“A STUDY ON PERCEPTION OF CONSUMER

TOWARDS DIGITAL PAYMENT”

A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor of management studies
Under the Faculty of Management
By
PALLAVI MANSINGH PATIL
Under the Guidance of
PROF. HEMITA MADHAVI
VPM’S
K.G JOSHI COLLEGE OF ARTS
N.G BEDEKAR COLLEGE OF COMMERCE
THANE(W)
ACDEMIC YEAR 2021-22
 DECLARATION BY LETTER

I the undersigned MISS PALLAVI MANSINGH PATIL here by,

Declare that the work embodied in this project work titled

“A STUDY ON PERCEPTION OF CONSUMER

TOWARDS DIGITAL PAYMENT”

Forms my own contribution to the research work carried out under the
guidance of

PROF. HEMITA MADHAVI is a result of my own research work and

has Not been previously submitted to any other University for any other
Degree/Diploma

To this or any other University.

Whenever reference has been made to previous works of others, it has

been clearly

Indicated as such and include in the bibliography.

I, here by further declare that all information of this document has been
obtained and

Presented in accordance with academic rules and ethical Conduct.

Name and Signature of the learner

(Pallavi.M. Patil)

Certified by

Name and Signature of the Guiding Teacher

 Acknowledgement

To list who all have helped me is difficult because they are so numerous
and the depth is so enormous.

I would like to acknowledge the following as being idealistic channels

and fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this project.

I would like to thank my Principal Dr. (Mrs.) Suchitra A. Naik for

providing the necessary facilities required for completion of this project. I
take this opportunity to thank our Coordinator Prof. Nitin Pagi for her
moral support and guidance.

I would also like to express my sincere gratitude towards my project

guide Prof. HEMITA MADHAVI whose guidance and care made the
project successful.

I would like to thank my College Library, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my
Parents and Peers who supported me throughout my project.
 CHAPTER:-1
1.INTRODUCTION;-

The increased development of ICT has brought many benefits to society and affected
the lives, attitudes and social events of human beings. One of the most important
developments in society's resilience is the ability to access a huge amount of
information. Intellectual and pragmatic boundaries were broken by the IT and
provided a suited environment for growth, creativity and dynamic business in
traditional societies.

Without the use of information technology, business activities of all new and long-
term careers and activities cannot be optimised. Many global initiatives (electronic
commerce and electronic banking) have been underway to deal with this
phenomenon.

New technologies and the wider global network–in particular the Internet, internal and
external networks –are now being used in the digital economy, the online retail and
finance and electronic banking sectors. A high level of e-commerce is one of the goals
of all countries.

Increased consumer use of intelligent technology contributes to the recognition of

their effect on practitioners ' purchasing experiences. Academic literature does not
consider, however, the effect of the use of intelligent technology on the perceptions
and perception of clients, together with the behavioural intentions of the company.
Their research uses preliminary explanatory studies to investigate this phenomenon in
a shop setting.

The goal is, in every country, to achieve a high level of e-commerce. The method of
e-commerce has led to the international growth of companies. The electronic business
today is one of the common topics. In the long term, in the adoption of e-commerce
platforms for business development, it is very important for an organization to control
perception, trust and customer loyalty.

Informational technology and internet advances are rapidly growing and are widely
regarded as a key driver of expanded use in the field of ecommerce services in
particular in Libya. E-commerce also offers new possibilities for exporting goods and
more generally providing services. In addition, e-commerce will enhance and increase
an organization's productivity level. Using Web software solutions to perform one or
more of the functions of Internet-based e-commerce systems. These functions include
the collection of information, communication, procurement and sales, distribution,
customer service, the delivery and payment processing between suppliers, providers
and their clients.

E-payment is therefore one of the main pillars of e-commerce without which e-

payment is also considered to be e-payment. Therefore, payment systems are of great
importance for enforcing successful monetary policies with monetary transactions and
their impacts on economic and financial activities across the world.

In fact, a key part of card payment systems is the payment system. In addition to
encouraging the use of card acceptance, epayment service providers also conduct
several other practices including receiver acceptance responsibilities, routing requests
for transaction approval and receipts and are considered another category of
information service.

Digital payment systems are thus considered to play the role of a stream of fluid
exchange as the most important monetary infrastructure in the economies of the
countries. Creating digital payment and settlement infrastructure permits significant
amounts to be transferred over a short period of time between two or more financial
institutions.

That is, digital payment systems are becoming vital, especially when currency
exchanges between two or more financial institutions are in order. Business and
commercial transactions therefore require efficient and effective payment and selling
infrastructure performance. For the past four decades since e-payment was introduced,
major technological changes have, of the one part, broadened the e-payment system
facilities and, of the other part, created social processes and enterprises which make it
critical to use such systems .

Digital payment systems are a key component of a country's economic and financial
infrastructure. Their proper performance in safe and timely transfer of money has the
most important impact on the economic system's overall performance.
1.1Meaning:

Digital payments are technically defined as any payments made using digital
instruments. In digital payment, the payer and the payee, both use electronics modes
to send and receive money. No hard cash is used.

The complete transaction is carried out online. There are several advantages to the
adoption of digital payment across multiple sectors. For example factors such as the
time efficiency, ability of banking at any time, capability to keep track of the
payments being made as well as ease of expense control.

1.2 DIGITAL PAYMENT

India is moving forward on the way of the most significant digital revolution and
digital payment system will be an important landmark in the regime of cashless
economy in the coming years. Digital payment system is an electronic medium that
allows consumers to make electronic commerce transaction for their purchase and
also financial transactions.
The development of the digital payment in India is anticipated to be driven by digital
payment service providers; effective banking regulatory mechanism and experience of
consumers and these are also growth enhancing factors for digital payment in India.

Digital payment system has remarkable momentum particularly after the

demonetization in India. The government of India is taking various steps for efficient
utilization of digital payment platform to wipe out corruption and black money from
the Indian economic system.

Presently, around 60 per cent of the transaction in India are taken place though digital
payment platforms. Though digital payment is generally accepted by public, there is
little criticism about processing of digital payment system. To popularized and speed
up of adoption of digital payment, there are many number of digital payment system
are launched in India.

Though the Indian smartphone market registered a modest 4 percent decline during
Covid Pandemic, it crossed 100 million units by the second half of 2020 for the first
time. (India Smartphone Market Share: By Quarter - Counterpoint Research, n.d.) A
concomitant growth in Internet usage was vividly visible in the Indian economy.

By 2020 India had nearly 700 million Internet users and it is predicted to be around
975 million by 2025. ( Total Internet Users in India | Statista, n.d.)The exponential
growth of the smartphone market and Internet usage in India paved the way for a
digital revolution in payment modes.

In the hindsight, it can be argued that the demonetization drive on 8th November 2016
was the major catalyst in digitalizing India. The digital Wallet companies made the
best use of opportunities presented to them and India witnessed a dramatic growth in
digital payments.

The digitalization drive in the Indian economy caused a tremendous leap in cashless
transactions. With the onset of Covid Pandemic and subsequent lockdown, online
shopping was resorted by a massive population further boosting online payments.
The lockdown commenced on 25th March 2020, which was of the largest magnitude
in the world and it extended till 3rd May 2020 restricting economic transactions of 1.3
billion people.

A survey conducted in April 2020 among nearly 9000 respondents revealed that over
33 percent of respondents increased their digital payments during this period and 9
percent made exclusively online payments. The present study intends to look at the
consumer perception of digital payment methods in times of Covid Pandemic on the
basis of their demographic characteristics like gender, age, education, profession, and
income.

A cashless payment or digital payment describes an economic state whereby financial

transaction are not conducted with money in the form of physical banknotes or coins,
but rather through the transfer of digital information (usually an electronic
representation of money) between the transaction parties.

Cashless societies have existed from the time when human society came into
existence, based on barter and other methods of exchange, and cashless transactions
have also become possible in modern times using digital currencies such as bitcoin.

However in this project discusses and focuses on the term “Digital payment or
cashless payment” in the sense of a move towards ,and implication of, a society where
cash is replaced by its digital equivalent –in other words, legal tender(money) exists,
is recorded, and is exchanged only in electronic digital form.

Such a concept has been discussed widely, particularly because the world is
experiencing a rapid and increasing use of digital methods of recording, managing
and exchanging money in commerce, investment and daily life in many parts of the
world, and transactions which would historically have been undertaken with cash are
often now undertaken electronically.

Some countries now set limits on transaction values for which non-electronic payment
may be legally used.

Economy has always moved through period of transformation from time immemorial.
The age of mercantilism which witnessed trade through exchange of gold and bullion
transformed into barter system. Barter system is a process in which exchange is done
in commodities.

Later with the arrival of industrialization, size of economy expanded which resulted
into invention of money. Money is any identifiable object of value that is generally
accepted as medium of exchange and at the same time it must act as a measure and
store of value.

Money in broader sense consists of coins and currency notes. India is majorly cash
driven economy where cash is still the king in Indian society. But the scenario is
rapidly changing in India. India is embracing cashless economy gradually by moving
towards cashless society.

This is what manifested in demonetization that was announced on November 8/2016

wherein 86% of existing currency from circulation was withdrawn in order to curb the
menace of cash driven economy. But this move was not an easy one. People suffered
to a great extent in that phase but at the same time they supported this step.
The road of less cash society leads to cashless economy which itself passes through
the heart of robust digital economy. All this is in sync with the global trend. Sweden
is the most cashless economy of the world.

According to payment habits in Sweden cash now accounts for just 13% of payments
stores, even Canada has on average two credit cards per person. Vietnam announced a
bold initiative to become 90% cashless retail economy by 2020.

Cashless economy is an economy where maximum transactions are done without

using the physical cash or the means of hard cash. It is the economy transactions are
done with facilities like debit card, credit cards and online transactions by means of
fund transfer and using e-wallets.

The introduction of cashless economy with the help of information technology these
days is fully supported by the national government in India. This initiative has not
only helped the fast transactions but at the same time it has saved lot of time and
money in the country. If we see the global trend in the market it is clear that all over
the world people have started taking interest in cashless transaction.

Academicians, politicians, administrator and above all the economists all over the
world has strongly advocated about going cashless from the cash rich economy. Every
elite finds lots of benefits from this type of transactions rather carrying cash and move
in market. Moving toward the cashless economy can end up in number of benefits.

It has been found in a study that cashless economies can lead to better spending
avenues than the cash transactions.
It has been noted that with the increase of cashless transactions there is decline in the
withdrawal from the automated telling machines. It hasn’t only reduced the burden on
banks but also at the same time helped in the reduction of cost of maintenance of such
machines. The world payments report tell the figures that are really amazing.

It says that the global non cash transactions have grown to 8.9% and reached 387.3
billion in the global market. The highest growth is recorded in Asian market that
registers the growth of 3.5% in the year 2014. It has been found that card payments
remained the top priority among the people. It has increased considerably to 11.4%
highest among the other ways of non-cash transaction. Still India is full of population
that does not have a basic facility of bank account. Accounting to the report presented
by the bank of India it is said that 41% of the people in India still do not have bank
accounts with them out of these 41% people, 40% of the people are unbanked in
urban areas and 61% of them are unbanked in the rural people.

It is therefore the prerogative of the banks. Particularly government to open bank

accounts in the country. With the scheme of Jan Dhan account scheme launched by
Modi there is considerable increase in bank accounts with 175 million new bank
accounts in India.

Still we have to work on many people who are without bank accounts. In India, not
only account penetration is comparatively low, at 53 per cent, but so is the use of
accounts for payments –mere 15 per cent of adults reported using an account to make
or receive payments.

Cashless transactions are going to make the things different with increase in income
of the state. It is also going to stop maximum amount of black marketing in the
market. There is and should be increase in the receipts of VAT in the government
treasury.

The aim of the study is to study the impact of cashless economy on the various
aspects of Indian economy, its growth and development in the different aspects of the
country’s economy. This project also studies the challenges in front of the
government to establish cashless economy in the country.
 • Cashless economy is the term that is used to describe the situation wherein the
flow of cash doesn’t exist within the economy and that all the transaction are
undertaken through electronic channels.

• This can include cash transfer through credit and debit cards, direct debit, and
electronic clearing and payment systems such as Immediate Payment Services
(IMPS), National electronic Funds Transfer (NEFT) and Real Time Gross
Settlement (RTGS) in India.

1.3The measures taken by the Indian government:

To make India a cashless economy, during the Union Budget 2019-20,

the finance Minister had stated that 2% tax deducted at source will be
levied on cash withdrawals that exceed Rs. 1crore in a year from the bank
account to discourage the practice of making business payment through
cash transactions.

The government had also said that the businesses with an annual turnover
of over Rs 50 crore can offer low-cost digital modes of payments and no
charges or merchant discount rate will be imposed them or their
customers.

This is a noteworthy move by the government of India to incentivize

people to adapt to the emerging cashless economy. Transforming the cash
dependent India into a cashless economy is proving to a great challenge
for the Indian government given the size of the informal sector within the
Indian economy.

It is estimated that nearly 90% of all transactions in the Indian economy

is dependent on cash. This is due to the large informal sector that employs
90% of workforce. India cannot become cashless unless this mammoth
sector adapts to the digital payments.
Incentivizing the people alone is not sufficient. The government needs to
develop the supporting infrastructures and technologies for India to
become a cashless economy while also providing awareness to its people.

 1.3.1Demonetization:

Demonetization drive has not curbed the black money. However, it had nudged India
towards being a cashless economy. It has become a radical reform to transform India
into a cashless economy. Paytm had witnessed 5 million daily usage post
demonetization as opposed to their average transaction of three million. It also saw a
700% increase in the overall traffic and a 1000% increase in the amount of money
added to its account in the first two days of post demonetization. Ola money too saw a
1500% its ewallet

• Apart from demonetization, the government has undertaken various other

measures to reduce people’s dependence on cash in recent years.
• Some of them are as follows

 1.3.2Pradhan Mantri Jan Dhan Yojana:

One of the biggest financial inclusion initiatives in the word was launched in 2014. It
is a national mission on financial inclusion which has an integrated approach to bring
about comprehensive financial inclusion and provide banking services to all
households within the country.

This scheme ensures access to a range of financial services like availability of basic
savings, bank accounts, access to need based credit, insurance and pension. It has
played a significant role in the opening of bank accounts for poor.

 1.3.3Direct Benefit Transfer (DBT):

It is a scheme that was launched by the government of India to transfer the benefits
and subsidies of various social welfare schemes like LPG subsidy, old age pension,
scholarship, MGREGA, etc. directly to the bank account of the beneficiaries. This
allowed for the penetration of digital banking into rural India.
  1.3.4Unified Payment Interface (UPI):

It is a system that powers multiple bank accounts into a single mobile application (of
any participating banks), merging several banking features, seamless fund routing,
and merchant payments into one hood. This makes digital transactions a simplified
process. Transaction via UPI had increased the monthly transaction from nil to 754
million in less than 3 years.
  1.3.5Financial Literacy Centers:

The RBI and Finance Ministry have established the Financial Literacy Centers
(FLCs), a keystone of the PMJDY. This initiative has provided financial education
programs to spread awareness of banking products and benefits.

 The RBI has also provided licenses to open new age small financial banks and
payments banks which are expected to give a push to financial inclusion and
bring in innovative banking solution.
 Other promotions like e-banking, debit and credit cards, card swipe or pos
machines and digital wallets have made the transaction to cashless economy
easier.
 • 1.3.6Factors determine the transition to digital payment:

Several factors determine the transition to the digital payment. They are as follows:

• Awareness and skills related to banking and e-transactions.

• Technological development to support the cashless economy.
• Government interventions to promote the transition.

Indications in India of transition to the cashless economy are as follows:

• Mobile wallets have significant market transaction in India in recent times.

• Banks and related service providers have invested highly to improve security
and ease of cash transactions
• As previously mentioned, the Government of India is undertaking various
measures to incentivize the population to shift to the cashless economy while
also discouraging the cash payments.
• In India, as per the 2011 census, more households had mobile phones than
toilets. 58% of households had mobile phones while 47% had toilets within
the houses in 2011. 5 years later, the gap between the two has widened as the
march of telecom connectivity has outpaced the march of water connectivity
in the country.
• According to fresh data from a nationality representative household survey,
the proportion of households with toilets has increased while the proportion of
those with mobile phones has grown even more sharply. This shows the
increased potential of the Indian economy to transform into a cashless
economy if government intervenes.
• India’s current economic situation has created a crucial turning point. If this
situation is handled correctly, there is a high probability of India becoming a
cashless economy.
  1.4Reason for transform into cashless transaction:

India should shift to cashless transactions. The reasons for this statement are:

• 1.4.1Cash is expensive:

A significant amount of time and money is needed to print the currency. RBI has
spent Rs 32.1 billion on printing the currency. The effort is also needed to steer the
money through the system and to the consumers.

Also, there is the cost for setting up of and maintaining of the ATMs. Furthermore,
the paper currencies have shelf-life after which it needs to be replaced. It is estimated
that the direct cost of running a cash based economy is about 0.25% of India’s GDP.

• 1.4.2Cash is the driver of the shadow economy:

Cash is difficult to trace. Its transaction provides secrecy enabling the people to carry
out illegal activities like tax evasion, black money, etc. In 2007, currency in
circulation was almost on par with the bank deposits. However, in the last three years,
the currency with Indians was more than the bank deposits by 50%.

According to the government data, the amount of black money (unaccounted money)
in India is 15-16 lakh crores. The unaccounted money is used to finance the shadow
economy that is running parallel to the government as it finances illegal activities
terrorist activities, purchasing votes, smuggling, betting, trafficking etc.

• 1.4.3Enables financial inclusion and increased tax revenues:

A cashless economy mandates all citizens to have bank accounts. This will ensure a
higher financial inclusion rate. It will also guarantee transparency in the transaction of
money within the economy minimizing the possibility of tax evasion exponentially.
Even the beneficiaries of various government schemes can easily be identified and
taken care of by the government.

 1.5.Challenges that might face while transferring to the

cashless economy:
 • 1.5.1Lack of adequate infrastructure and technology within the
Indian society:

India, a country with a vast area, currently has only 2.3 lakhs ATMs and 14 lakhs
point of sale (POS). This is too much low when compared to other countries like the
UK, France, Australia, and Brazil as they have three or four times that of India.
Moreover, the ATMs are concentrated in urban areas and they are scarce in suburban
and rural areas.

• 1.5.2Limited usage of credit/debit cards:

India has a user base of 750 million cards. Ideally, its usage on POS should be at least
375 million transactions per month, on the assumption that the customers, on average
use the card at least once in two months on the POS terminal. But according to the
RBI data, the volume of POS and e-commerce transactions together for all banks is
about 130 million against the 765 million on the ATM channel as of 2016.

• 1.5.3The penetration of mobile internet is very low in rural

India:

Making India a cashless economy is highly difficult in the current scenario as rural
India has poor internet connectivity also, the awareness and knowledge related to
digital transactions are limited in rural areas.

• 1.5.4Indian economy is cash dependent:

India is much dependent on cash, so much. So, that the MNCs like Amazon had to
include “cash on delivery” to penetrate the Indian market. The rate of cash to GDP is
highest in India d(12.42%).o G In other large economies, the average cash to GDP
ratio is 5%. In fact, the year 2015 saw 78% of all consumer payments in cash in India.

On the other hand, during the same period, It was 20% and 25% in the US and the
UK. India is also the 4th largest user of cash in the world. This shows India is not fast
enough to adapt to the current era, the one that is dominated by technological
innovations and developments. Rural India’s adaption to new technologies is slow.
This is a major concern for India’s aspiration to become a cashless economy.
Modes of digital payment:-

1. UPI/Unified payment interface:-

UPI or Unified payment interface works through the mobile. You can either use
mobile apps or USSD technology. In this method the fund gets transferred
between the two accounts immediately. The system works 24x7. As of now there
is no charge for this payment. To use the UPI payment method, you have to
download the one of the UPI apps. There are types of UPI apps, such as phonepe,
Google pay, SBI pay, BHIM etc.

In the beginning, you have to go through the registration process. In this process
your bank account gets linked using your mobile number. You have to also set an
UPI PIN for the linked bank account. This PIN is required for making a payment.
UPI apps are a faster solution to send money using VPA or even IFSC and
account number. But they have some limitations also.
UPI has come up with a unique feature of creating virtual address through which you
can transfer money without disclosing your account number and IFSC code to the
receiver. UPI works on a real time basis transfer.

2. BANKING CARDS:-

Debit cards:-

Debit cards are issued by the bank where you have your account. You can use
these cards for the money in your account. The payments you make with these
cards debit from your account and credit immediately to the payee’s account. You
can use these cards to make payments to one bank account to another. A debit
card is a plastic payment card that can be used instead of cash when making
purchases. It is similar to a credit card, but unlike a credit card, the money is
immediately transferred directly from the cardholder’s bank account when
performing any transaction.
Debit cards usually also allow instant withdrawal of cash, acting as an ATM card for
this purpose. Merchants may also offer cashback facilities to customers, so that a
customer can withdraw cash along with their purchase. A debit card is a payment card
that deducts money directly from a consumer’s checking account to pay for a
purchase. Debit cards eliminate the need to carry cash or physical checks to make
purchases directly from your savings. In addition, debit cards, also called check cards,
offer the convenience of credit cards and many of the same consumer protections
when issued by major payment processors such as visa or MasterCard.

CREDIT CARDS:-

Credit cards are issued by banks and some other entities authorized by RBI. These
cards give you the ability to withdraw or use extra money. Credit cards are used for
domestic as well as international payments. A credit card is a thin rectangular slab of
plastic issued by a financial company, that lets cardholders borrow funds with which
to pay for goods and services. Credit cards impose the condition that cardholders pay
back the borrowed money, plus interest, as well as any additional agreed –upon
charges. The credit company provider may also grant a line of credit (LOC) to
cardholders, enabling them to borrow money in the form of cash advances. Credit
cards Issues customarily pre-set borrowing limits, based on an individual’s credit
rating. A vast majority of businesses let the customer make purchases with credit
cards, which remain one of today’s most popular payments methodologies for buying
consumer goods and services.

A credit card is different from a charge card, which requires the balance to be repaid
in full each month. In contrast, credit cards allow the consumers to build a continuing
balance of debt, subject to interest being charged. A credit card also differs from a
cash card, which can be used like currency by the owner of the card. A credit card
differs from a charge card also in that a credit card typically involves a third-party
entity that pays the seller and is reimbursed by the buyer, whereas a charge card
simply defers payment by the buyer until a later date. The four major credit card
netwoks are American express (Amex), Discover, Mastercard, and Visa.

3.MOBILE WALLET/E-WALLET:-
E-wallets or mobile wallet is the digital version of your physical wallet with more
functionality. You can keep your money in an E-wallet and use it when needed. E-
wallets can be used for recharge your phone, pay at various places and send money to
yours friends. If you have a smartphone and a stable internet connection, you can use
E-wallets to make payments. These E-wallets also give additional cashback offers.
Some of the most used e-wallets are state bank buddy, ICICI Pockets, Freecharge,
paytm, phonepe etc. E-wallets are an easy and faster way to make payments but have
some limitations. These apps are good if you send money to a wallet to another. But if
you want to send money to bank account e-wallets are not suitable. Also, you have to
be extra careful with these apps. These apps do not ask for any PIN or password when
you perform a transaction using your wallet money. If you do not lock your phone,
anyone can use the money in your wallet. I suggest you must lock your phone if you
want to use Ewallet apps.

E-wallet is a type of pre-paid account in which a user can store his/her money for any
future online transaction. An E-wallet is protected with a password. With the help of
an E-wallet, one can make payments for groceries, online purchases, and flight
tickets, among others. E-wallet has mainly two components, software and
information. The software component stores personal information and provides
security and encryption of the data. The information component is a database of
details provided by the user which includes their name, shipping address, payment
method and amount to be paid, credit or debit card details, etc.

4.AESP:-

AESP is an Aadhaar based digital payment mode. The term AESP stands for Aadhaar
Enabled Payment Service. Customer needs only his or her Aadhaar number to pay to
any merchant. AESP allows bank to bank transactions. It means the money you pay
will be deducted from your account and credited to the payee’s account directly. You
need to link your Aadhaar number to your bank account to use AESP. You can use
AESP with the help of pos (point of sale) machines. You can withdraw or deposit
cash, send money to another Aadhaar linked account with it. The good thing about
AESP is that it doesn’t need your signature, bank account details or any password. It
uses your fingerprint as a password. No one can forge your fingerprint, thus it is the
most secure digital payment mode.

AESP provides basic financial services like cash deposit, balance enquiry, cash
withdrawal and remittance at low cost access devices called micro ATM’s maintained
at business correspondents in an inter- operable way. The objective of AESP is to
empower a bank customer to use Aadhaar to access his/her Aadhaar enabled bank
account and perform basic banking transactions that are intra bank or interbank in
nature through a business correspondent. It serves another important goal of RBI in
electrification of retail payments. It would enable banks to route the Aadhaar initiated
interbank in nature through a business correspondent. Another important goal
Aadhaar Enabled payment system (AESP) serves is to facilitate inter-operability
across banks in a safe and secured manner.

5.USSD:-

USSD banking or *99#Banking is a mobile banking based digital payment mode.

This method does not require a smartphone or internet connection. We can easily use
it with any normal feature phone. USSD banking is as easy as checking your mobile
balance. We can use this service for many financial and Non- financial operations
such as checking balance, sending money, changing UPI PIN etc. the *99# code
works as a bridge between your telecom operator’s server and your bank’s server. It
uses your registered mobile number to connect with your bank account. Hence, dial
*99# with your registered mobile number only. USSD banking has a transaction limit
of Rs 5000 per day per customer. RBI has also set a maximum charge of Rs 2.5 per
operation.
The innovative payment service *99# works on unstructured supplementary service
Data (USSD) channel. This service allows mobile banking transactions using basic
feature mobile phone; there is no need to have mobile internet data facility for using
USSD based mobile banking. *99# service has been launched to take the banking
services to every common man across the country. Banking customers can avail this
service by dialing *99# a common number across all telecom service providers on
their mobile phone and transact through an interactive menu displayed on the mobile
screen. Key services offered under *99# service include, interbank account to account
fund transfer, balance enquiry, mini statement besides host of other services. *99#
service is currently offered by 51 leading banks and all GSM service providers and
can be accessed in12 different languages including Hindi and English as on
31.11.2016.

6.INTERNET BANKING:-

Internet banking is the system that provides the facility to the customer to conduct the
financial and non- financial transaction from his net banking account. The user can
transfer funds from his account to other accounts of the same bank/different bank
using a websites or an online application. The customer uses a resource and a medium
to conduct financial transactions. The resource that a customer uses might be an
electronic device like a computer, a laptop, or a mobile phone. The internet is the
medium that makes the technology possible. The facility of internet banking is
provided through banks and the customer must be an account holder with any bank to
get the facility available for him/her.

Internet banking or otherwise known as online banking is among the convenient

ebanking modes, which caused the change in banking operations and provides virtual
banking facilities to its customer continuously. In this method, the clients can access
their bank account details, no matter where they are located, with the help of bank’s
website. Internet banking is not similar to mobile banking, which implies a wireless,
internet based facility provided by the banks to their customer, to operate their bank
accounts, through handheld devices such as smartphones, tablets and so forth, with
the help of a website or a mobile application. As the service provided by the two
facilities, resembles a lot, there are instances when people assume that they are one
and the same. The funds transfer through NEFT, RTGS or IMPS.

7. QR-CODE:-

QR code payment is a contactless payment method where payment is performed by

scanning a QR code from a mobile app. This is an alternative to doing electronic
funds transfer at point of sale using a payment terminal. This avoids a lot of the
infrastructure traditionally associated with electronic payments such as payment
cards, payment networks, payment terminal and merchant accounts. To use a QR code
payment the consumers scans the QR code displayed by the merchant with their
phones to pay for their goods. They enter the amount they have to pay finally submit.
This is a more secure card not present method than others.

Contrary to linear barcodes that can only be read by a laser barcode scanner from
paper, QR codes can be scanned from both paper and screens. Both iPhones and
Android smartphones can scan QR codes directly from the main camera app, as long
as it is using the latest IOS or Android software. You simply open the camera and
point it towards the QR code, which will immediately recognize it and open a push
notification requiring you tap it to finish the relevant operation. The QR code
payments speed up the e-commerce payment experience and make it more secure. All
a customer has to do is scan. Traditionally, the mobile money process involves
sending money to a merchant code or phone number. QR code payments reverse this
process and all a customer/buyer has to do is scan to complete the payment. QR codes
on print media are a great way to engage potential customers. We have all used them.
Statistics show that increased smartphone penetration and access to high speed
internet have led to surge in the use of QR codes.

8. MOBILE BANKING:-
Mobile Banking is a service provided by a bank or other financial institution that
allows its customers to conduct financial transactions remotely using a mobile device
such as a smartphone or tablet. Unlike the related internet banking it uses software,
usually called an app, provided by the financial institution for the purpose. Mobile
banking is usually available on a 24 hour basis. Some financial institutions have
restrictions on which accounts may be accessed through mobile banking, as well as a
limit on the amount that can be transacted mobile banking is dependent on the
availability of an internet or data connection to the mobile device.
Transaction through mobile banking depend on the features of the mobile banking app
provided and typically includes obtaining account balances and lists of latest
transaction, electronic bill payments, remote check deposits, p2p payments, and funds
transfers between a customers or anothers accounts. Some apps also enable copies of
statements to be downloaded and sometimes printed at the customers premises. Using
a mobile banking app increases ease of use, speed, flexibility and also improves
security because it integrates with the user built in mobile device security
mechanisms. From the bank point of view, mobile banking reduces the cost of
handling transactions by reducing the need for customers to visit a bank branch for
non cash withdrawal and deposit transactions. Mobile banking does not handle
transactions involving cash, and a customer needs to visit an ATM or bank branch for
cash withdrawal or deposits

9.NEFT:-

National Electronic Funds Transfer (NEFT) is an electronic funds transfer system

maintained by the Reserve Bank of India (RBI). Started in November 2005, the setup
was established and maintained by institute for Development and Research in
Banking Technology (IDRBT). NEFT enables bank customers in India to transfer
funds between any two NEFT enabled bank accounts on a one to one basis. It is done
via electronic messages. Unlike real time gross settlement (RTGS), fund transfers
through the NEFT system do not occur in real time basis. NEFT settles fund transfers
in hourly batches with 23 settlements occurring between 00:30 hrs. to 00:00 hrs.

From December 16,2019, there would be 48 half-hourly batches occurring between

00:30 am to 00:00 am everyday regardless of a Holiday or otherwise, as of November
30, 2019, NEFT facilities were available at 1,48,477 branches/offices of 216 banks
across the country and online through the website of NEFT enabled banks. NEFT has
gained popularity due to the ease and efficiency with which the transactions can be
concluded. There is no limit either minimum or maximum on the amount of funds that
could be transferred using NEFT. As of 1985, three central banks had implemented by
90 central banks.

10. RTGS:-

Real-time gross settlement (RTGS) systems are specialist funds transfer systems
where the transfer of money or securities takes place from one bank to any other bank
on a real time and on a gross basis. Settlement in real time means a payment
transaction is not subjected to any waiting period, with transactions being settled as
soon as they are processed. Gross settlement means the transaction is settled on a one
to one basis without bundling or netting with any other transaction. Settlement means
that once processed, payments are final and irrevocable.

RTGS systems are typically used for high value transactions that require and receive
immediate clearing. In some countries, the RTGS systems may be the only way to get
same day cleared funds and so may be used when payments need to be settled
urgently. However, most regularly payments would use a national payment system or
automated clearing house that allows participants to batch and net payments. RTGS
payments typically incur higher transaction costs and are usually operated by a
country’s central bank.
 CHAPTER:-2

LITERATURE REVIEW

February 2021Psychology (Savannah, Ga.) 58(1):3304-3319

DOI:10.17762/pae.v58i1.1270
Author: Aparna J Varma:-
Digital transactions are taking over most of the transactions in the world and India is
no exception. Various studies have proved that efficient payment system will speed
up the liquidity flow of an economy. In the era of digitisation, transactions using
technology is the best way of being agile and giving better service to consumers.

The study is about understanding consumers’ perceptions with respect to online and
digital payments and safety of these transactions in this world of connected
technologies. It is important for marketers to know the perception of consumers
towards cashless methods of transactions and this study helps in this.

The study is qualitative in nature and uses literature reviews to analyse the concept of
digital transactions. The reviews delve insights into the various challenges and
advantages of using digital transactions. The findings reveal that digital transactions
are accepted in India and usage is increasing year by year. The study finds the
advantages and challenges which is faced by consumers while adopting digital
payment.

Dr. Ranjith P.V., Dr. Swati Kulkarni, Dr. Aparna J Varma:-

Digital transactions are taking over most of the transactions in the world and India is
no exception. Various studies have proved that efficient payment system will speed up
the liquidity flow of an economy. In the era of digitisation, transactions using
technology is the best way of being agile and giving better service to consumers.

The study is about understanding consumers’ perceptions with respect to online and
digital payments and safety of these transactions in this world of connected
technologies. It is important for marketers to know the perception of consumers towards
cashless methods of transactions and this study helps in this. The study is qualitative in
nature and uses literature reviews to analyse the concept of digital transactions. The
reviews delve insights into the various challenges and advantages of using digital
transactions. The findings reveal that digital transactions are accepted in India and
usage is increasing year by year. The study finds the advantages and challenges which
is faced by consumers while adopting digital payment.

RAVISH RANA Delhi School of Economics, University of Delhi, Delhi,

India:-
The last decade has seen tremendous growth in use of internet and mobile phone in
India. Increasing use of internet, mobile penetration and government initiative such as
Digital India are acting as catalyst which leads to exponential growth in use of digital
payment. Electronics Consumer transaction made at point of sale (POS) for services
and products either through internet banking or mobile banking using smart phone or
card payment are called as digital payment. The consumer perception of digital
payment has a significant and positive impact on adoption of digital payment. The
structured questionnaire was used as research tool for understanding consumer
perception of digital payment. Primary data was collected from 150 respondents in
Delhi. ANOVA and frequency analysis was used to analyze the responses. ANOVA
indicate that there is no significant variance in consumer perception based on the
demographic factors such as gender, age, profession and annual income of the
patients. However education was found to significant influence for adoption of digital
payment.
 CHAPTER:-3

RESEARCH METHODOLOGY

A digital payment is an automated or online operation that may take place between
two people, business, or organizations. A digital transaction is cashless transaction
which specifically involves no paper for completion of the transaction. Purchasing
goods from e-commerce websites, signing of business contracts online, or even
buying movie tickets through your smartphone app fall under the umbrella of digital
transactions. Such operations are accurate, quicker, convenient, and certainly easier.
Many are unwilling to accept that there are benefits to a cashless transaction simply
because they cannot navigate their way around digital devices, or are just happier to
transact using cash.

3.1MEANING OF RESEARCH
Research in common parlance refers to a search for knowledge. One can also define
research as a scientific & systematic search for pertinent information on a specific
topic. In fact, research is an art of scientific investigation. The Advanced learner's
Dictionary of current English lays down the meaning of research as a 'careful
investigation as inquiry specially through search for new facts in any branch of
knowledge.’ Redman & Mory define research as a 'systematized effort to gain new
knowledge.’

Some people consider research as a movement, a movement from the know to the
unknown. movement, a movement from the know to the unknown. Research is an
academic activity & as such the term should be used in a technical sense.

3.2 MEANING OF RESEARCH METHODOLOGY

Research Methodology is the systematic and theoretical analysis of the methods

applied to a field of study. It involves qualitative and quantities techniques. In other
words, it is a process used to collect information and data for the purpose of the
making business decisions. This part aims to understand the research methodology
establishing a framework of evaluation and revaluation of primary and secondary
research.
TITLE OF STUDY:-

“A STUDY ON PERCEPTION OF CONSUMER

TOWARDS DIGITAL PAYMENT”

3.3 RESEARCH OBJECTIVE :-

 To Study the ease of conducting card/digital transactions for an individual.

 To study the Reduce costs of managing cash in the economy.

 To study the Reduce the impact of counterfeit money.

 To study the awareness and usage of digital among consumers.

 To motivate people to use online payment systems.

 To make online payments safe and secure.

 To create awareness about various frauds of electronic payments.

RESEARCH DESIGN:-

3.4 SOURCES OF DATA:-

The task of data collection being after a research problem has been defined & research
design checked out.
PRIMARY DATA:-

This is collected on the basis of response provided by the target sample. For this we
have gone for personal interviews of individuals and gathering some information by
way of questionnaires. Primary Data are those which are collected afresh & for the
first time, and thus happen to be original in character.

We collect primary data during the course of doing experiments in an experimental

research but in case of the descriptive types & perform survey, whether sample survey
or causes surveys, then we can obtain primary data either through observation or
through direct communication with respondents in one form or another or through
personal interviews. This is other words, means that there are several methods of
collecting primary data, particularly in surveys & descriptive researches. Important
ones are :-

1) OBSERVATION METHOD
2) INTERVIEW METHOD
3) QUETIONAIRE

DATA COLLECTION SURVEY THROUGH

QUENTIONARE
TYPE OF DATA PRIMARY DATA

SAMPLE AREA CUSTOMERS

REASEARCH INSTRUMENTS OBSERVATION METHOD

,INTERVIEW METHOD,
QUESTIONAIRE
TYPE OF QUESTIONNAIRE STRUCTURED

STATISTICAL CHARTS USED PIE CHART, COLUMN, & BAR

GRAPHS
 SAMPLE SIZE 51

SAMPLING TECHNIQUE CONVENIENT SAMPLING

3.5 SCOPE OF STUDY:-

1.The sample of my study involves total of 51 respondents of which 28 are male,
23 are female.

2.The research on Perception of consumer towards digital payment lasted for 1

month wherein a variety of CUSTOMERS class people were surveyed through
google forms.

3.A wide range of topics have been discussed in the study like various types of
payment methods such as UPI, INTERNET BANKING, RTGS ,NEFT, ETC. and
finally interpretation of the primary data collected.

3.6 Limitations to study:-

The limitations of the study are those characteristics of design or methodology that
impacted or influenced the interpretation of the findings from your research.

1. Sample size may not represent complete universe.

2. Completely relying on the data provided by individual through questionnaire.

3. A failure to use a random sampling technique significantly limits the ability to

make broader generalizations from results.

4. Less geographical reach.

5. Man Power constraint.

6. Lack of face-to-face communication as large number of surveys is done through

google forms.
7. Lack of time to study the border concept.

3.6 SWOT Analysis Of DIGITAL PAYMENT:-

E-wallet is a sort of pre-paid account wherein a person can keep her cash for any
future on line transaction. An e-pocket is included with a password. With the help of
an e-wallet, you possibly can make bills for groceries, on line purchases, and flight
tickets, among others. Epockets have in particular components, software program and
information. The software program issue shops personal facts and gives security and
encryption of the statistics. the facts thing is a database of details furnished via the
consumer which incorporates their call, delivery cope with, payment technique,
quantity to be paid, credit score or debit card details, etc

. For putting in an e-pockets account, the user needs to put in the software program on
his/her device, and enter the relevant records required. After purchasing on-line, the e-
pockets robotically fills in the consumer’s information on the fee shape. To set off the
e-pockets, the consumer needs to go into his password. Once the online charge is
made, the client isn't required to fill the order form on every other internet site as the
data receives stored in the database and is up to date automatically.

E-wallets provide the convenience of a commonplace approach for on-line and

offline bills. Customers can get through a purchase in mere seconds with a easy faucet
or experiment in their tool the disappointment of lengthy checkout queues. E-wallets
provide a brand new avenue for digital charge strategies. Pay for software bills,
shopping, leisure, and a bunch of different reasons. Each person and merchant are
blanketed with the encryption software and traders are also reassured due to the
linkage to a financial institution account.

SWOT VARIABLES for the e-wallet payment:

STRENGTHS:-

Quicker registration and re-registration in instances where recipients don't have any
identity files or have misplaced them.
Want to enter a password or different verification information or any time change
account information.

Requiring simple wave of phone or payment has been made and the transaction is
robotically recorded for later viewing.

Flexibility to make payments from different accounts. Strong passwords ought to be

enabled on the person’s phones, pills, and different devices earlier than e-wallets can
be used.

Guidelines could put extra pressure on such firms which have so far enjoyed a free
run.

WEAKNESSES:-

cash is more valuable than any other form of investment.

Evolved international locations in card payments, gradual adoption of plastic

collectively with the astonishing increase in smart cellphone adoption to best for e-
wallet.

Smart phone’s models have changed the all over world.

growth is slow, flat or declining. the term can talk to the economic system as an entire
or a aspect of the financial system

. Includes learning the way to use PowerPoint, Photoshop, blogs, video recording and
editing, pod-casting, and more, the way to enhance, promote, and put it on the market
our creative, educational and expert lives.

Various not unusual phenomena are associated with strength, including lightning,
static strength, electric heating, electric discharges and plenty of others.

OPPORTUNITIES:-

surprising extent of black cash has activated a parallel financial system within the u . s
.and it influences the important sectors of the economic system.
the authorities had expected to gather taxes, which encompass earnings tax and
corporate tax.

Irregular expenses are costs that come up throughout, to find reaching for a credit
card when that expense comes up.

Government and its supporters, pushing towards cashless or less-cash transactions,

fighting corruption, to ending poverty, to modernizing society.

THREATS:-

Impersonation occurs when a fraudster steals information and then poses as a genuine
user to do a transaction using the stolen e-wallet details and password.

Sophisticated threats like Man-in-the-Browser or Man-inthe-Middle attacks intercept

online transactions payment data.

Malware attacks on apps have threatened the safety of user’s money.

 CHAPTER 4

DATA ANALYSIS, INTERPRETATION AND PRESENTATION

4.1 DIGITAL PAYMENT INDUSTRY IN INDIA:-

Digital payments started to pick up pace with the growth of e-commerce companies
followed by emergence of digital wallet companies. To lure the consumers, the digital
wallets doled out lucrative offers and cashbacks 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.

To expand their reach, the digital wallets started encouraging customers to use them for
offline point of sale (POS) transactions too like at shopping malls, supermarkets,
grocery stores, restaurants and gas/petrol stations. These POS transactions are expected
to become a majority contributor to the digital payments platform in the coming years.
Clearly, digital wallets are playing a unique role in driving the growth of digital
payments sector.

The other important pillar of the digital payment story are the online ticketing, travel
and events companies like IRCTC (Railways), Makemytrip, Yatra, Ibibo, Cleartrip
(Airlines and hotels), Trivago (hotels), redBus (buses), and Bookmyshow (movie and
event ticketing). They have got consumers to transact online.

The digital payment industry is gaining momentum and is projected to grow at an

exponential rate. 81 per cent of existing digital payment users prefer 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.

According to a report by Google and Boston Consulting Group (BCG), the Indian
digital payments industry is estimated to touch $500 billion by 2020, contributing 15
per cent to the country’s GDP.
An interesting angle to India’s digital payment story is that it is going to be dominated
by micro transactions (tractions of value lower than Rs 100). In fact, 50% 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.

Mobile/Digital wallets: The digital payment industry growth will be led by the
digital/mobile wallets. According to the Capgemini’s World Payment Report, mobile
wallets will witness a compound annual growth rate (CAGR) of 148 per cent over the
next five years and will be $4.4 billion by 2022. The digital wallets are also supposed
to outshine UPI.
4.2 PIE DIAGRAM & INTERPRETATION:-

1)

Figure 4.2.1

INTERPRETATION A total of 51 respondents/customers had been surveyed out

of which 62.7% are from 18-25 age, 13.7% are from 0-18 age, 13.7% are 25-35 age
and 9.8% are 35 & above age .
2)

Figure 4.2.2

INTERPRETATION

A total of 51 respondents/customers had been surveyed out of which 52.9% are male
and 47.1%are female.
3)

Figure 4.2.3

INTERPRETATION

According to the pie chart, 39.2% of the respondent enjoyed the experience of digital
payment till 2-4 years. 49.1% of the respondent enjoyed the experience of digital
payment till less than 1 year. Whereas,9.6% of the respondent enjoyed the experience
of digital payment till 5-9 years. Remaing respondent enjoyed the experience of
digital payment above 10 years.
4)

Figure 4.2.4

INTERPRETATION

According to the pie chart, 60.8% of the respondent used digital money. Whereas,
39;2% respondent not used digital money.
5)

Figure 4.2.5

INTERPRETATION

According to the horizontal bar graph, 46.2% people used bitcoin. 33.3% people used
Ethereum. Whereas, 76.9% people used other digital money.
6)

Figure 4.2.6

INTERPRETATION

According to the pie chart, 56.9% people strongly agree that using electronic digital
payment saves time and cost. 27.5% people agree that using electronic digital
payment saves time and cost.13.7% people are neutral that using electronic digital
payment saves time and cost. Remaining people disagree that using electronic digital
payment saves time and cost.
7)

Figure 4.2.7

INTERPRETATION

According to the pie chart, 47.1% people strongly agree that using electronic payment
is convenient.31.4 % people agree that using electronic payment is convenient.19.6%
people are neutral that using electronic payment is convenient. Remaining people are
disagree that using electronic payment is convenient.
8)

Figure 4.2.8

INTERPRETATION

According to the pie chart, 47.1% people strongly agree that speed of electronic
payment system flow is faster than traditional.29.4 % people agree that speed of
electronic payment system flow is faster than traditional.17.6% people are neutral that
that speed of electronic payment system flow is faster than traditional. Remaining
people are disagree agree that speed of electronic payment system flow is faster than
traditional.
9)

Figure 4.2.9

INTERPRETATION

According to the pie chart, 45.1% people strongly agree that it is easier to conduct
financial transaction.17.6% people agree that it is easier to conduct financial
transaction. 27.5% people are neutral that it is easier to conduct financial transaction.
Remaining people are disagree and strongly disagree that it is easier to conduct
financial transaction.
10)

Figure 4.2.10

INTERPRETATION

According to the horizontal bar graph, 43.1% people strongly agree that electronic
payment system will not lead to transaction fraud. 25.5% people agree that electronic
payment system will not lead to transaction fraud. 31.4% are neutral that electronic
payment system will not lead to transaction fraud. 23.5% people disagree that
electronic payment system will not lead to transaction fraud.15.7% people strongly
disagree that electronic payment system will not lead to transaction fraud.
11)

Figure 4.2.11

INTERPRETATION
According to the pie chart, 41.2% people strongly agree that confidential information
is delivered safely to customers. 25.5% people agree that confidential information is
delivered safely to customers. 19.6% people are neutral that confidential information
is delivered safely to customers. Remaining people strongly disagree and disagree that
confidential information is delivered safely to customers.
12)

Figure 4.2.12

INTERPRETATION
According to the pie chart, 45.1% people strongly agree that risk associated with
electronic payment system is low. 13.3% people agree that agree that risk associated
with electronic payment system is low. 21.6% people are neutral that that risk
associated with electronic payment system is low. 15.7% people disagree that risk
associated with electronic payment system is low. Remaining people strongly
disagree that risk associated with electronic payment system is low.
13)

Figure 4.2.16

INTERPRETATION
According to the horizontal bar graph , 49% people strongly agree that the structure
and content of the digital payment is easy to understand. 27.5% people agree that the
structure and content of the digital payment is easy to understand. 21.6% people are
neutral that the structure and content of the digital payment is easy to understand.
11.6% people disagree that the structure and content of the digital payment is easy to
understand. 7.8% people strongly disagree that the structure and content of the digital
payment is easy to understand.
14)

Figure 4.2.14

INTERPRETATION

According to the pie chart , 88.2% people belive that electronic payment system is
much more effient than traditional payment channels.11.8% people does not belive
that electronic payment system is much more effient than traditional payment
channels.
15)

Figure 4.2.15

INTERPRETATION

According to the pie chart , around 78.4% people personally Satisfied with the
service. 17.6% people personally are on maybe condition. Remaining people are not
Satisfied with the service.
16)

Figure 4.2.16

INTERPRETATION
According to the bar graph, its describes experiences of respondents.
 CHAPTER:-5

CONCLUSION

After researching the topic of society going cashless, I have come to some
conclusions. The argument for a cashless society far outweighs the arguments against.
The arguments of the security, quickness, and convenience of cards and digital cash
are better than the arguments against consisting of technology fails and such Here is
my prediction for the future: While I believe going cashless is the future, it will take
some time. A journal published by Eric de Putter said it perfectly.

“A less-cash society is more likely and is likely to exist for quite some time (Putter,
2016, p. 251).” It is going to be very difficult to completely get rid of cash. There is a
lot of it in circulation and still some people rely on it. I expect card and cash apps use
to increase significantly and for the use of physical cash to decrease over the next 5
years. More and more people will use credit/debit cards, apps like Venmo, cash app,
Dig in, and paying services such as PayPal , Visa, and Apple Pay.

I see electronic currency having a bright future. Many of the people I know including
myself barely use cash anymore. When I do have cash on hand, I often spend it right
away or put it in the bank so I don’t have to carry it around. It can be a burden and I
always feel there is a risk of losing it.Having a card or using an app is much easier
and safer. I can easily see how much money I have available.

Also, if for some reason my card gets stolen, I can easily cancel the card and get a
new one quickly. Overall, it is just easier.I hope you have enjoyed and learned
something new from my blog series about becoming a cashless society.

The digital payment systems are crucial to the success of Electronic commerce. Being
a business critical system, the underlying Digital payment system is required to be
very secure, reliable and trustworthy. Thus, an electronic payment system needs to
satisfy various important requirements such as money atomicity, anonymity,
authentication, privacy, transferability, non-repudiation etc.
Cryptographic techniques are employed to achieve one or more requirements of
electronic payment systems. Symmetric and Asymmetric Encryption, digital
signature, blind signature, dual signature, hashing, message authentication codes,
authentication protocols etc. are the most prominently used cryptographic techniques
in the design of electronic payment system.

Electronic payment models can be broadly classified in two categories: Token based
payment system and Credit Card based payment system. Token based systems use an
instrument, which itself carries the value. During payment processing, approval of
transaction is not required. Token itself carries the value and is transferred from payer
to payee. In a credit card based payment systems, value of the money is stored at third
party namely bank and transaction need to be approved from the bank.

At present, credit card payment systems offer the most practical and popular payment
methods for on- line payments over the counterpart electronic payments methods.
Credit Card payments reduce the risk and costs associated with handling cash and
checks. Credit cards for on line payments have a large user-base and benefit from
familiarity and simplicity of use and also allow international payments.

Another advantage of the secure credit card model is that the user needs not be
registered to the payment service, only the transportation of the credit card number is
needed. This model has an audit ability of the transactions which is from the
viewpoint of the merchants and banks.

The transactions can always be traced and it can be decided that who the payer and
who is the payee. On-line payments with credit cards can be risky in the sense that
card information may be intercepted or altered during transmission which may lead to
fraud. The information may be stored on vendors servers and they may fall victims to
hackers who may later sell the information or use the information to make illegal
purchases. Because of the distinctive structure of credit card numbers, with their
inbuilt check digits, programs can be written to scan a data stream for occurrences of
such patterns.

The data stream could be either an intercepted transmission, a file on disk, reclaimed
disk space on a shared system, or even the stream of keystrokes produced by someone
typing at their workstation. One of the drawbacks of the systems includes the lack of
anonymity that is, paying by credit cards reveals payers identity to providers and
vendors. Some users treat it as an encroachment in their privacy.

Token based systems which are analogous to cash are bit strings and that can be
copied as many times as desired. Since tokens are digital data, they can be easily
copied. Thus, in case of token based systems, some mechanism is required to protect
against double spending. The service is achieved on the basis of conditional
anonymity.
An advantage of the electronic cash model is that the payments offer anonymity to the
user. One main drawback is the cost associated is very high. Micro On-line payment
methods support frequent transfer of very small amounts. Because of the small
amounts involved, higher efficiency can be achieved by slightly relaxing the security
mechanism. Micro payment systems are payment systems which support low value
payments at a low transaction costs.
 FINDINGS

 It is clear from the analysis that digital payment system is popular among
respondents.
 Digital mode is highly used as compared to cash mode
 .Demonetization is the main reason for digitalization of payment.
 Majority of users debit and credit cards over other mode of payment because it
is easily available and issued at the time of opening of bank account.
 People prefer to use digital mode of payment.
 Majority of the user agrees that digital mode of payment is comfortable to be
used on day to day basis.
 Majority of people have satisfied with the security of transaction involved in
digital payment system.
 Using digital payment saves considerable amount of time as there is less
procedure involved in it.
 Security issues are the biggest threat to digital payment system.
 Debit and credit cards are major means of payment mode in emergencies.
 In coming years digital payment will cover all areas and cash transactions are
slowly sidelined.
 Suggestions

 Awareness programs must be done at educational sector in order to educate

people about digital payment system.
 As respondents are well aware of the digital payment system as per our
findings steps must be taken to minimize the deficiencies involved in digital
payments like security issues, trustworthiness etc.
 . Many people use cards for all their needs but there is a additional charge on
the use of debit or credit cards. In order to encourage people to engage in
digital modes it is important to remove additional charges for just mere use of
cards.
 Service provider of mobile wallet, net banking must take into consideration
user experience and take their valuable feedback in order to better their
services.
 Cash payment is still to be seen everywhere. If government to implement
digital system of payment or cashless society it must act on that behalf by
encouraging people to use digital modes and giving proper incentives.
 Different customers have different needs so it is necessary to provide them
with number of payment methods so it gives option to user to select the mode
of payment which is best suited to him.
 While making payment customer needs to give essential information. There
must be a better mechanism for maintaining the privacy of the information
provided by the user.
 User friendly atmosphere must be created so that user can be retained to one
particular mode of payment.
 BIBLOGRAPHY

 https://www.ibef.org/blogs/digital-payment-industry-in-india BEF,
Knowledge Centre Jan 04, 2019 14:59

 https://www.icommercecentral.com/open-access/study-of-consumer-
perception-of-digital-payment-mode

 https://cashlessindia.gov.in/digital-payment-methods.html

 https://squareup.com/townsquare/electronic-payment-systems

 Albuquerque, de. J.P.(2014). Mobile Payments: A scoping study of literature

and issues for future research. Sage journal. pp 527-553.

 Chen, J. F. (1996). Electronic Payment System and Method.

 Henningsson, S. (2014). Transformation of digital ecosystem: The case of

digital payments. Information and Communication Technology. Springer. pp
46-55.

 Yu, H. C. (2002). Electronic Payment System: An Analysis and Comparison

of types. Technology in society. pp 331-347.
 ANNEXURE

QUESTIONNAIRE

A STUDY ON PERCEPTION OF CONSUMER TOWARDS

DIGITAL PAYMENT

Q1. NAME:- :___________________________

Q.2 AGE:

1. 0-18

2. 18-25

3. 25-35

4. 35 & ABOVE

Q3. GENDER: 1.Male 2. Female

Q.4 How long have you enjoyed the experience of Digital payment?

1. LESS THAN 1YEAR

2. 2-4YEAR

3. 5-9 YEAR

4. ABOVE 10 YEARS

Q.5 Have you ever used digital money ( e.g Bitcoin, Ethirium)?
1. YES

2. NO

Q.6 If yes, what type of the digital money have you used?

1. Bitcoin

2. Ethereum

3. OTHERS

Q.7 Saves time and cost for using an Electronic payment system?

1. strongly agree

2. agree

3. neutral

4. disagree

5. stronly disagree

Q.7 Electronic payment system is convenient?

1. strongly agree

2. agree

3. neutral

4. disagree

5. stronly disagree

Q.8 Speed of Electronic payment system flow is faster than traditional?

1. strongly agree

2. agree

3. neutral

4. disagree

5. stronly disagree

Q.9 Is it easier to conduct financial transaction?

1. strongly agree

2. agree

3. neutral

4. disagree

5. stronly disagree

Q.10 Electronic payment system will not lead to transaction fraud?

1. strongly agree

2. agree

3. neutral

4. disagree

5. stronly disagree

Q.11 Confidential information is delivered safely to customers?

1. strongly agree

2. agree
3. neutral

4. disagree

5. stronly disagree

Q.12 Risk associated with Electronic payment system is low?

1. strongly agree

2. agree

3. neutral

4. disagree

5. stronly disagree

Q.13 The structure and contents of the DIGITAL PAYMENT is easy to understand ?

1. strongly agree

2. agree

3. neutral

4. disagree

5. stronly disagree

Q. 14 Electronic payment system is much more efficient than traditional payment

channels?

1. Yes
2. NO
3. MAY BE

Q.15 Describe your experience:- :___________________________