*Study of Awareness Digital Payments Among

Students of SGU *
*Abstract*
Digital India and increased use of mobile and internet are means to exponential growth in
use of digital payment. This transformation towards digital payments benefits in more
transparency in transactions which empowers the country’s economy. In recent days many
changes took place in the payment system like digital wallets, UPI and BHIM apps for
smooth shift to digital payments
*INTRODUCTION*
As the country moves towards a cashless environment after demonetization, the initial panic
and confusion have given way to a flurry of concerns. Will the emphasis on online
transactions provide convenience and substantial benefits or just add to stress and additional
charges?
The Digital India program is a flagship agenda 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.
To incentivize the move towards a cashless economy, the Government has come up with a
rash of discounts and freebies on digital transactions. But will these be substantial enough
and, along with other benefits, counter the higher risk of identity theft once the currency
notes are back in circulation? What are the gains and drawbacks of financial digitization?
Here’s a look at what may be in store for you.

*CONCEPTUAL FRAMEWORK*

 What do we mean by Digital Payment?

Digital payment is a way of payment which is made through digital modes. In digital
payments, payer and payee both use digital modes to send and receive money. It is also
called electronic payment. No hard cash is involved in the digital payments. All the
transactions in digital payments are completed online. It is an instant and convenient way to
make payments.

 What are most innovative types of Digital Payment Methods?

 NFC or MST transmission waves platform
Companies have come up with making transaction through NFC (Near Field
Communication) and MST (Magnetic Secure Transmission) technology. Without swiping
your card through POS (Point of Sales) machines, you can easily make payment to
merchants through its wireless transmitting magnetic waves. You can avail this facility by
downloading MST enabled app and also, your phone should support NFC facility. Once it is
done, after registering your card details, you can make contactless transactions through your
phone on any of merchants’ POS terminal.
 Digital wallet payment system
Through this platform money is loaded in wallets. Similarly with the launch of e-
wallets you can add money using digital wallet apps. However, the constraint is you can
transfer fund to the same wallet only. It means that if you have PayTM or SBI's Buddy app
on your phone then you can only transfer money to another person's PayTM wallet or SBI's
Buddy app who is having these app's installed respectively. Simply in another way round,
you cannot transfer money from PayTM wallet to SBI buddy wallet app. There are some
other e-wallets available in the digital marketplace such as Mobikwik, Freecharge, Oxigen,
Reliance Money, Paypal, Buddy, Lime, Payzapp, Pocket, Yes Pay, etc.

 USSD code payments system

If you do not have a smartphone or internet facility, still you can make payments through
dialing USSD (Unstructured Supplementary Service Data) code even from your basic phone
and following the certain instruction, you can easily make your payments done. It is GSM-
based technology where transactions take place through messages. It is a platform which
forms a medium between the telecommunication and banking financial services altogether.
For every banking app, you have a different dialing code which you need to check from your
service provider while making the transfer of payments.
 Mobile Money Identifier
MMID is a seven digit unique number which issued by the bank once you have registered
your mobile number. A person who wants to send money and the person who wants to
receive that money should have MMID for the particular interbank funds transfer. However,
through MMID you can transfer only a small amount (around Rs 10,000) within a day.
Almost all banks are providing this facility of making small payments.
 UPI App based payments platform
UPI has come up with a unique feature of creating virtual address through which you can
transfer money without disclosing your account number and IFS code to the receiver. UPI
works on a real time basis which means the money is transferred instantaneously. UPI also
supports the other medium of doing funds transfer. UPI facility is available with all the
banking apps like HDFC UPI, SBI UPI, ICICI UPI, AXIS UPI, and almost all the other
private and public banks. Now, most of the bank are embedding their UPI feature within their
mobile banking app only.
 QR Code based payments system
QR code is again a different mechanism of making the transfer of payment where you only
need to scan the QR code of the merchant and do the transfer of payments. It is being mostly
used by all the digital payments app like BHIM, other banking apps to make the transfer of
payments easily. The black square holds the information about the items whereby scanning
the code information gets transmit automatically through the smartphone and payments get
done. You do not have to enter anything manually while using QR code facility. Bharat QR
code has been launched by the government to push the digital payment initiative in all the
way round.
 Debit / Credit Card
Suitable for: Online/offline merchant sale.
Transaction limit: Set by card issuer
Details required: Card number CVV Expiry date
Cost: Debit cards: Up to 0.75% for transactions up to Rs 2,000; up to 1% for
transactions above Rs 2,000. Credit cards: around 2.5% per transaction
 RTGS / NEFT
Suitable for: High value online transactions.
Transaction limit: No upper limit, minimum Rs 2 lakh. Up to Rs 10
lakh, minimum Rs 1
Details required: Account number Password Beneficiary registration IFSC code
Cost: RTGS: Up to Rs 55 per transaction. NEFT: Up to Rs 25 per transaction.

 IMPS
Suitable for: Instant transfer
Transaction limit: Rs 2 lakh per day
Details required: Account number Password Beneficiary registration IFSC code
Cost: Rs 5-15, depending on transaction amount.
*FINANCIAL INFRASTRUCTURE IN INDIA*
*Literature Review*
Sanghita Roy, Dr. Indrajit Sinha (2017). stated that E- payment system in
India, has shown tremendous growth, but still there has lot to be done to
increase its usage. Still 60% of the transactions are cash based. Technology
Acceptance Model used for the purpose of study. They found Innovation,
incentive, customer convenience and legal framework are the four factors
which contribute to strengthen the E- payment system.

E-payment systems are important mechanisms used by individual and

organizations as a secured and convenient way of making payments over the
internet and at the same time a gateway to technological advancement in the
field of world economy (Slozko & Pello, 2016).

Rakesh H.M. & Ramya T.J. (2015) in their research paper titled “A Study on Factors
Influencing Consumer Adoption of Internet Banking in India” tried to examine the factors
that influence internet banking adoption. It is found that internet banking is influenced by its
perceived reliability, Perceived ease of use and Perceived usefulness. In the process of
internet banking services expert should emphasize the benefits its adoption provides and
awareness can also be improved to attract consumers‟ attention to internet banking services.

Mamta, Prof. HariomTyagi and Dr. Abhishek Shukla (2016) the article entitled“The
Study ofElectronic Payment Systems”. This study aimed to identify the issues and challenges
of electronic payment systems and offer some solutions to improve the e-payment system
quality. The successful implementations of electronic payment systems depends on how the
security and privacy dimensions perceived by consumers as well as sellers are popularly
managed, in turn would improve the market confidence in the system.

Vidya Shree DV, Yamuna N. and Nitua Shree G (2015) the article entitled“A Study on 


Dynamics in Digital Payment System - with special reference to Paytm and Pay U Money”.
The research paper is focusing on the impact of the new digital payments systems on
customers and problems encountered if any. The study found that, people are more aware
about the online payments through mobile applications and there is a wider increase in
growth rate. The study also found that, Paytm and Pay U money is providing easy payment
structures compared to Digital payment system.
*OBJECTIVES TO STUDY*
 To Study Awareness of Digital Payment among the Students Of SGU.
 To Study
 Problem Faced By Students While Using Digital Payment.
 To know the various modes of payments

*HYPOTHESIS*
 There Is No Significant Impact Of Customers Age On Usage Of Digital
Payments.
 There Is No Significant Impact Of Customers Education On Usage Of
Digital Payments.
 There Is No Significant Impact Of Customers Income On Usage Of
Digital Payments.

*RESEARCH METHODOLOGY*
o This study is carried out to estimate the status, potential and importance cashless
economy in the country. The study focuses on extensive study based on secondary data.
The data has been collected with help of e-books magazines, newspapers, research article,
research journal, e-journals. The research will be conducted with objective to find out the
extent towards cashless transaction. This study is based on primary data that will be
collected through well-structured questionnaire.

*SAMPLE DESIGN*
We adopted Intercept interview method for collection of primary data, as it is not
possible to take appointment from a large number of respondents. Purpose of this research
was told to respondents and questions were explained to them in case there was any need for
understanding any particular question. There had been no personal bias or distortions were
allowed while recording the responses.
*Questionnaire*
Name : ______________________
Age : ______________
Q1. Which type of method will be use for digital payment?
o Net Banking
o E-wallets
o Debit/credit card
o BHIM APP(UPI)
o RTGS/NEFT
o IMPS

Q2.How often do you use your bank debit card?

Everyday
Three to six times a week
One to two times a week
Once a fortnight
Once every few months
Don’t know
Q3.Do you prefer using cash or your bank debit card?
Card
Cash
I don’t know
Q.4How much time do you spend over the internet?
o 1-3 hrs/day
o 3-6 hrs/day
o 6-9 hrs/day
o More than 9 hr
Q.5Which Digital Wallet do you use the Most
o Paytm
o Mobikwk
o BHIM UPI
o Others
Q.5From which location(s) do you access the internet for use digital payment?
o Home
o Work
o other location
Q.6From which device(s) you make Digital Payment?
O Smart phones
O Laptop
O Desktop
O Tablet
Q.7Do you feel rural people are being left over from digital transactions advantages?
O Strongly agree
O Somewhat agree
O Agree
O Somewhat disagree
O Disagree
O Strongly Disagree
Q.8Are you satisfied with privacy provided by online digital wallet?
O Completely satisfied
O Very satisfied
O Fairly well satisfied
O Somewhat dissatisfied
O Very Dissatisfied
Q.9Do you prefer a specific method or other method?

Q.10 Have you ever face any problem while using digital payment?
o Sometime
o Never

Big boost to Modi’s ‘Digital India’; e-

payments surge over 8-fold in 5 years
to 2,070 crore
A target of 3,013 crore digital payments transactions has been set by the Ministry of
Electronics and Information Technology in 2018-19.

In a big boost to government’s ‘Digital India’ initiative, e- payment transactions

recorded a significant jump to 2070.98 crore in 2017-18, Minister of State for
Information Technology (IT) said in a reply to a question in Lok Sabha yesterday. In
2013-14, 220 crore e-transactions were recorded. The central government is working
with different stakeholders namely smart cities, banks, payment service providers and
state to further promote the cashless payments, the minister also said in response to
another question.
A target of 3,013 crore digital payments transactions has been set by the Ministry of
Electronics and Information Technology in 2018-19. The ministry uses a performance
scorecard and a bank ranking system to monitor and also evaluate the performance of
the lenders.
During the years 2014, 2015 and 2016, 10, 18 and 26 cases were filed under debit or
credit card frauds, as per the information availed from National Crime Records
Bureau (NCRB). Even though the digital payment transactions have surged over the
years, the fraud cases haven’t climbed, the minister pointed out in the Lok Sabha.
The phone messaging app WhatsApp has been asked by the government to share the
details related with the action taken by the company with respect to fake news, the
minister also said in a separate reply. He also said that the central government doesn’t
plan to tap into the messages of the citizens. The government is taking various
initiatives to raise user awareness related to cyber safety.
Meanwhile, according to the recent Reserve Bank of India (RBI) data, in 2015-16 the
total frauds were 1,191. The number climbed to 1,372 the following year and
increased to 2,488 in the fiscal year 2017-18. Rs 40.20 crore was the amount of
money involved in the frauds in the fiscal year 2015-16. In the next fiscal figure
reached to Rs 43.18 crore and it tripled in 2017-18 to Rs 149.62 crore.
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