A PROJECT REPORT ON

“A study on extensive use of e-payment

apps services in rural area: opportunities
and challenges”
Submitted in partial fulfilment of decision science lab-1

Masters of Business Administration

(Session: 2023-2025)

Submitted to:
Dr Pratima Mishra
Submitted By:
Akhil B V(23MMB024)
Vishnu Prasad(23MMB026)
Kishor Thomas(23MMB032)
Somya R. Samal(23MMB022)
Prashant Kumar(23MMB033)
 TABLE OF CONTENT

SR CONTENTS
NO

1 INTRODUCTION

2 LITERATURE REVIEW

3 RESEARCH METHODOLOGY

4 DATA ANALYSIS AND INTERPRETATION

5 DISSCUSSION AND FINDINGS

6 IMPLICATIONS

7 CONCLUSIONS

8 REFERENCES
INTRODUCTION
 Introduction
In this modern time, money is energy for life and could purchase everything. In fact, if we have
no money, we won't spend for our life. Just like blood in our body, money also plays an
important role in the economy, if blood is not circulated in the body then it will cause the
inactive of body likewise, if money is not circulated in the right manner it will affect the whole
economy. The growth of modern civilization depends on payments. Digital payment refers to
electronic consumer transaction, which include payment is for goods and services that are made
over the internet, mobile payments at point of sale (POS) via Smartphone applications (apps),
and peer-to-peer transfer between private user.
Adoption of cashless transaction has been significantly pushed by Prime Minister Mr. Narendra
Modi as part of government reforms after demonetization of high value currency of Rs500 and
1000 (86% cash circulation). The demonetization resulted in unprecedented growth in digital
payment. Indian government and private sector companies such as pay tm, Free charge and
Mobikwik had been aggressively pushing several digital payment applications including the
Aadhaar payment app, the UPI app and the National Payment Corporation of India (NPCI)
developed the Bharat Interface for Money (BHIM) app. Digital transfer using apps had brought
behavioral changes and helped in the adoption of digital payment. This has resulted in ease of
transfer of money in rural areas which was not touched earlier by the digital payment method.
Now many foreign investors want to invest in digital payment industry which is new attractive
destinations because of scope of tremendous expansion in India.
E-payment app allows us to perform transactions for goods and services with a mobile
device, Such as mobile phones, Smartphone etc. These wireless communication technologies
can be useful to us in a variety of ways like payment, ticketing, and paying fees and
electronically. E-payment app is one of the mobile payment instruments available that can be
used for various financial transactions. E-payment app services bring a range of technology
innovations.

Research problem
“A study on extensive use of e-payment apps services in rural area: opportunities and
challenges”

Objective of the study

This study is conducted to achieve these following objectives,

1.To study the factors that influence the people in rural area to use e-payment apps.
2.To study the satisfaction level of rural areas people while using E-payment apps.
3.To know the problems faced while using e-payment apps.
Statement of the problem
E-payment app or mobile wallet is very much used in recent year due to convenience, speedy
transaction, saving time. The mobile wallet transaction activities are implemented impact the
significant changes in the behaviour of consumer. In India most of the consumers are heavily
dependent only on the cash economy, now the consumer shave to switch from cash to cashless
electronic transactions. There has been a growth in consumers using more on E-payment app
for purchase of products and service except few. The study’s primary goal is to comprehend
the usage and problems faced by people in rural area while using e-payment apps

Scope of the study

The present study is aim to explain the level of rural people satisfaction towards E-payment
app service. The study also focuses on popularity of various e payment app services and need
to identify the factors that influence the rural areas people while using e-payment apps.

Significance of the study

Now a day the life style of the people is getting too busy and therefore significance of e-banking
are increasing day to day. They have no time to visit banks for the purpose of depositing or
accepting cash, as well as for the other service provided by the bank. E-payment app service
or E-wallet service offer a lot of advantage the common people that they can pay bills and can
take and give cash at any time anywhere without visiting bank. These services help to save
their money and also can be done with a good form of security. This will helps customers to
engage in their own works and avoids additional expenses like travelling cost etc. It also deals
exclusive discount deals to satisfy and attract their customers. This research is important to
study the use of e-payment app services in rural area.

Limitations of the study

1. The sample selected may not be an exact representation of the population of study
2. Study based on data collected from people through questionnaire. This may not be accurate.
3. The main limitation in this study is that this project is completed within a very short term
period.

Research methodology
The study is based on descript. A well structured questionnaire was designed to collect the
information from the respondents the questionnaire was designed to study satisfaction and
problems faced the rural peopleResearch is a careful investigation or injury especially through
search for new facts in any branch of knowledge.
Sources of data
Generally we can collect data from two source, primary sources and secondary source. Data
collect from primary source is known as primary data and data collected from secondary
sources are called secondary data.

 Primary data: The primary data is being collected from structured questionnaire
from people using convenience sampling method.

 Secondary data: The secondary data is being collected from E-wallet or mobile
wallet and digital wallet websites, journal and news.

Sample size
Sample size is an important feature of any empirical study in which the goals is to make
inferences about a population from a sample. In practice, the sample size used in a study is
determined based on the expenses of a data collection and the need to have sufficient statistical
power. A group of 100 people were selected for this study.

Sampling method
Sampling is the process of selecting units (e.g., people, organizations) from a population of
interest so that by studying the sample we may fairly generalize our results back to the
population from which they were chosen. Convenience sampling method is used for data
collection. Convenience sampling is a no probability sampling technique where subjects are
selected because of their convenient accessibility and proximity to researcher.

Method of data collection

Questionnaire is used for data collection. A questionnaire is a research instrument consisting
of a series of questions and other prompts for the purpose of gathering information from
respondents. The major variables measured through questionnaire are customer awareness,
popularity, factors influencing andproblems faced by people while using e-payment apps. The
major data collection tool used in this study is satisfaction scale. It is a Five Point Likert Scale
used to measure satisfaction towards e-payment apps.
The reliability of the scale is tested through the collected data by using the software SPSS.

Tools used for data analysis

The data were edited, coded and analysed using IBM SPSS Statistics 20(Trial version) for
windows. All questionnaire that were incomplete in responses were eliminated after screening
and scrutiny. Finally 100 questionnaire were included in the analysis .Mean, Median, Mode
standard deviation, percentages, Correlation ,ANOVA, T test and Chi-square tests were used
to test the hypotheses.

1.Correlation

Correlation is bivariate analysis that measures the strengths

Of an association between two variable and direction of the relationships.In terms of
the strength of relationship, the value of the correlation coefficient varies between +1
and -1.

2.T-test

A T-test is a statistical examination of two population means .A two sample T-test

examines whether two sample are different and is commonly used when the variances
of two normal distributions are unknown and when an experiment uses a small sample
size.
LITERATURE REVIEW
Dr. Remesh sardar(2016) : He summarized that M- Wallets have emerged as the most
significant contributor in pushing cashless and electronic payments. There should be
compatibility between various wallets whenever mobile payments become a sizable portion of
retail sales. The security system need to be strengthened because the majority of respondents
are worried about the security of mobile payments. The responses of a total of 60 respondents
from the jalgaon city urban region were examined. The data were analyzed using the chi-square
and T test. This research will aid in developing suitable tactics for mobile wallet companies to
access the prospective clients. The objectives of the study is to research jalgaon residents
awareness of and preferences for using mobile wallets and to determine how different
demographic factors affect the use of mobile wallets.

Ts Sujith(2017) : Tells that e-payment is a method by which a person, regardless of location

or time, can make online payments for the purchase of goods and services for the purchase of
goods and services without the physical transfer of cash and cheques. Because india is currently
in the process of demonetization ,this study is required to make electronic payments at any time
via the internet directly to manage the e-business environment. The purpose of this research
was to identify the issues and challenges of electronic payment systems and to propose some
solutions to improve the e-payment system. The electronic payment system not only provides
more opportunities, but also many threats.

TTP Rasna(2021) : Studied that every sector of the economy is being digitalized, and people’s
hectic schedules have changed their attitude regarding this process. This studies primary goal
is to comprehend how popular UPI, an online payment method ,is in both urban and rural areas.
The national payment corporation of india has advanced a digital payment system. This
interbank payment system has the potential to revolutionise and democratise digital payments
in india. With regard to kerala’s kannur district, The study focuses on examining the
preferences of UPI payment apps and conducting a comparitive analysis of male and female
UPI users in rural and urban settings. UPI is a cutting-Edge payment system that provides
consumers with more usability and superior security, and it has demonstrated increased societal
adoption. Payments made through UPI can be seen as a step in the direction of digital india.
 ANALYSIS AND
INTERPRETATION
 Gender No. of respondents Percentage

Male 64 64

Female 36 36

Total 100 100

Male
36%
Female
64%

Interpretation
The table given above reveals that out of 100 respondent 64% of the respondents are male
and 36% of the respondents are female. Hence it can be inferred that majority of respondents
are male.
 Age Frequency Percentage
17.00 1 1.0
18.00 2 2.0
19.00 2 2.0
20.00 23 23.0
21.00 13 13.0
22.00 11 11.0
23.00 8 8.0
24.00 6 6.0
25.00 5 5.0
26.00 1 1.0
27.00 3 3.0
28.00 1 1.0
29.00 3 3.0
30.00 6 6.0
31.00 1 1.0

32.00 3 3.0
33.00 3 3.0
34.00 1 1.0
36.00 2 2.0
38.00 1 1.0
42.00 2 2.0
44.00 1 1.0
45.00 1 1.0
Total 100 100.0

TAge of the respondents

Mean 24.6400
Minimum 17.00
Maximum 45.00

Interpretation
The above table shows the age of the respondents. Out of 100 respondents, the mean of
respondent’s age is 24.The minimum age is 17 and maximum age is 45.
 Education of respondent

Education No. of respondent Percentage

SSLC 4 4.0

HS 26 26.0

Graduate 55 55.0

PG 13 13.0

Other 2 2.0

Total 100 100.0

Education of the respondent

PG Other SSLC
13% 2% 4% HS
26%

Graduate
55%

Interpretation
The above table reveals that 4% of the respondents are SSLC,26% of the respondents are
HIGHER SECONDARY,55% of the respondent are GRADUATED,13% POST
GRADUATED and 2% of the respondents have other educational qualifications. Hence it can
be inferred that majority of the respondents are degree holders and Higher secondary.
 No.of
Occupation respondent Percentage
Farmer 1 1.0
Salaried employee 16 16.0
Self employed 4 4.0
Daily worker 11 11.0
Student 58 58.0
House wife 7 7.0
Other 3 3.0
Total 100 100.0

Occupation of the respondent

Farmer
Salaried employee
Self employed
Daily worker
Student
House wife

1%
7%3% 16%
4%
11%

58%

Interpretation
The above table shows that student contribute 58% of total respondents, salaried employee
contribute 16% and daily worker 11%.House wife contribute 7% of the total respondent and,
both farmer and other contribute 1% and 3%.
Table showing number of bank accounts of the respondents

No .of bank
accounts Frequency Percentage
1 56 56.0

2 33 33.0

3 7 7.0

4 4 4.0

Total 100 100.0

7%4%

33% 56%

1 2 3 4

Interpretation
The above table reveals that 56% of the respondents are have only 1 bank account,33% of the
respondents have 2 bank accounts,7% of the respondents have 3 bank accounts and 4% of the
respondents have 4 and above bank accounts.
Method of spending money

Method of Frequency
spending Percentage
Through cash 59 59.0

Through digital 41 41.0

mode

Total 100 100.0

Figure 4.13.A: Method of spending money

70
60
50
40
30
20
10
0
Frequency
Through cash Through digital mode

Interpretation
The above table reveals that 59% of the respondents spend money for their regular
expenditure using cash and 41% of the them through using digital mode.
Satisfaction level of e-payment apps
Std.
Satisfaction N Minimum Maximum Mean Deviation
Satisfaction level of 100 1.00 6.00 3.8100 2.09229
paytm
Satisfaction level of 100 1.00 6.00 5.1000 1.43900
google pay

Satisfaction level of 100 1.00 6.00 3.6500 2.02696

phone pe
Satisfaction level of 100 1.00 6.00 2.1700 1.73528
YONO SBI
Satisfaction level of 100 1.00 6.00 1.7800 1.43956
FedMobile
Satisfaction level of 100 1.00 6.00 2.0000 1.67573
BHIM
Satisfaction level of 100 1.00 6.00 1.7200 1.37128
free charge

Satisfaction level of 100 1.00 5.00 1.8000 1.41421

mobikwick

Satisfaction level of 100 1.00 6.00 1.8800 1.52607

Airtel money

Satisfaction level of 100 1.00 6.00 2.2500 1.85524

Amazon pay

Interpretation
The above table shows the satisfaction level of respondents towards different e-payment
apps. From the table we can understand the mean of paytm is 3.8,google pay is 5.1,phone pe
is 3.6,yono sbi is 2.1,fedmobile is 1.8,bhim is 2.0,free charge is 1.7,amazon pay is 2.2 and
airtel money is 1.9.Hence we can derive that respondents are more satisfied towards google
pay and they are least satisfied towards free charge.
Problems of e-payment apps

Std.
Problems N Minimum Maximum Mean Deviation
Non 100 1.00 5.00 3.3100 1.08892
responsive
servers
Amount 100 1.00 5.00 2.6600 1.18253
deducted
from my
account,
but didn't
reach the
merchant
Low 100 1.00 5.00 3.0900 1.23169
internet
bandwidth
Charges 100 1.00 5.00 2.6100 1.27045
imposed on
transactions

Interpretation
The above table shows the problems faced by respondents while using e-payment apps. From
the table we can understand that, non responsive server is the problem which is mostly faced
by the respondents which has a mean value of 3.3 and least faced problem is Amount
deducted from my account, but didn't reach the merchant which has a mean value of 2.6 .
: Factors influencing to choose e-payment app

Factors N Minimum Maximum Mean Std. Deviation

E-payment apps are
very convenient 100 1.00 5.00 3.7700 1.52325

Paying digitally saves

my time 100 1.00 5.00 3.7600 1.37157

Using e-payment apps

are very easy for me 100 1.00 5.00 3.7300 1.43446

E-payment apps helps

to make transactions 100 1.00 5.00 3.5100 1.35210
in less cost

Using e-payment apps

are secured 100 1.00 5.00 3.3800 1.27747

I am aware about the

functionality of e- 100 1.00 5.00 3.7100 1.28939
payment apps

Use of e-payment
apps reduces the need 100 1.00 5.00 3.5700 1.42315
to carry liquid cash
I am a person who
enjoying using 100 1.00 5.00 3.6200 1.38374
technology

Interpretation
The above table shows factors that influence the respondents. The mean score is different in
each factors , in these table high level mean score is 3.7700 it shows that convenience factor
is more influencing the respondents. The less influencing factor is security of e-payment app
that has a mean value of 3.3800.
TESTING OF HYPOTHESIS

Introduction to Hypothesis
A hypothesis is a proposed explanation for a phenomenon. For hypothesis is to be a scientific
hypothesis, the scientific method requires that one can test it. scientists generally based
scientific hypothesis on previous observations that cannot satisfactorily be explained with the
available scientific theories. Even though the words "hypothesis and theory" are often used
synonymously, a scientific hypothesis is not the same as a scientific theory. A hypothesis refers
to a provisional Idea whose merit to require evaluation. For proper evaluation, the framer of a
hypothesis needs to define specific in operational terms.

Hypothesis
1. There is no significance difference between males and females in their Awareness about
Goo
2. There is no correlation between age of the respondent and satisfaction towards Google pay.
3.There is no correlation between satisfaction level of google pay and further usage of e-
payment.

Hypothesis 1
There is no significance difference between males and females in their Awareness about
Google pay.

group statistics (Hypothesis 1)

Std.
Std.
App Gender N Mean Error
Deviation
Mean
Google Male 64 4.3281 1.19595 0.14949
pay Female 36 4 1.47358 0.2456

Independent sample test (Hypothesis 1)

 Sig.(2-
F Sig. T Df tailed
Google Equal 4.613 .034 1.210 98 .229
pay variances
assumed
Equal 1.141 61.082 .258
variances not
assumed

Interpretation
The group statistics shows the mean of gender. The mean of female is 4 and the mean of male
is 4.3281. The t-test shows t value 1.141 which degree of freedom 61.082 and the significant
value of t is .034 greater than 0.05 and therefore it is rejected and there is no significance
difference between males and females in their Awareness about Google pay.

CORRELATION
Correlation is used to test the hypothesis given below and the result are:

Hypothesis 2
There is no correlation between age of the respondent and satisfaction towards Google pay.

Correlations (Hypothesis 2)

Pearson Correlation -0.043

Sig. (2-tailed) 0.67

N 100
Interpretation
Person correlation value is 1 and the p value obtained is .670 which is greater than 0.05,
which is significant. So the hypothesis is accepted and it is proved that, there is no correlation
between age of the respondent and satisfaction towards Google pay.

Hypothesis 3
There is no correlation between satisfaction level of google pay and further usage of e-
payment.

Correlations (Hypothesis 3)

Pearson Correlation .115

Sig. (2-tailed) .255

N 100

Interpretation
Pearson correlation value is 1 and the P value obtained is .255 which is greater than 0.05. So
our hypothesis can be accepted. And proved that there is no correlation between satisfaction
level of google pay and further usage of e-payment.
FINDINGS AND CONCLUSION
Findings
The major findings of the study are summarized below.
1.Majority (64%) of respondents are male and rests (36%) are females.
2.The mean of respondents age is 24.6.
3.Respondents are from different educational background 4.0% of the respondent are
SSLC,26% of the respondents are HS,55% of the respondents are graduate,13% of the
respondents are PG and other are 2%.
4.Respondents are from different occupational background. 4% of the respondents are
SSLC,26% of the respondents are HIGHER SECONDARY,55% of the respondent are
GRADUATED,13% POST GRADUATED and 2% of the respondents have other educational
qualifications. Hence it can be inferred that majority of the respondents are degree holders
and Higher secondary.
5.Out of 100 respondents have 100% bank account.
6.Respondent are more aware about google pay which has a mean value of 4.2100 and less
popular app is airtel money that has a mean value of 1.3100.
7.Respondents have different satisfaction level towards different e-payment apps, It is found
that paytm has a mean value of 3.8, google pay is 5.1, phone pe is 3.6, yono sbi is
2.1,fedmobile is 1.8,bhim is 2.0,free charge is 1.7,amazon pay is 2.2 and airtel money is
1.9.Hence we can derive that respondents are more satisfied towards google pay and they are
least satisfied towards free charge.
8.It is found that there is no significance difference between males and females in their
Awareness about Google pay
9.It is found there is no significant differences between education of the respondent and
general satisfaction towards e-payment/digital payment.

Conclusion
In the modern era the usage of E-payment app has increased drastically and people prefer
more use of plastic money as compared to paper money. The study was conducted to know
the usage of e-payment apps in rural area. For the analysis of the project a questionnaire
bases study is conducted. In this study, the populations are aware about e-payment.
Customers are readily accepting E-payment app as their payment mode for various occasion
changing their attitude towards traditional cash system. Payment app is save time and provide
convince to the customer. Google pay, pay tm and Phone Pe are considered as the most
acceptable payment gateway. The growth of users of Smartphone and internet penetration in
such area also facilitated the adoption of payment app. On the other hand, security comes as a
major cause for concern for using E-payment app. The respondents still face obstacles while
using payment app it involves security of mobile payment and too time consumption to setup.
Due to offers introduced by such platforms such as cash back and discounts, customers are
more interested in making Payment through payment app and increase its popularity and
adoption as well. The overall usage of e-payment apps in rural area is being increased.

Reference
Dr. Ramesh Sardar “Preference Towards Mobile Wallets Among Urban Population of
Jalgaon City”. Journal of Management 3 (2), 2016.

TS Sujith, CD Julie “Opportunities and Challenges of E-payment System in India”

international Journal of Scientific Research and Management (IJSRM) 5 (09), 6935-
6943, 2017.

PC Lai “Design and Security impact on consumers' intention to use single platform E-
payment” Interdisciplinary Information Sciences 22 (1), 111-122, 2016.

Oskar Szumski “Technological trust from the perspective of digital payment”

Procedia Computer Science 176, 3545-3554, 2020.

Questionnaire:

1) Gender

Male
Female

2)Your educational qualification

Below SSLC Graduate
SSLC PG
HS Other

3)Your occupation
Farmer Salaried employee
Self employed Daily worker
4)How many bank accounts do you have

5)How do you generally spend money for your day to day expenses
Through cash
Through cheque
Through digital mode

6) Following are some of the reasons why people are likely to switch to digital payments
,please mark your response towards each of them

Statements Strongly Disagree Nuetral Agree Strongly

disagree disagree
E-payment apps are very convenient
Paying digitally saves time
Using e-payment apps are very easy for
me
E-payment apps helps to make
transactions in less cost
Using e-payment apps are secured
I am aware about the functionality of e-
payment apps
Use of e-payment apps reduces the need
to carry liquid cash
I am a person who enjoying using
technology

7)Mark your satisfaction level towards each app

Apps Highly Satisfied Neutral Dissatisfied Highly Not used

Satisfied dissatisfied
Paytm
Google pay
Phone pe
YONO SBI
FedMobile
BHIM
Free charge
Mobikwick
Ola money
 Airtel money
Amazon pay

8) Write your feedback based on the problems you encountered while using this payment app
Statement Very often Often Sometimes Rarely Never
Non responsive servers
Amount deducted from my
account, but didn’t reach the
merchant
Low internet bandwidth
Charge imposed on transactions