St.

Xavier’s College
Ranchi

TOPIC- IMPACT OF ONLINE PAYMENT ON

RETAILERS
(A CASE STUDY OF RANCHI)

Submitted by: Submitted to:

Name – Avinash Topno Prof. Rahul Anmol
Class – B. Com (2018-2021) Section ‘F’ Dept. of Commerce

Class Roll No. – 846

Semester – VI
Exam Roll No – 18CACT038585
Mobile No. - 9608439191
 Acknowledgment
First of all, I would thank the Almighty God
for being able to complete this project
with success. I take the opportunity to
express my gratitude to all of them who in
some or another way helped me to
accomplish this project on the topic-
“Impact of online payment on Retailers - A
case study of Ranchi”.
I am extremely thankful to our Professor
Rahul Anmol who gave us a golden
opportunity to do this project and whose
valuable guidance helped me in
completion of the project.
Last but not the least I would like to thank
all my friends and family members who
supported me to complete this project.
 Certificate
This is to certify that Avinash Niral Topno of
B.Com(Accounts),Semester-VI, Section-F
,Exam roll no.-18CACT038585, Session:2018-
2021 has successfully completed the project
on the topic “Impact of Online Payment on
Retailers -A case study of Ranchi”.
I appreciate his skills, diligence and sense of
commitment in preparation of the project.
The project work has been submitted as
partial fulfillment of the degree of St. Xavier’s
College, Ranchi. This project has been
specifically prepared for academic purpose.

Signature of Signature of
Project Supervisor Examiner
 Contents
•Introduction
•Types of online
payment methods
•Nature
•Scope
•Benefits and limitations
•Comparison
•Questionnaire
•Data Analysis
•Conclusion
•Bibliography
 Introduction
What is Online Payment?
An online payment system is an internet
based method of processing economic
activities. It allows a vendor to accept
payments over the web or over other
internet connections. Online payment
systems greatly expand the reach of a
business and its ability to make sales.

Online payments began in the 1990s. The

Stanford Federal Credit Union was the first
institution to offer online banking services
to its customers. However, early online
payment systems were not user friendly
and required specialized knowledge of
data transfer protocol. Millicent and E-
cash were the early players in digital
payments which offered services that used
micro payment systems and electronic
alternatives.

Online payment systems remain a major

factor in today’s commerce sector because
businesses are expanding globally.
Therefore, the need for alternative
payment options (online) is quite
significant.

The term electronic money was formed

from online payment systems. It is defined
as money on scrip which is only exchanged
electronically. Online payment systems
allows individuals to participate in money
exchange electronically through computer
networks such as the internet. Examples of
such transaction categories include
Business to Business(B2B),Consumers to
Consumer(C2C)and Consumer to
Business(C2B).Thus, online payment has
great influence on online business
transactions.
What is Retailing?
Retailing is defined as a set of activities or
steps used to sell a product or a service to
consumers for their personal or family use.
It is responsible for matching individual
demands of the consumer with supplies of
all the manufacturers.
Retailing has become such an intrinsic part
of our everyday lives that it is often taken
for granted. The nations that have enjoyed
the greatest economic and social progress
have been those with a strong retail
sector.
Why has retailing become such a popular
method of conducting business? The
answer lies in the benefits that a vibrant
retailing sector offers—an easy access to a
variety of products, freedom of choice,
and high levels of customer service.
A common perception is that retailing
involves only the sale of products in stores.
However, it also includes the sale of
services such as those offered at a
restaurant, parlour, or by car rental
agencies. The selling need not necessarily
take place through a store.
The retail industry has emerged as one of
the most agile sectors of India. Driven by
myriad factors; income growth,
urbanization, changes in tastes and
preferences and favourable government
policies the retail Industry will see an
exponential growth in the coming few
years.
Types of Online Payment Methods
1.Debit Cards- A debit card is a type of
payment card that deducts money directly
from a consumer’s checking account to
pay for a purchase. A debit card is
sometimes called a bank card or check
card.

2.Bank Transfer- Bank transfer is similar to

the debit card method. It is a method of
transferring cash directly from one bank
account to another account. The results of
a bank transfer and debit card is the same
but a bank transfer eliminates the need of
a physical debit card in the transaction.

3.Third party Payment Services- Third

party payment services are entities that
helps to make or receive payments online
without first setting up your own account
with a bank. Some of the names of such
payment services are as follows:
i)PayPal
ii)Amazon Pay
iii)Google Pay
iv)Apple Pay

4.Electronic Check- Electronic check is a

method of payment that draws cash from
a checking account, eliminating the paper
check and inconvenience of mailing it or
depositing it virtually through the use of a
mobile banking application.
Nature of Online Payment-
Online payment relates to electronic
commerce ,i.e. e-commerce. E-commerce
is by and large viewed as business part of
e-business. It likewise comprises the
trading of information to encourage the
financing and installment parts of business
exchange. Indeed, even today, some
significant time after also e- commerce
stays a moderately new, rising and always
changing region of business and
information technology.

In e-commerce payment system Internet

plays a very important role. It is used to
manage the chain of networks linking
customers, workers ,suppliers ,distributors
and even competitors. A large internet
start front such as Amazon could not
survive without online payment. Online
payment systems have levelled up the
playing field between large and small
companies as any of them can accept
same payment methods once they sign up
with the third party payment processors.
Scope of Online Payment
Digital payments started to pick up pace
with the growth of e-commerce
companies followed by emergence of
digital wallet companies. The consumers,
the digital wallets provide attractive offers
and cash backs to get consumers on board
using the payment channel. Thanks to the
ease of use, attractive offers and increased
Smartphone penetration, the digital wallet
companies did find their way to the
consumer’s phone as well as the pocket.
The digital payment industry is gaining
momentum and is projected to grow at an
exponential rate. 81 per cent of existing
digital payment users prefers the medium
over other non-cash payment methods like
cheques or demand drafts. Online
shopping, payment of utility bills (like
electricity, mobile bills, water bills, etc.)
and movie tickets are the three things that
an Indian user primarily pays for through
digital platform.

An interesting angle to India’s digital

payment story is that it is going to be
dominated by micro transactions
(transactions of value lower than Rs.100).
In fact, of person-to-merchant transactions
are to be under Rs.100 says the Google-
BCG report. Alternate digital payment
instruments like digital wallets, UPI,
payment banks, Bharat QR are expected to
grow fiercely and estimated to double
their contribution to 30 per cent in the
digital payment industry.
Benefits of Online Payment
1.It saves time- Paying via card,
contactless, mobile wallet, or wearable
device is almost always faster than using
cash. Valuable time is saved as customers
simply swipe or tap to pay.
2.It’s more efficient- By processing
payments faster, you can keep queues
shorter. And with shorter queues, you’ll
need less staff to manage your store at
peak times.
3.It takes cash out of the equation-
Handling cash (and the costs and security
concerns associated) is greatly reduced
when we start accepting electronic
payments.
4.It generates more revenue-Multiple
studies have shown that consumers tend
to spend more when using electronic
methods of payment compared to when
they’re paying with cash.
5.It’s easier to Administer-By accepting
fewer cash payments or by going
completely cashless – it becomes easy to
deal and give time to administration,
accounting, and auditing.
6.There’s certainty of Payment-When we
process an electronic transaction and it’s
approved by the terminal, it is known with
certainty that the payment will show in the
business account very soon.
Limitations of Online Payment
1.Service fees- Payment gateways and
third-party payment processors charge
service fees.
2.Inconvenient for offline sales-Online
payment methods are inconvenient for
offline sales.
3.Vulnerability to cybercriminals-
Cybercriminals can disable online payment
methods or exploit them to steal people’s
money or information.
4.Reliance on telecommunication in
infrastructure-Internet and server
problems can disable online payment
methods.
5.Technical problems-Online payment
methods can go down due to technical
problems.
Comparison between
Offline and Online
Payment
Online payment-Online payment system is an
internet-based method of processing
economic transactions. It allows a vendor to
accept payment over the web or over other
internet connection such as direct base
connection between stores and suppliers a
common method of maintaining just in time
inventories. It greatly expands the reach of a
business and its ability to make sales.
Offline Payment- Offline payment allows
merchant to track payment via cash , cheques
, bank transfers , at the desk , postal orders or
any other means. Besides, exciting payment
offers an offline payment can be used after
recording them by the consumers. We can
also configure subscription in such a way that
they can make use of offline payment.
 Differences between Offline and
Online Payment

Basics Online payment Other payment

system
1.Payment Payment done by Payment done when
Process internet-based method merchant track
through e-commerce. payment by its
consumers.
2.Record A formal record is No such record is
maintained by online maintained.
payment system.
3.Risk A high risk factor is A little amount of risk
Factor involved in online is involved in other
payment system. payment system.
4.Reviews Customers and expert’s Salesman reviews are
reviews are available. available.
5.Limitation There is a wider scope There is a little scope
with no limitations. with some amount of
limitations.
Questionnaire
1.Under which name your business is
registered and what kind of business you
do?
2.Do you use online payment methods?
3.Which online payment method do you
use more regularly- Debit card/Credit
card/Net banking/Others
4.What is estimated percentage of
payment transactions that you have
computed through various online payment
methods for the last two years?
5.What is the one thing that you like about
online payment systems?
6.What you don’t like about online
payment methods?
7.If you have to recommend any online
payment method what would it be and
why?
8.What are the challenges you
encountered with online payment
systems?
9.What do you think should be done to
address these challenges?
10.Do you think most people will adopt
online payment methods in future in
India?
DATA ANALYSIS
1.What do you prefer: Online or Offline
payment ?

3
15%

2
25% 1
60%

1 2 3

1-Onilne payment

2-Offline payment

3-Both
2.Do you think online payment is as
secure as compared to cash payment
mode?

Strongly agree Agree Undecided Disagree Strongly disagree

10%

30%

20%

20% 20%
3.If you have never heard of online
payment systems what are the main
reasons?

Chart Title

10%
20% Never heard of online payment

Concerned about security

20%
Irregularity with the technology

20% Too new, I would like to see how it works

then I may use it
Inconvenience

30%
 4.Overall experience of using online
payment

Chart Title
45

40
40

35

30
30

25

20
20

15

10
10

0
0
Highly Satisfactory Satisfactory Neutral Not Satisfactory Highly unsatisfactory
 5.Last seven years trend of online payment by
retailers

Chart Title
4000

3500

3000

2500

2000

1500

1000

500

0
2014 2015 2016 2017 2018 2019 2020
Conclusion

It was a wonderful learning experience

while making this project. This project
helped me to recognize the significance of
online payment system. The significance of
online payment system is global trade and
commerce which is quite evident from the
changing modern trends.

This project took me through the various

phases of project development and gave
me a real view into it. It was due to this
project that I came to know about the
importance of online payment and its basic
impact on wholesalers.
Bibliography
Websites for reference:
www.google.com
www.slideshare.com
www.wikipedia.com
www.quora.com