SPECIALIZATION PROJECT REPORT

ON

“STUDY ON USERS PERCEPTION TOWARDS E-PAYMENT

APPLICATION IN WESTERN REGION OF MUMBAI”

Submitted in the partial fulfilment for the award of the degree of

Masters of Management Studies (MMS)
(Under University of Mumbai)

Submitted By:

Name: Siddesh Mohandas Nayak

Roll No. 104

Under the guidance of

Prof. Simone Simon

2017-19

St Francis Institute Of Management And Research, Mt. Poinsur ,

S.V.P Road, Borivali (W) Mumbai.
 Certificate

This is to certify that project titled "Study on Users perception towards E-Payment apps in

western region of Mumbai" is successfully completed by Mr. Siddesh Mohandas Nayak during

the IV Semester, in partial fulfillment of the Masters Degree in Management Studies recognized

by the University of Mumbai for the academic year 2018-19 through St. Francis Institute Of

Management and Research. This project work is original and not submitted earlier for the award

of any degree/diploma or associate ship of any other University/Institution.

Name – Dr. Simeon Simon

Date - (Signature of the Guide)

 Declaration

I hereby declare that this Project Report submitted by me to the St. Francis Institute of

Management and Research is a bonafide work undertaken by me and it is not submitted to any

other University or Institution for the award of any degree diploma/certificate or published any

time before.

Name – Siddesh Nayak

Roll no – 104 (Signature of the student)

 Acknowledgement

I am using this opportunity to express my gratitude to everyone who supported me throughout

my project.It is a great pleasure for me to acknowledge the kind of help and guidance received

by me during my project work. I was fortunate enough to get support from a large number of

people to whom I shall always remain grateful.

I express my warm thanks to Prof. Simone Simon for his support and guidance and for provided

me with the facilities being required and conditions for my winter project.
 Table of Contents

Sr. No Particulars Page No.

1. Introduction 2-11

2. Literature Review 12

3. Research Problem & Hypothesis 13

4. Research Methodology & Objective of the Study 14-15

5. Graphical Data Analysis 16-30

6. Hypothesis Test 31-34

7. Findings & Interpretation 35

8. Conclusion 36

9. Future Scope 37

10. Limitation 38

11. References & Websites 39

12. Annexure 40
 Executive Summary

The purpose of the study was to known the Consumer Perception towards E-Payment
Application, this study is focused on the application on smartphone that allow user do payment
transaction with merchant. The research methodology which was used is Descriptive Research,
and 103 respondents were surveyed through questionnaire. The respondents were students,
employees and retired person.

The study was accomplished to explore consumer perceptions and intention to engage in using a
smart phone to replace the content of their physical wallets. Specifically the study explored
awareness, usage, and likelihood of using smart phones for completing the monetary
transactions.

As per the findings of the study, E-payment App is getting popularity among the young lots such
as students and employees. Further the study also explored which E-payment App gateway
services are preferred by the consumers. The study witnessed that PayTMis leading among the
other wallet providers. When a user is making an online payments via E-payment Apps, the
respondents are affected by various assorted factors. The main influencing factors have been
identified as convenience, quick transaction, safety &security, cashback & rewards etc. Making
payment through E-payment Apps can be a great benefit to the users in terms of convenience,
saving time and safety of transaction. One of the prime obstacles is security issues, due to which
the users gets anxious about his or her confidential information which may get disclosed.
Therefore the E-payment App providers need to understand and meet or even exceed towards the
users trust expectations. This includes not only addressing security and privacy concerns but also
safeguarding the backup mechanism if the phone is lost or stolen. The study mainly focused on
Convenience, User Interface, Security, Brand Image and Discounts of the services used that
affect the consumer’s perception toward E-payment Apps, the study witnessed that there is a
significant association between the perception and the above attributes.
 Chapter 1

Introduction

1.1 User Perception

Perception can be defined as our recognition and interpretation of sensory information.

Perception also includes how we respond to the information. We can think of perception as a
process where we take in sensory information from our environment and use that information in
order to interact with our environment. Perception allows us to take the sensory information in
and make it into something meaningful. Customer perception refers to the process by which a
customer selects, organizes, and interprets information/stimuli inputs to create a meaningful
picture of the brand or the product. It is a three stage process that translates raw stimuli into
meaningful information. Each individual interprets the meaning of stimulus in a manner
consistent with his/her own unique biases, needs and expectations. Three stages of perception are
exposure, attention and interpretation. In simpler terms, it is how a customer see's a particular
brand with whatever he or she has been able to understand by watching the products, its
promotions, feedback etc. It is the image of that particular brand in the mind of the customer.

1.2. E Payment Application

Have you ever imagined how the world would look like if we had to pay for goods with a grain
or the animals we’ve just hunted? For thousands of years, it was the reality we had to cope with.
Luckily, these days are over and electronic payment methods (e-payments) are now available for
everybody and are an important part of our day to day activities and life. Nowadays paying for
goods and services is really convenient – just on few clicks on your smartphone from anytime to
anywhere.

It’s obvious that the development of e-payments is closely related to online commerce and
follows the improvements in that field. As you probably know and experienced, e-commerce is
extremely convenient and online payments are way more suited to customer’s requirements that
traditional payment form like cash. There are a variety of payment methods today, such as online

2
banking, credit and debit card, charge card or mobile payment application, but take a step back
and look at how it all began.

Electronic payment is a feature of online, mobile and telephone banking, similar in its effect to a
giro, allowing a customer of a financial institution to transfer money from their transaction or
credit card account to a creditor or vendor such as a public utility, department store or an
individual to be credited against a specific account. These payments are typically executed
electronically as a direct deposit through a national payment system, operated by the banks or in
conjunction with the government. Payment is typically initiated by the payer but can also be set
up as a direct debit.

1.3. Evolution of E-Payment in India

Cash is the actual method of payment over the globe. Over 95% of the exchanges in India are
still cash based. While demonetization cleared out 86% of the cash from the Indian market very
nearly 2 years back, the ‘money available for use’ has expanded more than two-folds since
January 2017 to 19.5 Lakh Crore rupees (according to RBI). Different methods of payments,
uniquely computerized payments, have developed consistently for the past numerous years.
While Credit and Debit cards are the most famous cashless methods of payments presented over
3 decades prior in India, the adoption is still slow and steady. There are still difficulties in
adoption of e-payment system because of absence of education, lack of technological know-how,
no internet connection, habitual to cash payments and so on.
It has been said that every disruption creates opportunities and one such disruption was the
announcement of demonetization by Prime Minister Mr. Narendra Modi on 08 November 2016.
Demonetization created huge growth opportunity for digital payment in India and the

e-payment app companies garbed the opportunities with both the hands to expand their market
share. Demonetization has presented a unique platform for adoption of digital payment, as an
alternative to cash for Indian consumers.

3
Demonetization disrupted the cash economy for a while with a rise in digital payments.
Digital payments growth has been accelerated by four years due to demonetization. Since
then, the cash is back, but mobile payments are being used twice as much. Currently, less than
5% of the transactions are cashless and there has been a strong push by the government for
digital payments by promoting mobile-based payment methods like USSD as well as Aadhar
based payments like AEPS and mobile ATMs. There is an audacious goal to reach 30 Billion
digital payment transactions this financial year. As per Credit Suisse, digital payments are
going to reach 1 trillion USD in next 5 years by FY2023 from the existing 200 Billion USD
(of which mobile payments constitute a bare 10 Billion USD). This growth is going to be led
by mobile payments industry.
Digital transfers using apps has brought behavioral change and helped in the adoption of digital
payment. This has resulted in ease of transfer of money in rural areas which was not touched
earlier by the digital payment method. Now many foreign investors want to invest in digital
payment industry which is new attractive destinations because of scope of tremendous expansion
in India.
It is a direct result of this reason Mobile wallets like MobiKwik, PayTM, PhonePay, Amazon
Pay, GooglePay have turned into the trailblazers of the advanced payment industry. While these
wallets are entering into exceptionally private ventures and non-level 1 urban communities at
first with their cash backs, they have developed and given simple client experience that needs
least learning by a client. For instance, payments by means of examining a QRCode or basically
entering shipper’s portable number is simple. Sending cash to a companion to clear obligations is
only a tick or-two away. To add on to this, aside from rearranging 4nstalments, the esteem
included administrations like bill payments, ticket booking given by these wallets have made
them the favoured payment choice of the clever Indian shopper.

4
1.4. Digital Payment Methods

The Digital India programme is a flagship programme of the Government of India with a vision
to transform India into a digitally empowered society and knowledge economy. “Faceless,
Paperless, Cashless” is one of professed role 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:

Online or e- payments: They are used via the internet and through smartphoneapplications.
Money can be stored on the app via recharge by debit or credit cards or net-banking. Consumer
wallet limit is Rs. 20,000 per month and the merchant wallet limit is Rs. 50,000 per month after
self-declaration and Rs. 100,000 after KYC verification.

Prepaid credit cards: Pre-loaded toindividual’sbank account. It is similar to a giftcard;

customers can make purchases using funds available on the card –and not on borrowed credit
from the bank. Can be recharged like a mobile phone recharge, up to a prescribed limit.

Debit/RuPay cards: These are linked to anindividual’sbank account. Can be usedat shops,
ATMs, online wallets, micro-ATMs, and for e-commerce purchases. Debit cards have overtaken
credit cards in India.

AEPS: The Aadhaar Enabled Payment System uses the 12-digit unique Aadhaaridentification
number to allow bank-to-bank transactions at PoS. AEPS services include balance enquiry, cash
withdrawal, cash deposit, and Aadhaar to Aadhaar fund transfers.

5
USSD: Stands for Unstructured Supplementary Service Data based mobile banking.It is linked
to merchant’s bank account and used via mobile phone on GSM network for payments up to Rs.
5,000 per day per customer.

UPI: The United Payments Interface (UPI) envisages being a system that powersmultiple bank
accounts onto a single mobile application platform (of any participating bank). Merges multiple
banking features, ensures seamless fund routing, and merchant payments. It facilitates P2P fund
transfers.

Digital payments in India have been experiencing exponential growth and with growth of
internet and mobile penetration, in coming years the country is ready to witness a huge rush in
the adoption of digital payments. According to RatanWatal , principal advisor NitiAayog and
former finance secretary, digital payments grew 55% by volume and 24.2% by value in 2016-17
over the previous year. Data from the Reserve Bank of India (RBI) indicates that the rate of
adoption of digital payments had accelerated following demonetization last year but has slowed
in recent months of 2017. Total digital transactions in April 2017 of Rs109.58 trillion are 26.78
lower from Rs149.58 trillion in March2017.

India is heading on the path of a major digital revolution. The future economy will be driven by
cashless transaction which will be possible only though digitalization of payment mechanism at
different location such as smart phone, internet banking, card transaction etc. The focus of
present study is to find how respondents are adopting digital payment. The study collected
response from 150 respondents and analyzed their perception, preferences and satisfaction level
of digital payment. It further identifies the barriers and challenges to the adoption of digital
payment.

6
 1.5. Few top E-Payment Application in India

1.

Paytm was founded in 2010 by Vijay Shekhar. It has a subscriber base of over 160+ million
users. At present, Paytm is the largest and most preferred among the digital wallets in India that
gained maximum popularity when demonetization move was announced by the government.
It offers wide range of services like mobile & DTH recharge, electricity and phone bill
payments, booking of train, bus, flight, movie tickets, online shopping etc. You can also pay
money to other users using bar code or phone number. Paytm recently launched the
service without internet that has made its services available to people who don’t have a
smartphone or internet connection.

2.

BHIM (Bharat Interface for Money) is an easy and secure UPI app launched by NPCI (National
Payments Corporation of India) backed by RBI. Bank account holders need to link the mobile
number to their accounts as BHIM app works only with this registered mobile number.
You can send and receive money using VPA( Virtual Payment Address) without disclosing bank
account details. With BHIM Adhaar Pay, merchants can receive payments from customers over
the counter by authenticating the biometric details (using fingerprint scanner) of a user with
Aadhaar database. Merchants can download the related app of their bank on Google Play store to
get registered.

3.
Founded in 2009 by young entrepreneurs Bipinpreet Singh and UpasanaTakku, Mobikwik has
30+ million users and more than 1 lakh plus retailers.Recharge mobiles, DTH, pay landline, gas,
electricity bills, easily make purchases using Mobikwik app.

7
4.
This was launched in 2010 by Kunal Shah and Sandeep Tandon. You can make prepaid,
postpaid, DTH, metro recharge and utility bill payments using Freecharge wallet app. It also
allows you to make online and offline purchase.
Its “Chat-n-Pay” service enables you to chat and pay friends, family and merchants in less than 5
minutes.

5.
It’s a new highly secure payment app launched by Google for India. Send money to friends and
instantly receive money in your bank account using UPI.With Google Pay’s Cash Mode, you can
instantly send or receive payments to anyone nearby without sharing personal details like your
phone number or bank account. Some online shopping sites are enabling payment using Google
Pay feature to make checkout faster.

6.

Powered by Yes Bank, PhonePe is a UPI based app launched by Flipkart, a leading marketplace.
You can make bank to bank payments by using mobile numbers or VPA( Virtual Payment
Address).Also, recharge any prepaid Mobile/Datacard/DTH, pay postpaid landline, datacard and
mobile bills, electricity, gas bills and more. You can also do shopping on Flipkart using
PhonePe.

8
 1.6. Characteristicsof E- payment App

From shopping for the festive occasions to paying daily bills, performing it through a
smartphone is nothing less than a blessing! Thanks to e- payment apps like PayTM, Freecharge,
and MobiKwik, people no longer have to hang around with their wallets full of credit card and
cash or wait in ATM lines. One can easily buy/pay for anything on the go, with just a few clicks!

“According to the Global technology intelligence firm, International Data Corp (IDC), the
consumer mobile payments will annually account for about $4 trillion in transactions annually by
the year 2020.”

Though you would be familiar with this term, let’s have a recap of what a e- payment app is and
how is it keeping the users hooked. For the mobile app developers interested in creating a e-
payment app of their own, we will discuss the must have features to keep in mind while creating
one:

In layman terms, a e- payment application is an app that provides you with a virtual mobile-
based wallet for storing your cash, enabling you to make mobile, online and, offline payments. It
provides a myriad of benefits, like:

 Ease of Use:Paying with a e- payment is just a matter of one click. You just have to link
your credit/ debit cards, bank accounts details into the wallet once, and it will be saved to
let you do transaction hassle-free anytime in the future.

 Unlimited Facilities:With an e-wallet, you need not carry your physical wallet with you.
An e-wallet carries all your credit cards information as well as documents like your
Aadhaar Card, Driving License, and much more. In fact, some applications like PayTM
allows you to do shopping and grab discounts under the same roof.

 Seamless Transaction:E-wallet processing is so fast that you can instantly transfer

money to anyone across the globe. What else? You no more have to run for change.

9
 Security:With the world getting digital and users saving all their financial and personal
information in the apps, the cyber attackers are more interested in hacking the apps and
fulfilling their evil aspirations. In such a scenario, implementing a comprehensive and
effective security system is the ultimate method to prompt users for using your app.

 App Performance:The app performance is the sole way to engage users and enjoy
higher ROI. When your wallet mobile application connects with different bank servers
instantly and caters the needs of the users, they will love to use your application again.
Whereas, if your app loads slow, the users will get frustrated and abandon your app.One
way to keep your app’s performance impactful is to build a lighter app with only required
features and fully optimize it.

 Portability:You can make your mobile application more portable by allowing the users
to easily add money and make transactions. According to the top mobile app
development agencies, this is the prime reason why users are frequently using e-wallet
apps these days.

 Rewarding System:Since the rewards can attract and engage customers effectively, it is
required to add this feature in every mobile app. You can try different rewarding
techniques, like providing some travel points or cash back.

10
 1.7. Advantages Of E-Payment App Services

 One’s wallet can be snatched, misplaced or pick pocketed, but e-payment app cannot be,
though there is a chance of someone stealing one’s a mobile.
 If the bill is of Rs 199/- or Rs 235/-, one will not have to run around asking for change. It
allows paying on a single tap.
 One need not fill in card numbers and passwords every time, they can link their credit
cards, debit cards and bank accounts and pay immediately without any hassle to enter the
details each time.
 When one makes a payment through a debit card or credit card, one is disclosing their
confidential bank data on the merchant’s site or establishment, it can lead to
unwantedsecurity issues but by using E-payment App, one can restrict the exposure of
confidential data.
 Massive rewards in the forms of discounts & cash backs.

Disadvantages Of E-Payment App Services

 Only with a smart phone & speedy internet connection one can use such services.

 More than the connectivity, security is a major issue.

 Dismal battery back-up of smart phones one can never be sure whether the phone will be
alive even for that one tap payment.

11
 CHAPTER 2

LITERATURE REVIEW

ShamsherSingh(2018) carried out a study on Consumer Perception towards Digital Payment in

New Delhi, and made an attempt to understand customer perception regarding digital payment. It
was found that demographic factor except education does not have much impact on the adoption
of the digital payment. Anova computation supported this finding as there was no signification
difference is perceived by the respondents on the basis of gender age, profession and annual
income. It was only education level of the respondents where signification difference is
perceived by the respondents. It indicates that adoption of digital payment is influenced by the
education level of the customer. If a person has studied beyond matriculation and internet savvy,
he or she will be inclined to use the digital payment mode. It was also found that in the
areas/region where education level is high such as Delhi NCR and other metropolitan area, the
possibility of acceptance of digital payment is much higher. The growth of users of Smartphone
and internet penetration in such area also facilitated the adoption of digital payment.

Bamasak(2017) carried out study in Saudi Arabia found that there is a bright future for e-
payment. Security of mobile payment transactions and the unauthorized use of mobile phones to
make a payment were found to be of great concerns to the mobile phone users. Security and
privacy were the major concerns for the consumers which affect the adoption of digital payment
solutions. Doan (2014) illustrated the adoption of e- payment among consumers in Finland as
only at the beginning stages of the Innovation-Decision Process.

12
 Chapter 3

Research Problem

 The study will help us to know a user perceiving about an E-Payment application while
using it

 As the ecosystem is becoming digital, E payment service provider will know what is
influencing users to use the application

 The study will help us understand the users level of convenience, security and ease they
perceive by using the E-payment application

 The main objective will know if the users are influenced by the rewards and cashbacks
provided by the service provider

 The study will help the future researcher to obtain information and analyze the data
interpreted

Hypothesis
H0(1) :There is significant relationship perceived by users for the factors (safety, cashbacks, user
interface&brand Image) of the E-Payment Application which leads to user satisfaction

H0(2) :There is a no significant difference in the usage of E-Payment Application due to

rewards & cashbacks on the basis of gender of respondents

13
 Chapter 4

Research Methodology

 Research Design:The research tries to study the consumer’s perception towards Mobile
Payment Application, and the user intention while using the application. The factors which
influencesthe user from downloading and using the Application is also been broadly described
with the help of facts and figures, Hence it is Descriptive Research

 Sources of Data: Primary Data was collected through Survey Method, where survey is
conducted to know the perception and intention towards using E-Payment Application.
Secondary Data was collected by visiting website, research papers and other reliable sources

 Sample Size: Sample Size means the number of responses collected for doing the research. In
our research 103 respondents were taken, which includes males & females both. These were
students, working professionals, housewives & retired person in the western region of Mumbai

 Sampling Method: Convenient Sampling technique has been adopted for collecting the data.
Convenience sampling (also known as grab sampling, accidental sampling, or opportunity
sampling) is a type of non-probability sampling that involves the sample being drawn from that
part of the population that is close to hand. This type of sampling is most useful for pilot
testing.

 Research Instrument: Structured questionnaire is a document that consists of a set of

standardized questions with a fixed scheme, which specifies the exact wording and order of the
questions, for gathering information from respondents.

 Data Collection:The Survey method is the technique of gathering data by asking questions to
people who are thought to have desired information. A formal list of questionnaire is prepared.

 Test Used:

Factor Analysis- a process in which the values of observed data are expressed as functions of
a number of possible causes in order to find which are the most important

Ttest - The t test is one type of inferential statistics. It is used to determine whether there is a
significant difference between the means of two groups

14
 4.2 . Objectives

1. To study about E-payment application and its evolution in India

2. To study & understand user perception of gender towards E-Payment Application

3. To identify the key factors that influence user perception towards E- payment application

15
 Chapter 5

Data Analysis

5.1. Gender of Respondents

Interpretation: The respondents were taken from western region of Mumbai, which has a total
population of 62,20,000 people according to 2011 Census, from which 103 responses were taken
as sample for the study, in which 59 respondents were Male & 44 respondents were Female.

5.2. Age of Respondents

Interpretation: The respondents were asked to specify their age because to know which age
group of respondents are more active using E-Payment Apps. According to the survey, 50
respondents were from the age group of 18 to 24, 40 respondents were from the age group of 25
to 34, 7 respondents were from the age group of 35 to 44, 3 respondents were under 18 years, 2
respondents were from the age group of 45 to 54 and 1 respondent was from the age group of
above 54.

16
5.3. Respondents Employment Status

Interpretation: The above respondents were having different occupation, it was required to
know from which employment status does the respondents belong, to know if they have the
ability to make the purchase decision. Among 103 respondents, 46 were Working Professional
and 44 were students. 11 respondents were self-employed and had their own business. 1
respondent was a Housewife and other 1 respondent was a retired person.

5.4. Respondent Annual Household Income

Interpretation: The Annual Household Income is a crucial aspect as it gives the ability to buy or
make a decision, 42 respondents were in the income group of 3 lakh to 5 lakh INR which
covered more than 40.8%, and 22 respondents were from the income group of 1 lakh to 3 lakh,
19 respondents were from the income group of 5 lakhs to 8 lakhs. And 13 respondents were from
the age group of Less than 1 Lakh INR, 5 respondents were from above 10 Lakh INR and rest 2
respondents were from 8 Lakh to 10 Lakh INR.

17
5.5. Smartphone Users among the Respondents

Interpretation: Smartphone is a mobile phone that performs many of the functions of a

computer, typically having a touch screen interface, Internet access, and an operating system
capable of running downloaded apps. A normal feature phone does not support heavy E-Payment
applications. Hence, only those respondents were targeted who owns and use a smartphone.
From 103 respondents, 102 respondents were using smartphone whereas 1 respondent who was
the retired individual he did not used a smartphone, because of the complicated functions.

5.6. Awareness about the E-Payment Application

Interpretation: Awareness is vital for any product or service to be used by the target audience.
E-Payment Application is rather a new business model, which is been recognized and adopted at
fast pace. About 93.2% (96) respondents said that they are aware of E-Payment Application
which can be downloaded through App stores, they were students and working professionals.
Whereas, 6.8% (7) respondents were not aware of such applications, they were retired,
housewives and above the age of 40.

18
5.7. Sources of Awareness of E-Payment Application

Interpretation:The most important source of awareness was through Family & Friends, which
constitute to almost 40%, it is because when one friend downloads and use it, they are influenced
to share the word to their other friends, in return of rewards and cash-back. The second source of
awareness was through social media sites which was 27%, including Facebook and Instagram
which has daily advertisements of this application, more students were made aware through
social media sites. The rest source of awareness was Word of Mouth, Television Ads, Sales
person interaction & Standees/Banner contributing 13.6%, 8.7%, 5.8% & 4 % respectively.

5.8. Usage of E-Payment App for payment transactions

Interpretation: Although being Aware of the E-Payment Apps, not everyone used it for
payment transaction. In previous question, 96 people were aware, but only 84 used it because of
various reasons. It can be seen that the adoption is happening but not at very fast pace. Whereas
19 respondents said that they do not use the Application for payment transaction. The further
study will be done on 84 respondents only.

19
5.9. Reasons for not using the E-Payment Application

Interpretation: 17 respondents does not use E-Payment services. The major reason for not using
E-Payment App, was Lack of trust in providing Bank Details, which contributes to 35.3% (6
respondents). The other reason for non-usage of application was Lack of Technical know-how or
to operate the applications, which contributes to 23.5% (4 respondents). 17.6% (3 respondents)
believed that the app does not work for every transaction and not all retail shops except it. 2
respondents didn’t had Internet connection in the cellphone, another 1 respondent said that he
was Habitual to cash payment, and other had a feature phone in which application does not
supports. Other 2 respondents did not respond.

5.10. Frequency of usage of E-Payment Application

Interpretation: The above question, was asked to 84 respondents to know how regularly they
use it to make payments. 54.8% (46) respondent said that they use the app on Frequent basis to
make payments, 25% (21) responded that they use the app Very Frequently, 14.3% (12)
responded that they use it Occasionally and 6% (5) responded that they use the app rarely or
when there are offers. Also the frequency of usage depends upon the availability of such services
with the receiver of the payment.

20
5.11. Mostly used E-Payment Application for making payment

Interpretation:After knowing the percentage of awareness & usage of the application, it was
necessary to understand which are the E-Payment Apps which are been used by the respondents.
Although there is no restrictions from using only one app, so the users tend to use different
applications as it is free and uses less space. So the question was asked in Multiple choice
format, where 63.1% (53 respondents) said that they have installed PayTM and use it for
Payment. PayTM was found to be widely used among the respondents. The main reason for
using PayTM is it provides multiple features like, booking airline tickets, movie ticket, ordering
food online, shopping of electronic gadgets and apparels. The second widely used App was
GooglePay, which was used by 50% (42) of the respondents. The important reason for using
Google Pay was Brand Name of Google and high level of security. PhonePay is used by 22.6%
(19) respondents because of multiple features like you can search the stores which accept the e-
payment services. And the other application used are BHIM, Freecharge, PayPal, Mobikwik&
Amazon Pay according to their rankings.

21
5.12. Influencing factors for usage of E-Payment Application

Interpretation: As there are multiple applications available in the market, there are various
factors which influence the users to use and transact through E-Payment Application. Users had
multiple factors which influence them, but the most important factor was Discount & Cashbacks
which contributed to 60.7% (51). The respondents were mostly students & discounts/cashbacks
affect them a lot. User feels that they are getting the product/services and also discounts, which is
not possible at a Brick & Mortar store. Another important factor for using the services of E-
Payment was Convenient and no need to carry wallets everytime you go shopping, convenient
factor was 52.4% rated by 44 respondents. Third factor was it provides Quick Transaction, which
saves time, it contributes to 42.9%, rated by 36 respondents. Other factors include Safe &
Secured, Better User Interface, Brand Image of the Application, Compatability& Tracking of
spend respectively according to their ranks.

22
5.13. Linking E-Payment App with Bank is easy

Interpretation: From 84 respondents, 49 respondents (58.9%) agreed that linking E-Payment

Application is simple, just a matter of few clicks. The user only need to add his bank details such
as debit card number and set a pincode, and a OTP is received on the mobile number which is
been linked with the bank for security purpose. After entering the OTP, the APP can be used for
transactions. 13 respondents (15.5%) strongly agreed that it is simple to link, as the directions are
shown on the App itself, through arrows. 9 respondent remain neutral for this question, as the
linking of the bank was done by their family or friends. And 13 respondents did not find it
simple to link with the bank, the reasons are not known.

23
5.14. Using E-payment application is more convenient to buy products online or to make
payments to merchants even offline.

Interpretation:The most important factor which using an E-Payment application provides is

Convenience, for eg. Paying a rent to your house owner can be inconvenient if your are paying
through cheques every month, even through online transfer it takes hour to get credited in the
Payee’s Account, but using a mobile payment application makes it quite convenient, as you just
have to add the Payee account details and can pay to that account anytime, anywhere in just few
clicks provided you have a Internet connection. 62 respondents (86%) agreed that E-Payment
application is convenient and easy to buy a product and to make payments. And only 12% agreed
that it is not convenient and not very much applicable for every transaction.

24
5.15. Using E-Payment Application is quick and saves time

Interpretation: Using E-Payment Application in your mobile phone, makes a quick transaction.
For eg. If a person is having a dinner at a restaurant, and after the bill arrives, if he pays cash, he
will need to remove his wallet, count the cash and wait for the waiter to get the change, but if he
pays through E-Payment Application he can scan the QR code of the Payee and add the exact
amount on the bill, if he does not wish to pay a tip, the amount gets debited after entering the pin
& it is quick then cash or debit card payments. Hence 73 respondents (79.8%) agreed that paying
through E-Payment App is quick and saves time. Whereas 20.2% disagreed that it is quick and
saves time, might be because they are new to the application.

25
5.16. Branded E-Payment Application is trust-worthy for sharing financial details

Interpretation: Users must have trust to share their banking details with the App, there are
chances of hacking or theft by using the financial details provided. Hence people use only
branded & known Apps such as Google Pay, PayTM, PhonePay, Amazon Pay which has an
authenticity and can be trusted. For eg, An App developer can make a fake app for fraudulent
activity. Therefore, people trust those Application which is branded and known. Before starting
the Payment, in the terms & condition it is been mentioned that all the details will be kept
confidential and not be shared. Therefore 49 respondents agreed that using a E-Payment App is
trustworthy for sharing banking details.Whereas 13% of respondent agreed that it may not be
trustworthy as it can be leaked for personal benefits. And 28.6% remained neutral for this
question, as they haven’t encountered any fraudulent activity before.

26
5.17. Using E-Payment Application because of better user interface

Interpretation: Any application is preferred because of their easy to understand & attractive
user interface. If a user gets confused while using the payment application, he will at that
movement uninstall the App & will download other App. Better User Interface makes the user
relax and use the services. There should be proper process and steps which can be shown with
the help of arrows to easily understand the Interface. 69 respondents (72.1%), agreed that User
Interface is crucial for Payment Application to be used. Where 7 respondents disagreed that user
interface is important. Rest, 9 respondents remained neutral for this question.

27
5.18. E-Payment Application is safe & secured, like a banking transaction

Interpretation: Safety & Security is another important factor when it comes to your money
transaction. Storing all the information in your phone is not much risky for thefts than keeping
cash in your physical wallet. Even if the mobile gets lost, another person cannot transfer amount
through your application because it is password protected. And you can retrieve your payment
transaction, if it is not done by you, whereas it is not possible in your physical wallet. Here 62
respondents (73.8%) agreed that E-Payment Application is safest way to make a transaction.
Whereas 7% disagreed with the statement. And 16 respondents remained neutral.

28
5.19. Payment done through E-Payment App due to cash back provided on every
transaction

Interpretation: When a user pay for a product, which is say of 200 INR, and in return he is paid
back 50 INR for paying through the application, the user will consider it as his profit and will
make every transaction through the application for getting more rewards. As per various studies,
it is been considered that it is a Marketing tactics for making the user accustomed for paying
through E-Payment Apps. And once the users will get use to this application the reward system
will come to an end. But for now, it is considered according to the survey that the most
influencing factor is Rewards &Cashbacks, therefore more than 3/4th respondents agreed that
they are using the app because of the cash back and reward system. Whereas 1/4 th of the
respondents disagreed with the statement.

29
5.20. The transactions for which E-payment App is normally used to make payment

Interpretation: After knowing the users perception, it was time to know where do they use the
App to make payments and it was noticed that 46.4% of users use the app for Mobile & Bill
payment as it saves time and is quick. Whereas 16.7% of users which were students, use the
application for ordering food online. Rest it is also been used at Restuarants, Petrol Pumps,
Movie Theatre &Retial shops.

5.21. Satisfaction by using E-Payment Application

Analysis: More over 90% respondents were satisfied with the E-Payment services, as mentioned
by 75 respondents. Other 10% were not so satisfied, they believed more technological
enhancement can be made.

30
 1. Hypothesis Testing

H0 (1) :There is significant relationship perceived by users for the factors (safety, cashbacks, user
interface & brand Image) of the E-Payment Application which leads to user satisfaction

H1 (1) :There is significant relationship perceived by users for the factors (safety, cashbacks, user
interface & brand Image) of the E-Payment Application which leads to user satisfaction

Factor Analysis Data Result

2. Total Variance

Total Variance Explained

Dependent Initial Eigenvalues Rotation Sums of Squared Loadings
Variable Total % of Cumulative Total % of Cumulative %
Variance % Variance
Satisfaction 3.141 39.267 39.267 2.203 27.532 27.532
Simple & Easy 1.157 14.467 53.733 2.085 26.065 53.598
Convenient 1.038 12.980 66.713 1.049 13.115 66.713
Quick and Saves .685 8.563 75.276
time
Trust-worthy .561 7.014 82.289
Better User .538 6.723 89.013
Interface
Safe & secured .497 6.215 95.228
Cash back and .382 4.772 100.000
Rewards

Total Variance is explained at four stages for factors that is responsible for the satisfaction of the
E-Payment Application. Three Factors were extracted as their eigenvalues were greater than 1.
On Extraction of three factors, 66.71% variance can be observed which represent more than
sufficient data to show these factors are important.

31
 3. Scree Plot

Scree Plot
4.000

3.000

2.000
Series1
1.000

0.000
0 2 4 6 8 10

4. Rotated component matrix

Rotated Component Matrix

Dependent Variable Independent Variable
Satisfaction 2 3
Satisfaction .439 .215 .747
Simple & Easy .059 .774 .156
Convenient .199 .784 -.138
Quick and Saves time .245 .784 .025
Brand Image .738 .264 .001
Better User Interface .547 .211 -.663
Safe & secured .630 .309 .072
Cash back and Rewards .816 - .046
.001

Conclusion:After performing Varimax rotation method, we found out that Satisfaction had four
factors more than 0.50, which were Brand Image, User Interface, Safety/Security & Cashback

Therefore, we accept null hypothesis and reject the alternate

Hence, There is significant relationship perceived by users for the factors (safety, cashbacks, user
interface & brand Image) of the E-Payment Application which leads to user satisfaction

32
 The above test can be interpreted in the below diagram

There is significant relationship perceived by users for the factors (safety, cashbacks, user
interface & brand Image) of the E-Payment Application which leads to user satisfaction

33
 2. Hypothesis Testing

H0(2) :There is no significant difference in the usage of E-Payment Application due to rewards
& cashbacks on the basis of gender of respondents

H1(2) :There is significant difference in the usage of E-Payment Application due to rewards &
cashbacks on the basis of gender of respondents

Independent TTest

Data Result:

Group Statistics
Your Gender N Mean Std. Std. Error Mean
Deviation
Cash back Male 53 3.79 1.150 .158
and Female 31 3.74 .893 .160
rewards

Independent Samples Test

Levene's t-test for Equality of Means
Test for
Equality
of
Variances
F Sig t df Sig. Mean Std. 95% Confidence
. (2- Differen Error Interval of the
tailed ce Differen Difference
) ce Lowe Upper
r
Cash Male 2.33 .13 .21 82 .834 .051 .240 -.428 .529
Back 7 0 0
s Femal .22 75.43 .823 .051 .225 -.398 .499
e 4 7

Since P value is greater than 0.05 therefore H0 is accepted and H1 is rejected.

Hence, There is no significant difference in the usage of E-Payment Application due to rewards
& cashbacks on the basis of gender of respondents

34
 Chapter 7

Findings & Interpretation

 The age group between 18 to 24 & 25 to 34 was found to be more aware of the E-
Payment App & 70% of the users were from 18 to 24 & 25 to 34 age group

 22 working professionals used the Application for Mobile & Bill Payment and felt
convenience because of the App

 Above the age of 40, do not use the application because Lack of Technical Know-How

 Word of mouth publicity & recommendations from friends & family contributes to 50%
of spreading the awareness

 PayTM is the most preferred because it is an Indian Payment application and it consist
various feature such as Online shopping, Airticket booking, Electricity bill payment,
Grocery shopping, DTH Recharge, Food delivery option, Money Exchange, Sending gift
vouchers, Deals on Health & Wellness, LIC Premium

 Almost 35% of the people use Payment application due to Rewards & Cash Backs, which
was most of students

 More over 70% respondent felt that Linking E-Payment App with the bank is pretty
simple

 More than 80% respondents said that the app provide convenience

 73% of the respondents agreed that Payment application saves time and helps in quick
transaction

 More than 80% respondents said that User Interface makes the Application more
preferable

 The app is widely used for all type of bill payments

 Satisfaction is affected because of Brand Image, User Interface, Cashbacks & Safety of
the App
 Male & Female both equally use E-Payment Apps because of Rewards & Cashbacks

35
 Chapter 8

Conclusion

The study was accomplished to explore consumer perceptions to engage in using a smart phone
to replace the content of their physical wallets. With the increased penetration of internet
connectivity and smart phones has led to an increase in the number of E-payment App users. E-
payment App is getting more and trendier among the consumers. Through out the research we
found out that, gender do not affects the user perception of the App, but both the group – Male &
Female perceives the App in similar and equal way. As it is an information age, the awareness of
the platform is well known between both the genders, also both the gender mostly use the App
because of Cash Backs provided by the service provider. It can also be concluded that factor
which influences user perception the application to be user friendly, convenient, quick and time
saving.

36
 Chapter 9

Future Scope

 Digital Payment system is likely to hit 726 billion dollars by 2020, and the future of
payment is E-Payment Application

 E-Payment service provider must regulate & update their application on daily basis

 The research was limited to Western region of Mumbai only due to time and money
feasibility. However, this research can be conducted in other state of India as well if the
resources are sufficient

 A similar study may be conducted for the other psychological factors which influence the
buying behavior of the customers while the consumers decide to use the particular brand
of Application

 Different features of the Application can be studied and a technical analysis can be made

 Findings of the study can be used by the service provider to improve and focus on the
important factors such as User Interface & Cashback

37
 Chapter 10

Limitations of the Study

 Sample size of the study was only 103repondents, out of which only 84 were the users.
On the basis on their responses overall analysis has been made

 The study was conducted on selected area of Mumbai

 Time constraint was a major limitation. So in depth study was not possible

 The study did not include SWOT, PESTLE analysis of the Application which can be
included

 The study did not include different application features and benefits

 Not much study was conducted before on the user perception towards E-Payment
Application

38
 Website References

 Shamsher Singh, “Consumer Perception towards Mobile payment application according

to demographics” - http://www.icommercecentral.com/open-access/study-of-consumer-
perception-of-digital-payment-mode.php?aid=86419

 https://en.wikipedia.org/wiki/E-commerce_payment_system
 https://www.ecommercewiki.org/Online_Payments/Online_Payments_Basic/What_are_o
nline_payment_methods
 https://en.wikipedia.org/wiki/Electronic_bill_payment
 https://paytm.com/

 https://www.mobikwik.com/

 https://www.freecharge.in/

 http://www.nfcworld.com/2016/03/14/343274/nielsen-reports-on-mobile-wallet- market-
in- india/

 http://growthpraxis.com/report-on- indian-mobile-payments/

 http://www.techsciresearch.com/news/453- india- mobile-wallet-market-to-reach-us-

6-6-billion-by-2020.html

 http://tech.firstpost.com/news-analysis/sam-pitroda-promises-digital-wallet-
in-mobiles-15728.html

39
 Annexure
Your Name

Your Gender

 Male Female

What is your age?

 Under 18
 18-24
 25-34
 35-44
 45-54
 Above 54

What is your annual household income

 Less than 100,000 INR

 1,00000 – 300,000 INR
 3,10,000 – 500,000 INR
 5,10,000 - 800,000 INR
 8,10,000 – 10,00,000 INR
 Above 10,00,000 INR

What is your employment status

 Student
 Self-Employed
 Working Professional
 Housewife
 Retired

1) Do you use smartphone?

Yes No

40
2) Are you aware of any E-Payment Application
 Yes No

3) What are the sources of your awareness regarding the E-Payment Application
Word of Mouth
Television Advertisement
Newspaper Ads
 Standees & Banner
Family &Friends
Social Media Sites

4) Do you ever use anyE-Payment Application for making payments?

Yes No

5) If No, what are the reasons for not using the E-Payment Application
 Lack of Technical Know-how
 Application does not supports
 Habitual to cash payment
 Lack of trust in providing bank details
 Not applicable for every transaction
 No Internet Connection
 Other, Please Specify

6) If Yes, how frequently do you use E-Payment Application for making payment
 Very infrequently
 Somewhat infrequently
 Occasionally
 Somewhat frequently
 Very frequently

7) Which of the below E-Payment application do you mostly use for making payments?
Google Pay PhonePayPayTMMobikwikFreecharge BHIM PayPal Others

41
8) What are the attributes for your preferenceof the E-Payment application
 Brand Image
 More Popularity
 Convenient
 Compatible
 Better User Interface
 Discounts & Cashbacks
 Safe & Secured

9) Do you agree, that linking E-Payment Application with your Bank is easy
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

10)Do you agree, using E-payment application is more convenientand easy to buy
products/services online or to make payments to merchants even offline.
Strongly Disagree Disagree Neutral Agree Strongly Agree

11) Do you agree, using E-Payment Application is quick and saves time
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

12) Do you agree, using E-Payment Application which has brand image is trust-worthy
for sharing financial details
Strongly Disagree Disagree Neutral Agree Strongly Agree

13) Do you agree, you are using the E-Payment Application because of better user
interface
Strongly Disagree Disagree Neutral Agree Strongly Agree

14) Does using E-Payment Application is safe & secured, like a banking transaction

Strongly Agree Agree Neutral Disagree Strongly Disagree

42
15) Do you pay through E-Payment Application due to cash back and rewards provided
on everytransaction
Strongly Agree Agree Neutral Disagree Strongly Disagree

16) Where have you recently used the E-Payment Application to make payment
Petrol Pump Restaurants Mobile & Bill Payment Retail Outlet Movie
Tickets
Food Delivery Application Others, Please Specify

17) Satisfaction Level by using E Payment Application

 Highly Satisfied
 Satisfied
 Neutral
 Dissatisfied
 Highly Disastified

43