A Study of Electronic Payment Current Scenario and Scope For

Improvement

A First Review Report

(Submitted by GOUTHAM M, Roll No: 1722MBA0222, Reg No: 68617200127)

1. NEED FOR THE STUDY:

Electronic payment has gained a lot of curiosity among bankers and more
and more of them in India have started to implement the same in their day to
day working. This new way of doing business is more efficient and convenient
to both the banking system and the customers. This research study has been
made with an effort to study the prospects of Electronic payment system in the
Indian banks and financial institutions. A key aspiration of the study is to find out
the factors that influence the implementation of Electronic payment in the
country.

2. REVIEW OF LITERATURE:

Miss. R. Elavarasi in her study on Customer Awareness and Preference

towards E-Banking Services of Banks studies about way us to customer
awareness & to find out what they most preferred e-banking services of banks.
The researcher has identified which commercial bank provides better service
with regards to e-banking services to customers and also identified satisfaction
level of customer view about internet banking website of banks. The data
analysis shows that age, educational qualification, occupation, income level of
customer are significant factor that decide usage of e-banking services of
various banks in the study area.

ANUSHU PREMCHAND (2015) In the modern society, no economic

activity is possible without payments and settlements. In this sense, it could
probably be said that payment systems are one of the most imperative and
significant social infrastructures that we have. e-Payments are an increasingly
important part of payment systems. They allow for quick international
connectivity in the payments world. e-Payment can be looked as a panacea for
most ills in payment world, if not all – financial inclusivity for unbanked, fast
across the world transactions, safety and security of payments and cost savings
over traditional payment systems. In this paper, we look at e-Payments, what
they entail and basic payments infrastructure. We also look at the future of e-
Payments as well as challenges and recommendations for e-Payment systems
of tomorrow. In the next paper we will deep dive into the recommendations for
e-Payments. Keywords—Payments, Banking, E-Payments, bit coin, mobile
payments, digital wallet payments, biometric payments, financial service kiosks,
NFC, financial inclusion.

Sanghita Roy, Dr. Indrajit Sinha (2014) stated that E- payment system in
India, has shown tremendous growth, but still there has lot to be done to
increase its usage. Still 90% 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.

Deepak Mathur (2017) E-commerce provides the capability of buying and

selling products, information and services on the Internet. In an ecommerce
environment, payments take the form of money exchange in an electronic form,
and are therefore called Electronic Payment. E-Payment system is secure,
there should be no threat to the user credit card number, smart card or other
personal detail, payment can be carried out without involvement of third party, It
makes E payment at any time through the internet directly to the transfer
settlement and form E-business environment.

STATE BANK OF INDIA, (2012) State Bank of India has initiated a new
Electronic payment service called the SBI Direct; this facility brings all the
operations and transactions of the bank under the mobile banking facility.
According to State Bank of India, this facility allows its customers access to
their accounts any time and provides all the banking facilities with more facilities
being added, available to its customers any time of the day.

INDIA TODAY, (2012) In India, most of the leading banks provide internet
banking facilities. In the country, there are forty-two banks and the sector is led
by National Microfinance bank but ICICI is currently leading in the field of IT
enabled banking services.

Slozko & Pello, (2015) 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.

Rakesh H M & Ramya T J (2014) 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.
 Kartikeya Bolar (2014) In his research paper “End-user Acceptance of
Technology Interface In Transaction Based Environment “stated that Creators
and investors of technology need information about the customers‟ evaluation
of their technology interface based on the features and various quality
dimensions to make strategic decisions in improving technology interfaces and
compete on various quality dimensions.

Nitsure (2014) in his paper observed that the problem being faced by
developing countries like India in the adoption of E-banking initiatives due to low
dissemination of Information Technology. The paper highlighted the problems
such as security concerns, rules, regulation and management. In India there is
a major risk of the emergence of a digital split as the poor are excluded from the
internet and so from the financial system.

BERGER, ALLEN N, (2003) Electronic commerce can be described as

any kind of commercial transactions that comprise of exchange of information
on the internet. Organizations engaged in e-commerce exchange information
related to their business through different means of electronic mediums like
internet, telephones and other information facilities. Electronic payment thus
can be seen as a part of electronic commerce that offers products and services
like account information, payment options, transfer of funds and opening and
closing of accounts and other banking services.

AASTHAGUPTA (2013) describes that RBI played a significant role in

developing the payment system in the nation through its establishment. ATM
also provide better alternative to traditional payment system. RBI also enhance
the payment system by introducing MICR, RTGS, Card based clearing etc.

Rachna (2013) describes that electronic payment system is the basis of

on line payments and it make electronic payment at any time through the
internet directly to manage the e -business environment. The risk to the on line
payments are theft of payments data personal data and fraudulent rejection on
the part of customer.

SINGH SUMANJIT (2009) highlighted that as payment is an integral part

of mercantile process, electronic payment system is an integral part of
ecommerce. The emergence of e-commerce has created new financial needs
that in many cases cannot be effectively fulfilled by traditional payment
systems.
3.1 . PRIMARY OBJECTIVE:

The Primary objective of this study is Electronic Payment Current Scenario

and Scope For Improvement

3.2 . SECONDAY OBJECTIVES:

The objectives and scope of the study can be described more specifically
as:

1. To evaluate the prospects of Electronic payment in Indian

banking industry and financial institutions.

2. To evaluate the impact of Electronic payment on the

operations of financial institutions in the country.

3. To examine the effect of electronic on bank-customer

relationship.

4. To seek to examine the challenges facing the implementation

of Electronic payment in country.

In pursuance of the objective of the project, attention shall be focused on

Electronic payment among other e-commerce implementation. In order to
conduct an empirical investigation into the adoption of Electronic payment in
country.

The paper concludes that in years to come e-banking and e-payments will
not only be acceptable mode of banking but preferred mode of banking
transaction.

4. METHODOLOGY:
To examine the objective of study, secondary data is collected from
different websites and journals. Various websites are visited for collecting the
data.
 QUALITATIVE RESEARCH:

Qualitative research provides a deep insight into the behaviour of people

towards any process and activity and the reasons that forces this kind of
attitude. Hence, Qualitative research helps to understand the reasons behind
these issues and has been also been conducted in this project.

POPULATION OF STUDY:

40 public were used as population for this research. The basic purpose
behind using this population was to obtain maximum views relating to the
introduction of Electronic payment, so that an efficient conclusion can be drawn.

SAMPLING TECHNIQUES:

Sample is a small part which represents the entire population thus; sample
should be chosen correctly in order to attain maximum information. The sample
should be selected in such a manner that all the section of the people is
included in the population.

SAMPLING SIZE:

Sample size can be defined as the total number of respondents that is to

be taken from the population. In this research, 40 respondents were taken from
Public.

SOURCE OF DATA:

There are two sources from which the data can be collected:

Primary sources - the primary data was collected with the help of
questionnaire.

 QUESTIONNAIRE:

In questionnaire method there are certain sets of questions

which the respondents have to answer. The effectiveness of the questionnaire
totally depends on the sincerity and dependability of the respondents. There are
several ways in which the questionnaire can be presented like open ended and
closed ended. A good questionnaire should have at least 12-15 questions in
which 8-10 should be closed ended or multiple-choice questions and 2-3 should
be open ended questions. The questionnaire is mainly used for a sample size
population in order to get accurate, efficient and effective results. The
questionnaire is made according to the structured format. The response to the
 questionnaire can be collected from the many ways like mail questionnaire,
telephonic questionnaire.

Secondary sources - The secondary data is collected from the

information that is available from the study of the past researchers. The
secondary data source includes sources like guidelines of e-payment, from the
annual reports of Reserve bank of India.

 SECONDARY DATA:

The secondary data comprises of that data which the

researcher acquires from the sources like magazines journals, annual reports of
the company etc. basically it is that data which is already available in several
different resources. In the present research the researcher has used both the
primary data and secondary data. The techniques that the researcher has used
in collecting primary data are a questionnaire and interviews. The secondary
data in the topic include the annual report of the Union Bank of India. The
questionnaire consists of questions which are both close ended as well as open
ended. The respondents were insured that their identities would not be
disclosed so as to make sure that they provide genuine responses and do not
hide any facts.

5. WORK DONE SO FAR:

 Study about the cases relating to the Electronic payments and

future development of E-Commerce.

 Study about the literature reviews by the famous authors and

professors in the top university.

 Data is collected from different websites and journals.

 Various websites are visited for collecting the data.

 Collecting and studying about the some of the methodologies which

is related to Sampling and Data Analysis.

6. WORK TO BE DONE:

 Need to do more research in methodology.

 Collect more methodology types and choose the best one to get
the correct and prompt position of the electronic payment scopes.
  Need to prepare questionnaire and issue to the public for the
opinions.

 Need to select the sample size and Public type.

 Need to analyse the data which is collected from the various

websites

7. LIMITATIONS:
The research was carried based on primary and secondary data. The
primary data for research objectives was collected from the samples based in
India. Though South India is one of the most significant cities of the country.
However, the objective of the survey was to verify the customers perceptions on
digital payments with regard to the concept of general banking. Since the study
is about current scenario, results cannot be extended for future developments in
E-Payments. So the limitation is that only 3 years of data will be used.

8. EXPECTED DELIVERABLES:
Technology has inarguably made our lives easier. It has cut across
distance, space and even time. One of the technological innovations in banking,
finance and commerce is the Electronic Payments. Electronic Payments (e-
payments) refers to the technological breakthrough that enables us to perform
financial transactions electronically, thus avoiding long lines and other hassles.
Payment system are backbone of the financial infrastructure of the nation and
enhance globalisation. There is need to create payment system that are
efficient reliable and affordable. The study also highlights the challenges faced
by adoption of technology regarding e-payments and recommendations are
made to tackle these challenges. The paper concludes that in years to come e-
banking and e-payments will not only be acceptable mode of banking but
preferred mode of banking transaction. Therefore, and until the use of electronic
signatures is wide spread, we must use the technology available for the
moment to guarantee a reasonable minimum level of security on the network.
 REFERENCES:

 Future of E-Payments Authored by Anshu Premchand Published in

2015.

 A Survey of Awareness about Security in E-payment System -

International Journal of Information Technology.

 A Study on Digital Payments in India with Perspective of Consumer's

Adoption 2018.

 Go Cashless: Digital Wallets, NEFT, IMPS, UPI, Debit Cards, Credit

Cards

 Premchand A., Choudhry A., Future of Payments-ePayments,

International Journal of Emerging Technology and Advanced
Engineering 5 (2015), 110-115.

 Roy S., Sinha I., Determinants of Customers’ Acceptance of Electronic

Payment System in Indian Banking Sector-A Study, International Journal
of Scientific & Engineering Research 5(1) (2014), 177-187.

 https://www.jstor.org/stable/249008?seq=1#page_scan_tab_contents

 http://rbi.org.in/scripts/publicationvisiondocument.aspx?id=678

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