, it is anything but difficult to utilize. What's more, for the up-and-coming business visionary's Paytm example of
overcoming adversity would be extremely motivational and a lesson to learn before beginning another wander. The achievement of Paytm
could be it was a plan of action presented in the wake of concentrating on the current circumstance winning in our nation and that is the
reason it went ahead to wind up outstanding amongst other arrangements after demonetization. Can get consideration from the general
public as it centers around making mindfulness among individuals. Instructing individuals about its administrations. Fruitful treatment of
Paytm by purchasers and shippers is the best case of its positive effect on the general public. Paytm is the best case of an organization that
used online business to advertise better. Paytm saves customers time on going to separate websites for separate payments. The number of
digital payment methods will increase exponentially as people become more aware of financial literacy and financial accessibility.
Consumers across India want local payment methods today, tomorrow, and in the future. Businesses who want to capture a slice of this
market must offer the above payment methods to them. Paytm started the Digital Revolution in India. And we went on to become India’s
leading Payments App. Today, more than 20 million merchants & businesses are powered by Paytm to Accept Payments digitally.
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