A STUDY ON DIGITAL PAYMENT DURING PANDEMIC

A Project Submitted To
University of Mumbai for partial completion of the Degree of
Master in Commerce
Under the Faculty of Commerce

By
MULLA MUSAVIR HUSAINMIYA SHAHIN
Roll No. 12

Under The Guidance of

Prof. GEETA BHATIA

Studying at
s
Rizvi College of Arts, Science & Commerce
Rizvi Educational Complex, Bandra (West), Mumbai

April-2021
 INDEX

SR.NO TOPIC PAGE NO

1 INTRODUTION 1
Meaning of Digital Payment Concept & Definition

History of Currency
Digital Payment System in India
What are digital payments?
What are the main objectives to promote digital payments?
Benefits of digital payments
How does the payment system work?
Different method of digital payment system in India
Impact on payment categories
2 RESEARCH METHODOLOGY 28
3 REVIEW OF LITERATURE 34
4 DATA ANALYSIS, INTERPRETATION AND 39
PRESENTATION
5 FINDING FROM ANALYSIS 49
6 CONCLUSION 51
7 RECOMMENDATION 55
8 BIBLIOGRAPHY 56
9 ANNEXURE 57
 Certificate
This is to certify that Mr.MusavirMulla has worked and duly completed her/his
Project Work for the degree of Bachelor of Commerce (Master in Commerce) under
A STUDY ON DIGITAL
PAYMENT DURING PANDEMIC tify 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 her/ his own work and facts reported are by her/his personal findings and
investigations.

________________
PROF. GEETA BHATIA
Signature of Guiding Teacher

Date of Submission:
20TH April 2021
 Declaration
I the undersigned Miss / Mr. MULLA MUSAVIR HUSAINMIYA SHAHIN here
by, declare that the work embodied in this project work titled
A STUDY ON DIGITAL PAYMENT DURING , forms my own
contribution to the research work carried out under the guidance of PROF. GEETA
BHATIA
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 works 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 academic rules and ethical conduct.

Signature of Student _____________________

(Name of student: MULLA MUSAVIR)

___________________
Prof. GEETA BHATIA
Signature of Guiding Teacher
 Acknowledgement
To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance
to do this project.
I would like to thank my Principal, Dr. (Mrs.) Anjum Ara Ahmad for
providing the necessary facilities required for completion of this project.
I take this opportunity to thank our Coordinator Prof. Mohammed Mukhtar

Khan, for moral support and guidance.

I would also like to express my sincere gratitude towards my project guide
Prof. Geeta Bhatia 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.
 A STUDY ON DIGITAL
PAYMENT DURING PANDEMIC
 EXECUTIVE SUMMARY

The on-going spread of COVID-19 has become one of the biggest threats to the global
economy and financial markets. To contain the impact of the corona virus outbreak,
India, like many countries across the globe, is taking several measures, including a
nationwide lockdown; limiting movement of the entire population; shutting down
public places and transport; and urging the public to stay indoors, maintain social
distance, and work from home.

The resulting economic disruption is huge and the short- term decline in activity for
businesses, large and small, considerable. With economic growth expected to be
severely hit, the financial outlook of the digital payments sector is no different and
stability
and potential for innovation will play an invaluable role in rebooting the economy in
the new normal.
 INTRODUCTION

The adverse effects of the COVID-19 pandemic are trickling down to major
sectors of the Indian economy, with manufacturing, auto, retail, aviation and
hospitality bearing the brunt of the lockdown.

This in turn has affected fast-growing digital payments which are closely
linked to the aforementioned sectors. Shut shops, travel bans and reduced
discretionary spends by consumers (on dining out, movies and entertainment
and so on) are further negatively impacting digital payments.

Digital payment volume declines are seen in airlines, tourism, hospitality,

hotels, entertainment, e-commerce (non-essentials) and restaurants, among
other sectors. Further, cross-border payments, be they B2B or C2B, have
significantly declined owing to the temporary shutting down of borders
further, resulting in restricted movement of goods. International remittances
too have been affected and have reduced.
However, there are also a few areas that are seeing an uptick in digital
payments by way of increased adoption during the lockdown.
These include online grocery stores, online pharmacies, OTT players (telecom
and media), EdTechs, online gaming, recharges and utility/bill payments.
Digital payment volumes are also receiving a boost through the Government,
which has pledged monetary assistance to the poor via direct transfers to bank
accounts.
The finance minister and the CEO of the National Payments Corporation of
India have also urged people to increase the use of digital payments in order to
make payments contactless. Digital payments, once a convenience, have
become a necessity in these times.
With a majority of the sectors that contribute to digital payments still in a state
of flux, it is still too early to ascertain the long-term impact of COVID-19 on
digital payments.

Page 1
MEANING OF DIGITAL PAYMENT

Digital payment is a transaction that takes 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.

Please note that digital payments can take place on the internet as well as on
physical premises.

For example, if you buy something from Amazon and pay for it via UPI, it
qualifies as a digital payment. Similarly, if you purchase something from your
local Kirana store and choose to pay via UPI instead of handing over cash that
also is a digital payment.

CONCEPT

Digital payments are not one instrument but rather an umbrella term applied to a
range of different instruments used in different ways.

DEFINITION

Page 2
HISTORY OF CURRENCY

Over the course of the millennia that have transpired since currency first came into
use, the way Indians use money has undergone many transformations.

A year of demonetisation has shown how there has been a push towards a digital
economy, but the love for cash refuses to fade.

From cowries shells and gold coins to paper notes and the modern digital methods
the history of payments in India is varied and intriguing.

As the RBI rolls out the Rs 50 and Rs 200 denominations in the Indian currency
system, we trace its evolution from the earliest days of recorded history.

Early currencies:

Cowries shells, found abundantly in the Indian Ocean, were among the earliest
forms of currency used in the world. In India, they were colloquially referred
to as kaudi and were used in certain areas like Odisha even until the early
1800s.

The first documented instance of coins being used as currency in India dates
-
stamped bars of metal (usually silver and copper) that were first issued in the
Mahajanapada kingdoms of the Indian Iron Age, and they lasted until the end
of the Imperial Mauryan period.

The Indo-Greek kings then introduced new types of coins that would influence
Indian coinage for many centuries to come. The Kushan Empire, which
existed from the first to third centuries CE, began minting gold coins which
featured mythological deities.

Page 3
The Gupta Empire, from 320-470 CE, produced the largest number of gold

ous forms through the subsequent

dynasties in India from the Rajput and Mughal empires in the North to the
Maratha and Vijayanagara kingdoms in the South.

It was Sher Shah Suri who, during his five-year rule from 1540-1545,
introduced to the nation a new currency which is the ancestor of the modern-
day Rupee.

After defeating Humayun and taking over the Mughal Empire in 1540, Suri set
up a new civic and military administration that issued a silver coin termed the
Rupiya, which remained in circulation even during the remainder of the
Mughal Period as well as during the Maratha era.

The Rupiya remained the dominant standard currency even during the British

in India as early as the 1600s. But the coins issued in Western India (Bombay
and Surat) and South India (Madras) provinces differed from their northern
counterparts in both design and metrology.

Ancient origins: Cowrie shells (top) were some of the first forms of currency
used in India, before being replaced by silver and gold coins, such as these
ones from the Maurya dynasty (bottom).

The issuance of a uniform coinage in India was brought about only in the early
19th century when the English, who were now the dominant power in the
country, enacted the Coinage Act of 1835.

Page 4
 The newly-designed coins saw the traditional Indian images and symbols
replaced with the effigy of King William IV, which was itself replaced by the
portrait of Queen Victoria from 1840 onwards.

However, it was only after the Indian Rebellion of 1857, also known as the
Sepoy Mutiny, that the British declared the Rupee as the official currency of
colonial India.

When cash was crowned king:

Coins initially derived their value from the precious metal used to mint them.
This posed a problem for sovereigns who did not possess the requisite gold or
silver to prevent a drastic devaluation of their currency.

Paper money solved this problem as it bore a promise to pay its possessors the
equivalent value of gold or silver from the public treasury. Soon, it no longer
mattered that paper money was not backed by anything of tangible value, and
it was simply accepted as a medium of exchange for goods and services.

But while paper currency was popularised in Asia by Genghis Khan as early
as the 11th century, it only gained traction in India a few centuries later.

In the late 18th century, silver and gold coins gave way to hundis, bonds, and
shares, and paper currency was introduced in India for the first time.

Both private and semi-government Presidency banks could print notes the
General Bank of Bengal and Bihar (1773-75).

Page 5
The Bank of Hindustan (1770-1832) were among the earliest issuers of paper
currency in India. In 1861, the Government of India enacted the Paper
Currency Act which granted it a monopoly over the issue of notes and ended
the issuance of notes by private and Presidency Banks. Subsequently, the
Notes in denominations of Rs. 10, 20, 50, 100,
and 1,000 entered circulation.

The Indian Independence Movement soon began gathering steam, and its
nationalist and economic strategy arm, the Swadeshi Movement, made a big
impact on Indian banking. Inspired by the message of reviving domestic
processes and products, businessmen and politicians founded several local
banks Canara Bank, Bank of India, Corporation Bank, Indian Bank, and
Bank of Baroda, to name a few for the Indian community from 1906 to
1911.

Soon after, the British Empire faced an acute shortage of silver due to the
outbreak of World War I in 1914 and hence began issuing paper currency of
smaller denominations (one and two Rupees) hitherto issued only as coins.

Meanwhile, India got its first printing press in Nashik in 1928 which soon
began printing currency for the entire country.

The rupee underwent several iterations under British rule, including this ten
rupee note from the 1920s (top) and this one rupee coin from 1918 (bottom).
The First World War left the Indian economy in dire straits, and the need for
an apex monetary authority was identified.
The Central Legislative Assembly, acting on the guidelines recommended by
the 1926 Royal Commission of Indian Currency and Finance, set up the
Reserve Bank of India to separate the control of currency and credit from the
government and to regulate banking and note issuance throughout the country.

Page 6
 The RBI was formally inaugurated on April 1, 1935, with its Central Office at
Calcutta (now Kolkata) which was relocated to Bombay (now Mumbai) in
1937. A year later, the apex bank issued its first series of notes which now
bore a portrait of the new British monarch George VI. The Five Rupee note
was the first one to be issued in this series and Rs. 1, 2, and 10,000 notes were
subsequently added to the pre-existing denominations.

When the Republic of India was established on January 26, 1950, the portrait
of George VI on the Rupee note was replaced by an image of the Ashoka
Pillar. This currency remained in circulation unchanged until The High
Denomination Bank Notes (Demonetisation) Act, 1978.

Under this law, the Indian Parliament halted the use of high-denomination
banknotes of Rs. 1,000, 5,000, and 10,000 which were undermining the Indian
economy due to their use in illegal financial transactions.

It was in 1996 that the first notes bearing the picture of Mahatma Gandhi were
printed. These notes, which featured upgraded security measures and tangible
aids for the visually impaired, remain in circulation even today, with the
exception of the Rs 500 and Rs 1,000 notes which were replaced after the
2016 Demonetisation.

The birth of the modern banking system

The partition of
and paralysed banking activities for months.

Keen to restore economic welfare in India, the government sought to create a

mixed economy as opposed to the laissez-faire system which had existed thus
far.

Page 7
With this intention, the RBI was nationalised with effect from January 1,
1949, under the Reserve Bank of India (Transfer to Public Ownership) Act,
1948.
A few months later, the Banking Regulation Act, 1949, was passed which

This law was eventually amended in 1965 to place cooperative banks under
the purview of the RBI for the first time.

By the 1960s, the Indian banking industry was a large employer and played a
key role in augmen

Since the banks in India, with the exception of the State Bank of India, were
owned by private entities, the government led by the then prime minister
Indira Gandhi decided to nationalise the banking industry.
The Parliament passed the Banking Companies (Acquisition and Transfer of

commercial banks with effect from July 19, 1969. In 1980, the government
further nationalised six more commercial banks after which it controlled
around 91 percent of the Indian banking industry.

The Indian banking sector underwent yet another upheaval a decade later.
Facing an economic crisis in 1991 caused in large part due to the USSR
collapse and the Gulf War India introduced liberalisation policies that
allowed the entry of private banks into the country.

HSBC Bank, ICICI Bank, HDFC Bank, and UTI Bank (now Axis Bank)
ushered in a new era for the Indian banking sector.

Page 8
 HSBC was the first bank to set up an Automated Teller Machine (ATM) in
India; it did so in Mumbai in 1987.

form of debit cards and credit cards, slowly began gaining popularity as well.

According to RBI statistics, there are currently over two lakh ATMs operated
by 46 banks in India. In September 2017 alone, they accounted for Rs
2,42,264 crores in transactions. Credit and debit card users, meanwhile,
accounted for Rs 74,094 crores in transactions at Point of Sale (PoS).

Computerisation first entered the Indian banking industry in 1988, and internet
banking in the 1990s. But it was only in the 2000s when online payment
systems like Electronic Funds Transfer (EFT), Real Time Gross Settlement
(RTGS), National Electronic Funds Transfer (NEFT), and Interbank Mobile
Payment System (IMPS) started being used.

A digital economy

While NEFT and other forms of online payment required a computer and often
featured lengthy transaction times, the new wave of e-payments brought about
by digital wallets has made transferring money a lot easier and quicker.

Since internet availability and Smartphone usage have become virtually

ubiquitous, e-wallets like PayU, Paytm, and MobiKwik are being used by
millions for financial transactions, both personal and commercial.

Page 9
Unified Payments Interface (UPI) system backed up by the BHIM App an
Aadhaar-based mobile wallet which can be used to make digital payments
directly from bank accounts.

The demonetisation move by the Narendra Modi-led government saw a sharp

uptake in cashless transactions in November and December 2016 mobile
wallet transactions recorded a 114 percent rise, Point of Sale (PoS)
transactions an 88 percent rise, and mobile banking transactions a 30 percent
rise. From November 2016 to May 2017, the total digital transactions in India
went up by 23 percent, from 22.4 million to 27.5 million. A Google-BCG
study also predicts that the Indian digital payments industry will grow to $500
billion by 2020, accounting for 15 percent of the GDP.

But in a country whose economy was 90 percent cash-reliant pre-

demonetisation, cash remains the most commonly used medium for financial
transactions.

RBI data shows that as of April 2017, Rs 2,171 billion was withdrawn via
ATMs, while UPI transactions at that point were at Rs 22.41 billion, meaning
that UPI replaced cash by merely one percent.

Cash withdrawals, which were at a low of Rs 850 billion in November 2016,

increased to Rs 2,262 billion in March 2017.

Pre-demonetisation in October 2016 and September 2016, this was at Rs 2,223

billion and Rs 2,551 billion respectively.

Page 10
 Unlike digital payments, which rely on a steady internet connection and
acceptance from both buyer and seller, cash is quick, easy, and instantly
available for further offline transactions.

That makes it the mode of payment of choice for Indians right now.

This is unlikely to change until the digital infrastructure in the country is

improved to the extent that every Indian, no matter how remote their location,
can make digital transactions as easily as they can pay with cash.

Digital payments themselves are evolving with the inception of crypto

currency.

Payment players have been impacted differently, depending upon their

exposure to various sectors.

This view has been taken keeping in mind a timeframe of at least six months
for these sectors; depending on how/when the pandemic is curtailed.

DIGITAL PAYMENT SYSTEM IN INDIA

It is not a very old story when we used to do everything by cash, from

purchasing our monthly grocery items to booking movie tickets at Inox,
standing in a long queue.

A few Mobile Wallet service providers like Paytm or Free charge was started
providing App-based Mobile Recharge services with some Cash Back features
which can be utilized for the next mobile recharge.

Page 11
But after November 8, 2016, everything was drastically changed. It is very

anything. Many people have reluctantly adopted the alternate payment system
due to the cash crunch.

And now more and more people are willingly adopting this alternative
Payment solution leaving traditional cash-based payments system.

Yes, we are talking about the digital payments in India and its burgeoning
popularity amongst the all, no matter whether he/she is young or old. Because
it is fast, secure, convenient & less time-consuming.

Today, in this article, we will try to cover all the Facts, Features & Futures of
the Digital Payment system in India along with its implications, uses in the
Indian Payments landscape.

Digital Payments is nothing but the transfer of money between the two Bank
Accounts or Mobile Wallets in Digitalised form. There is no involvement of
physical cash transactions.

The Bank Accounts may be between any same Banks or other Banks or
mobile wallets between the same service providers or the different providers.
In Digital Payments, Payer and Payee both uses digital mode to send and
receive money in real-time.

Further, Digital Payments can be online or offline depending on the mode of

payment instruments, you can send money using your smartphone or PC with
internet or using simple mobile devices without using any mobile data.

Page 12
WHAT IS THE MAIN OBJECTIVE TO PROMOTE DIGITAL PAYMENT?

Convenience and ease of transaction

Drive the development and modernization of payment system and promote

transparency.

Help business people grow their customer base and resources beyond
geographical reach.

Eco and Environment Friendly.

Traceability of Transaction

BENEFITS OF DIGITAL PAYMENT

running an ATM is very high & risky.

Banks may also stop setting up new ATMs in the future and many ATM
locations may be phased out within the next few years.

As for customers, you have to pay charges, if ATM uses limit exceed by 3
times in a month. Therefore, the best alternative is Digital Payments

Page 13
Features of Digital Payments System:

Fast: The payment processing is fast almost on a real-time basis.

Less Time Consuming: Hassle-free and less time-consuming. You do not

have to visit the branch or ATM for cash withdrawal and payment to the
recipients.

Cost-Effective: Transaction charges are almost nil in comparison to Cash

Transaction.

Less Risky & Safe: Manual Cash handling and carrying involve very high
risk whereas Digital Payments system is totally risk-free because you only
transact with the digitalized form of money.

Availability: The benefits of Digital Payments Service are available for 24*7
and all the time in a year. Therefore, no headache of Bank Holiday or Strike or
Cash Shortages.
Convenience: All the transactions can be done from the comfort of your
home. No need to queue up for ATM withdrawal.

Accessibility: Anyone can access the services of the Digital payments system;
you just need a Smartphone & internet connection. (You can use Digital
Payments in Offline mode also).

Offers & Discounts: Many merchants offer Discounts & cash back for the
payments which are done in digitalised form like Payment made by
Debit/Credit Card or UPI Platform.

Page 14
 Advantages of electronic payment system:

1. No Barrier Is There

There is no geographical barrier to make an online payment. You can sit

comfortably at your home, and you can pay a person overseas.

There is no need to travel anywhere and easily pay someone sitting far from
you. You can make the Payment instantly, and this is one of the greatest
advantages of online Payment.

You just have to tap the pay button on your smartphone, and the money will
get transferred instantly. Also, the receiver and the sender will get the
notification then and there.

2. Easy To Setup
The installation of online payment apps/ E-Payment apps is quite easy, and it
can be done by anyone out there.

Just like the setup, the implementation is also very easy as online payment
apps are quite user- e learning
how to make the payments.

The easy setup comes as one of the best advantages of electronic payment
systems.

The user interface is also very easy to work with without any problems.

Page 15
3. Reliability

Generally, the online payment portals are quite safe as people look for safer
options for transferring money, and this comes as one of the best online
payment advantages as the whole transaction procedure is secured.

If anything unwanted happens during your online transaction, you can cancel
it anytime, or if the Payment is deduced, it gets refunded in a few business
days generally.

talk to their executives at any time.

We must say that reliability is one of the biggest advantages of online

Payment.

4. Making International Payments Is Easy

As we have seen earlier, geographical restriction is not there in online

transactions, so if you have a person on the other side of the world, that person
is not far away.

You can send money to that person instantly with an online payment service.
If you want to extend your business overseas, then you have to implement an
online payment system.

A small fee for foreign transactions is to be paid to the service providing apps.

There are so many advantages of electronic payment systems, and that is why
it can be one of the most important aspects of your business.

Page 16
5. Trust Building

Generally, the online payment system has a fraud protection invoice system.
There is very little chance that if you use the online payment system, you will
be cheated.
It is one of the best advantages of online transaction.
If you have purchased something online and did not receive the product, you
can get your money back quite easily if your Payment was made online. It is
considered to be one of the greatest benefits of online payment system.

6. Recurring Payment Is Easy

Sometimes we go for some recurring payments through subscription.

These subscription processes are quite easy to handle if you have opted for the

amount as it will be deducted from your account automatically.

Among so many online payment advantages, the best thing about this system
is you can do any kind of Payment while you are at work, so
to take leave just to pay some bills.
make a run
to pay our bills if we use online Payment.

7. Shopping With Low Balance Is Easy

If you have a credit card, you can easily use the online payment system to do
some important shopping, even at a low balance.
In the case of online Payment, you can choose to pay a lump sum amount in
installments without worrying much about your balance.

The advantages of electronic payment systems include emergency shopping

through an online payment when you are low on cash or even low on the
account balance.
Page 17
8. The Referral Is an Advantage

Sometimes if you refer your code to someone in the online payment portal
then you can receive some good discount offers.

On the other side, the person you will refer to the link will also get some
vouchers that can prove helpful for that person.

These surprises can come as an advantage to people using online Payment.

9. Coupons and Vouchers

One of the most common advantages of online transaction is you can receive
some exciting offers for your further payments.

You can also get discounts on your future purchase if you opt for an online
payment system.

You can save a remarkable amount of money if you use this type of service.

10. Competitive Advantage Is There

Using the online payment system can be a competitive advantage in the

business.

Because if your competitor will go with the old school transaction system all
the customers who use online payment system will automatically come to you.

Among so many benefits of online payment system, one of the greatest

benefits is to acquire more customers in a business.

Page 18
 You can also provide various business offers on online Payment to attract
more customers or use an app that gives extra benefits on online purchase.

11. Generate More Impulse Buying

advantages of online Payment is they can influence customers to do impulse

buying by implementing online Payment.
Even if the customer does not have cash, he/she will do the shopping by the
online transaction.
If you use the online payment system, then you can implement different deals
and offers very easily. So among so many other advantages of electronic
payment system, it is a great one for business owners.

12. Sales Will Be More

A last-minute purchase of some materials can be induced in the case of the

online payment system.
Suppose you have to shop for something, but the deal will end in 5 minutes.
Then one of the biggest advantages of online transactions is you can make the
purchase instantly sitting at your home.
Similarly, you can pay the whole amount almost instantly even if it is big if
you shop using an online transaction system.
13. Zero Contact Payment

ayment
system is one of the greatest advantages of electronic payment system. You

purchase.

Zero contact payment helps in reducing the amount of germs and bacteria
from one person to another.
Page 19
HOW DOES THE PAYMENT SYSTEM WORK?

There are four participants in the typical digital transaction, starting with the
consumer.
The consumer, that's you and me, is pretty self-explanatory. We want to buy a
good or service, and we're going to use our card to pay for it.
The second participant is, obviously, the merchant. This is the seller of the
good or service we want to buy. It's the store.
The consumer's card is linked to a bank account, which brings us to the third
participant into the process, the bank. There are two banks involved, each
filling a different but similar role they're the source of the money.
The consumer's bank is the entity that manages the transfer of the consumer's
money to be used for payment. In industry parlance, this bank is known as the
issuer.
If the consumer is using a debit card, the issuer will use the available money in
that account to pay the purchase price.

DIFFERENT METHODS OF DIGITAL PAYMENT IN INDIA

It not only helps to reduce the work burden on Banking Industries in India but
also provides a safe, reliable, fast & Digital alternative of Cash-centric Indian
Economy.

Here are the different methods or types of Digital Payments system in India

Page 20
The most popular and common method of Digital Payments solutions in India.
You can get a Debit card just after the opening of Account in Bank in India.

The card may be Visa, MasterCard or RuPay card depending upon your choice
or Bank. The other types of Debit or Credit card providers in India are
Maestro, Diners Club, and Visa Electron.

Different types of Debit Cards in India most of the PSU or Private Banks
initially offer Rupay Card to its customers. Rupay is a domestic Card mainly
use for the transaction within India.

Though you can use RuPay Debit Card in International ecommerce websites
or can withdraw money in overseas countries.

Preload able debit card for a

single-use or reloadable for multiple uses.

Net Banking

The prepaid card can be Visa or RuPay powered depending upon the Bank.
The prepaid cards mainly used for Corporate Gift, Reward Card or any single-
use card for gifting purposes.

The Prepaid card can be used to withdraw money at ATM or performing an

online transaction at any Payment Gateway up to a certain limit.

Page 21
 Some popular Banks which offer prepaid card in India are
Axis Bank Prepaid Card
HDFC Bank Prepaid card
3. Unified Payments Interface (UPI)

UPI or Unified Payments Interface is one of the most innovative Digital

Payments solutions launched by NPCI in India, maybe the best Payment
solution in the World to date.

As NPCI data there are 148 live UPI member banks issue UPI for their
customers and more than 33 third-party UPI apps available in Play Store. UPI
transaction has reached Rs.2,06,462.31 as of March 2020 by transaction value
and already surpassed the debit card transaction for the FY 2018-19. (Source:
-wise growth of UPI transaction by volume. (As on
March 2020)

You can send money in real-time to any VPA ID (virtual payment address) if
you have a Bank Account and your mobile number already registered with
your Bank Account.

Some of the best UPI payment Apps in India you can download to your smart
phone are:

Google Pay Currently Number One in terms of Transaction Value (Data up

the total Digital Payment of Axis Bank.

Paytm Most downloaded UPI App in India both Android and iOS Platform.

Phoneme Very popular UPI App and currently ranked 2nd in the total
volume of UPI transactions.
Page 22
 BHIM Official UPI App launched by NPCI.

4. Aadhaar Enabled Payment System(AEPS)

By this Digital payment mode, you can transfer money between two Aadhaar
linked Bank Accounts or withdraw money if your Account linked with
Aadhaar Card.

All the transaction made by this process has to go through the biometric
authentication. This mode of payment mainly uses by the Business
Correspondence at CSP points for cash withdrawal and work as micro-ATM.
The AePS fees for Cash withdrawal at BC Points are around Rs.15.

The merchant also can use this mode to receive payment by fingerprint
authentication of customers. The device can be attached to mobile and all the
banks have specific BHIM merchant Apps to use this device for merchant
payment. The merchants do not have to pay any transaction charges if the
amount is below Rs.2000.

As per the latest data from NPCI, AePS has crossed more than 205 million as
of February 2020.

5. Mobile Wallet

The popularity of mobile wallets has increased many folds during recent times
and it is one of the most used Digital Payment modes in India.

The reason is anyone can create a Mobile wallet just by downloading and
installing the App. You can keep some money in a digitalized form in the
Mobile Wallet.

Page 23
 Many Mobile wallet providers in India also run different types of rewards or
cash back programs if the transaction made from the Mobile Wallet

You can easily create a Mobile Wallet if you have a mobile number without
providing any Valid KYC documents. Though as per RBI guidelines, all the
Mobile Wallets must be KYC complied within August 2019 to continue the
services of Mobile Wallet in India.

The popularity of mobile wallet has increased so much that you can find the
link of popular Mobile Wallet at all the Payment Gateway in India.

You can easily add funds to Mobile Wallet from Credit/Debit card or from
Net Banking service.

As per RBI norms, you can only transfer money between two different mobile
wallets (interoperability) or from Mobile Wallet to Bank Account, if your
wallet is KYC complied.

Paytm was the first company in India, started the concept of Mobile Wallet.
Now you can find many mobile wallet Apps, from commercial Banks to
Fintech Start-up, in Google Play Store or ios App Store.

6. Internet Banking

Internet banking one of the first technologies started at the initial stages of the
Digital payment system in India.

Page 24
 All the commercial banks and recently launched Payment Banks in India have
their own internet banking portal. Some Banks have integrated so many things
in their internet banking portal that you can complete your every banking tasks
from the Net Banking portal.

the list of some Banks which has the best internet banking portal in India.

a) ICICI Bank
b) State Bank of India
c) HDFC Bank
d) Kotak Mahindra Bank

7. Mobile Banking

Mobile Banking is the best and most Popular Digital Payment mode in India
because it is most convenient, easy to use and integrated with all the features
that we need our day to day banking.

You can find all the Digital payment modes like IMPS, NEFT, RTGS, UPI,
Bill Payments, etc. at a single platform.

Banks are also encouraging their customers to use mobile banking services
because it not only helps to reduce the work pressure on Banks but also helps
to create a Digital Payments ecosystem in India.

Page 25
8. Micro ATM
This is mostly used by the Business Correspondence at Customer Service
Points (CSP).

You can withdraw money or deposit cash to your Aadhaar Linked Bank
Account by just authenticating your fingerprint to the device.

Accounts only you need the

Aadhaar to link both the Account.

Popular Apps for Digital Payments System in India

categorically classify some best and Popular Apps for Digital Payments
System in India

Google Pay: Uses UPI Payment Technology. No Wallet Option, one of the
most innovative Digital payments App in India.

Paytm: Largest Mobile Wallet service provider in India. Offers UPI, Mobile
wallet and Payment Bank with RuPay card for online Payment.

PhonePe: Very popular mobile wallet providers in India, Offers UPI & Mobile
Wallet service along with many other essential features.

Pay nearby: Innovative digital payment App mainly provide digital payment
solutions like Adhaar Banking, AEPS, SMS Payments, money transfer, etc to
the retailers. You can download the App here.

BHIM: Official UPI Payment Apps, offers by NPCI, all the Commercial
Banks have integrated BHIM UPI API in their Mobile Banking Platform.

Page 26
Pockets by ICICI Bank: One of the most innovative Digital Bank cum Wallet
service providers in India. Offers UPI, Zero Balance Bank Account, Visa
Virtual Domestic Debit card as Digital Payments option.

Kotak 811: Best Digital Bank in India offers Visa Virtual Debit card with
international Payment option, UPI, Mobile Banking, IMPS, NEFT, RTGS as
Digital Fund transfer.

Axis Bank ASAP: Similar services as Kotak 811. All types of Digital
payments facilities with a Virtual Bank Account.

Payzapp from HDFC Bank: Mobile wallet with Visa Domestic Virtual Debit
Card. Offers online payment services like UPI, Debit card, mobile wallet, etc.

National Common Mobility Card: RuPay Contactless Card (Visa also starts
issuing NCMC) can be used for Public Transport across India, You can get
NCMC from SBI and most of the commercial Banks in India.

More than 100M people in India now use Digital Payments mode at least once
in a month in India. Banks and Fintech start-ups are also introducing several
innovative Digital payment modes every day. The days are not far away when
India will also be regarded as a Digital Economy.

share the article with your friends. You can connect with me by just sending a
message from our Face book Official Page.

Page 27
Impact on payment Categories
Payment systems have demonstrated that they are dependable and durable, and
continue to command a high level of confidence from the general population.

However, closure of businesses and the lockdown have resulted in lower

transaction volumes overall. In this section, we look at the relative impact of
the COVID-19 pandemic on various payment categories.

Page 28
 RESEARCH METHODOLOGY

MEANING

We are a large cash economy: in fact India is the second largest producer and
consumer of currency in the world, next only to china.

Cost and Longevity are important considerations in currency management.

Producing such a large amount of currency is expensive.

Both the Government and RBI are keep on moving India towards a less cash
economy by encouraging people to shift from cash to electronic payments for
all transactions.

Digital payments ensure accountability in all the transactions.

Since everything is digitally recorded, there is always a way to verify and

track transactions.

When using cash payments, it could be difficult to hold anyone responsible

for any additional expenses.

While India must fully embrace cashless transactions to embark on the

transition to a super economy in the coming years, there are still some hurdles
to overcome.

With lot and artificial intelligence, it's also important to have a sustainable and
lucrative business model that caters to the new age digital ecosystem with a
robust cyber security system.

Page 28
 Although the challenges are many, a good start is halfway done and the
government is already preparing for a safer and brighter future without money.

Sectors that will boost digital payments include small grocery stores, online
money transfer, OTT (over-the-top), online gaming, online education, ATM
withdrawals and broadband usage.

OBJECTIVE OF STUDY

To examine the age of respondents impact on Digital Payment.

To find out the effect of Covid-19 on Digital payments.
To compare the respondents buying behaviour before lockdown and during the
lockdown.
To find out the most popular method of digital payment.
To analyse the mode of payment done by the respondents before lockdown
and during lockdown.
To find the online payment site used by the respondents.
To analyse the problems faced by them while during online payment.

Page 29
DATA COLLECTION SOURCES

1) Primary Data:

Primary data was collected through interviews and a structured questionnaire.

The close ended questionnaire was prepared taking into consideration the
objectives of the study.

In the questionnaire necessary instructions were given in simple, easily

comprehensible language.

The questionnaire was structured in such a way that the respondents could
give correct information and fill up the questionnaire in short time.

The response format for most of the questions was standardized to reduce time
needed to complete the survey.

Most of the questions were closed ended, so that they can easily select the
alternatives while answering the questions asked. Information from the
respondents was collected through this structured questionnaire.

2) Secondary data:
The secondary data is collected for the research in order to get knowledge
about the problem through previous research.
The data is taken from websites and publications and from internet,
magazines, newspaper etc.

Page 30
ADDITIONAL RESEARCH

The study focuses on extensive study of secondary data collected from

government websites, various national and international journals and articles,
publications, conference papers, government reports, newspapers, magazines
which focused on various aspects of Digital payment.

The covid-19 pandemic could move the world more rapidly towards digital
payments.

Payment systems have demonstrated that they are dependable and durable, and
continue to command a high level of confidence from the general population.

However, closure of businesses and the lockdown have resulted in lower

transaction volumes overall.

To aid the recovery and lead the emergence into this new normal, it is
imperative for the digital payments ecosystem to evolve rapidly and help
shave the post-covid era.

In this project we describe the various digital payment methods that are used
in pandemic situation.

Page 31
LIMITITION OF STUDY

The information given by the respondents might be biased because some of

them might not be interested in providing correct information.

. This was one of the most important limitations faced, as

it was difficult to analysis and come at a right conclusion.

RESEARCH DESIGN

A good research design has characteristics via, problem definition, time

required for research project and estimate of expenses to be incurred the
function of research design is to ensure that the required data are collected and
they are collected accurately and economically.
A research design is purely and simply the framework for a study that guide
the collection and analysis data. In this project the two basic types of research
design are used:

Exploratory Research:

All research projects must start with exploratory research. This is a

preliminary phase and is absolutely essential in order to obtain a proper
definition of problem in hand. The major emphasis on the discovery if ideas
and insights.

The exploratory study is particularly helpful in breaking broad and vague

problems in to smaller, more precise Sub problem statements. Exploratory
research is also used to increase the familiarity with the problem under
investigation.

Page 32
Descriptive Research:

It is the design that one simply describes something such as demographic

characteristics of people. The descriptive study is typically concerned with
determining frequency with which something occurs or how two variables
vary together.

A descriptive study requires a clear specification of who, what, when and why
apex of the research. It requires formulation of more specific hypothesis and
the testing these through statically interference technique. This is the research
design of the study and then it comes to develop the research plan means that
what to do before going for the actual interpretation

Page 33
 REVIEW OF LITERATURE

Duvvuri Subbarao (2016) his book revealed about the suggestion to take the
step by the Government. Both the Government and RBI keep on moving India
towards a less cash economy by encouraging people to shift from cash to
electronic payments for all transactions. The shift from cash to electronic
payments is a continuous process and is happening all the time, but its

question of making it convenient for people to use electronic payments. In

ultimate analysis though, facilitating the shift to a less cash economy is a
question of meaningful financial inclusion

Dr.V.Sornaganesh and Dr.M.Chelladurai (2016) in his article revealed

about the situation at the time of demonetization. The researcher made an
attempt to study about the demonetization impact and financial technology
company. The researcher also analyse about payment service sector during
the demonetization period. Fast Moving Consumer Goods have extended their
credit cycle to address this liqui
companies have extended some credit to the distributors through RTGS.
Digital payment is the largest bet in the mobile internet space from the
technology point of view.

Page 34
G.Sudha and Dr.V.Sornaganesh (2019) article is revealed that after
demonetization changes in buying behaviour are clearly explained. After
demonetization the main impact is reduce the paper money and increase the
digital cash. Most of the customers used digital cash after the demonetization,
used through the mobile applications, Internet banking, etc., for paying their
bills.

G.Sudha and M.Thangajesu Sathish (2020) article is revealed that after

demonetization retailers will adopt the digital payment methods. The
researcher analysed to find out the payment methods between the pre and post
period of demonetization. Most of the retailers used their payments through
using various applications.

M.Thangajesu Sathish, R.Sermakani, and G.Sudha (2020) this study is

revealed that the traditional system of cash transaction cannot completely be
replaced by card or e-payment system. People can adopt and use their mobile
wallets for the payment transaction, fund transfer, purchasing groceries and
paying bills etc. The study has discussed the trust is the main factor affecting
directly and it impacts on many users intention to adopt.

Page 35
Tomi Dahlberg, Niina Mallat, Jan Ondrus, Agnieszka Zmijewska (2007-
08) The mobile payment services markets are currently under transition with a
history of numerous tried and failed solutions, and a future of promising but
yet uncertain possibilities with potential new technology innovations. At this
point of the development, we take a look at the current state of the mobile
payment services market from a literature review perspective. We review prior
literature on mobile payments, analyse the various factors that impact mobile
payment services markets, and suggest directions for future research in this
still emerging field. To facilitate the analysis of literature, we propose a
framework of four contingency and five competitive force factors, and
organize the mobile payment research under the proposed framework.
Consumer perspective of mobile payments as well as technical security and
trust are best covered by contemporary research. The impacts of social and
cultural factors on mobile.

KL University, Vaddeswaram Greenfields, Guntur District, Andhra

Pradesh , 2018 The demonetization resulted in tremendous growth in digital
payments. With the government initiative such as Digital India and increased
use of mobile and internet are means to exponential growth in use of digital
payment. This transformation towards digital payments benefits in more
transparency in transactions which empowers the country economy. In recent
days many changes took place in the payment system like digital wallets, UPI
and BHIM apps for smooth shift to digital payments. The objective of this
research paper is to study the positive impact that Digitization of payment
system. The collected data through the questionnaire were analyzed
statistically by using chi-square technique.

Page 36
M Sumathy, KP VipinThe Digital India programme is a prestigious
programme of the Government of India with a vision to transform India into a
digitally empowered society and to become a knowledge ,
professed role and slogan of Digital India. As
part of promoting cashless transactions and converting India into less-cash
society, various modes of digital payments are available. These modes are
banking cards, Unstructured Supplementary Service Data (USSD), Aadhaar
Enabled Payment System (AEPS), Unified Payment Interface (UPI), mobile
wallets point of sales, micro ATM etc. The current study is focused on urban
digital payment systems. For the
purpose of study, a convenient sampling survey was conducted among 100
urban respondents in Malappuram District of Kerala with the help of an
interview schedule. The tools used for this study are Percentage analysis; one
way Anova, independent sample t-test, ranking method etc.

Rahul Gochhwal 2017,this paper studies Unified Payment Interface (UPI), a

new age payment system introduced in India by National Payment
Corporation of India. Unified Payment Interface is a mobile centric, real time
interbank payment system which has the potential to transform and
universalize digital payments in India. The paper traces the evolution of
payments systems in India and examines in detail the technology behind
Unified Payment Interface focusing on its architecture and security systems
through empirical and theoretical literature review. UPI is a significant
advancement as compared toextant payment system in terms of cost, ease of
use for consumers, settlement times and security and has witnessed good user
adoption. Its modular API based architecture will enable development of
innovative solutions for consumers and businesses. UPI is currently in its
infancy stage and development of merchant centric UPI solutions will greatly
increase the user adoption. UPI can help bring a large part of the population
within the ambit of digital economy and can be a great tool for financial
inclusion in India.
Page 37
Palak Kanojia, Madan Lal 2020,with the government spending huge
amounts on making digital payments successful, the reports indicate that the
rate of penetration is not as rapid as it is supposed to be. Many third parties
are entering into the payment sector with alternative payment systems at retail
sector. This study is based on the literature available on the consumer
behaviour theory of planned behaviour (TPB). The purpose of the research is
to test the relationship between the trust-based factors and the antecedents of
the behavioural intention to use electronic payments by the users. Presently,
the research question that has been concentrated on is to study the impact of
trust on the attitude and intention to use electronic payments in India. The
objective of the study is to examine the role of trust in technology adoption
model. The findings indicated that trust acts as a significant determinant of
consumer adoption of digital payments in India. Therefore, in order to find
the answers to the research question, the study has been conducted among the
users of electronic payments

Page 38
 DATA ANALYSIS, INTERPRETATION AND PRESENTATION

1) Gender?
a) Male b) Female

According to above diagram

65.4% of the respondents is Female.

Remaining 34.6% are Male.

Page 39
 2) What is your Age?

a) 18-25
b) 25-45
c) 45-60
d) Above 60 years

According to above diagram

84.6% of the respondents are in the age group of 18-25 years.

11.5% of them are in the group of 25-45 years.
3.9% of them are in the age group 45-60 years.

Page 40
 3) Occupation?

a) Service b) Business c) Retired d) Other

According to above diagram

73.1% of the respondents of people do other work.

15.4% of people do Service.
11.5% of people are Businessman.

Page 41
4) What is Your Monthly Income?

a) Upto Rs 10000
b) Rs 10001- Rs 20000
c) Above Rs 20000

According to above diagram

69.2% respondents of people earn Upto Rs 10000.

19.2% of the people earn Above 20000
11.5% of people earn Rs 10001- Rs 20000

Page 42
5) Do you prefer digital payment during pandemic?

a) Yes b) No

According to above diagram

96.6% respondents of people do prefer digital payment during pandemic.

3.8% of people do not prefer digital payment during pandemic.

Page 43
6) Which digital payment app do you prefer at most during pandemic?

a) Paytm
b) Google Pay
c) Phone Pe
d) Amazon

According to above diagram

73.1% respondents of people do prefer Google pay app during pandemic.

15.4% of people do prefer Paytm app during pandemic.
11.5% of people do prefer Phone Pe app during pandemic.

Page 44
7) Do you think digital payment is risk?

a) Yes
b) No
c) Maybe

According to above diagram

65.4% respondents of people do think digital payment is risk.

23.1% of people do think digital payment has less risk
11.5% of people do think it is digital payment have no risk.

Page 45
8) What are your reasons for choosing digital payment during pandemic?

a) Safe and Secure

b) Convenience (24 hours Service, anywhere connectivity)

c) Better Rates

d) Easy to maintain my banking transaction activity

e) Privacy

f) Low Service Usage

According to above diagram

53.8% respondents of people are convenience with digital payment.

38.5% of people have choose Safe and Secure with digital payment.
7.7 % of people have chosen Privacy and Low Service Usage on digital
payment.

Page 46
9) What is the impact of pandemic on usage of Digital Payment?

a) More Cash, Less Digital Payment

b) More Digital, Less Cash Payment

c) Only Digital, No Cash Payment

According to above diagram

69.2% respondents of people are satisfied with More Digital, Less Cash
Payment.
30.8% of people are satisfied with More Digital, Less Cash Payment and Only
Digital, No Cash Payment Safe and Secure with digital payment.

Page 47
10) Overall analysis of digital payment?

a) Strongly Agree

b) Disagree

c) Agree

d) Strongly Disagree

According to above diagram

92.4% respondents of people are Strongly Agree with digital payment.

7.7% of people are Disagree with digital payment.

Page 48
 FINDING FROM ANALYSIS

1. More Female prefers online banking.

2. 18-25 aged people prefer digitalisation and it was found out that people above
the 60 did not prefer online system due to complain working system of the
NET banking system.

3. A part from Service, Business & Retired profession people from different
occupation preferred more online payment method as it is convenient & easily
accessible more over in this pandemic the spread of the virus is curbed.

4. People earning upto Rs 10000 preferred online system since they are in the
age group of 18-25 it is convenient for them to use online system.

5. Majority of the people preferred online system and it should be encouraged

more as it is more convenient & easily operated.

Page 49
6. Majority of the respondents used Google pay as they found it to be safe and
easy to operate.

7. There was no clear cut response whether the system was at risk or no 11.5%
considered its risky 23.1% considered not risky.

8. Among the various reasons provided people considered the online system to
be most convenient as it could be operated 24 hours and at any place.

9. Due to the pandemic there is seen an improvement in the online service as

most of the online buying apps such as Amazon, Flip kart did not provide any
offline method of payment.

10. Overall everyone in the pandemic preferred online system as cash withdraws
from banks was getting difficult due to the social distancing norms &
regulation.

Page 50
 CONCLUSION

Every business needs to maintain a higher cash flow for operating smoothly.
That is why many businesses have started inclining towards accepting their
payments electronically.

The e-payment systems will also allow you to make cash applications instantly
and let you reconcile your financial records with great accuracy.

This will eliminate your accounting errors and help you to keep your records
more clear.

But the advantages of using an electronic solution for payments are not just
limited to this, here are some essential benefits of electronic payments:

1. Instant Payment

Electronic payments are much faster than the traditional methods of payments
such as cash or cheques.

In the case of online payments, you do not have any constraint of time or
location. You can easily make payments at anytime from anywhere across the
globe.

E-payment systems have eliminated the need for going to the banks to make
payments.

Now your customers do not have to waste their time standing in the long lines
at banks. They can easily pay you by using an electronic payment app.

Page 51
2. Higher payment security

Despite its robust features, electronic payments systems have not become so
popular among the merchants.

They are still using the same old methods for accepting payments. Due to
which, they are missing out the opportunity for serving more customers.

Electronic payment systems offer you multiple ways of securing your

payments such as tokenization, encryption, SSL, etc.

Now your customers do not have to enter their card details every time as they
can save their card details or complete their transactions by using a One Time
Password.

3. Better customer convenience

Electronic payments can help you to provide convenient payment experience

to your customers.

It allows your customer to purchase goods on credit by offering them with the
pay later facility.

Instead of sending constant reminders for payment to your customers, you can
automatically collect money after a specific period.

4. Saves processing costs

If you want to provide payment services to your customers then you first need
to tie up with a card processor.

The processor will provide you with a payment gateway for processing and in
exchange, it will charge a fixed cost from you. This cost is very high.

Page 52
 On the other hand, if you are using an electronic payment system in your
business then you do not have to incur such high charges.

You just have to pay a fixed subscription to your service provider.

5. Low risk of theft

has also had some limitations.

If you are using cash for accepting payments from customers, chances are
there it can be stolen.

Also, you need to take high safety measures in depositing cash into your bank
account.

But this risk can be decreased if you are using a secure electronic payment
system in your business.

By using it, you do not have to worry about your payment record. You can
easily get an accurate record of all your transactions at the end of the day.

6. Transparent

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

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

In the case of electronic payments, you do not have to worry about the record
of your payment details.

Also, you can provide the payment details to your customers beforehand. So
that there will be fewer chances of confusion.

7. Contactless

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

Page 53
With digital payments, customers can self-service and pay invoices from
anywhere at any time.

Digital transactions are much more secure than traditional ones because they
are processed by secure gateways which are hard to tamper with. Most
platforms are heavily regulated and protected to keep your money safe.

Details of payments are stored in merchant-specific databases.

Both merchants and customers have easy access to payment information. This
avoids ambiguity and confusion while tracking payments, because you know
where the money is at all times.

There are several studies that prove that offering customers multiple payment
options can lead to getting paid faster, improving cash flow and allowing
companies to expand at a quicker rate.

Many payment methods are loaded with fees and soft costs, especially paper
checks.

One of the benefits of going paperless is that most solutions have fixed fees
that allow for better planning, and businesses can choose the model that better
suits their needs.

Some digital payment platforms even forgo transaction fees altogether and
instead use a payments-as-a-service model, like Pay stand.

Payments have evolved from the barter system to cash to card payments to
digital payments. According to Statista, in India, the total transaction value of
digital payments in 2019 amounts to US$64,787 million.

Many companies are developing the applications and methods more seamless
for both customers as well as merchants.

Now there is no need for customers to give their card information for digital
payment (epos link), as for merchants, they can accept bulk payments, split
payments. And everything is possible because of using means of digital
payments.

Many Payment services provide as well as financial institutions are opting for
secure ways to make online payments secure for both merchants and
customers.

Page 54
 RECOMMENDATION

Digital payments allow buyers to pay directly from their banks.

Digital payments allow merchants to sell to other countries and customers to

pay in foreign countries.

Tracks and maintains the digital record of every transaction.

No fear of losing cash or getting fake currency.

Merchants can collect payments remotely.

Digital payments offer cash backs or reward points

This is one of the major benefits of digital payments. For those who carry out
transactions on a daily basis for buying some, or the other product or service,
going digital is quite beneficial.

It aids the user by giving an option that is safer, quick, and convenient during
the travelling time.

It helps the user be free of carrying wads of cash, plastic cards (debit, credit,
etc.) and even helps in letting go of queues for ATM withdrawals.

Moreover, online payments can be carried out without any hassle during the
times of emergency as it does not require one to be physically present
anywhere for the money to be paid.

Digital wallets: Digital wallets provide a quick, seamless and convenient way
for merchants as well as customers

This also helps save the immense time of the user so that the user is able to
utilize time for other important tasks/aspects.

With digital payments being convenient not only in other aspects but also in
terms of keeping a record of the payments done so far, it is but easy to be
accountable. When the payments are made via digital channel, it is easier to
file income tax returns and also is easier to explain the spends in case of
scrutiny.

Page 55
 BIBLIOGRAPHY

LINKS REFERRED:

www.google.com
www.googlescholar.com
http://cashlessindia.gov.in
http://www.ijmra.us
https://rdcu.be/cgzHI

BOOKS REFERRED:

Electronic payment system

Digital payment in India by Jaspal Singh

Page 56
ANNEXURE

1) Gender?
a) Male b) Female

2) What is your Age?

a) 18-25
b) 25-45
c) 45-60
d) Above 60 years

3) Occupation?

a) Service b) Business c) Retired d) Other

4) What is Your Monthly Income?

a) Upto Rs 10000
b) Rs 10001- Rs 20000
c) Above Rs 20000

5) Do you prefer digital payment during pandemic?

a) Yes b) No

Page 57
6) Which digital payment app do you prefer at most during pandemic?

a) Paytm
b) Google Pay
c) Phone Pe
d) Amazon

7) Do you think digital payment is risk?

a) Yes
b) No
c) Maybe

8) What are your reasons for choosing digital payment during pandemic?

a) Safe and Secure

b) Convenience (24 hours Service, anywhere connectivity)

c) Better Rates

d) Easy to maintain my banking transaction activity

e) Privacy

f) Low Service Usage

9) What is the impact of pandemic on usage of Digital Payment?

a) More Cash, Less Digital Payment

b) More Digital, Less Cash Payment

c) Only Digital, No Cash Payment

10) Overall analysis of digital payment?

a) Strongly Agree

b) Disagree

c) Agree

d) Strongly Disagree

Page 58