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CUSTOMER PERCEPTION TOWARDS PAYTM APPLICATION WITH SPECIAL

REFERENCE TO COIMBATORE CITY

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The International journal of analytical and experimental modal analysis ISSN NO:0886-93672

CUSTOMER PERCEPTION TOWARDS PAYTM APPLICATION WITH

SPECIAL REFERENCE TO COIMBATORE CITY
*Dr. A. ANANDALAKSHMY & C.R.GAYATHRI **
*Assistant Professor, Department of Commerce CA, VLB Janakiammal College of Arts &
Science, Kovaipudur, Coimbatore-641 042. E-mail id: aalakshmy@gmail.com
Ph.No.9486604676
** Research Scholar, VLB Janakiammal College of Arts and Science, Kovaipudur,
Coimbatore-641 042. E-mail Id: gayathriit95@gmail.com
Abstract
The major aim of the mobile wallet is to make paperless money transaction suitable
through advanced features like money transfer through the mobile application and QR code.
The mobile wallet has become a necessary part of daily life mainly because of its convenient
features in making quick payments from the same device with the help of the internet
connection through a secured payment gateway. The current era is incoming into a new
speed in payment system by using digital wallets filled with coupons and offers. In this
today’s busiest world people don’t have their time to sit and relax then how can do their
personal works like to recharge their phones, to pay electricity bill, insurance or to shop etc.
Hence to make people tension free new application has been introduced i.e. Paytm or payu
money. People are using this application in their mobile phones in higher percentage and
made help them to do their works easier. The present research paper is focusing on customer
perception towards paytm application, impact of these new digital payment systems on
customers and problems encountered if any.

Keywords: Digital Payment System, Paytm, Pay U Money, digital wallets, coupons and
offers.

Introduction
Smartphone play a vital role in this regard offering users a great platform for
communication and access to a wide range of applications. Paytm is the Indian mobile-first
financial services company that offers payments, banking, lending and insurance to
consumers and merchants through its mobile app. Paytm now offers multiple products
ranging from primary mobile recharges to buying apparels or electronics enabling customers
to get everything at one place. Paytm is growing faster and they have over 20 million
registered users as per their current data. It was founded under the implemented idea of
Paytm to serve multiple needs of the customers, giving them a holistic experience by saving
their time and efforts.

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Digital payment system includes 3 general electronic payment instruments namely,

cash, cheque, and card. The purpose of an electronic payment is to transfer value from payer
to payee. In today’s world, we need an e-payment system that would not only give safe
payment but should also have attempted to use mobile devices as “electronic wallet” to store
payment details and account information.
Objectives of the Study
 To know the consumer perception towards Paytm.
 To analyze the growth and development of the Paytm.
 To study the various problems faced by the consumer during paying money in online.
 To find out the awareness and preference of the user of Paytm towards service
providers.
Hypothesis of the Study
 There is no significance relationship between occupation and satisfaction level of
consumer’s perception towards Pay Tm App.
 There is no significance relationship between family income and satisfaction level of
consumer’s perception towards Pay Tm App.
Scope of the Study
The scope of study is entitled “consumers perception towards Paytm application with
special reference to Coimbatore city”. The study will be able to reveal the preferences, needs,
perception of the consumers regarding the usage of Pay Tm application. It also help to know
whether the existing services and offer’s are really satisfying the consumer’s needs. The
study involves ascertaining the customer perception towards various areas such as services,
payment system and offering facility etc.
Limitations of the Study
 The study is confined to Coimbatore city.
 The study was limited to a sample size of 120 respondents.
 This period of study has been limited.
 The details given by the respondents are considered as true and the results are based
on this assumption.
Statement of the Problem
The companies should be dynamic and should update themselves according to the
changing needs of the consumer’s. Coming to our study consumers perceptions can give a lot
of inputs and scope for improvement. Lots of customers across all the ages, income
groups and occupations are using the Paytm. Ascertaining customer’s perception

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becomes very complicated. Lots of complications are involved in ascertaining the perception
like Paytm is a service, and it is very difficult to understand how the customers perceive.

One of the reasons to push towards the implementation of e-wallets (paytm) is the
demonetization. With the technology progression and adoption in each sector there came a
different approach to the currency handling. Hence the study concentrated on the topic
“Customer Perception towards Paytm Application with special reference to Coimbatore City”
Research Methodology
The current study is based on primary data collected from 120 respondents from the
Coimbatore city. A well-structured questionnaire was designed to collect the information
from the respondents the questionnaire was designed to study perception of customer towards
usage of Paytm.
Data Collection
This research used Primary and Secondary data for drafting the report on present
research work. Primary data collected through questionnaire prepared and collected feedback
from the respondents, and the perception towards the online payment. Secondary data
collected from the sources of books journals and internet sources.
Sample Size
In this study the primary data collected from consumers with 120 respondents were
selected for the study.
Research Tools & Techniques
The Percentage Analysis and Chi Square tools are used in the study for the purpose of
analysis.
Review of Literature
Daravath and Arun (2018) discuss the Indian consumer perception towards Paytm mobile
wallet application. The research data for the study is collected using a survey questionnaire
which was distributed to 250 respondents but only 205 responses were valid and considered
for analysis. The findings conclude that consumers opined that the use of Paytm application
was both easy and made them move from place to place without carrying a physical wallet.
Jain Meenu, 2017, in their paper the cashless economy is maintaining the flow of cash in the
economy. E-payment service is provided by the services like Immediate payment service
(IMPS), National electronic fund transfer (NEFT) and Real-time gross settlement (RTGS).
The customers are more preference the plastic money over the cash and paper money mobile
banking among the distributed mass of urban, rural, young and previous users. Merwyn

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D’souza, Prof. Kingshuk Bhadury, 2017 the explosive upsurge of usage of mobile wallets
in India. We have a tendency to then undergo some already existing analysis work, building
thereon and at an equivalent time attempting to work out wherever we have a tendency to
truly stand as compared to the physical wallet and mobile wallet. Abhijit and Harmeet
(2017) studies about the Paytm usage by smartphone users and also attempts to analyse the
various obstacles faced by the Paytm users. A structured questionnaire was distributed to 230
smartphone users but only 151 responses were valid and considered for data analysis. The
researchers‟ have used the descriptive method in order to get the statistical results. The
findings conclude that Paytm wallet has to work upon the payment gateway to improve the
transaction efficiently and to work upon transaction time, discounts and offers. Dr. Poonam
Painuly, Shalu Rathi, 2016 in their paper “Mobile Wallet: An upcoming model of business
transactions” has explained about mobile wallet, types and trends and discussed about role of
mobile wallet in various sectors like Banks, Retail and Hospitality. The paper explains the
importance of mobile wallet for Banks, Customers and Companies. Prof Trilok Nath
Shukla, 2016 “Mobile Wallet: Present and the Future” has discussed about mobile wallet,
working, types and its advantages and disadvantages. His analysis included perception of
consumers and retailers about mobile wallets. He concluded that mobile wallets will be used
to engage with the customer by the marketers and digital businesses.
Analysis and Interpretation
Table: 1: Simple Percentage Analysis
Showing Personal Factor, Preference of PayTm, expectations and Factor influencing of using
PayTm

No. Of
Factor Options Percentage
Respondents
>25 Years 50 33
26-35 Years 52 43
Age
36-45 Years 14 12
<46 Years 4 3
Female 73 61
Gender
Male 47 39
Married 52 43
Marital status
Single 68 57

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Primary 7 6
HSC 22 18
Educational qualification
Graduation 66 55
Professionals 25 21
Business 16 13
Professionals 49 41
Occupation
Private/Govt 38 32
House wife 17 14
Below20000 25 21
Income 20000-30000 32 27
30000-40000 41 34
Above40000 22 18
Social Media 28 23
Information about PayTm Friend/ Relatives 58 48
Magazine 20 16
Television 15 13
Smartphone 53 44
Devices of using PayTm Computer 31 26
Both 20 17
Money transfer 29 24
Recharge 44 31
Purpose of PayTm
Utility bill 26 22
Ticket booking 21 18
Available discount 31 26
Premium 29 24
Factors of using PayTm
Cash back 33 28
Gift voucher 27 23
Daily 19 16
How long do you use Weekly 34 28
PayTm 15 days once 45 38
Monthly 23 18
Transaction are secured Yes 86 72

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while using PayTm No 34 28

Problem of while using Yes 74 62
PayTm No 46 38
New updates are available Yes 80 67
on PayTm No 40 33
Delay confirmation 36 30
Problem in
New updates not available 56 47
barcode
Others 27 23
Strongly agree 81 68
Agree 30 25
Satisfaction level of
Moderate 5 4
PayTm
Disagree 3 3
Strongly agree 1 0
Convince 32 27
Reward 42 35
Rewards of the PayTm Easy tracking 22 18
Short of currency
24 20
note
Strongly agree 69 58
Agree 33 28
Rate of the PayTm Moderate 17 14
Disagree 1 0
Strongly agree 0 0
Is PayTm services is clear Yes 85 71
and understandable No 35 29
Recommend of using Yes 76 63
PayTm to others
No 44 37

Source: Primary data

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Interpretation
The majority of the respondents 43% are belong to under age group 25-35.Most of
respondents 61% are female. Many of respondents 57% are singles. 55% of graduation is
using PayTm. The majority of the respondents 41% are professionals. 48% respondents are
get information about the PayTm through friends& relatives. 44% respondents are using
smart phone devices. 31% respondents are using a PayTm for recharge. The majority of the
respondents 28% are using a PayTm for cash back. The majority of the respondents 38% are
often using a PayTm for 15 days once.72% respondents are feel secured of using a PayTm.
62% respondents are having a problem of using a PayTm. The majority of the respondents
67% are saying yes of PayTm. 47% respondents are state their problems of using PayTm.
The majority of the respondents 68% are strongly agree. 35% respondents are often using a
PayTm for rewards. 69% respondents are strongly agreed with their rating about PayTm. The
majority of the respondents 71% are understandable about PayTm. 63 % respondents are
recommending to others to use PayTm.

Chart I

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Chart 2

Chart 3

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Null hypothesis

There is no significant different between satisfaction level of “consumers perception

towards PayTm App”.

CHI-SQUARE TABLE I

Calculated
Chi-square Chi-square df P-Value S/Ns Remarks
Value
Income 56.8 12 0.000* S Rejected
*S- Significant at 5% level

It is revealed from the above table that the P-value is less than 0.05(P<0.05) and the result has
been significant at 5% level. Hence, the null hypotheses (H0) is rejected and the alternative
hypotheses (H1) is accepted, thus the alternate hypothesis “consumers perception to PayTm
App”. From the analysis it is found that there is a relationship between the hypothesis
“consumers perception to PayTm App”
Null hypothesis
There is no significant different between satisfaction level of “consumers perception
towards PayTm App”.

CHI-SQUARE TABLE II

Calculated
Personal
Chi - square df P-Value S/Ns Remarks
Chi- square
Value
Occupation 56.7 12 0.000* S Rejected
*S- Significant at 5% level

It is revealed from the above table that the P-value is less than 0.05(P<0.05) and the result
has been significant at 5% level. Hence, the null hypotheses (H0) is rejected and the
alternative hypotheses (H1) is accepted, thus the alternate hypothesis “consumers perception
to PayTm App”. From the analysis it is found that there is a relationship between the
hypothesis “consumers perception to PayTm App”

Findings

The majority of the respondents 43% are belong to under the age group 25-35. Most of
respondents 61% are female. The majority of the respondents 57% are singles.55% are
graduation respondents are using PayTm. The majority of the respondents 41% are
professionals. 48% respondents are get information about the PayTm from friends and

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relatives.31% respondents are using a PayTm for recharge. The majority of the respondents
28% are using a PayTm for cash back. 38% respondents are often using a PayTm for 15 days
once. The majority of the respondents 72% are feel secured of using a PayTm. Most of
respondents 62% are having a problem of using a PayTm. The majority of the respondents
67% are saying new updates in App store PayTm. 47% respondents are state their problems.
The majority of the respondents 68% are strongly agree. The majority of the respondents
35% are often using a PayTm for reward. The majority of the respondents 71% are
understandable about PayTm. The majority of the respondents 63 % are understandable about
PayTm.

Suggestions

 Using the upcoming technology Internet of Things can even open new avenues for
PayTm as retailers would use different apps and even in restaurant and beverage
industry to make the users aware of products and schemes.
 Whereas lack of knowledge and perceived risks are rebelling them backwards.
 Cultural factors and social influence of alternative is making people of middle age
group to look for alternatives.
 Today more of youth is intending to use PayTm or will get intended to use them for
them the value perceived is high for PayTm.
 Standardization of PayTm is another issue.

Conclusion

PayTm supports their customers to transfer their payments with the usage of their
mobile phones in the easiest way. PayTm is a good app to download due to its wide network
of partners which makes it convenient whether you're taking a cab ride with Uber, or ordering
a meal via Food panda. PayTm has to work upon the Payment gateway to improve the
transaction efficiency as 70% people faced problem with payment gateway. Only 5% people
claim to have got assistance every time they had a failure so the service could be improved to
cater the needs of maximum customers. PayTm is currently performing well in terms of
privacy but it has to work upon discounts/offers, transaction time and bring about innovation
to increase customer satisfaction.

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Reference

 Bappaditya Mukhopadhyay, 2016. The economics of mobile payments:

understanding stakeholder issues for an emerging financial technology
application, Electron Commerce Research and Applications, 7(2), pp.141–164.
 Ali Sadia Samar and Kaur Rajbir; An empirical approach to customer perception
of mobile banking in Indian scenario; International Journal of Business
Innovation and Research; January 2015.
 Jain meenu; Impact of Cashless Economy in Nigeria; Greener Journal of Internet
Information and Communication System; Vol.1, April 2013.
 Khan Jashim and Craig-lees,Risk Perception Analysis on the use of Electronic
Payment Systems by Young Adult; Asia Pacific University of Technology and
Innovation; Issue 1, Volume 10, January 2013.
 Patil Shashma, 2014 The Impacts of Information Technology in a Cashless
Economy in Nigeria; The International Journal Of Engineering And Science
(IJES); Volume 2 Issue 10 Pages 80-86, 2013.

Bibliography

http://www.researchpublish.com
http://www.sodhganga.com
http://www.allsubjectjourney.com
http://PayTm.com

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