EFFICIENCY OF ELECTRONIC PAYMENT SYSTEMS

(PHASE – III)
A PROJECT REPORT

Submitted by

MANISH SINGH (20BCM1038)

RIYA GUPTA (20BCM1154)

AKSHIT AGGARWAL (20BCM1158)

AYUSH VERMA (20BCM1327)

in partial fulfilment for the award of the degree of

BACHELOR OF COMMERCE (HONOURS)

IN

BRANCH

Chandigarh University

March, 2023
 DESIGN FLOW / PROCESS

Abstract
This Research Paper is based on the in-depth study of applications that deals
with Digital Payment Systems in India. It shows how the dynamics are
changing in the Digital Payments sector and which companies are leading the
table. The study was conducted in Punjab Region and the survey was done with
the help of questionnaire. A response of 82 respondents has been collected and
then accordingly a conclusion is made. The Data for the study was also
conducted from secondary sources which eventually helped us to get a fair
understanding of the Industry. In today’s world one word is common that is
“Digitalisation” and it is also gaining popularity due to increase in use of
Smartphone by the people, the same has applied to the financial sector. In
India, the Digital Payments was launched in the year 2005 by Industrial Credit
and Investment Corporation of India (ICICI) but later on National Payments
Corporation of India (NPCI) was established in 2008 to create a more
established payment and settlement infrastructure in the country. That has since
given birth to various products and services, including India’s unique digital
identity system Aadhaar in 2010 and many more. Recently UPI (Unified
Payment Interface) has become one of the most widely used digital payment
method. UPI is a payment server which allows its users to transfer the money
on real-time basis from Peer-to-Peer (P2P) or from Person-to-Merchant (P2M).
It is an application that allows the users to use multiple bank accounts in single
application. In India, UPI is currently in a growth stage and showing a robust
growth year-on-year. In this research we will have an in-depth study of various
Digital Payment Systems & 5 major UPI apps in India namely Google Pay,
PhonePe, Amazon Pay, Paytm and BHIM.
 INTRODUCTION
Digital payment systems have gained significant popularity in India over the
last few years. The Indian government's push towards digitalization and
financial inclusion, along with the rapid growth of internet and smartphone
penetration in the country, has led to the widespread adoption of digital
payment systems.

In 2016, the Indian government launched the "Digital India" campaign, which
aimed to promote digital literacy and create digital infrastructure across the
country. As a part of this campaign, several digital payment systems were
introduced, including the Unified Payments Interface (UPI), which has
emerged as the most popular digital payment system in the country.

UPI is a real-time payment system that allows users to transfer money instantly
between bank accounts using a mobile phone. It is an interoperable platform
that can be used by anyone with a bank account, regardless of the bank or
mobile service provider they use.

Apart from UPI, other popular digital payment systems in India include mobile
wallets such as Paytm, PhonePe, Google Pay, and Amazon Pay. These mobile
wallets allow users to store money in a digital form and make payments for a
wide range of services, including utility bills, mobile recharges, and online
purchases.

The introduction of digital payment systems has had a significant impact on

India's economy, with a shift towards a cashless economy and increased
financial inclusion. Digital payment systems have made it easier for individuals
and small businesses to access financial services and participate in the formal
economy. They have also helped to reduce the cost of transactions and improve
the efficiency of the payment system.
However, the adoption of digital payment systems in India is still not universal,
and there are challenges related to infrastructure, connectivity, and digital
literacy that need to be addressed. The government and private sector are
working together to overcome these challenges and promote the wider adoption
of digital payment systems in India.

TRENDS IN DIGITAL PAYMENT SYSTEMS

Financial Year Total number of digital transactions

(FY) (in crore) #

2017-18 2,071

2018-19 3,134

2019-20 4,572

2020-21 5,554

2021-22 8,840

2022-23 9,192*

Digital payment systems in India have been evolving rapidly over the past few
years, and there are several trends that are shaping the future of digital
payments in the country. Here are some of the key trends in India:

1. Growth of UPI: The Unified Payments Interface (UPI) has emerged as the
most popular digital payment system in India, with over 2.7 billion transactions
worth over INR 5 trillion in March 2021. UPI has grown rapidly since its
launch in 2016, and it is expected to continue to grow in the coming years.
2. Increase in mobile payments: With the widespread adoption of smartphones
and mobile internet, mobile payments have become increasingly popular in
India. Mobile wallets such as Paytm, PhonePe, Google Pay, and Amazon Pay
have gained significant popularity in the country, and they are expected to
continue to grow in the future.

3. Rise of contactless payments: The COVID-19 pandemic has accelerated the

adoption of contactless payments in India. Contactless payment methods such
as QR codes, NFC, and UPI QR codes have gained popularity as they reduce
the need for physical contact during transactions.

4. Integration of digital payments with other services: Digital payment systems

in India are increasingly being integrated with other services such as e-
commerce, food delivery, and ride-hailing. This integration is making it easier
for consumers to make payments for a wide range of services.

5. Adoption of blockchain technology: Blockchain technology is being

explored for its potential to improve the security and efficiency of digital
payment systems in India. The Reserve Bank of India (RBI) has formed a
committee to explore the use of blockchain technology for financial services in
the country.

These trends are expected to continue to shape the future of digital payment
systems in India, and we can expect to see further innovation and growth in
this sector in the coming years.

Objectives:
1. To study the concept of
Digital payment system and
cashless transactions.
2. To know the Impact of
Digital payment system
3. To know the advantages of
cashless transactions
4. To know the opportunities
and challenges of e- payment
system in India
Objectives:
1. To study the concept of
Digital payment system and
cashless transactions.
2. To know the Impact of
Digital payment system
3. To know the advantages of
cashless transactions
4. To know the opportunities
and challenges of e- payment
system in India

Objectives:
1. To study the concept of
Digital payment system and
cashless transactions.
2. To know the Impact of
Digital payment system
3. To know the advantages of
cashless transactions
4. To know the opportunities
and challenges of e- payment
system in Ind
RESEARCH METHODOLOGY
Objectives:

1. To study the concept of Digital Payment System & Cashless Transactions.

2. To know the Impact of Digital Payment System

3. To know the advantages of Digital Payment System

4. To know the opportunities & challenges of E-Payment System in India

Data Collection Method:

Data for the study was collected from primary as well as secondary method.

Primary sources of data collection:

The data was this research was collected through Structured Questionnaire
which was asked to the respondents. The questionnaire was prepared with
google forms.

Secondary sources of data collection:

When data is collected from other sources which has been published or
released earlier is known as secondary data. Secondary Data helps the
researcher to have a better knowledge of the topic and to interpret more
accurately. The secondary sources of data for this research were Government
websites, Newspapers, Magazines, Other Published Journals, Reports by
various companies, etc.