CHAPTER 4 - Merged

A Study on the Impact of UPI and PAYTM sound box among the road side vendors in the city
of Coimbatore | 2024
1.INTRODUCTION AND RESEARCH METHODOLOGY
1.1. INTRODUCTION
Unified Payments Interface (UPI), a game-changer in India's financial landscape, has

transformed the way money moves. It allows seamless transfer of funds between bank
accounts through a single platform. From sending or receiving money to scanning QR codes
for payments, UPI caters to individuals, merchants, and service providers, simplifying
transactions across various scenarios like shopping, bill payments, and authorization of
recurring charges.
UPI Apps: Popular options include Google Pay, PhonePe, and Paytm, offering user-friendly
interfaces and secure transactions.
Key to UPI's success is the UPI ID: a unique identifier replacing the need to share sensitive
bank details every time. This eliminates the risk of information leaks and enhances security.
UPI payments boast numerous advantages, including:
1. Instant transfers: Funds are credited immediately, eliminating delays.
2. Convenience: Accessible through mobile phones and UPI apps, facilitating payments on-
the-go.
3. Enhanced security: UPI transactions require a PIN, adding an extra layer of protection.
1.1.1 Benefits for Small Businesses:
1. Ease of use: UPI requires only a bank account and a UPI ID, created via your bank or UPI
apps like BHIM. This eliminates the need for additional hardware or software, making it
ideal for small vendors and merchants who can receive payments directly into their bank
accounts.
2. Streamlined transactions: Instant payments and direct bank transfers simplify business
operations and reduce administrative burdens.
3. Wider customer base: By accepting UPI payments, businesses cater to a broader customer
base increasingly opting for digital transactions. This eliminates reliance solely on cash,
offering greater convenience for both parties.
1.1.2 Impact on Indian Economy:
The World Economic Forum highlights UPI's remarkable growth: 9.4 billion transactions
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A Study on the Impact of UPI and PAYTM sound box among the road side vendors in the city of Coimbatore |
valued at ₹14.97 lakh crores processed in May 2023 alone, translating to roughly
3,600
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A Study on the Impact of UPI and PAYTM sound box among the road side vendors in the city of Coimbatore | 2024
transactions per second - a 58% year-on-year increase. Notably, India leads globally in real-
time payment transactions (48.6 billion in 2021), exceeding even China's figures.
UPI has driven a significant societal shift: small transactions like buying tea or vegetables are
increasingly conducted digitally, promoting financial inclusion and fostering a cashless
economy.
1.2.1 Paytm Soundbox:
Paytm Soundbox is an innovative audio-assisted device offering instant payment

notifications. This portable speaker operates with SIM connectivity, providing merchants
with real-time transaction alerts.
1.2.2Paytm Card Soundbox:
Taking things a step further, Paytm Card Soundbox allows merchants to accept both mobile
and card payments (Visa, Mastercard, American Express) through the Soundbox. This
facilitates "tap and pay" solutions via credit and debit cards, along with audio-based
confirmations for successful transactions.
Conclusion:
While some vendors might still need to adapt to this technological shift, UPI empowers small
businesses in India with a secure, convenient, and cost-effective payment solution, ultimately
contributing to the nation's digital transformation.
1.2 STATEMENT OF THE PROBLEM
This study would explore the various advantages and difficulties of using the UPI (Unified
Payment Interface) among the roadside vendors and small-scale businesses. This study
particularly analyses the challenges faced by roadside vendors using this method and Paytm
sound machine. Paytm sound box is widely used device for an easy acknowledgement of
payments made by the customers also there are some charges are also applicable to this
service. This study will also explore the cost charged for this service is affordable by the
small-scale businesses, small roadside vendors.
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1.3 OBJECTIVES OF THE STUDY
 To examine the primary challenges encountered by roadside vendors when utilising online
payment systems.
 To evaluate the advantages and disadvantages of using UPI and the Paytm sound box for
online transactions among roadside vendors.
 To assess the affordability of the Paytm sound box, analysing the overall cost and charges
for small vendors.
 To investigate user comfort with the sound box and explore potential alternatives, seeking
to enhance the overall experience of roadside vendors in Coimbatore.
1.4 RESEARCH METHODOLOGY

For understanding the most effective and efficient impacts faced by the vendors, both the
primary and secondary data will be used. The primary data will be collected through online
survey and secondary data will be collected through internet and books. The study will be
conducted is descriptive nature.
1.4.1. Area of Study
The area of study is confined to in and around Coimbatore, Tamil Nadu.
1.4.2. Source of Data
Primary Data for this research was collected through Questionnaires comprising 28 questions,
distributed to respondents through Google Forms.Secondary data for this research was
gathered from Various journals, reports, papers and websites.
1.4.3. Sample Size
A sample of 100 respondents were studied, gathering demographic details like age, field of
work and study, type of small business owned, type of small business they are trying to start
and purpose for pledge.
1.4.4. Sampling Technique
Stratified and convenience Sampling technique were used for carrying out this research.
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1.4.5. Tools and Techniques
Data interpretation, Percentage analysis and Chi-Square statistical tools were used to conduct
data analysis on the data gathered through questionnaire.
1.4.6 HYPOTHESIS
A hypothesis is defined as respondent, which gives the explanation about the relationship
between the two or more variables of the specified population. It helps the researcher to
translate the given problem to a clear explanation for the outcome of the study. It clearly
explains and predicts the expected outcome. It indicates the types of experimental design and
directs the study of the research process.
Null Hypothesis
In the null hypothesis, there is no significant difference between the populations specified in
the experiments, due to any experimental or sampling error. The null hypothesis is denoted
by Ho.
Alternate Hypothesis
In an alternative hypothesis, the simple observations are easily influenced by some random
cause. It is denoted by the H0 or H1.
1.5 LIMITATIONS OF THE STUDY
This study has several limitations that must be acknowledged.
 This study is confined to Coimbatore district and the findings may not be
generalizable to other regions.
 The sample size is limited to 100, This sample may not be representative of the
entire vendor population and the results may be influences by self-selection bias.
 The study is limited by time constraints such as short research period, which
prevents and in- depth investigation into the topic of study.
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1.6 CHAPTER SCHEME
Chapter 1: It deals with the Introduction and design of the study, including objectives, and
methodology.
Chapter 2: It deals with the Review of Literature and the Research Gap.
Chapter 3: It contains Theoretical Framework of the study.
Chapter 4: It exhibits the Data Analysis and Interpretation of the study.
Chapter 5: It highlights the Findings, Suggestions, and Conclusions of the study.
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A study on the impact of UPI and PAYTM sound box among the road side vendors in the City of COIMBATORE |
2. REVIEW OF LITERATURE
2.1 INTRODUCTION
Review of literature is a body of text that aims to review the theoretical and methodological
contributions of related authorities and offices to particular research topic. Its ultimate goal is
to make the researcher up to date with current literature on a topic and forms the basis for
another goal, such as feature research that may be needed in the area. In general, a review of
literature surveys scholarly books, articles, dissertations, conference proceedings etc. relevant
to a particular area of research.
2.2. REVIEWS
Rahul Gochhwal1 (2017) Unified Payment Interface—An Advancement in Payment

Systems
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 to extant 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.
Jagriti Tamale (2023) How UPI has transformed small business2

The article explores how the Unified Payments Interface (UPI) has revolutionised digital
payments in India, particularly benefiting small businesses and vendors. UPI's ease of use,
low transaction fees, real-time processing, security features, and transaction limits make it a
game- changer. The platform has played a key role in financial inclusion, formalising the
unorganised
1
Gochhwal, R. (2017). Unified payment interface—an advancement in payment systems. American Journal of Industrial and Business
Management, 7(10), 1174-1191. https://www.scirp.org/journal/paperinformation.aspx?paperid=79879
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2
Jagriti Tamale (2023) How UPI has transformed small business http://anthro-age.pitt.edu/ojs/anthro-age/article/view/480
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sector, and promoting transparency. Despite challenges like limited awareness and
infrastructure issues, UPI's advantages outweigh drawbacks. With over 300 million users and
3 billion monthly transactions, UPI's growing popularity positions it for potential cross-
border payment solutions, indicating its broader impact on India's digital economy.
Dr. Kratika Neema, Dr. Arpit Neema (2016) UPI (Unified Payment Interface) –A new
technique of Digital Payment: An Explorative study3
Demonetization has presented a distinctive platform for acceptance of digital payment for
Indian consumers. Adoption of cashless transaction has been extensively pushed by the
government reforms after demonetization. The demonetization consequences give
extraordinary growth in digital payment. Digital Payment was come into existence from
1980’s
i.e. it is not a current emerging technology; the only development is in the different
technologies used for conducting the digital payments. This paper reviews the UPI- Unified
Payment Interface method of Digital Payment explains its architecture, Technologies,
operations, Parties Involved in UPI Transaction, its Benefits & Challenges; also discussed
various current UPI Apps available and other digital payment method and their comparison
with the UPI transactions. The study conclude that UPI is a tool with compatible features that
can make monetary transactions easy and affordable to the customers but it still needs
confidence & awareness of the customers basically form the rural background
Renuka Kumar, University of Michigan; Sreesh Kishore; Hao Lu and Atul Prakash,
University of Michigan (2016) Security Analysis of Unified Payments Interface and
Payment Apps in India4
Since 2016, with a strong push from the Government of India, smartphone-based payment
apps have become mainstream, with over $50 billion transacted through these apps in 2018.
Many of these apps use a common infrastructure introduced by the Indian government, called
the Unified Payments Interface (UPI), but there has been no security analysis of this critical
piece of infrastructure that supports money transfers. This paper uses a principled
methodology to do a detailed security analysis of the UPI protocol by reverse-engineering
the design of this
3
Neema, K., & Neema, A. (2016). UPI (Unified Payment Interface)–A new technique of Digital Payment: An Explorative
study. International Journal of Current Research in Multidisciplinary, 3(10), 1-10.
http://www.ijcrm.com/publish_article/edition- 28/18IJCRM31010.pdf
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4 Kumar, R., Kishore, S., Lu, H., & Prakash, A. (2020). Security analysis of unified payments interface and payment apps in India. In 29th
USENIX Security Symposium (USENIX Security 20) (pp. 1499-1516).
https://www.usenix.org/conference/usenixsecurity20/presentation/kumar
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protocol through seven popular UPI apps. We discover previously-unreported multi-factor

authentication design-level flaws in the UPI 1.0 specification that can lead to significant
attacks when combined with an installed attacker-controlled application. In an extreme
version of the attack, the flaws could allow a victim's bank account to be linked and emptied,
even if a victim had never used a UPI app. The potential attacks were scalable and could be
done remotely. We discuss our methodology and detail how we overcame challenges in
reverse-engineering this unpublished application layer protocol, including that all UPI apps
undergo a rigorous security review in India and are designed to resist analysis. The work
resulted in several CVEs, and a key attack vector that we reported was later addressed in UPI
2.0.
Arun Nayyar (2023) 70% MSMEs believe UPI will be the driver of retail sales5
The study, based on Neo Growth’s customer data and a national survey of 1000 retailers,
reveals a significant rise in digital payments adoption among Indian retailers. UPI leads this
shift, with 7 out of 10 retailers anticipating over 50% of sales through UPI in the next three
years. Bangalore experienced a 14% increase in UPI transactions, while FMCG and retail saw
a 14% rise. Card transactions decreased, and fashion and lifestyle segments dropped post-
pandemic. Despite challenges like failed transactions, high machine costs, and fraud
concerns, almost 40% of retailers prefer digital payments for loan repayments, showcasing
the resilience and potential of digital payments in the retail sector.
Sangeet’ osha (2023) Cash is no longer the king. UPI replaces cash in semi urban
and rural areas in India6
India's Unified Payments Interface (UPI) has become a dominant force in digital payments,
experiencing significant growth since its 2016 launch. UPI transactions surged from 1.8 crore
in FY 2016-17 to an impressive 8,375 crore in FY 2022-23. This rise extends beyond urban
areas, impacting semi-urban and rural regions, replacing traditional cash transactions.
Shekhar Aggarwal, Chairman of BLS E-Services, notes that UPI's user-friendly mobile
platform is transcending barriers, making formal financial inclusion a reality for many. The
transformation driven by technology is fostering financial independence, creating a more
inclusive future for millions across India.
5 Arun Nayyar (2023) 70% MSMEs believe UPI will be the driver of retail sales https://www.academia.edu/download/55236472/IRJE
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Sangeet’ osha (2023) Cash is no longer the king. UPI replaces cash in semi urban and rural areas in India
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https://www.researchgate.net/profile/.pdf
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Vikas Kumar published (2023) MSME Lons via UPI: will it be an instant solution for
small businesses7
The MSME sector, contributing 30% to India's GDP, faces challenges accessing formal
credit. UPI, widely adopted in semi-urban and rural areas, is now facilitating instant credit for
MSMEs. UGRO Capital's GRO X app offers a UPI-based credit line for MSMEs, providing
customized solutions for working capital needs. The app utilizes data analytics and cash flow-
backed risk assessment, moving away from traditional collateral-based assessments.
Shachindra Nath, Vice Chairman & MD of U GRO Capital, highlights the importance of
monitoring UPI payment charges but believes the convenience of transactions will outweigh
nominal fees.
Mahesh A & Ganesh Bhat. (2021). Digital Payment Service in India - A Case Study of
Unified Payment Interface.8
The Indian Banking sector is striving hard to popularise digital payments and has gained
momentum after demonetization and digital India initiatives. To facilitate digital payments,
“National Payment Corporation of India (NPCI)” launched the “Unified Payment Interface
(UPI)”, which is an amazing, revamped, and cost-effective breakthrough for enabling digital
payment services for all. Proliferation of smartphones, technological innovations, and
effective internet communications has signified the usage of mobile payment facility for
smartphone users, financial institutions and particularly the banks. To achieve paperless and
cashless economy, Unified Payment Interface (UPI) is a potentially innovative way of
transferring funds using a virtual payment address established by the National Payment
Corporation of India (NPCI). Hence, it is needed to be assessed for its potential to contribute
towards achievement of digital economy.
7 Vikas Kumar published (2023) MSME Lons via UPI: will it be an instant solution for small
businesseshttps://dl.acm.org/doi/abs/10.1145/1111360.1111368
8Mahesh, A. (2021). Digital Payment Service in India-A Case Study of Unified Payment Interface. International Journal of Case Studies in
Business, IT and Education (IJCSBE), 5(1), 256-265. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3885763
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Raghul Tandon (2022) UPI strengthening MSMEs: How digital payments foster long
term viability for digital businesses.9
Digital payments are revolutionizing the MSME sector, providing crucial benefits for its
growth. As the backbone of economies, MSMEs in India are set to grow at a rate of 10-12%,
contributing significantly to the workforce. The surge of digital businesses, coupled with the
adoption of digital payment solutions like UPI, is transforming operational efficiency and
connecting businesses to a global market. Tailor-made digital payment services are crucial for
MSMEs to smoothly transition into the digital realm, enhancing supply chain management
and customer satisfaction. Moreover, digital payments contribute to financial inclusion and
trust, fostering economic activities and reshaping financial landscapes. Embracing this digital
wave positions MSMEs for innovation, growth, and a promising future.
Mr. P. Sathish Kumar (2019) A STUDY ON GROWTH OF UPI (UNIFIED PAYMENT

INTERFACE) IN DIGITAL EMPOWERMENT10
Payment and settlement systems in India have undergone rapid changes during the past few
years. The Vision Document on Payment Systems released by the Reserve Bank of India
states several measures for building a cash less society. The adoptions of mobile and card
payment systems are two key components of this initiative. 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. This study focuses to analyse the growth and trend of UPI transactions, to forecast the
future volume of UPI transactions trend line projection method and to compare other
payment systems for last one year. For this, the secondary data of all payment systems was
collected from the National Payments Corporation of India (NPCI). For analysis descriptive
statistics, moving average and simple regression analysis is used. By this study it is identified
that even UPI was very slow and had limited response from the public, for the last six months
it has drastic growth in terms volume and value due its unique futures from other payment
systems.
9 Raghul Tandon (2022) UPI strengthening MSMEs: How digital payments foster long term viability for digital
businesses.https://www.academia.edu/download/55236472/IRJET-V4I11136.pdf
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KUMAR, M. P. S., & Sudheer, M. C. B. A Study On Growth Of UPI (Unified Payment Interface) In Digital Empowerment. Financial
Management & Marketing Management, 323. https://elartu.tntu.edu.ua/bitstream/lib/25271/1/INCON_EISSN_HRM-Finance-Marketing-
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%20Research%20Paper%20Journal.pdf#page=338
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Pratik Bhakta (2022) How UPI becomes democratic of India11
The Unified Payments Interface (UPI) achieved a monthly transaction volume of over 10
billion, marking a milestone in India's digital payments landscape. UPI's impact includes
democratising digital payments, making merchant loans based on cash flow feasible,
facilitating non-banks to offer financial services, fostering an open banking revolution, and
influencing ancillary services like offline payments and IPO subscriptions. This milestone
highlights UPI's transformative role in shaping India's digital financial ecosystem.
Harish Venkatesan (2016) How UPI benefits the startups in India12

The Unified Payment Interface (UPI) introduced by the National Payment Corporation of
India (NPCI) has revolutionised mobile payments in India. UPI allows instant money
transfers between any two banks, simplifying transactions with features like virtual payment
addresses (VPAs) and easy tracking. Startups can leverage UPI to streamline payment
collection, enhance customer trust, and reduce reliance on cash transactions. With UPI's
potential to transform daily transactions, startups can contribute to financial inclusion and a
cashless economy, despite challenges like internet connectivity and security.
Mohapatra Somanjoli (2019) Unified Payment Interface (UPI): A Cashless Indian e-

Transaction Process13
The Vision Document on Payment Systems released by the Reserve Bank of India states
several measures for building a ‘less cash’ society. The adoptions of mobile and card
payment systems are two key components of this initiative. This paper presents an overview
of a transformational project initiated recently by the National Payments Corporation of India
(NPCI). This article aims to empower the bank customer to ‘send’ and ‘collect’ money in real
time with just an e-mail, like a financial address, both for person-to-person (P2P) payments
and Business to Consumer (B2C) Collect. This paper also includes the comparison study of
different UPI App.
11
Pratik Bhakta (2022) How UPI becomes democratic of India https://ieeexplore.ieee.org/abstract/document/8701396/
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Harish Venkatesan (2016) How UPI benefits the startups in India https://www.researchgate.net/profile/Prashant-Barge-
2/publication/366875463_Financial_Inclusion_- An_Impetus_to_the_Digitalization_of_Payment_Services_UPI_in_India/links/
63b64648a03100368a53ccd7/Financial-Inclusion-An- Impetus-to-the-Digitalization-of-Payment-Services-UPI-in-India.pdf
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Mohapatra, S. (2017). Unified payment interface (UPI): a cashless Indian e-transaction process. International Journal of Applied Science
and Engineering, 5(1), 29-42. https://www.indianjournals.com/ijor.aspx?target=ijor:ijase&volume=5&issue=1&article=004
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Harshal Dev (2018) From Cash to Cashless: UPI’s Impact on Spending Behaviour
among Indian Users14
The term "E-payment" encompasses various electronic payment channels, yet a universally
accepted definition remains elusive. Digital payments, facilitated by internet and mobile
technologies, have become integral to modern financial systems globally. In India, the
Unified Payments Interface (UPI) has emerged as a leader in digital transactions, facilitating
instant inter-bank transfers. Despite its success, research gaps exist regarding UPI's impact on
users' spending habits and perceptions of security and trust. This study aims to address these
gaps by examining micro-level effects, variations across demographics, and integration with
budgeting applications. Through a mixed-methods approach, including surveys and
interviews, the study seeks to answer key research questions and provide valuable insights for
stakeholders in finance, technology, and policy. Initial findings suggest increased spending
due to UPI adoption, high user satisfaction, and perceived convenience.
Shrandhanjali Panda and Ansuman Sahoo (2022) Impact of digital payment among the
street vendors in Odisha15
This article aims to examine the level of digital payment awareness among street vendors and
its impact on their business performance. To work on this purpose, data are collected from
three tier 2 cities, that is, Cuttack, Khurda and Berhampur in Odisha using both structured
questionnaires and the interview method. Furthermore, this empirical study incorporates both
primary and secondary data in order to provide an appropriate response to the above-
mentioned goal. Collected data are analysed using statistical measures, such as gap study,
principal component analysis, ANOVA and regression method. Findings of the study reveal
street vendors are a financially excluded segment of the economy. An in-depth analysis of the
result shows there is a strong association between the identified aspects of digital payment
awareness and business performance of street vendors.
14
Dev, H., Gupta, R., & Kumar, D. (2024). From Cash to Cashless: UPI's Impact on Spending Behavior among Indian Users. arXiv
preprint arXiv:2401.09937. https://arxiv.org/abs/2401.09937
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Panda, S., & Sahoo, A. (2022). Impact of Digital Payment on Business Performance: A Study of Street Vendors in Odisha. SEDME (Small
EnterprisesDevelopment, Management &Extension Journal), 49(2), 181-191.
https://journals.sagepub.com/doi/abs/10.1177/09708464221103310
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Simran Jain (2023) Understanding Social Engineering and it’s impact on Merchant
based UPI payments16
Paytm introduces the Paytm Card Soundbox, enabling merchants to accept mobile and card
payments across various networks like Visa, Mastercard, American Express, and RuPay. This
innovative device combines Soundbox technology with NFC, providing a unified payments
solution. It features a unique 'tap and pay' capability, allowing transactions of up to Rs 5,000
securely and conveniently. With multilingual alerts and 4G connectivity, it caters to India's
diverse needs, and its 4W speaker ensures clear audio alerts for seamless usage.
Dr. Baskaran P, Dr. Baig Mansur Ibrahim (2024) Consumer Perceptions on Digital
Payments and Digital Payment Apps – An Exploratory Survey17
Paytm faces challenges in the form of increasing competition in the soundbox market,
particularly from PhonePe, which offers similar devices at lower costs. This competition
could potentially impact Paytm's revenues and EBITDA significantly. Macquarie's report
suggests that Paytm might need to slash soundbox rentals, possibly even to zero, to stay
competitive. Despite being the leader in the soundbox market with over 30 lakh devices
installed, Paytm's revenue could take a hit due to aggressive pricing strategies by PhonePe.
While cheaper soundboxes help in customer acquisition, the real opportunity lies in upselling
and cross-selling other financial products to merchants. Paytm's growth in disbursals of
merchant loans to soundbox holders indicates the importance of this infrastructure for its
business model. However, PhonePe's disruptive pricing poses a significant challenge in this
area, potentially impacting Paytm's market position and profitability.
Yusuf Hassan & Jayesh Pandey (2023) Teaching Indians to scan and pay to now a
sound box that fits into your pockets18
India's transition into a digital economy is propelled by widespread adoption of digital

payments, with Paytm leading the charge. Paytm's array of financial services and innovative
products, such as the QR code and Paytm Soundbox, have revolutionized the payments
16
Simran Jain (2023) Understanding Social Engineering and it’s impact on Merchant based UPI payments Mohapatra, S. (2017). Unified
payment interface (UPI): a cashless Indian e-transaction process. International Journal of Applied Science and Engineering, 5(1), 29-42.
https://www.indianjournals.com/ijor.aspx?target=ijor:ijase&volume=5&issue=1&article=004
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Yusuf Hassan & Jayesh Pandey (2023) Teaching Indians to scan and pay to now a sound box that fits into your pockets Unified
Payment Interface (UPI)–a way towards cashless economy. International Research Journal of Engineering and Technology, 4(11), 762-
766. https://www.usenix.org/conference/usenixsecurity20/presentation/kumar
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Dr. Baskaran P, Dr. Baig Mansur Ibrahim (2024) Consumer Perceptions on Digital Payments and Digital Payment Apps – An Exploratory
in Antecedents of the barriers toward the adoption of Unified Payment Interface. In International working conference on transfer and
diffusion of IT (pp. 608-625). Cham: Springer International Publishing. https://link.springer.com/chapter/10.1007/978-3-030-64861-9_53
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landscape. The recent introduction of the Paytm Pocket Soundbox caters to on-the-go
merchants, offering a lightweight, portable solution. Ordering these devices through the
Paytm for Business app is simple, further enhancing accessibility. Paytm Soundbox has
become ubiquitous in India, providing merchants with convenient payment confirmation. Its
rapid adoption since 2019 reflects growing trust and offers instant audio confirmation in 11
languages with a battery backup of 7 days. With over 82 lakh devices deployed, including
Soundbox and Paytm Card Machines, Paytm continues to strengthen its position as the
preferred choice for merchants looking to digitize their businesses.
Ankita Badya (2023) Paytm sound box launched in India; founder Vijay Shekar
Sharma call it game changer in small business19
Paytm introduces two innovative devices, the Paytm Pocket Soundbox and Paytm Music
Soundbox, aiming to benefit small merchants in India. The Pocket Soundbox, a portable
device designed for on-the-go merchants, targets auto drivers, electricians, and delivery
agents. Meanwhile, the Music Soundbox allows merchants to connect their phones via
Bluetooth, enabling them to listen to music or match commentary while managing
transactions. Both devices are 4G-enabled and "Made in India," with features like long
battery life and torchlight for convenience. Paytm's CEO, Vijay Shekhar Sharma, highlights
these devices as game- changers for small merchants. These launches reinforce Paytm's
position as a leader in technology for India's sm20all shops, building on its success with the
earlier Paytm Soundbox.
Sharma (2022) Paytm sound box now enables card payments21
One97 Communications, the company behind Paytm, launches its latest innovation, the Card
Soundbox, aiming to empower merchants to accept both mobile and card payments across
various networks. This device, combining Soundbox technology with NFC, addresses two
crucial challenges for merchants: accepting card payments and providing instant audio alerts
for all transactions. It features a built-in 'tap and pay' function for card payments up to Rs
5,000, along with multilingual alerts and NFC compatibility for mobile payments. With a 4G
network connection, 4W speaker, and five-day battery life, the Made in India device
enhances in-store
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Ankita Badya (2023) Paytm sound box launched in India; founder Vijay Shekar Sharma call it game changer in small business
Singh, S., Jatana, N., Sehgal, S., Anand, R., Arunkumar, B., & Ramesh, J. V. N. (2024). Making Digital Payments Accessible Beyond Sight:
A Usability Study of UPI-Based Smartphone Applications. IEEE Access https://www.iimb.ac.in/sites/default/files/inline-files/iimb-csitm-
security-issues-in-mobile-payment.pdf.
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21
Sharma (2022) Paytm sound box now enables card payments Mir, I. U. R., & Wani, M. I. (2023). Street Vendors Using Smartphones for
Digital Payments: A Qualitative Study of Digital Opportunities and Inequalities From Kashmir Region in India. Journal of Asian and African
Studies, 00219096231218437. https://journals.sagepub.com/doi/abs/10.1177/00219096231218437
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payment experiences. Paytm's CEO, Vijay Shekhar Sharma, highlights the company's
commitment to innovation, addressing merchants' needs for seamless payment solutions.
The Economic Times (2023) Paytm continues to bet big on soundbox launches new use
cases22
One97 Communications Ltd., the parent company of Paytm, introduces two new variants of
its Soundbox product to cater to additional use cases, including music playback and
portability. The Paytm Music Soundbox serves as a Bluetooth speaker for merchants, while
the Paytm Pocket Soundbox offers portability for cart vendors, delivery personnel, and auto
drivers. With a potential market size of up to 10 million Soundboxes, Paytm aims to deploy
4-5 crore units in the next 3-5 years, emphasizing its commitment to expanding the market.
The company plans to offer these new Soundboxes to merchants through a subscription fee
model, similar to its existing structure. Paytm's focus on technological innovation aims to
serve the masses, with a call for government support through schemes like PLI for local
production of payment devices. The Soundbox strategy plays a crucial role in Paytm's efforts
to grow its payments business, retain merchant partners, and monetize existing relationships,
setting it apart from competitors like PhonePe and Google Pay.
Archana (2023) Paytm sound box: The real stories 23
These stories collectively illustrate the positive impact of the Paytm Soundbox on various
merchants' businesses. From a grocery store owner in Delhi to a stationery shop owner and a
cafe proprietor, each found the Soundbox to be a game-changer in streamlining their payment
processes. The Soundbox provided instant confirmation notifications, making it easier for
merchants to manage transactions without constantly checking their phones. Additionally, it’s
clear and audible confirmations, available in multiple languages including Hindi, facilitated
smoother operations and enhanced customer experiences. Overall, the Paytm Soundbox
proved to be a valuable tool for these merchants in adapting to digital payment methods and
improving efficiency in their businesses.
22
The Economic Times (2023) Paytm continues to bet big on soundbox launches new use cases
23
Archana (2023) Paytm sound box: The real stories , B. M. (2024). Consumer Perceptions On Digital Payments And Digital Payment Apps–
An Exploratory Survey. Journal of Namibian Studies: History Politics Culture, 40, 1-9. https://namibian-
studies.com/index.php/JNS/article/view/5802
1
Times of India (2022) There are 5 billion soundbox transactions in year 202224
India has witnessed a significant surge in digital payments adoption, emerging as a prominent
market driven by widespread online payment usage. While initially focused on consumer-
oriented innovations, leading fintech companies are now catering to merchants, enhancing the
digital payments landscape. Paytm led this shift by introducing subscription-based payment
devices like the Soundbox in 2019. Processing over 5 billion online payment transactions in
FY22, Paytm's Soundbox remains a premier payment reconciliation solution. The Soundbox
offers merchants instant audio alerts in multiple regional languages, supporting various
payment methods including Paytm Wallet, Paytm Postpaid, Paytm UPI, BHIM UPI apps, net
banking, and cards.
Times of India (2023) Payment merchants can now also accept card payments using
sound box25
Paytm introduces the Card Soundbox, enabling merchants to accept mobile and card
payments across major networks with a 'tap and pay' feature. It merges NFC card payments
with mobile transactions, providing audio and visual confirmation. Made in India, it supports
up to Rs 5,000 payments, offers 4G connectivity, and is NFC-enabled. With 11 language
alerts, merchants can manage settings via the Paytm for Business app. CEO Vijay Shekhar
Sharma sees it as vital for small businesses, bridging mobile and card payments seamlessly.
NPCI praises its role in accelerating India's cashless transactions.
Tapanjana Rudra (2023) Can Paytm stave off competition from Phonepe, Bharatpe in
the soundbox market26
Paytm pioneered the use of payment confirmation speakers with its Soundbox in 2019,
enjoying dominance until competitors like PhonePe and BharatPe entered the market. Despite
increased competition, BofA Securities believes Paytm will maintain its lead, projecting the
addition of 15 million new Soundbox customers over the next 2-3 years. While PhonePe and
BharatPe are currently aggressive, offering free Soundboxes to merchants, Paytm's
subscription model ensures steady revenue visibility and high EBIT margins. Customization
24
Times of India (2022) There are 5 billion soundbox transactions in year 2022 https://timesofindia.indiatimes.com/gadgets-news/paytm-
merchants-can-now-also-accept-card-payments-with-new-card-soundbox/articleshow/103362089.cms
25
Times of India (2023) Payment merchants can now also accept card payments using sound box
https://timesofindia.indiatimes.com/topic/paytm-soundbox/news
26
Tapanjana Rudra (2023) Can Paytm stave off competition from Phonepe, Bharatpe in the soundbox market Navigating Through the
Digital Gates: Customer-Centric Services and Well-Being. In Customer Centric Support Services in the Digital Age: The Next Frontier of
Competitive Advantage (pp. 245-270). Cham: Springer International Publishing. https://link.springer.com/chapter/10.1007/978-3-031-
37097-7_11.
1
and control over hardware and software give Paytm an edge in launching new variants
quickly. However, unlisted competitors like PhonePe and BharatPe could disrupt the market
with higher discounts. Nonetheless, Paytm is expected to steadily grow in this segment and
other verticals, with margin improvement accelerating due to rising contributions from high-
margin businesses and cost-control initiatives.
2.3 RESEARCH GAP
From the review of literature, it is found that the Unified Payment Interface (UPI) and
PAYTM sound is the need for further exploration into the socio-economic impacts and
challenges associated with its adoption, particularly in rural and semi-urban areas. While
there is substantial evidence highlighting the technological advancements, security concerns,
and potential benefits of UPI in transforming digital payments in India, there appears to be a
gap in understanding how its adoption has influenced financial behaviours, livelihoods, and
economic dynamics in regions with limited access to traditional banking services. Studies
touch upon the widespread adoption of UPI and PAYTM sound box across various sectors
and geographic locations, indicating its potential to replace cash transactions even in rural
and semi-urban areas. However, there is a lack of in-depth analysis regarding the specific
socio-economic factors influencing UPI adoption, its impact on informal economies, and the
challenges faced by marginalized communities in utilizing digital payment systems
effectively.
1
A study on the impact of UPI and PAYTM sound box among the road side vendors in City of COIMBATORE |
3. OVER VIEW OF THE STUDY
3.1.UPI
Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a
single mobile application (of any participating bank), merging several banking features,
seamless fund routing & merchant payments into one hood. It also caters to the “Peer to
Peer” collect request which can be scheduled and paid as per requirement and convenience.
With the above context in mind, NPCI conducted a pilot launch with 21 member banks. The
pilot launch was on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai.
Banks have started to upload their UPI enabled Apps on Google Play store from 25th August,
2016 onwards.
In April 2009, the National Payment Corporation of India (NPCI) was formed to integrate all
the payment mechanisms in India and make them uniform for all retail payments. By March
2011, RBI found out that in India, only six non-cash transactions were executed each year by
individual citizens while 10 million retailers accepted card-based payments. Around 145
million families had no access to any form of banking.
India digital payment systems like the Unified Payments Interface (UPI) is steadily
becoming globally attractive amid measures to enable seamless cross-border transactions.
India is making significant strides in expanding the network of its digital payment systems
like RuPay, UPI (Unified Payments Interface), etc. globally. UPI is India's mobile-based fast
payment system, allowing customers to make instant payments round-the-clock using a
Virtual Payment Address (VPA). Its popularity for retail digital payments in India is rapidly
increasing. The Indian government aims to extend the benefits of UPI beyond India, making
it available internationally.
“UPI connects over 300 banks and enables seamless financial transactions through TPAP
(third-party application providers) like Google Pay, Amazon Pay, PhonePe, and Paytm in
partnership with banking providers," said Mehul Mistry, Global Head - Strategy, Digital
Financial Services & Partnerships, Wibmo, a PayU company.
UPI was launched by the National Payments Corporation of India (NPCI) in 2016 and has
rapidly gained momentum. The widespread adoption of UPI underscores the urgent need for
secure, efficient, and user-centric payment methods. UPI uses technologies like the
Immediate Payment Service (IMPS) and the Aadhaar-Enabled Payment System (AEPS) to
ensure that
1
payments between accounts go smoothly. It can handle push (pay) and pull (receive)
transactions, over-the-counter or barcode payments and many recurring payments, like
subscriptions.
Once a single identifier is set up, the method lets mobile payments be made without using
credit or debit cards, online banking, or entering account information. This will make
sensitive transactions.
Overall, UPI says that there may be fewer cash transactions and fewer people who don't have
a bank account.
3.2 Advantages for the small business
There was also the problem of tackling black money and corruption that happened mostly in
cash UPI (Unified Payments Interface) has become increasingly popular among small
businesses in India due to its convenience, low transaction costs, and ease of use. Small
businesses utilize UPI for various purposes, including:
1. Payment acceptance: Small businesses can accept payments from customers through UPI,
whether it's for goods or services rendered. This reduces the dependency on cash transactions
and enables businesses to offer more convenient payment options to their customers.
2. Supplier payments: Many small businesses use UPI to make payments to their suppliers
and vendors. It streamlines the payment process, reduces paperwork, and often offers instant
transaction confirmation.
3. Salary payments: UPI is also used by small businesses to disburse salaries to their
employees. It provides a quick and efficient way to transfer funds directly to employees' bank
accounts, eliminating the need for physical checks or cash.
4. Expense management: Business owners and employees can use UPI for various expense
management tasks, such as reimbursing travel expenses or paying utility bills for the
business.
5. Integration with accounting software: Some small businesses integrate UPI payments with
their accounting software, making it easier to track transactions and manage finances
efficiently.
Overall, UPI has emerged as a game-changer for small businesses in India, offering them a
convenient and cost-effective way to send and receive payments, manage finances, and
streamline operations. Its widespread adoption reflects its effectiveness in meeting the diverse
financial needs of small businesses in the country.
1
3.3 Impact on small business
UPI has been particularly beneficial for micro and small businesses, enabling them to accept
digital payments easily and cost-effectively. With UPI, businesses can set up a digital
payment infrastructure without the need for elaborate hardware or expensive point-of-sale
systems. UPI has become an effective tool for Indian small company owners and vendors,
giving them a quick and easy way to receive electronic payments.
1. Useful for small transactions: Unlike debit card transactions, UPI payments have made it
possible for small shopkeepers and consumers to carry out low-cost transactions.
Additionally, UPI transactions are completely free of cost, whereas Visa and MasterCard still
charge 1-2% of the amount as payment to the merchant.
2. Easy Integration: India’s best UPI payment gateways are well-known for their quick and
seamless integration into websites and apps. Apart from being developer-friendly, they also
come with robust APIs and powerful libraries and plugins supporting all major platforms and
languages.
3. Real-time bank settlement: A UPI system offers your online business quick, real-time
settlements for all the payments you receive from your customers. Further, you benefit from
its higher success route based on dynamic switching between gateways/card networks and
intelligent routing.
4. Privacy of bank account: With UPI systems, fund transfers are possible without disclosing
your bank account number or card details, limiting the probability of fraud.
Also, the authentication takes place on your smartphone by punching in the UPI pin so you
can easily make it discrete while on your mobile.
5. One app, many accounts: UPI has empowered business owners to access all their bank
accounts in one single place. Linking all your bank accounts to a single UPI app eliminates
the need to use different apps for each account. However, you will have to choose a default
bank account so that if anyone makes a payment to your UPI ID, the money goes directly to
that account number.
6. Better than wallets: Wallets don't allow business owners to earn any interest on the
balance. But when you use a UPI interface, the money remains in the respective bank account
itself. This way, you benefit from the interest on the money you keep in the bank account.
2
3.4 PAYTM sound box
Paytm was founded in 2010 by Vijay Shekhar Sharma under One97 Communications. The
company offers mobile payment services to consumers and enables merchants to receive
payments through QR code payment, Payment Soundbox, Android-based-payment terminal,
and online payment gateway. The Paytm Soundbox is a small, portable speaker that notifies
users of successful payments Paytm Soundbox is a device launched by Paytm, a leading
digital payments and financial services platform in India. It's designed to facilitate digital
payments in areas where internet connectivity is limited or unreliable. It works by:
 Connecting to the internet via an inbuilt modem and SIM

 Pooling the merchant's account for new payment
 Fetching payment details and notifying the user via speaker
 Announcing the number of successful payments received on the Paytm QR
The Soundbox has a 4G network connectivity, 4W speaker, and battery life of five days. It
comes with 8 to 10 hours of battery backup and does not require a Wi-Fi connection.
3.5 Purpose
The Paytm Soundbox aims to make digital payments more accessible and convenient for
merchants and customers, particularly in semi-urban and rural areas where internet
connectivity may be inconsistent.
1. Functionality: The device is equipped with a speaker and microphone, allowing users to
interact with it verbally. It generates sound-based signals that carry encrypted data, enabling
transactions without the need for internet connectivity.
2. Features: Paytm Soundbox supports various payment methods, including Paytm Wallet,
UPI (Unified Payments Interface), and debit/credit cards. Users can initiate transactions by
speaking commands, such as requesting a balance check, making payments, or receiving
payment confirmations.
3. Deployment: Paytm Soundbox is typically deployed in brick-and-mortar stores,

marketplaces, and other retail establishments where cash transactions are prevalent. It
provides an alternative payment solution that doesn't rely on traditional POS (Point of Sale)
systems or internet connectivity.
2
4. Benefits: The device offers several benefits, including increased accessibility to digital
payments, reduced dependency on cash, improved transaction security through encryption,
and enhanced convenience for both merchants and customers.
3.6 Impact on Small and Medium scale industries
The reason for the opportunity is that India has 40-45 million merchants, of which 2.5 million
are large merchants (who work with large banks), 20-25 million are tax-compliant SMEs, and
15-17 million are SMEs with smaller turnover, according to the BofA report.
Paytm’s ‘first-mover advantage’ matters in the soundbox space as vendors owning one
typically don't need of another unless the merchant is large, the report added.
The fintech major has cumulatively deployed over 6.5 million soundbox devices since its
launch.
Though Paytm is a first-mover in this zone, competitors PhonePe and BharatPe are getting
aggressive too. PhonePe has deployed 2-2.2 million devices, while BharatPe has deployed
800,000-900,000 soundboxes. It’s clear that our Soundbox has played a pivotal role in
establishing digital transactions as a safe and secure process. As we continue to innovate with
the Soundbox, our commitment to empowering merchants and building trust in the industry
has made us a pioneer in the field. It’s no wonder that our Soundbox is the preferred
merchant device for millions of businesses big and small.
Here a table on volume of the PAYTM sound box usage in India during the financial year
2023
- 2024
Total Sound boxes 82 lakhs
Total merchant payments 407 million
Total merchant users 62 million
Overall, Paytm Soundbox represents an innovative approach to expanding the reach of digital
payments in India, particularly in areas with limited internet access. It demonstrates Paytm's
commitment to leveraging technology to address the unique challenges of the Indian market
and promote financial inclusion.
2
A study on the impact of UPI and PAYTM sound box among the road side vendors in the City of Coimbatore |
4. ANALYSIS AND INTERPRETATION OF DATA
Analysis and interpretation of data is the process of examining collected information to

uncover patterns and relationships. Data analysis involves examining collected data to
identify patterns, trends, and relationships. Interpretation involves making sense of the
analysed data to draw meaningful conclusions, implications, or recommendations based on
the findings.
4.1 PERCENTAGE ANALYSIS
Percentage analysis calculates component proportions as percentages of the total, aiding

comparison and understanding of relative contributions or changes. Percentage analysis helps
in identifying trends and changes over time by comparing the percentage of each component
across different periods.
Table No. 4.1.1
Table showing the age category of the respondents
AGE FREQUENCY PERCENTAGE

18 to 28 53 53
29 to 40 35 35
41 to 50 10 10
More than 50 2 2
Total 100 100

Source: Primary data
Chart No. 4.1.1
Chart showing the age category of the respondents
2%
10%
18 to 28
29 to 40
41 to 50
53% More than 50
35%
2
INTERPRETATION
The above exhibit that 53 % of the respondents are from the age group of 18 to 28, 35% of
respondents are from the age group of 29 to 40, 10% of the respondents are form the age
group of 41 to 50 and remaining 2% of the respondents are from more than 50 age group.
Table No. 4.1.2
Table showing the gender of the respondents
GENDER FREQUENCY PERCENTAGE
Male 68 68
Female 32 32
Total 100 100

Chart No. 4.1.2
Chart showing the gender of the respondents
32% Male
Female
68%
INTERPRETATION
The above exhibit that 68% of the respondents are male and the remaining 32 % are female.
2
Table No. 4.1.3
Table showing the annual income of the respondents
ANNUAL INCOME FREQUENCY PERCENTAGE
Less than 1 lakh 40 40

1 lakh to 3 lakhs 42 42
3 lakhs to 5 lakhs 10 10
More than 5 lakhs 8 8

Total 100 100
Chart No. 4.1.3
Chart showing the annual income of the respondents
Less than 1 lakh 1 lakh to 3 lakhs

8%
3 lakhs to 5 lakhs
10% More than 5 lakhs
40%
42%
INTERPRETATION
The above exhibit that the 40% of the respondents have the annual income less 1 lakh, 42%
have the annual income from 1 lakh to 3 lakhs, 10% have the annual income from 3 lakhs to 5
lakhs and remaining 8% have the annual income more than 5 lakhs.
2
Table No. 4.1.4
Table showing the type of bank account the respondents have
BANK ACCOUNT FREQUENCY PERCENTAGE
Current account 32 32
Savings account 57 57
Salary account 11 11
Total 100 100
Chart No. 4.1.4
Chart showing the type of bank account the respondents have
11%
Current account Savings account

32% Salary account
57%
INTERPRETATION
The above exhibit indicates that the 32% of the of the respondents hold current account, 57%
of the respondents holds savings accounts and the remaining 11% of the respondents holds
salary account.
2
Table No.
Table showing the convenient mode of payment for the respondents
CONVINIENT PAYMENT MODE FREQUENCY PERCENTAGE
Cash payment 42 42
Digital payment 54 54
Crad payment 4 4
Total 100 100

Chart No. 4.1.5
Chart showing the convenient mode of payment for the respondents
4%
Cash payment
Digital payment
42% Crad payment
54%
INTERPRETATION
The above exhibit that 42% of the respondents prefers cash payments, 54% of the respondents
prefers digital payments and the remaining 4% prefers the card payments.
2
Table No. 4.1.6
Table showing the No. of respondents having UPI in their shop
UPI FACILITY IN SHOPS FREQUENCY PERCENTAGE
Yes 87 13
No 13 13
Total 100 100

Chart No. 4.1.6
Chart showing the No. of respondents having UPI in their shop
13%
Yes
No
87%
INTERPRETATION
The bove exhibit indicates 87% of the respondents have UPI in their shops and the remaining
13% of the respondents does not provide UPI in their shops.
2
Table No. 4.1.7
Table showing the timeline of UPI payments done by the customers
UPI PAYMENT BY CUSTOMERS FREQUENCY PERCENTAGE

Frequently 45 45
Occasionally 41 41
Rarely 13 13
Never 1 1
Total 100 100

Chart No. 4.1.7
Chart showing the timeline of UPI payments done by the customers
1%
13%
Frequently Occasionally Rarely

45% Never
41%
INTERPRETATION
The above exhibits that 45% of the respondents are making UPI payment frequently, 41% are
making occasionally, 13% are making rarely and the remaining 1% never make payments
through the UPI.
2
Table No. 4.1.8
Table showing the age group of customers who do UPI payments frequently
AGE GROUP OF CUTOMERS USE UPI FREQUENCY PERCENTAGE

18 to 28 48 48
29 to 40 36 36
41 to 50 14 14
More than 50 2 2
Total 100 100

Chart No. 4.1.8
Chart showing the age group of customers who do UPI payments frequently
2%
14% 18 to 28
29 to 40
41 to 50
48% More than 50
36%
INTERPRETATION
The above exhibit indicates that 48% of the customers are from the age group of 18 to 28, 36%
are from the age group of 29 to 40, 14% are from the age group of 41 to 50 and the remaining
2% are more than 50 age group.
3
Table No. 4.1.9
Table showing the opinion of respondents on handling of UPI payments
HANDLING UPI PAYMENTS FREQUENCY PERCENTAGE

Easy 32 32
Moderate 52 52
Difficult sometimes 15 15
Very hard 1 1
Total 100 100

Chart No. 4.1.9
Chart showing the opinion of respondents on handling of UPI payments
15% 1% Easy Moderate

32% Difficult sometimes
Very hard
52%
INTERPRETATION
The above exhibit indicates that 32% of the respondents have an easy handling of UPI, 52%
are moderate, 15% have difficulties sometimes and remaining 1% have the opinion of very
hard.
3
Table 4.1.10
Table showing the impact on business after installing UPI
CHANGES IN BUSINESS AFTER UPI FREQUENCY PERCENTAGE

Drastic improvement 22 22
Slight improvement 56 56
No changes 20 20
Rare loss 2 2
Total 100 100

Chart No. 4.1.10
Chart showing the impact on business after installing UPI
2%
20% 22% Drastic improvement Slight improvement No
Rare losses
56%
INTERPRETATION
The above exhibit indicates that 22% of the respondents have a drastic improvement on their
business after installing UPI, 56% have a slight improvement, 20% have no changes and the
remaining 2% have a rare loss in their businesses.
3
Table No. 4.1.11
Table showing the ratings of the respondents for the UPI
RATINGS FOR UPI FREQUENCY PERCENTAGE
Highly satisfied 28 28
Satisfied 51 51
Slightly satisfied 19
Not satisfied 2 2
Total 100 100
Chart No. 4.1.12
Chart showing the ratings of the respondents for the UPI
2%
19% Highly satisfied Satisfied Slightly satisfied
28% Not satisfied
51%
INTERPRETATION
The above exhibit indicates that 28% of the respondents are highly satisfied, 51% are satisfied,
19% are slightly satisfied and the remaining 2% are not satisfied.
3
Table No.4.1.12
Table showing whether the respondents have PAYTM sound box in their shops
PAYTM SOUND BOX IN SHOPS FREQUENCY PERCENTAGE
Yes 81 81
No 19 19
Total 100 100

Chart No. 4.1.12
Chart showing whether the respondents have PAYTM sound box in their shops
19%
Yes
No
81%
INTERPRETATION
The above exhibit indicates that 81% of respondents have PAYTM sound box in their shops
and 19% of the respondents don’t have the sound box.
3
Table No.4.1.13
Table showing the opinions of respondents on the subscription cost of sound box
SUBSCRIPTION COST FREQUENCY PERCENATGE
Very less 25 25
Affordable 60 60
Less affordable 13 13
Not affordable 2 2
Total 100 100

Chart No. 4.1.13
Chart showing the opinions of respondents on the subscription cost of sound box
13% 2%
25% Very less Affordable Less affordable
Not affordable
60%
INTERPRETATION
The above exhibit states 25% of the respondents finds that the cost of subscription cost is very
less, 60 % are finds affordable, 13% are finds less affordable and the remaining 2% are finds
not affordable.
3
Table No. 4.1.14
Table showing the opinion of respondents in usefulness of sound box
USEFULNESS FREQUENCY PERCENTAGE
Beneficial 27 27
Useful sometimes 53 53
Rarely used 18 18
Not useful 2 2
Total 100 100

Chart No. 4.1.14
Chart showing the opinion of respondents in usefulness of sound box
2%
18% Beneficial
27%
Useful sometimes
Rarely used
Not useful
53%
INTERPRETATION
The above exhibit states that 27% of the respondents finds the sound box is beneficial, 53%
finds useful sometimes, 18% finds rarely used and remaining 2% finds not useful.
3
Table No.
Table showing the time period for servicing the sound box
SERVICE FOR THE SOUND BOX FREQUENCY PERCENTAGE

Rare 19 19
While facing issues 76 76
Periodically 3 3
Never 2 2
Total 100 100

Chart No. 4.1.15
Chart showing the time period for servicing the sound box
2%
3%
19%
Rare
While facing issues Periodically
Never
76%
INTERPRETATION
The above exhibit that 19% of the respondents service the sound box rarely, 76% service while
facing issues, 3% service periodically and the remaining 2% never service.
3
Table No. 4.1.16
Table showing the awareness for other brand sound boxes by the respondents
AWARENESS OF OTHER SOUND BOXES FREQUENCY PERCENTAGE
Very familiar 26 26
Somewhat familiar 60 60
Not familiar 11 11
Strongly not familiar 3 3
Total 100 100

Chart No. 4.1.16
Chart showing the awareness for other brand sound boxes by the respondents
3%
11%
26%
Very familiar Somewhat familiar Not familiar
Strongly not familiar
60%
INTERPRETATION
The above exhibit that 26% of the respondents are very familiar about the other sound boxes,
60% are somewhat familiar, 11% are not familiar and the remaining 3% are strongly not
familiar.
3
Table No. 4.1.17
Table showing the use of PAYTM sound box in the future
CONTINUE FOR PAYTM SOUND BOX FREQUENCY PERCENTAGE

Stick with the same 22 22
Move to higher updates 58 58
Change to other brands 17 17
Change according to price 3 3
Total 100 100

Chart No. 4.1.17
Chart showing the use of PAYTM sound box in the future
3%
17% 22% Stick with the same Move to higher updates Change
Change accodring to price
58%
INTERPRETATION
The above exhibit states that 22% of the respondents will stick with the same PAYTM sound
box, 58% are willing to move to higher updates, 17% are willing to change to other brand’s
sound boxes and the remaining 3% are wish to change in according to price.
3
Table No. 4.1.18
Table showing the respondents suggestions to other vendors
SUGGEST TO OTHER VENDORS FREQUENCY PERCENTAGE
Recommends strongly 18 18
Recommends if needed 59 59
Recommends rarely 17 17
Never recommend 6 6
Total 100 100

Chart No. 4.1.18
Chart showing the respondents suggestions to other vendors
6% 18% Recommends strongly Recommends if needed Re

17% Never recommend
59%
INTERPRETATION
The above exhibit that 18% respondents will strongly recommend, 59% would recommends if
needed, 17% would rarely recommend and 6% would never recommend to other vendors.
4
Table No. 4.1.19
Table showing the difficulties faced by respondents while using UPI
DFFICULTIES FREQUENCY
Connectivity issues 30
Technical glitches 62
Fraudulent attempts 37
Server issues 48
Security reasons 14
Chart No. 4.1.19
Chart showing the difficulties faced by respondents while using UPI
INTERPRETATION
The above exhibit that 62% of the respondents have faced technical glitches, 48% have faced
server issues, 37% are facing fraudulent attempts, 30% have faced connectivity issues and 14%
have faced security reasons as difficulties.
4
Table No. 4.1.20
Table showing the benefits enjoyed by the respondents using UPI
BENEFITS FREQUENCY
Instant transactions 49
Easy to track 51
Convenience 39
Cashless way of payments 43
Maintains transaction records 15
Chart No. 4.1.20
Chart showing the benefits enjoyed by the respondents using UPI
INTERPRETATION
The above exhibit that 51% of the respondents finds it is easy to track, 49% of the respondents
finds instant transactions, 43% of the respondents finds cashless way of payment, 39% of the
respondents finds convenience and 15% of the respondents finds maintaining transactions
records.
4
Table No. 4.1.21
Table showing the advantages of the PAYTM sound box enjoyed by respondents
ADVANTAGES FREQUENCY
Instant notification 34
Voice alert 49
Multiple language facility 42
Quick acknowledgement 48
Fraud prevention 41
Card acceptance 10
Chart No. 4.1.21
Chart showing the advantages of the PAYTM sound box enjoyed by respondents
INTERPRETATION
The above shows that 49% of the respondents have the advantage of voice alert, 48% have the
advantage of quick acknowledgement, 42% have the advantage of multiple language facility,
41% have the advantage of fraud prevention, 34% have the advantage of instant notification,
and 10% have the advantage of card acceptance.
4
Table No.4.1.22
Table showing the difficulties faced by the respondents while using PAYTM sound box
DIFFICULTIES FREQUENCY
Network connectivity 34
Power connections issues 50
Maintenance 49
Technical issues 33
Occasional errors 29
Lack of customer services 13
Chart No. 4.1.22
Chart showing the advantages of the PAYTM sound box enjoyed by respondents
INTERPRETATION
The above that 50% of the respondents finds difficulties in power connections, 49% finds
difficulties in maintenance¸ 34% finds difficulties in network connectivity, 33% finds
difficulties in technical issues, 29% finds difficulties in occasional errors and 13% finds
difficulties in lack of customer service.
4
4.2 CHI – SQUARE ANALYSIS
A CHI- SQUARE is a statistical tool commonly used for testing the independence and
goodness of fit. Testing independence determines whether two or more observations across
two populations are dependent on each other. Testing for goodness of fit determines if an
observed frequency distribution matches a theoretical distribution.
Table No. 4.2.1
Table showing the relationship between frequency of receiving money

from customers through UPI and the age group of customers making UPI
payments.
HYPOTHESIS
NULL HYPOTHESIS (H0): There is no significant relationship between the frequency of

receiving money from customers through UPI and the age group of customers making UPI
payments.
ALTERNATIVE HYPOTHESIS (H1): There is a significant relationship between the

frequency of receiving money from customers through UPI and the age group of customers
making UPI payments.
Chi-Square Tests
Value df Asymptotic Significance (2-sided)

a
Pearson Chi- 109.049 16 .000
Square
Likelihood Ratio 19.871 16 .226
N of Valid Cases 101

a. 18 cells (72.0%) have expected count less than 5. The minimum expected count is
.01.
Source: Calculated data
4
INTERPRETATION
The above analysis shows that P value is less than 0.05. Hence there is a significant
relationship between the frequency of receiving money from customers through UPI and the
age group of customers making UPI payments.
Table No.4.2.2
Table showing the relationship between the changes in the business after
installing UPI and the users’ ratings for the UPI.
HYPOTHESIS
NULL HYPOTHESIS (H0): There is no significant relationship between the changes in the
business after installing UPI and the users’ ratings for the UPI.
ALTERNATIVE HYPOTHESIS (H1): There is a significant relationship between the changes

in the business after installing UPI and the users’ ratings for the UPI.
Chi-Square Tests
a
Pearson Chi- 123.645 16 .000
Square
a. 18 cells (72.0%) have expected count less than 5. The minimum expected count is .01.
INTERPRETATION
The above analysis shows that P value is less than 0.05. Hence there is a significant relationship
between the changes in the business after installing UPI and the users’ ratings for the UPI.
4
Table No.4.2.3
Table showing the subscription cost for the PAYTM sound box and annual
income vendors.
HYPOTHESIS
NULL HYPOTHESIS (H0): There is no significant relationship between the subscription

cost for the PAYTM sound box and annual income of the vendors.
ALTERNATIVE HYPOTHESIS (H1): There is a significant relationship between the

subscription cost for the PAYTM sound box and annual income of vendors.
Chi-Square Tests

Pearson Chi-Square 115.179a 16 .000
a. 18 cells (72.0%) have expected count less than 5. The minimum expected count is .01.
INTERPRETATION
The above analysis shows that P value is less than 0.05. Hence there is a significant relationship
between the subscription cost for the PAYTM sound box and annual income vendors.
4
5. FINIDINGS, SUGGESSTIONS AND CONCLUSION
5.1. FINDINGS
The objective of the study was to analyse the impact of UPI and PAYTM sound among the
road side vendors in Coimbatore. The study has been carefully analysed using the techniques
of percentage analysis and chi-square analysis. The final chapter is an attempt to summarize
the findings of the study based on which few suggestions have been made.
5.1.1. PERCENTAGE ANALYSIS
 Majority (53%) of the vendors are from the group of 18 to 28 years.

 Majority (68%) of the vendors are Male.
 Majority (42%) of the respondent’s annual income is between 1 lakh to 3 lakhs.
 Majority (57%) of the of the vendors hold Savings account.
 Majority (54%) of the vendors states Digital payments are convenient for them.
 Majority (87%) of the vendors provides UPI facility in their shops.
 Majority (41%) of the vendors are frequently receiving money through UPI from their
customers.
 Majority (48%) of the vendors’ states that 18 to 28 age group people are making UPI
payments frequently.
 Majority (52%) of the vendors feels handling of UPI payments are moderate.
 Majority (62%) of the vendors are facing technical issues in using UPI.
 Majority (51%) of the vendors can track the UPI payments easily.
 Majority (56%) of the vendors are having a slight improvement in their business after
introducing UPI.
 Majority (51%) of the vendors are Satisfied with the UPI payments.
 Majority (81%) of the vendors are using PAYTM sound box in their shops.
 Majority (49%) of the vendors’ states Voice alert as a major advantage of using
PAYTM sound box.
 Majority (60%) of the vendors are feeling the subscription is Affordable.
 Majority (53%) of the vendors states the sound box is Useful sometimes.
 Majority (50%) of the vendors are facing Power connection issues.
 Majority (76%) of the vendors are servicing their sound box While facing issues.
 Majority (60%) of the vendors are slightly aware of other sound boxes besides
PAYTM.
4
 Majority (58%) of the vendors are willing to go for higher updates of the PAYTM
sound box.
 Majority (59%) of the vendors will recommends to other vendors if it is needed.
5.1.2. CHI-SQUARE ANALYSIS
 The factors such as the frequency of receiving money from customers through
UPI and the age group of customers making UPI payments has a significant
relationship between them.
 The factors such as changes in the business after installing UPI and the users’
ratings for the UPI has a significant relationship between them.
 The factors such as subscription cost for the PAYTM sound box and annual
income of vendors has a significant relationship between them.
5.1.3. SUGGESTIONS
 Initiatives should be taken to enhance the awareness about not sharing pins,
not clicking on suspicious links, and keeping their UPI apps updated.
 Should Consider revising transaction limits based on different factors such as
account age, transaction history, and risk assessment to prevent large-scale
fraudulent activities.
 Since UPI apps are third party apps so the banks should take initiatives to
launch new apps to support digital payments like UPI.
 Network connectivity should be enlarged in remote areas to avoid unwanted
transaction failures.
 Proper education and awareness should be given to the vendors to prevent
from fraud attempts and financial scams.
 Since there are some vendors who feels the price of the sound box is not
affordable so the price of subscription for the Soundbox should be made less
so it can be accessible to a wide range of merchants, including small and
medium-sized businesses. Affordable pricing can incentivize adoption and
drive widespread usage across different sectors.
 PAYTM sound box is still ruling the market and there are no other popular
brands products are available in the market. The other brands should launch
their sound boxes for a wide range of options for the consumers.
49
 The sound boxes should continuously try improve connectivity options to

ensure seamless operation even in areas with poor internet connectivity. This
could involve integrating multiple connectivity options such as Wi-Fi,
Bluetooth, and GSM for maximum coverage.
 The brands should launch battery supported sound boxes to avoid the power
connection issues faced by the consumers.
 Initiatives should be taken by the brands for the easy opening and closing of
the sound box payment account.
CONCLUSION
The study highlights the impacts of UPI and PAYTM sound box among the road side vendors
in Coimbatore. The study clearly shows the advantages and difficulties faced by the vendors
in using the UPI payments. The study also analysed and given the potential alternative
solutions for the PAYTM sound box uses and other cost occurring for the box. This study is
made with primary data as questionnaire which is circulated with the road side vendors and
the response is collected. Through the response tools like Percentage analysis and Chi-Square
are used to analyse and interrupt the data for a clear overview of the response collected
through the vendors. UPI has democratized digital payments empowering millions with easy
access to financial services. While PAYTM sound box has expanded the reach of cashless
transactions, particularly in rural and semi-urban areas. Together, they are driving financial
inclusion, fostering economic growth and reshaping the way people transact in Coimbatore.
5
REFERENCES
 Kumar, R., Kishore, S., Lu, H., & Prakash, A. (2020). Security analysis of unified
payments interface and payment apps in India. In 29th USENIX Security Symposium
(USENIX Security 20).
 Gochhwal, R. (2017). Unified payment interface—an advancement in payment
systems. American Journal of Industrial and Business Management, 7(10),
1174- 1191.
 Kumar, A., Choudhary, R. K., Mishra, S. K., Kar, S. K., & Bansal, R. (2022).
The growth trajectory of UPI-based mobile payments in India: Enablers and
inhibitors. Indian Journal of Finance and Banking, 11(1), 45-59.
 Mohapatra, Somanjoli. "Unified payment interface (UPI): a cashless Indian e-
transaction process." International Journal of Applied Science and Engineering 5,
no. 1 (2017): 29-42.
 Sujith, T. S., & Julie, C. D. (2017). Opportunities and Challenges of E-
payment System in India. International Journal of Scientific Research and
Management (IJSRM), 5(09), 6935-6943.
 George, A. Shaji, AS Hovan George, T. Baskar, and AS Gabrio Martin. "An
Overview of India's Unified Payments Interface (UPI): Benefits, Challenges, and
Opportunities." Partners Universal International Research Journal 2, no. 1 (2023): 16-
23.
 Arora, R. (2020). A Study on Customer Perception Towards UPI and its Growing
Influence in The Realm of Digital Payments: An Empirical Study. Adarsh Journal of
Management Research, 12(1), 39-45.
 Gupta, Satinder Bal, and Raj Kumar Yadav. "Study of Growing Popularity of
Payment Apps in India." Test Engineering and Management 82 (2020): 16110-16119.
 Rakesh, N., Kumar, K. S., & Kumar, S. S. (2018). UPI-The Growth of Cashless
Economy in India. Arabian Journal of Business and Management Review (Oman
Chapter), 36-40.
 Rakesh, N., Kumar, K. S., & Kumar, S. S. (2018). UPI-The Growth of Cashless
Economy in India. Arabian Journal of Business and Management Review (Oman
Chapter), 36-40.
 Gupta & Asha, D. (2018). Digital payments revolution in India. Digitalization.
 Madwanna, Y., Khadse, M., & Chandavarkar, B. R. (2021, May). Security issues
of unified payments interface and challenges: case study. In 2021 2nd International
Conference on Secure Cyber Computing and Communications (ICSCCC) (pp. 150-
154). IEEE.
 Kittu, R. S., & Chittawadagi, S. M. B. (2019). Role of Payment Banks in Digital
Payments-A Case Study of Paytm. Emperor International Journal of Finance and
Management Research Received, 5(1), 52-57.
 Ali, S. M. S., Akhtar, M. W., & Safiuddin, S. K. (2017). Digital payments for rural
India–challenges and opportunities. International Journal of Applied Economics, 7(1),
31-8.
 Mir, I. U. R., & Wani, M. I. (2023). Street Vendors Using Smartphones for Digital
Payments: A Qualitative Study of Digital Opportunities and Inequalities from
Kashmir Region in India. Journal of Asian and African Studies,
00219096231218437.
 Choudhary, V., & Aithal, R. K. (2023). Low-cost technologies for Kirana (small)
retail: a game changer? IIM Kozhikode Society & Management Review, 12(2),
250- 258.
 Joshi, M. C., Gupta, G., & Bansal, D. (2022). Role of Business Technologies in
the Outperformance of Firms. International Journal of Business, Technology and
Organizational Behaviour (IJBTOB), 2(6), 747-753.
 Seethamraju, R., & Diatha, K. S. (2019). Digitalization of small retail Stores-
Challenges in digital payments.
 Balakrishnan, M. (2023). The Unified Payment Interface and the growth of digital
payments in India: An analysis. Journal of Payments Strategy & Systems, 17(3),
250- 270.
 Ajmera, H., & BHATT, D. V. (2021). A Study on Factors Affecting Consumer
Attitude and Intention Towards the Mobile Payment Applications in Gujarat.
ANNEXURE
ANNNEXURE
QUESTIONNAIRE
1. Name:
2. Age
18-28
29-30
31-50
More than 50
3. Locality:
4. Gender
Male
Female
5. Annual income
Less than 1 lakh
1 lakh to 3 lakhs
3 lakhs to 5 lakhs
More than 5 lakhs
6. what type of bank account you hold?
Savings account
Current account
Salary account
Fixed deposit account

7. Which mode of payment is convenient for you?
Cash payments
Digital payments
Card payments
8. Do you provide UPI facility in your shop?
Yes
No
9. How often you receive money through UPI from your customers?
Frequently
Occasionally
Rarely
Never
10. Which age group of customers use UPI frequently?
18 to 28
29 to 30
31 to 50
More than 50
11. How is the experience of handling UPI payments method?
Easy
Moderate
Difficult sometimes
Very hard
12. What are the difficulties you face using UPI?
Connectivity issues
Technical glitches
Fraudulent attempts
Server down issues
Security problems
13. What are the benefits you enjoy using UPI?
Instant transactions
Trackable easily
Convenience
Cashless way of payments
Maintains transaction records
14. Have there been any notable changes in sales or business after installing UPI method
in your store?
Drastic improvement
Slight improvement
No changes
Infrequent loss
15. Give your ratings for the UPI payment method?
Highly satisfied
Satisfied
Satisfied slightly
Not satisfied
16. Do you have PAYTM sound box in your shop?
Yes
No
17. What are the advantages of using of PAYTM sound box?

Instant notification
Voice alert
Fraud prevention
Multiple language availability
Card acceptance
Easy acknowledgement
18. What do you feel about the subscription cost?
Very less
Affordable
Less affordable
Not affordable
19. What do you feel about the PAYTM sound box?
Beneficial
Useful sometimes
Rarely useful
No use
20. What are the difficulties you face while using PAYTM sound box?
Network connectivity
Power connection problems
Maintenance
Technical issues
Occasional errors
Lack of customer services
21. How frequently you service the PAYTM sound box?

Rarely
While facing issues
Periodically
Never
22. Are you aware of other sound boxes are available besides PAYTM?
Very familiar
Somewhat familiar
Not familiar
Strongly not familiar
23. Will you continue with the PAYTM sound box in future with further updates?
Stick to the Same
Will go for higher updates
Will change to other brands
Will change in accordance with price
24. Would you suggest other vendors to use the PAYTM sound box?
Strongly recommended
Recommend if necessary
Recommends rarely
Never recommend
25.Any suggestions:

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A Study on the Impact of UPI and PAYTM sound box among the road side vendors in the city

1.INTRODUCTION AND RESEARCH METHODOLOGY

Unified Payments Interface (UPI), a game-changer in India's financial landscape, has

1. Instant transfers: Funds are credited immediately, eliminating delays.

1.1.1 Benefits for Small Businesses:

1.1.2 Impact on Indian Economy:

1.2.1 Paytm Soundbox:

Paytm Soundbox is an innovative audio-assisted device offering instant payment

1.2.2Paytm Card Soundbox:

1.2 STATEMENT OF THE PROBLEM

1.3 OBJECTIVES OF THE STUDY

1.4 RESEARCH METHODOLOGY

1.4.3. Sample Size

1.4.4. Sampling Technique

1.4.5. Tools and Techniques

1.5 LIMITATIONS OF THE STUDY

This study has several limitations that must be acknowledged.

1.6 CHAPTER SCHEME

Chapter 3: It contains Theoretical Framework of the study.

Chapter 4: It exhibits the Data Analysis and Interpretation of the study.

Chapter 5: It highlights the Findings, Suggestions, and Conclusions of the study.

Rahul Gochhwal1 (2017) Unified Payment Interface—An Advancement in Payment

Jagriti Tamale (2023) How UPI has transformed small business2

protocol through seven popular UPI apps. We discover previously-unreported multi-factor

Mr. P. Sathish Kumar (2019) A STUDY ON GROWTH OF UPI (UNIFIED PAYMENT

Pratik Bhakta (2022) How UPI becomes democratic of India11

Harish Venkatesan (2016) How UPI benefits the startups in India12

Mohapatra Somanjoli (2019) Unified Payment Interface (UPI): A Cashless Indian e-

India's transition into a digital economy is propelled by widespread adoption of digital

Sharma (2022) Paytm sound box now enables card payments21

Archana (2023) Paytm sound box: The real stories 23

2.3 RESEARCH GAP

3. OVER VIEW OF THE STUDY

3.3 Impact on small business

3.4 PAYTM sound box

 Connecting to the internet via an inbuilt modem and SIM

3. Deployment: Paytm Soundbox is typically deployed in brick-and-mortar stores,

3.6 Impact on Small and Medium scale industries

Total Sound boxes 82 lakhs

Total merchant payments 407 million

Total merchant users 62 million

4. ANALYSIS AND INTERPRETATION OF DATA

Analysis and interpretation of data is the process of examining collected information to

4.1 PERCENTAGE ANALYSIS

Percentage analysis calculates component proportions as percentages of the total, aiding

Table No. 4.1.1

Table showing the age category of the respondents

AGE FREQUENCY PERCENTAGE

Total 100 100

Chart No. 4.1.1

Chart showing the age category of the respondents

Table No. 4.1.2

Table showing the gender of the respondents

GENDER FREQUENCY PERCENTAGE

Total 100 100

Chart No. 4.1.2

Chart showing the gender of the respondents

Table No. 4.1.3

Table showing the annual income of the respondents

ANNUAL INCOME FREQUENCY PERCENTAGE

Less than 1 lakh 40 40

More than 5 lakhs 8 8

Chart No. 4.1.3