A STUDY ON IMPACT OF MOBILE PAYMENTS WITH SPECIAL

REFERENCE TO STUDENTS

Dissertation Report submitted in Partial fulfillment of the requirement for the

Award of the degree of
MASTER OF BUSINESS ADMINISTRATION
of
BANGALORE UNIVERSITY

By
Mr. Harish Gowtham. A
Register No: P03AS21M0125

Under the guidance of

Dr. Ravichandra Reddy
Professor

DEPARTMENT OF BUSINESS MANAGEMENT

AIMS-IBS COLLEGE, BOMMASANDRA,
BANGALORE-560099

2022
A STUDY ON IMPACT OF MOBILE PAYMENTS WITH SPECIAL
REFERENCE TO STUDENTS

Dissertation Report submitted in Partial fulfillment of the requirement for the

Award of the degree of
MASTER OF BUSINESS ADMINISTRATION
of
BANGALORE UNIVERSITY

By
Mr. Harish Gowtham. A
Register No: P03AS21M0125

Under the guidance of

Dr. Ravichandra Reddy
Professor

DEPARTMENT OF BUSINESS MANAGEMENT

AIMS-IBS COLLEGE, BOMMASANDRA,
BANGALORE-560099

2022
 STUDENT DECLARATION

I hereby declare that the Dissertation report titled “A STUDY ON IMPACT OF

MOBILE PAYMENTS WITH SPECIAL REFERENCE TO STUDENTS” submitted
in partial fulfillment of the requirement of degree of Master of Business Management in
Bangalore University, has been prepared by me during the academic year 2020-2022 under
the Guidance Dr. Ravichandra Reddy in Department of Management.

I further declare that this Dissertation Report is the outcome of my own efforts and that is
not submitted to any other University or Institute for the award of other degree or diploma
or other certificate.

Place: Bangalore Mr. Harish Gowtham. A

Date:
Register No: P03AS21M0125
 CERTIFICATE FROM THE COLLEGE

This is to certify that Mr. Harish Gowtham. A bearing Register no: P03AS21M0125
has successfully completed the Dissertation Report titled “A STUDY ON IMPACT OF
MOBILE PAYMENTS WITH SPECIAL REFERENCE TO STUDENTS” for the
partial fulfillment of the requirement of the Bangalore University for the award of Master
of Business Administration. This research work was carried out by him and it is original
in nature.

Dr. VENKATESH A ARAKERI

PRINCIPAL
 Certificate of Originality
(In College Letter head)

This is to certify that the dissertation titled “A STUDY ON IMPACT OF MOBILE

PAYMENTS WITH SPECIAL REFERANCE TO STUDENTS” is an original work

of HARISH GOWTHAM. A bearing university Register No. P03AS21M0125 and is

being submitted in partial fulfillment for the award of the Master’s degree in Business

Administration of Bangalore University. The manuscript has been subjected to plagiarism

check by Turnitin software. The report has not been submitted earlier either to this

university/institution. For the fulfillment of the requirement of a course of study,

STUDENT NAME is guided by FACULTY GUIDE NAME who is the faculty guide as

per the regulations of Bangalore University.

Dr. VENKATESH A ARAKERI

PRINCIPAL
 CERTIFICATE FROM THE GUIDE

This is to certify that the dissertation report titled “A STUDY ON IMPACT OF

MOBILE PAYMENTS WITH SPECIAL REFERENCE TO STUDENTS” is the
Bonafide work carried out by Mr. Harish Gowtham. A bearing Register no:
P03AS21M0165 in partial fulfillment of the requirement for the award of MBA degree of
Bangalore University, under my Guidance and Supervision.

The Dissertation report submitted by him has been successfully completed and reflects his
hard work and sincere effort.

Place: Bangalore
Dr. Ravichandra Reddy
Date:
Dissertation Guide
Department of MBA
 ACKNOWLEDGEMENT

I owe a deep sense of gratitude to those who have contributed to the successful completion
of this endeavor and take this opportunity with much pleasure to thank all the people who
have helped us through the course of journey towards producing this Dissertation report.

At the onset, I express my gratitude to the Almighty God for his abundant grace, blessings
and goodwill throughout this project.

I am grateful to my guide Dr. Ravichandra Reddy, AIMS-IBS College for their constant
support, encouragement and guidance.

I am grateful to who gave his valuable time for the interaction and allowed me to carry
out this project.

I would also like to thank all who helped me directly or indirectly in completing this project
successfully.

Name of the student: Harish Gowtham. A

Register number: P03AS21M0125
 PLAGIARISM REPORT

Title of the project: A STUDY ON IMPACT OF MOBILE PAYMENTS WITH SPECIAL

REFERANCE TO STUDENTS
Total pages: 55
Name of the student: Harish Gowtham. A
Department/Subject: Management Studies
Name of the Guide: Dr. Ravichandra Reddy
This is to certify that the above project was scanned for similarity detection. Process and
outcome is given below
Software Used: TURNITIN DATE:
Similarity Index: Total words count: 10214

`
 Continued…….

The content of the chapters and the publications which have been excluded from the software
check:
a) Initial pages/preliminary pages, list of tables, charts, graphs, abbreviation
b) Review of literature
c) Bibliography, annexure.
d) Publications.

This is study is based on original result and has not formed the basis for the award of any
degree, diploma, associate ship, fellowship or any other similar title from any other universities
previously.
The complete report of the above project has been reviewed by the undersigned (Please tick
the box)
Similarity index is below the expected norms.
Similarity index is above expected norms, because of the following reasons:
The project report may be processed for evaluation

Checked by:
Dr. Ravichandra Reddy
 Table of Contents
Sl. No Report particulars Page No.
1. Executive summary 1
2. CHAPTER I 2 – 11
Introduction
3. CHAPTER II 12 – 16
RESEARCH METHODOLOGY
• Title of the study
• Introduction
• Statement of the problem
• Need of the study
• Scope of the study
• Review of Literature
• Objectives of the study
• Hypothesis Statement
• Research Design
• Limitations

4. CHAPTER III 17 – 28
Company Profile
5. CHAPTER IV 29 – 46
Data analysis & interpretation
6. CHAPTER V 47 – 49
Key findings suggestions and conclusions
7. References, annexures 50 – 55
 List of Tables
Sl. no. Particulars Page
no.
1 Table 1.1.1TABLE SHOWING APP WISE MARKET SHARE 6
2 Table 4.1.1 TABLE SHOWING THE DISTRIBUTION IN AGE 29
OF RESPONDENTS
3 Table 4.1.2 TABLE SHOWING THE DISTRIBUTION IN 30
GENDER OF RESPONDENTS
4 Table 4.1.3 TABLE SHOWING THE DISTRIBUTION IN 31
EDUCATION LEVEL OF RESPONDENTS
5 Table 4.1.4 TABLE SHOWING THE DISTRIBUTION IN 32
MODE OF ONLINE PAYMENTS USED THE MOST BY
RESPONDENTS
6 Table 4.1.5 TABLE SHOWING THE DISTRIBUTION UPI APP 33
IS MOSTLY USED BY RESPONDENTS
7 Table 4.1.6 TABLE SHOWING THE REASONS FOR 34
PREFERENCE OF MOBILE PAYMENT BY RESPONDENTS
8 Table 4.1.7 TABLE SHOWING HOW OFTEN YOU USE 35
ONLINE MODE OF PAYMENT BY RESPONDENTS
9 Table 4.1.8 TABLE SHOWING HOW MANY CREDIT CARDS 36
HAD BY RESPONDENTS
10 Table 4.1.9 TABLE SHOWING WHAT MODE DO YOU USE 37
WHILE ONLINE PURCHASE BY RESPONDENTS
11 Table 4.1.10 TABLE SHOWING WHETHER RESPONDENTS 38
START USING MOBILE PAYMENTS MORE AFTER
PANDEMIC
12 Table 4.1.11 TABLE SHOWING RESPONDENTS THINKING 39
THAT THEY SPEND MORE WHILE YOU USING MOBILE
PAYMENTS OVER TRADITIONAL PAYMENTS
13 Table 4.1.12 TABLE SHOWING HOW OFTEN YOU HAVE 40
PROBLEMS IN MOBILE PAMENTS FOR RESPONDENTS
14 Table 4.1.13 TABLE SHOWING SATISIFACTION LEVEL 41
TOWARDS MOBILE PAMENTS FOR RESPONDENTS
15 Table 4.1.14 TABLE SHOWING SATISIFACTION LEVEL 42
TOWARDS REWARDS FROM USING MOBILE PAMENTS
FOR RESPONDENTS
16 Table 4.1.15 TABLE SHOWING SATISIFACTION LEVEL 43
TOWARDS TRANSCATION SPEED FROM USING MOBILE
PAMENTS FOR RESPONDENTS
17 Table 4.1.16 TABLE SHOWING SATISIFACTION LEVEL 44
TOWARDS CONVENIENCE OF THE SERVICES PROVIDED
FOR RESPONDENTS
18 Table 4.2.1 TABLE SHOWING CHI-SQUARE TEST 45
BETWEEN EDUCATION BACKGROUND AND
SATISFACTION TOWARDS PAYMENT SPEED.
19 Table 4.2.2 TABLE SHOWING CHI-SQUARE TEST 46
BETWEEN GENDER AND SPENDING MORE WHILE YOU
USE MOBILE PAYMENTS.
 List of Figures/ Graphs
Sl. no. Particulars Page
no.
1 Chart 4.1.1 Chart SHOWING THE DISTRIBUTION IN AGE OF 29
RESPONDENTS
2 Chart 4.1.2 Chart SHOWING THE DISTRIBUTION IN 30
GENDER OF RESPONDENTS
3 Chart 4.1.3 Chart SHOWING THE DISTRIBUTION IN 31
EDUCATION LEVEL OF RESPONDENTS
4 Chart 4.1.4 Chart SHOWING THE DISTRIBUTION IN MODE 32
OF ONLINE PAYMENTS USED THE MOST BY
RESPONDENTS
5 Chart 4.1.5 Chart SHOWING THE DISTRIBUTION UPI APP IS 33
MOSTLY USED BY RESPONDENTS
6 Chart 4.1.6 Chart SHOWING THE REASONS FOR 34
PREFERENCE OF MOBILE PAYMENT BY RESPONDENTS
7 Chart 4.1.7 Chart SHOWING HOW OFTEN YOU USE ONLINE 35
MODE OF PAYMENT BY RESPONDENTS
8 Chart 4.1.8 Chart SHOWING HOW MANY CREDIT CARDS 36
HAD BY RESPONDENTS
9 Chart 4.1.9 Chart SHOWING WHAT MODE DO YOU USE 37
WHILE ONLINE PURCHASE BY RESPONDENTS
10 Chart 4.1.10 Chart SHOWING WHETHER RESPONDENTS 38
START USING MOBILE PAYMENTS MORE AFTER
PANDEMIC
11 Chart 4.1.11 Chart SHOWING RESPONDENTS THINKING 39
THAT THEY SPEND MORE WHILE YOU USING MOBILE
PAYMENTS OVER TRADITIONAL PAYMENTS
12 Chart 4.1.12 Chart SHOWING HOW OFTEN YOU HAVE 40
PROBLEMS IN MOBILE PAMENTS FOR RESPONDENTS
13 Chart 4.1.13 Chart SHOWING SATISIFACTION LEVEL 41
TOWARDS MOBILE PAMENTS FOR RESPONDENTS
14 Chart 4.1.14 Chart SHOWING SATISIFACTION LEVEL 42
TOWARDS REWARDS FROM USING MOBILE PAMENTS
FOR RESPONDENTS
15 Chart 4.1.15 Chart SHOWING SATISIFACTION LEVEL 43
TOWARDS TRANSCATION SPEED FROM USING MOBILE
PAMENTS FOR RESPONDENTS
16 Chart 4.1.16 Chart SHOWING SATISIFACTION LEVEL 44
TOWARDS CONVENIENCE OF THE SERVICES PROVIDED
FOR RESPONDENTS
 A STUDY ON IMPACT OF MOBILE PAYMENTS WITH SPECIAL
REFERANCE TO STUDENTS

EXECUTIVE SUMMARY

Abstract:

Mobile payments are becoming increasingly popular as consumers become accustomed

to the technology and merchants offer contactless transactions. Indian mobile payments are
expected to grow five times by 2025. Digital payments have a major impact on the Indian
economy. Government efforts to make India cashless are going well, but it will take time to
become completely cashless due to other challenges. This study examines the impact of smart
phones in mobile payments and its impact on students, their acceptability, and the impact of
age in online payment methods, The present era is entering into a new pace in digital payment
system by using digital wallets filled with coupons and offers. In particular, the mobile payment
system has emerged, enabling users to pay for goods and services using their mobile phones
wherever they go. To make people stress free and to make transactions easy new application
has been introduced. The present research paper is focusing on the impact and usage of these
new digital payment systems on students and problems encountered if any. This research is
based on Descriptive Research and uses Questionnaire methods for data collection, total 100
respondents has been collected . Statistical tool used include Chi-Square test and data analysis.

KEYWORDS: Mobile payment, Payment behaviour, Rewards, UPI.

pg. 1
 CHAPTER I

INTRODUCTION

1.1: BRIEF INTRODUCTION ABOUT THE TOPIC OF REPORT

Mobile payments via digital wallets have been already turning into greater famous as
consumers grew accustomed to the technology and as extra merchants started providing
terminals that take mobile payments from devices at the point of sale. Naturally, COVID-19
makes contactless transactions even greater welcome. 67% of customers these days choose
mobile self-checkout options.

• Mobile payments are useful. A smartphone is extra accessible than a pocketbook for
many people, who make up extra than 81% of American smartphone owners. The day by day
features that smartphone customers anticipate from them, like checking the weather and
updating their social media accounts, lead logically to mobile payments. Paying for a regularly
used device is now simpler and handier than ever.

• All monetary things to do are now completely digital thanks to mobile payments. A
family budget must consist of purchaser spending as a key item. Digital wallets are effortlessly
built-in into software program and cell apps to assist customers hold track of what, where, and
how frequently they spend money. Customers can additionally be furnished digital receipts to
make it simpler to maintain track of their spending, minimize paper waste, and decrease
expenses for retailers.

• Transactions on cell are swift. The time it takes to tally cash or wait for a smart card
exchange will increase. When the use of mobile payments, customers actually display their
gadget and confirm the transaction, often with the aid of shortly scanning their smartphone for
face recognition. Companies’ income from quicker transfers, while customers gain from a
quicker, extra streamlined experience. Today, the market for e-commerce is increasing very
quickly. In 2012, the use of digital payment methods will increase by way of 21% as a end
result of the proliferation of tablets and cellphones. (Rau, 2013). In many buying and selling
markets, credit cards are the most famous technique of overseas on-line payment. According
to estimates, credit cards are used in 95% of all e-commerce purchases in the US. Debit cards,
which have a growing quantity of customers globally, and on-line payment platforms like
PayPal, Stripe, or Skrill are extra frequent choices to usual on-line payment methods. Indian
mobile payments to grow five times by means of 2025 Currently valued at INR 25,000,000,

pg. 2
mobile payments are expected to extend at a CAGR of 58% to attain INR 245,000 in finance
25 years from now. High level of customer satisfaction with mobile payments in contrast to
different methods will gas this development. Government initiatives like the removing of
MDR, the requirement of QR UPI for corporations with revenues of 50 crore INR or more,
Video KYC, and others motivate corporations to use their services more frequently.

Digital Payments and Their Impact on the Indian Economy :

India has massive possible for digital payments. In 1996, ICICI added on-line banking
services, and in 1999, banks such as HDFC, IndusInd and Citi launched on-line banking
services. In 2008, NPCI used to be set up to create a strong contract and price infrastructure.

Benefits of Mobile Payments :

Both clients and shops certainly favor the checkout system to cross extra quickly.
Mobile repayments may also be the quickest structure of money. Usually, people transport them
to a place that is rapid and convenient to get to. To make the purchase, they generally solely
want to press them on the screen.

Online Payment System :

Koponen (2006), who has studied a number of digital payment systems, that there are
several on line payment systems that have emerged in current years and that these structures
can be commonly categorized as digital cash and account systems. These applications furnish
a range of payment options, such as:

• Electronic payment cards (debit, credit, and payment cards)

• Virtual credit cards

• Mobile payments.

DIGITAL PAYMENTS IN INDIA

The Digital India is the Indian Governments flagship program with a vision to convert India
into a digitally empowered country. Faceless, Paperless, Cashless is one of supposed function
of Digital India. As part of government reforms Prime Minister Mr. Narender Modi
demonetized the high value currency of Rs. 500 and 1000 in November 2016 and also launched
the digital India initiative in 2015.These initiatives have provided extensive boost up to the
digital payment system in the country. Governments other initiatives like BHIM and UPI are

pg. 3
supporting in transition and faster adoption of digital payments. 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 digital payment system has the following phases:

1. Registration

2. Invoicing

3. Payment selection

4. Payment confirmation.

This payment system generally includes 3 electronic payment instruments namely, cash,
cheque and card. Post demonetization is affecting the e-commerce sector that Cash on Delivery
is gradually getting stopped and other modes of payment is replaced like Card on Delivery, Net
Banking, Debit Card, Credit Card etc. Demonetization will positively help out e- commerce
industry in India enhances the chance for people to go cashless.

As part of encouraging cashless transactions and transforming India into less-cash society,
various modes of following digital payments are available and also be adopted by many
citizens.

DEBIT / CREDIT CARD:

Suitable for: Online/offline merchant sale. Transaction limit: Set by card issuer Details
required: Card number CVV Expiry date Cost: Debit cards: Up to 0.75% for transactions up to
Rs 2,000; up to 1% for transactions above Rs 2,000. Credit cards: around 2.5% per transaction

RTGS / NEFT:

Suitable for: High value online transactions. Transaction limit: International Journal of Pure
and Applied Mathematics Special Issue No upper limit, minimum Rs 2 lakh. Up to Rs 10 lakh,
minimum Rs 1 Details required: Account number Password Beneficiary registration IFSC code
Cost: RTGS: Up to Rs 55 per transaction. NEFT: Up to Rs 25 per transaction.

IMPS:

Suitable for: Instant transfer Transaction limit: Rs 2 lakh per day Details required: Account
number Password Beneficiary registration IFSC code Cost: Rs 5-15, depending on transaction
amount.

pg. 4
UPI:

Unified Payments Interface (UPI) is an immediately real-time payment system

developed with the aid of National Payments Corporation of India (NPCI). The interface helps
inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. It is used on mobile
devices to immediately switch money between two financial institution accounts. The mobile
number on the system is required to be registered with the bank. The UPI ID of the recipient
can be used to send and recive money. It runs as an open source application programming
interface (API) on top of the Immediate Payment Service (IMPS), and is regulated by the
Reserve Bank of India (RBI). RBI Governor Dr. Raghuram G. Rajan launched the pilot
program in Mumbai on 11 April 2016. Banks have began depositing their UPI-enabled apps on
the Google Play store from August 25, 2016.

As of May 2021, the platform has over a hundred million monthly active customers in India.
The share of UPI transactions in whole volume of digital transactions grew from 23% in 2018–
19 to 55% in 2020–21 with an average value of ₹1,849 per transaction. Digital transactions net
worth ₹8.31 trillion have been made by the platform in January 2022. In FY 2021–22, the value
of transactions crossed $1 trillion.

As of September 2022, there had been 358 banks accessible on the platform with a month-to-
month extent of 6.7 billion transactions amounting to ₹11.16 trillion (US$140 billion).

UPI market share

pg. 5
 Table 1.1.1

App Wise Market Share

App Transaction Value % Rank Transaction % Rank

(₹) Number (In
Million)

PhonePe 5,247,424,900,000 49.25% 1 2,993.83 47.33% 1

Google Pay 3,666,690,900,000 34.42% 2 2,130.63 33.68% 2

PayTM 1,111,496,600,000 10.43% 3 933.88 14.76% 3

Cred 197,164,300,000 1.85% 4 14.89 0.24% 9

Yes Bank 152,360,400,000 1.43% 5 60.80 0.96% 5

Apps

ICICI Bank 115,092,900,000 1.08% 6 37.34 0.59% 7

Apps

BHIM 78,239,500,000 0.73% 7 24.48 0.39% 8

Amazon 67,518,000,000 0.63% 8 68.77 1.09% 4

Pay

Axis Bank 12,139,500,000 0.11% 9 53.99 0.85% 6

Apps

Airtel 5,552,600,000 0.05% 10 7.41 0.12% 10

Payments
App

pg. 6
1.2: DETAIL EXPLANATION ABOUT THE SPECIFIC AREA OF
REPORT

Adoption of the internet and electronic commerce in business to consumer trade :

With the fast improvement of mobile smart terminals and mobile network conversation
technology in current years, mobile payment primarily based on third-party payment has
steadily been accepted by people and emerge as the major payment technique for people's every
day spending. As a link in the process of consumption, the alternate of payment technique will
inevitably have an effect on consumers' conduct choice. Researchers all consider that the
emergence of non-cash payment adjustments consumers' behavioral choice.

Challenges Faced by Mobile Money in India:

The presence of mobile banking and mobile payment offerings will provide customers
with increased convenience while simultaneously decreasing their costs. However, the stage of
adoption for these services is presently low. Some of the key boundaries to its adoption by
using customers include: firstly, there is a lack of attention about the workable use of smart
phones i.e., still in India people seem mobile phone as a calling and messaging device. The
second difficulty is the lack of easy-to-use and standardized services. There are presently
different channels, different techniques of authentication, and distinct interfaces used via
different service providers. These providers do not supply full help for local languages. Many
customers do no longer have KYC documents which are required with the aid of many services.
Thirdly, there is a lack of have faith in digital money. People nevertheless opt for money for
receiving and making payments. Security, privacy, speed, and the transparency of mobile
payment utilization expenses are all problems that people are worried about. Fourthly, there is
incapacity to switch money across one-of-a-kind mobile provider providers. Fifth cause
consists of the lack of ability to use mobile payment for each and every transaction. People
can't use cell payment for smaller transactions, similarly a unique mobile money payment
might also or may also now not be acceptable at each and every outlet i.e., some shops receive
PayTM whereas some receive Pay U Money. There is a clear unwillingness of quite a number
stakeholders to cooperate in order to put into effect the technology at large. Mobile money can't
be withdrawn as cash. This is the Sixth reason for no longer adopting mobile money. There are
limited amenities for withdrawing money from mobile units as soon as money has been loaded

pg. 7
or received. Users must think about these elements when adopting, understanding, and
beginning to use mobile payment services. In India, the telecom service carriers like Jio, Bharti
Airtel and Vodafone India have developed their individual mobile wallet platforms to grasp the
chance of promising future of mobile payment in India. The Indian mobile wallet segment,
however, is dealing with challenges. Besides that, elements such as choice money switch
channels, low awareness, strict policies related to withdrawals, low profit margins, and bad
network connectivity are additionally preserving back its growth.

Bharti Airtel has been increasing considerably in catering to the want of customers with its
Airtel money. The business enterprise is developing a modern-day technology platform and
coaching programs to teach the masses. Although mobile proximity payments are presently
solely much less than 2%, they are going through a low penetration problem. There is no
infrastructure that allows mobile payments to be accepted, which is a most important element
in low proximity payments. Less than 700,000 POS terminals are observed in India, which
equates to a penetration charge of 5.4%. The problem is exacerbated by means of the reality
that there are greater than thirteen million retail shops increasing in India besides POS
terminals. Since the RBI is accountable for the payments financial institution license, it is the
most necessary component in deciding how mobile payments will evolve in India. A license is
required for each telecom service vendors and third-party payment processors. As telecom
operators without a license are prohibited from the usage of their networks for payment banks,
they can at least use their networks not directly to allow remaining mile connectivity. Cash
withdrawals should on the other hand be made thru a wallet for these with payments financial
institution licenses, which ought to clear up a component of the problem. Paytm is a
organization that operates in the transaction space, however it does no longer have a retail
operation in rural areas, the place the majority of unbanked people reside. Although money
withdrawal, global remittances and so forth has been allowed to be carried out by way of
payment banks, India nonetheless seems to be many years away from mainstream proximity
mobile payments. As a result, the RBI, the Reserve Bank of India, developed a very proscriptive
regulatory framework primarily based on a very unique regulatory framework after feeling that
the context in India used to be different from other nations the place mobile payment offerings
had been successful (Rajiv Lal and Ishan Sachdev (2015)). From all these we say that there are
lot of challenges in India to make the thought of mobile payment successful in India.

pg. 8
COVID-19 Drives Surge in use of Digital Payments

The pandemic was difficult for families and businesses across the world, yet many
believe it accelerated growth in digital payments as people were less physically mobile during
lockdowns and cash was perceived as a vector for COVID-19. Beyond these changes in
customer behavior, there were other conducive actions taken by governments and providers to
grow the use of digital payments systems.

The combination of changing customer behavior, relaxed mobile money regulations,

reduced transfer prices, and massive cash transfer programs seem like the perfect storm to
create goldilocks conditions for accelerated growth in mobile money. However, the loss in
income and reduced ability to make purchases in countries that did not have developed e-
commerce systems also may have played a strong countervailing role. Further, mobile money
is a cash-based system that relies on agents to cash people in and out of the system. If COVID-
19 affected their ability to operate, mobile money services may have suffered. This article
examines the GSMA supply-side data to ascertain the degree to which COVID-19 may have
impacted mobile money systems.

pg. 9
1.3: THEORETICAL BACKGROUND OF THE REPORT

The impact of mobile payment on customer behaviour preference from the point of view
of cost:

Consumers are rational economic people who usually want to pay the lowest transaction
cost when buying goods. James Reardon and Denny Mccorkle(2002) exhibit that the
transaction price is a basic factor for customers to think about when they consume, which
considerably influences consumers' willingness to use . Compared with different payment
methods, the mobile payment has the following cost advantages. The first is the time cost
advantage of shopping. Mobile price makes the integration of on-line and offline shopping
possible. Consumers' purchasing is no longer restricted by time and region, and the time price
of customers for purchasing is significantly reduced. The 2nd is the payment price benefit of
shopping. Online direct sales save the price of transportation and counter. Moreover, the
network platform based totally on mobile payment makes it simpler for customers to shop
around and purchase items at the exceptional price. The 0.33 is the scale price benefit of
shopping. The development of mobile payment promotes the prosperity of network sales. Scale
income are less difficult to realize, and the charges are similarly reduced. These three benefits
allow shoppers to attain a larger customer surplus than the usage of different payment methods.

The influence of mobile payment on consumer behaviour preference from the point of
view of credit

Richard Thaler (1980) has proposed that people location different sources of funds in
different psychological accounts when making consumption decisions, consequently
influencing consumption choices. Aimei Li et al. (2012) trust that the mode of fee earlier than
consumption will make people have a tendency to consume greater every day necessities, while
the mode of payment after consumption will result in people to consume greater luxuries. In
order to cater to the consumption habits of younger consumers, mobile payment companies
have successively launched credit services such as Ant Huabei and Jingdong baitiao, which are
simpler and greater handy to apply for and use than credit cards and different credit services.
It has significantly influenced consumers' wish to purchase valuables, triggered the
differentiation of consumption structure, and accelerated the consumption of luxurious goods.

pg. 10
The impact of mobile payment on customer behaviour choice from the psychological
perspective:

The relationship of psychological elements and payment methods can expose the
consumers' psychological modifications on consumption behaviour when they use one-of-a-
kind payment methods. Compared with money payment, mobile payment is a digital payment
process, at some point of which the tenson is reduced. Moreover, the third-party payment
institutions have developed payment methods such as fingerprint payment, facial price and
code scanning payment, and consumers do no longer want to enter a password when
consuming. They are insensitive to the press of large amount of consumption, which promotes
them to buy extra luxurious goods.

pg. 11
 CHAPTER II

RESEARCH METHEROLOGY

2.1 TITLE OF PROJECT

The title of this project is “A STUDY ON IMPACT OF MOBILE PAYMENTS

WITH SPECIAL REFERENCE TO STUDENTS” which is understanding that students
using mobile payments has a huge impact now and analysing when, how it had happened and
various factors impacts which leads it, now the usage of mobile payments is significantly higher
and it can even lead to cashless economy.

2.2: STATEMENT OF THE PROBLEM

The reason for conducting this research is to know about impact of smart phones in
mobile payments, their acceptability, to examine the impact on student in online payment
method.

2.3: OBJECTIVES OF THE STUDY

• To know the impact of smartphone users towards the mobile payment system among
students.
• To Examine the level of awareness and use of mobile money among students.
• To know whether cashless has helped the Indian economy.
• To Study the proportion of mobile money that students spend.
• To analyse the trend of online payment apps and to study the problems faced by
students in the use of mobile money.

pg. 12
2.4: SCOPE OF THE STUDY

It helps in obtaining sufficient information about awareness of the usage of different

mode of mobile payments among students.

The result are limited by the sample size of 100 numbers and therefore the opinion of
only students are taken into consideration.

Mainly this study is conducted among students and the scope is limited

2.5: NEED OF THE STUDY

The main objective of this study is to study the influence on today's youth exceptionally
students for these challenges, as reported by various organizations in their articles. More than
55 percent of the Indian population is in the age group of 16 to 30 years, and there are most of
them are students, they are not only the future of a bright India, but are among the largest buyer
of technology and the largest users of mobile commerce. Therefore, it is necessary and
interesting to understand the usage of mobile money within the younger population. In addition,
today's youth are more likely to use new technology than others, and it is expected that, in
addition to their purchases, they will also help their family in all online transactions and
payments. This is another important reason why the present study lays emphasis on exploring
the level of awareness and usage of mobile money in young people. This study set out to
examine the usage of mobile phones for undertaking banking and other financial services.
Through the study, the authors tried to examine whether participants considered it easy to use
mobile phones for various payment, transfers and related services, and to what extent they
adopted the same. The objective of the study is to analyse the change it will bring to consumers
'mindset and general purchasing behaviour in relation not only to commercial but non-
commercial transactions.

pg. 13
2.6: LITERATURE REVIEWS

Dr Hem Shweta Rathore (2016) conducted research on consumers Accepting Digital

Wallets. This study focused on the factors that influence a customer's decision to use a digital
payment method. The researcher made recommendations to educate consumers about the
benefits of using digital wallets, and concluded that digital wallets will quickly become a
popular payment method due to their convenience and acceptance.

N Ramya D Sivasakthi and Dr. M Nandhini (2017) conducted research on Cashless

Transactions: Methods, Advantages and Disadvantages. This study focuses on the efforts of
RBI and Government of India to promote digital payment methods and achieve a "less liquid
society". It studied different cashless transaction methods such mobile wallets, UPI apps,
debit/credit cards.

Sujith T S, Julie C D (2017) conducted research on opportunities and challenges of

electronic payment system in India. This study focuses to identify the problems and challenges
of the electronic payment system and propose solutions to improve it. Research shows that the
reach of mobile networks, internet and electricity is extending digital payments to remote areas,
which will increase the number of digital payments.

Ashish Baghla (2018) conducted research on the Future of Digital Payments in India.
This study focus on the adoption of digital payments in India. This study focuses to understand
people's attitudes towards the adoption of digital payment methods in India. It concluded that
government efforts to make India cashless are going well, but it will take time to become
completely cashless due to other challenges.

K. Suma Vally and Dr. K. Hema Divya (2018) conducted research on a study of digital
payments in India with perspectives of consumers. This study focuses to verify the perception
of customers about digital payment in India and suggest appropriate steps to raise awareness
and security of using digital payments.

pg. 14
 Prof. Sana Khan and Ms. Shreya Jain (2018) conducted research on the use of
electronic payments for sustainable online business growth. This study focuses on the
frequency and problems that consumers face when using payment methods. The researchers
also examined the influence of the contribution of electronic payments on the sustainability of
business growth in India.

Priyanka S Kotecha (2018) conducted research on empirical Study of Mobile Wallets

in India. This study examines the importance of M-Wallet in India and highlights its pros and
cons. It also shows the growth of mobile wallets in India from 2012 to 2016, mainly due to the
convenience of mobile wallets.

2.7: RESEARCH DESIGN

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. It is necessary for the
researcher to know not only the research methods/techniques but also the methodology. Thus,
the scope of the research methodology is wider than that of research methods.

2.7.1: METHODOLOGY APPLIED

This research is based on Descriptive Research method.

2.7.2: SOURCES OF DATA

The task of data collection begins after a research problem has been defined and
research design/plans chalked out. While deciding about the method of data collection, the key
source of data collections are used, they are :

• Primary data collection

• Secondary data collection

2.7.3: DATA COLLECTION INSTRUMENT

The Simple Random sampling method is adopted to conduct of research.

pg. 15
 2.7.4: STATISTICAL TOOLS USED FOR ANALYSIS

The data collected through this study was analysed using the following
tools

• Simple Percentage
• Chi- Square Test

Software used IBM SPSS

2.7.5: HYPOTHESIS STATEMENTS

H01: There is no significant mean difference between Gender and spending

more while you use mobile payments.

H02: There is no significant mean difference between education background

and satisfaction towards payment speed.

2.8: LIMITATIONS OF THE STUDY

The limitation of our study is that it only focused on the student regarding their usage
of mobile. Future researches may also work on the other age group to study their usage of
mobile money in India. Various others factors can also be studied for examples the reason for
low uses, problems faced by persons not using this service.

Sample size was confined to 100 respondents keeping in view of time constraints.

Findings are based on sample survey. The information executed by respondents may or
may not be true because some respondents may not be serious. However, all possible has been
made to collect the information as authentically as possible.

All interview questions are undisguised or direct. Hence there is a scope for the
respondents to be biased or pretentious.

pg. 16
 CHAPTER III

INDUSTRY & SECTOR DISCRIPTION

3.1 – INTRODUCTION TO SECTOR

3.1.1: History of industry / sector

Throughout history, human beings have relied on some sort of payment system
to purchase the goods or services we wanted or needed. Starting with the bartering
system, humans began to use livestock, grain, shells, metal coins, pieces of white
deerskin, the wampum, gold, the gold-backed dollar, charge cards, credit cards, the U.S.
dollar and, most recently, electronic payments.

If there has been one consistent theme regarding the evolution of payments, it’s
that we prefer payments that are convenient and transactional. These preferences began
to take shape in the early 20th century with the introduction of the charge card.

Despite being first mentioned by Edward Bellamy in 1887’s “Looking

Backward,” the first charge card didn’t’ appear until 1921 when a charge card was
issued to Western Union customers. Soon after, department stores, service stations and
hotels also began offering charge cards to customers so they didn’t have to travel to
their hometown bank.

After the introduction of the Diners Club card in 1950, the credit card industry
began to resemble what we’re familiar with today. The BankAmerica, founded in 1958,
was the first modern-day credit card issued by a third-party bank. The card became Visa
in 1977. Since then, technology has given us the videotex systems of the late-
1970s/mid-1980s; online banking and bill pay in 1994; the mobile web payment (WAP)
in 1997; and the current wave of mobile payments apps.

pg. 17
 With that in mind, here’s a timeline of how electronic payments have advanced into the
21st century:

• 1983: David Chaum, an American cryptographer, starts work on creating digital

cash by inventing “the blinding formula, which is an extension of the RSA
algorithm still used in the web’s encryption.” This is the beginning of
cryptocurrencies.
• 1994: Although this is disputed, some believe that the first online purchase, a
pepperoni and mushroom pizza from Pizza Hut, occurs in this year.
• 1998: PayPal is founded.
• 1999: Thanks to Ericsson and Telnor Mobil, mobile phones could be used to
purchase movie tickets.
• 2003: 95 million cell phone users worldwide made a purchase via their mobile
device.
• 2007: Both the iPhone and the Droid operating system are released.
• 2008: Bitcoin is invented.
• 2011: Google Wallet is released.
• 2014: Apple Pay is launched, followed a year later by Android and Samsung
Pay.
• 2020: 90 percent of smartphone users will have made a mobile payment.

3.1.2: Players in industry / sector

There are 4 primary models for mobile payments:

• Bank-centric model
• Operator-centric model
• Collaborative model
• Independent service provider (ISP) model

In models connected to a bank or operator, a bank/operator is the central node

of the model, manages the transactions and distributes the property rights. In

pg. 18
 collaborative model, the financial intermediaries and telephonic operators collaborate
in the managing tasks and share cooperatively the proprietary rights. In ISP model, a
third party of confidence operates as an independent and “neutral” intermediary
between financial agents and operators. Apple Pay or PayPal are the ISP the most
frequently associated to this model in these last months.

There can also be combinations of two models.

Operator/bank co-operation, emerging in Haiti.

Financial institutions and credit card companies as well as Internet companies

such as Google and a number of mobile communication companies, such as mobile
network operators and major telecommunications infrastructure such as w-HA from
Orange and smartphone multinationals such as Ericsson and BlackBerry have
implemented mobile payment solutions.

Mobile wallets

A mobile wallet is an app that contains the user's debit and credit card
information, letting the user pay for goods and services digitally with a mobile device.
Notable mobile wallets include:

Alipay, Amazon Pay, Apple Wallet, BHIM, Cloud QuickPass,

Google Pay, Gyft, LG Pay, Line Pay, Mi Pay, Mir Pay,

Paytm, PhonePe, Samsung Wallet, Touch 'n Go eWallet

Venmo, WeChat Pay

Credit card

A simple mobile web payment system can also include a credit card payment
flow allowing a consumer to enter their card details to make purchases. This process is
familiar but any entry of details on a mobile phone is known to reduce the success rate
(conversion) of payments.

pg. 19
 In addition, if the payment vendor can automatically and securely identify
customers then card details can be recalled for future purchases turning credit card
payments into simple single click-to-buy giving higher conversion rates for additional
purchases.

However, there are concerns regarding information and payment privacy when
cards are used during online transactions. If a website is not secure, for example, then
personal credit card info can leak online.

Carrier billing

The consumer uses the mobile billing option during checkout at an e-commerce
site—such as an online gaming site—to make a payment. After two-factor
authentication involving the consumer's mobile number and a PIN or one-time
password (often abbreviated as OTP), the consumer's mobile account is charged for the
purchase. It is a true alternative payment method that does not require the use of
credit/debit cards or pre-registration at an online payment solution such as PayPal, thus
bypassing banks and credit card companies altogether. This type of mobile payment
method, which is prevalent in Asia, provides the following benefits:

Security – two-factor authentication and a risk management engine prevents

fraud.

Convenience – no pre-registration and no new mobile software is required.

Easy – It is just another option during the checkout process.

Fast – most transactions are completed in less than 10 seconds.

Proven – 70% of all digital content purchased online in some parts of Asia uses the direct
mobile billing method

Remote payment by SMS and credit card tokenization

Even as the volume of Premium SMS transactions have flattened, many cloud-
based payment systems continue to use SMS for presentment, authorization, and
authentication, while the payment itself is processed through existing payment

pg. 20
 networks such as credit and debit card networks. These solutions combine the ubiquity
of the SMS channel, with the security and reliability of existing payment infrastructure.
Since SMS lacks end-to-end encryption, such solutions employ a higher-level security
strategies known as 'tokenization' and 'target removal' whereby payment occurs without
transmitting any sensitive account details, username, password, or PIN.

To date, point-of-sales mobile payment solutions have not relied on SMS-based

authentication as a payment mechanism, but remote payments such as bill payments,
seat upgrades on flights, and membership or subscription renewals are commonplace.

In comparison to premium short code programs which often exist in isolation,

relationship marketing and payment systems are often integrated with CRM, ERP,
marketing-automation platforms, and reservation systems. Many of the problems
inherent with premium SMS have been addressed by solution providers. Remembering
keywords is not required since sessions are initiated by the enterprise to establish a
transaction specific context. Reply messages are linked to the proper session and
authenticated either synchronously through a very short expiry period (every reply is
assumed to be to the last message sent) or by tracking session according to varying
reply addresses and/or reply options.

Direct operator billing

Direct operator billing, also known as mobile content billing, WAP billing, and
carrier billing, requires integration with the mobile network operator. It provides certain
benefits:

1. Mobile network operators already have a billing relationship with

consumers, the payment will be added to their bill.
2. Provides instantaneous payment
3. Protects payment details and consumer identity
4. Better conversion rates
5. Reduced customer support costs for merchants
6. Alternative monetization option in countries where credit card usage is
low

pg. 21
 One of the drawbacks is that the payout rate will often be much lower than with
other mobile payments options. Examples from a popular provider:

• 92% with PayPal

• 85 to 86% with credit card
• 45 to 91.7% with operator billing in the US, UK and some smaller European
countries, but usually around 60%

More recently, direct operator billing is being deployed in an in-app

environment, where mobile application developers are taking advantage of the one-
click payment option that direct operator billing provides for monetising mobile
applications. This is a logical alternative to credit card and Premium SMS billing.

In 2012, Ericsson and Western Union partnered to expand the direct operator
billing market, making it possible for mobile operators to include Western Union
mobile money transfers as part of their mobile financial service offerings. Given the
international reach of both companies, the partnership is meant to accelerate the
interconnection between the m-commerce market and the existing financial world.

Others

QR code payments

QR code is a square two-dimensional bar code. QR codes have been in use since
1994. Originally used to track products in warehouses, QR codes were designed to
replace the older one-dimensional bar codes. The older bar codes just represent
numbers, which can be looked up in a database and translated into something
meaningful. QR, or "quick response", bar codes were designed to contain the
meaningful information directly in the bar code.

QR codes can be of two main categories:

The QR code is presented on the mobile device of the person paying and
scanned by a POS or another mobile device of the payee

pg. 22
 The QR code is presented by the payee, in a static or one time generated fashion
and it is scanned by the person executing the payment

Mobile self-checkout allows for one to scan a QR code or barcode of a product

inside a brick-and-mortar establishment in order to purchase the product on the spot.
This theoretically eliminates or reduces the incidence of long checkout lines, even at
self-checkout kiosks.

Cloud-based mobile payments

Google, PayPal, GlobalPay and GoPago use a cloud-based approach to in-store

mobile payment. The cloud based approach places the mobile payment provider in the
middle of the transaction, which involves two separate steps. First, a cloud-linked
payment method is selected and payment is authorized via NFC or an alternative
method. During this step, the payment provider automatically covers the cost of the
purchase with issuer linked funds. Second, in a separate transaction, the payment
provider charges the purchaser's selected, cloud-linked account in a card-not-present
environment to recoup its losses on the first transaction.

Audio signal-based payments

The audio channel of the mobile phone is another wireless interface that is used
to make payments. Several companies have created technology to use the acoustic
features of cell phones to support mobile payments and other applications that are not
chip-based. The technologies like near sound data transfer (NSDT), data over voice and
NFC 2.0 produce audio signatures that the microphone of the cell phone can pick up to
enable electronic transactions.

Direct carrier/bank co-operation

In the T-Cash model, the mobile phone and the phone carrier is the front-end
interface to the consumers. The consumer can purchase goods, transfer money to a peer,
cash out, and cash in. A 'mini wallet' account can be opened as simply as entering *700#
on the mobile phone, presumably by depositing money at a participating local merchant

pg. 23
 and the mobile phone number. Presumably, other transactions are similarly
accomplished by entering special codes and the phone number of the other party on the
consumer's mobile phone.

Magnetic secure transmission

In magnetic secure transmission (MST), a smartphone emits a magnetic signal

that resembles the one created by swiping a magnetic credit card through a traditional
credit card terminal. No changes to the terminal or a new terminal are required.

Bank transfer systems

Swish is the name of a system established in Sweden. It was established through

a collaboration from major banks in 2012 and has been very successful, with 66 percent
of the population as users in 2017. It is mainly used for peer-to-peer payments between
private people, but is also used by churches, street vendors, and small businesses. A
person's account is tied to his or her phone number and the connection between the
phone number and the actual bank account number is registered in the internet bank.
The electronic identification system mobile BankID, issued by several Swedish banks,
is used to verify the payment. Users with a simple phone or without the app can still
receive money if the phone number is registered in the internet bank. Like many other
mobile payment system, its main obstacle is getting people to register and download
the app, but it has managed to reach a critical mass and it has become part of everyday
life for many Swedes.

Swedish payments company Trustly also enables mobile bank transfers, but is
used mainly for business-to-consumer transactions that occur solely online. If an e-
tailer integrates with Trustly, its customers can pay directly from their bank account.
Unlike Swish, users don't need to register a Trustly account or download software to
pay with it.

The Danish MobilePay and Norwegian Vipps are also popular in their countries.
They use direct and instant bank transfers, but also for users not connected to a
participating bank, credit card billing.

pg. 24
 In India, a new direct bank transfer system has emerged called as Unified
Payments Interface. This system enables users to transfer money to other users and
businesses in real-time directly from their bank accounts. Users download UPI
supporting app from app stores on their Android or iOS device, link and verify their
mobile number with the bank account by sending one outgoing SMS to app provider,
create a virtual payment address (VPA) which auto generates a QR code and then set a
banking PIN by generating OTP for secure transactions. VPA and QR codes are to
ensure easy to use & privacy which can help in peer-to-peer (P2P) transactions without
giving any user details. Fund transfer can then be initiated to other users or businesses.
Settlement of funds happen in real-time, i.e., money is debited from payer's bank
account and credited in recipient's bank account in real-time. UPI service works 24x7,
including weekends and holidays. This is slowly becoming a very popular service in
India and is processing monthly payments worth approximately $10 billion as in
October 2018.

In Poland, Blik - mobile payment system created in February 2015 by the Polish
Payment Standard (PSP) company. To pay with Blik, you need a smartphone, a personal
account and a mobile application of one of the banks that cooperate with it. The
principle of operation is to generate a 6-digit code in the bank's mobile application. The
Blik code is used only to connect the parties to the transaction. It is an identifier that
associates the user and a specific bank at a given moment. For two minutes, it points to
a specific mobile application to which - through a string of numbers - a request to accept
a transaction in a specific store or ATM is sent. Blik allows you to pay in online and
stationary stores. By the Blik, we can also make transfers to the phone or withdraw
money from ATMs.

pg. 25
3.2 – SECTOR PROFILE

3.2.1: Introduction about industry / sector

A mobile payment, also referred to as mobile money, mobile money transfer and
mobile wallet, is any of various payment processing services operated under financial
regulations and performed from or via a mobile device, as the cardinal class of digital
wallet. Instead of paying with cash, cheque, or credit cards, a consumer can use a
payment app on a mobile device to pay for a wide range of services and digital or hard
goods. Although the concept of using non-coin-based currency systems has a long
history, it is only in the 21st century that the technology to support such systems has
become widely available.

Mobile payments began adoption in Japan in the 2000s and later all over the
world in different ways. The first patent exclusively defined "Mobile Payment System"
was filed in 2000.

In developing countries, mobile payment solutions have been deployed as a

means of extending financial services to the community known as the "unbanked" or
"underbanked", which is estimated to be as much as 50% of the world's adult
population, according to Financial Access' 2009 Report "Half the World is Unbanked".
These payment networks are often used for micropayments. The use of mobile
payments in developing countries has attracted public and private funding by
organizations such as the Bill & Melinda Gates Foundation, United States Agency for
International Development and Mercy Corps.

Mobile payments are becoming a key instrument for payment service providers
(PSPs) and other market participants, in order to achieve new growth opportunities,
according to the European Payments Council (EPC). The EPC states that "new
technology solutions provide a direct improvement to the operations efficiency,
ultimately resulting in cost savings and in an increase in business volume".

3.2.2: organization structure

Organisational structure is one area where the mobile money industry has
arrived at best practice through trial and error. Seasoned operators have identified the

pg. 26
importance of establishing separate business units for mobile money, creating separate sales
and distribution teams to drive the mobile money business, and adequately aligning the other
MNO functions to create an environment whereby mobile money can flourish. The hope is that
newer deployments can benefit from these lessons and be able to trace, from project inception
to maturity, the organisational requirements to succeed.

3.2.3: SWOT analysis

Strength

Mobile payment providers should take advantage of the growth of the

market and create customer awareness and expand their services to a higher
level. The bank should also retain its first place as a provider of innovative
online services by improving the availability and accessibility of the system.

Weakness

Mobile payment providers should find out a solution for the network
troubles for example, in case the connection to the internet being cut off while
the processing of a transaction, the system could save automatically the last
work of the customers.

Opportunity

Mobile payment providers should aware and acknowledge the

customers of the utility of services provided in the system. It should specially
take keep the system secured to expand and retain the reliability of its
customers.

Threat

The bank should use its services in a good manner and keep innovate to
gain a competitive advantage to ascertain its place in the market.

pg. 27
 3.2.4: financial performance of the industry /sector

The global mobile payment market size was USD 1.54 trillion in 2020 and is
projected to grow from USD 1.97 trillion in 2021 to USD 11.83 trillion in 2028,
exhibiting a CAGR of 29.19% in the 2021-2028 period. Based on our analysis, the
global market exhibited a significant growth of 27.9% in 2020 as compared to the
average year-on-year growth during 2017-2019. The global impact of COVID-19 has
been unprecedented and staggering, with mobile payment witnessing a positive impact
on demand across all regions amid the pandemic. The rise in CAGR is attributable to
this market's demand and growth, returning to pre-pandemic levels once the pandemic
is over.

pg. 28
 CHAPTER IV
DATA ANALYSIS & INTERPRATATION
4.1 PERCENTAGE ANALYSIS
Table 4.1.1
TABLE SHOWING THE DISTRIBUTION IN AGE OF RESPONDENTS

Particulars Number of Percent

respondents

18 - 24 36 36 %
24 -28 33 33 %
more than 28 31 31 %
Total 100 100 %

Chart 4.1.1
CHART SHOWING THE DISTRIBUTION IN AGE OF RESPONDENTS

Interpretation
This Table 4.1.1 represents that 36% of the respondents are 18 - 24 years , 33% of the
respondents are 24 -28 years and 31% of the respondents are above 28.
The majority (36%) of the respondents are 18-24 years.

pg. 29
 Table 4.1.2
TABLE SHOWING THE DISTRIBUTION IN GENDER OF RESPONDENTS

Particulars Number of Percent

respondents

male 68 68 %

female 32 32 %

Total 100 100 %

Chart 4.1.2
CHART SHOWING THE DISTRIBUTION IN GENDER OF RESPONDENTS

Interpretation
This Table 4.1.2 represents that 68% of the respondents are male and 32% of the
respondents are female.

pg. 30
 Table 4.1.3
TABLE SHOWING THE DISTRIBUTION IN EDUCATION LEVEL OF
RESPONDENTS

Particulars Number of Percent

respondents

under graduate 44 44 %

post graduate 45 45 %

school level 6 6%

research scholar 5 5%

Total 100 100 %

Chart 4.1.3
CHART SHOWING THE DISTRIBUTION IN EDUCATION LEVEL OF
RESPONDENTS

Interpretation
This Table 4.1.3 represents that 44% of the respondents are under graduate and 45% of
the respondents are post graduate and others are 9%.

pg. 31
 Table 4.1.4
TABLE SHOWING THE DISTRIBUTION IN MODE OF ONLINE PAYMENTS
USED THE MOST BY RESPONDENTS

Particulars Number of Percent

respondents

Cards 39 39 %

UPI 51 51 %

Mobile Wallet 4 4%

NEFT 2 2%

RTGS 2 2%

net banking 2 2%

Total 100 100 %

Chart 4.1.4
CHART SHOWING THE DISTRIBUTION IN MODE OF ONLINE PAYMENTS
USED THE MOST BY RESPONDENTS

Interpretation
This Table 4.1.4 represents Most online payment is done by UPI 51% followed by Cards
39% .

pg. 32
 Table 4.1.5
TABLE SHOWING THE DISTRIBUTION UPI APP IS MOSTLY USED BY
RESPONDENTS

Particulars Number of Percent

respondents

Gpay 35 35 %

Pay tm 20 20 %

Phonepe 23 23 %

BHIM 3 3%

CRED 10 10 %

Amazon pay 6 6%

Others 3 3%

Total 100 100 %

Chart 4.1.5
CHART SHOWING THE DISTRIBUTION IN UPI APP IS MOSTLY USED BY
RESPONDENTS

Interpretation
This Table 4.1.5 represents most used apps are Gpay(35), Phonepe(20), Pay tm(23) and
CRED(10) is also in competition.

pg. 33
 Table 4.1.6
TABLE SHOWING THE REASONS FOR PREFERENCE OF MOBILE PAYMENT
BY RESPONDENTS

Particulars Number of Percent

respondents

Cashback 23 23 %

Easy to transact 23 23 %

No risk of carrying physical 47 47 %

Security 7 7%

Total 100 100 %

Chart 4.1.6
CHART SHOWING THE REASONS FOR PREFERENCE OF MOBILE PAYMENT
BY RESPONDENTS

Interpretation
This Table 4.1.6 represents most use to avoid risk to physical money (47%) ,few for
cashback (23%) and few for making transaction easy (23%).

pg. 34
 Table 4.1.7
TABLE SHOWING HOW OFTEN YOU USE ONLINE MODE OF PAYMENT BY
RESPONDENTS

Particulars Number of Percent

respondents

once in a week 20 20 %

two to three times per week 20 20 %

four to six times per week 23 23 %

once per day 14 14 %

more than once per day 14 14 %

rare 9 9%

Total 100 100 %

Chart 4.1.7
CHART SHOWING HOW OFTEN YOU USE ONLINE MODE OF PAYMENT BY
RESPONDENTS

Interpretation
This Table 4.1.7 represents respondents often usage of mobile payments is diversified
from once in a week and more than once per day.

pg. 35
 Table 4.1.8
TABLE SHOWING HOW MANY CREDIT CARDS HAD BY RESPONDENTS

Particulars Number of Percent

respondents

one 66 66 %

two 19 19 %

three 8 8%

more than three 7 7%

Total 100 100 %

Chart 4.1.8
CHART SHOWING HOW MANY CREDIT CARDS HAD BY RESPONDENTS

Interpretation
This Table 4.1.8 represents most respondents has only one credit card (66).

pg. 36
 Table 4.1.9
TABLE SHOWING WHAT MODE DO YOU USE WHILE ONLINE PURCHASE BY
RESPONDENTS

Particulars Number of Percent

respondents

cards 36 36 %

UPI 35 35 %

net banking 8 8%

cash on delivery 21 21 %

Total 100 100 %

Chart 4.1.9
CHART SHOWING WHAT MODE DO YOU USE WHILE ONLINE PURCHASE BY
RESPONDENTS

Interpretation
This Table 4.1.9 represents respondents mostly prefer card (36%), UPI (35%) and even
they prefer Cash on delivery (21%).

pg. 37
 Table 4.1.10
TABLE SHOWING WHETHER RESPONDENTS START USING MOBILE
PAYMENTS MORE AFTER PANDEMIC

Particulars Number of Percent

respondents

yes 67 67 %

no 33 33 %

Total 100 100 %

Chart 4.1.10
CHART SHOWING WHETHER RESPONDENTS START USING MOBILE
PAYMENTS MORE AFTER PANDEMIC

Interpretation
This Table 4.1.10 represents most respondents start using mobile payments more after
pandemic (67%).

pg. 38
 Table 4.1.11
TABLE SHOWING RESPONDENTS THINKING THAT THEY SPEND MORE
WHILE YOU USING MOBILE PAYMENTS OVER TRADITIONAL PAYMENTS

Particulars Number of Percent

respondents

yes 41 41 %

no 28 28 %

maybe 31 31 %

Total 100 100 %

Chart 4.1.11
CHART SHOWING RESPONDENTS THINKING THAT THEY SPEND MORE
WHILE YOU USING MOBILE PAYMENTS OVER TRADITIONAL PAYMENTS

Interpretation
This Table 4.1.11 represents most respondents think yes they started spending more
than traditional way (41%), and fair amount of people think maybe (31%) and least number of
respondents think no (28%).

pg. 39
 Table 4.1.12
TABLE SHOWING HOW OFTEN YOU HAVE PROBLEMS IN MOBILE PAMENTS
FOR RESPONDENTS

Particulars Number of Percent

respondents

rare 39 39 %

frequently 2 2%

none 59 59 %

Total 100 100 %

Chart 4.1.12
CHART SHOWING HOW OFTEN YOU HAVE PROBLEMS IN MOBILE PAMENTS
FOR RESPONDENTS

Interpretation
This Table 4.1.12 represents most respondents has no problems in mobile payments
(59%), few has problems rare (39%) and almost low respondents has frequent problem (2%).

pg. 40
 Table 4.1.13
TABLE SHOWING SATISIFACTION LEVEL TOWARDS MOBILE PAMENTS FOR
RESPONDENTS

Particulars Number of Percent

respondents

Highly Satisfied 38 38 %

Satisfied 29 29 %

Neutral 21 21 %

Dissatisfied 8 8%

Highly Dissatisfied 4 4%

Total 100 100 %

Chart 4.1.13
CHART SHOWING SATISIFACTION LEVEL TOWARDS MOBILE PAMENTS FOR
RESPONDENTS

Interpretation
This Table 4.1.13 represents most respondents (38%) are highly satisfied towards
mobile payments, followed by satisfied and neutral (29% & 21%),very low are dissatisfied and
highly dissatisfied (8% & 4%) .

pg. 41
 Table 4.1.15
TABLE SHOWING SATISIFACTION LEVEL TOWARDS REWARDS FROM USING
MOBILE PAMENTS FOR RESPONDENTS

Particulars Number of Percent

respondents

Highly Satisfied 17 17 %

Satisfied 16 16 %

Neutral 23 23 %

Dissatisfied 8 8%

Highly Dissatisfied 36 36 %

Total 100 100 %

Chart 4.1.14
CHART SHOWING SATISIFACTION LEVEL TOWARDS REWARDS FROM
USING MOBILE PAMENTS FOR RESPONDENTS

Interpretation
This Table 4.1.14 represents most respondents are highly dissatisfied of rewards from
using mobile payments (36%), followed by neutral and highly satisfied (23% & 17%), few are
satisfied (16%) few are dissatisfied (8%).

pg. 42
 Table 4.1.15
TABLE SHOWING SATISIFACTION LEVEL TOWARDS TRANSCATION SPEED
FROM USING MOBILE PAMENTS FOR RESPONDENTS

Particulars Number of Percent

respondents

Highly Satisfied 30 30 %

Satisfied 35 35 %

Neutral 24 24 %

Dissatisfied 10 10 %

Highly Dissatisfied 1 1%

Total 100 100 %

Chart 4.1.16
CHART SHOWING SATISIFACTION LEVEL TOWARDS TRANSCATION SPEED
FROM USING MOBILE PAMENTS FOR RESPONDENTS

Interpretation
This Table 4.1.16 represents most respondents are satisfied of speed of transaction of
mobile payments (35%), followed by highly satisfied and neutral (30% & 24%), few are
dissatisfied (10%) and very few are highly dissatisfied (1%).

pg. 43
 Table 4.1.16
TABLE SHOWING SATISIFACTION LEVEL TOWARDS CONVENIENCE OF THE
SERVICES PROVIDED FOR RESPONDENTS

Particulars Number of Percent

respondents

Highly Satisfied 14 14 %

Satisfied 36 36 %

Neutral 30 30 %

Dissatisfied 14 14 %

Highly Dissatisfied 6 6%

Total 100 100 %

Chart 4.1.16
CHART SHOWING SATISIFACTION LEVEL TOWARDS CONVENIENCE OF THE
SERVICES PROVIDED FOR RESPONDENTS

Interpretation
This Table 4.1.17 represents most respondents are satisfied of convenience of
transaction of mobile payments (36%), followed by neutral and highly satisfied (30% & 14%),
few are dissatisfied (16%), very few are highly dissatisfied (1%).

pg. 44
4.2 CHI-SQUARE
4.2.1 CHECKING RELATIONSHIP BETWEEN EDUCATION BACKGROUND AND
SATISFACTION TOWARDS PAYMENT SPEED
AIM
To check whether there is any significant relationship between educational background and
satisfaction towards payment speed.
HYPOTHESIS
Define level in significance is 0.05 and define the below hypothesis.
H0: There is no significant mean difference between education background and
satisfaction towards payment speed.
H1: There is significant mean different between education background and
satisfaction towards payment speed.
SOLUTION
Table 4.2.1
Table showing chi-square test between education background and satisfaction towards
payment speed.

Chi-Square Tests

Asymp. Sig. (2-

Value df sided)

Pearson Chi-Square 18.417a 12 .104

Likelihood Ratio 22.697 12 .030

Linear-by-Linear Association .024 1 .876

N of Valid Cases 100

DECISION RULE
The significance value (0.104) is greater than 0.05, therefore H0 is accepted and H1
is rejected.
CONCLUSION
There is no significant relationship between educational background and
satisfaction towards payment speed.

pg. 45
4.2.2 CHECKING RELATIONSHIP BETWEEN GENDER AND SPENDING MORE
WHILE YOU USE MOBILE PAYMENTS
AIM
To check whether there is any significant relationship between Gender and spending more
while you use mobile payments.
HYPOTHESIS
Define level in significance is 0.05 and define the below hypothesis.
H0: There is no significant mean difference between Gender and spending more
while you use mobile payments.
H1: There is significant mean different between Gender and spending more while
you use mobile payments.
SOLUTION
Table 4.2.2
Table showing chi-square test between Gender and spending more while you use mobile
payments.

Chi-Square Tests

Asymp. Sig. (2-

Value df sided)

Pearson Chi-Square 9.667a 2 .008

Likelihood Ratio 10.309 2 .006

Linear-by-Linear Association 8.038 1 .005

N of Valid Cases 100

DECISION RULE
The significance value (0.008) is lesser than 0.05, therefore H1 is accepted and H0
is rejected.
CONCLUSION
There is a significant relationship between Gender and spending more while you
use mobile payments.

pg. 46
 CHAPTER V

SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSIONS

5.1: FINDINGS:

Percentage analysis:

• The majority (36%) of the respondents are between 18-24 years.

• The majority (68%) of the respondents are male.
• The majority (45%) of the respondents are post graduate students.
• The majority (51%) of the respondents are using UPI most for mobile
payments.
• The majority (35%) of the respondents are using Gpay for UPI payment.
• The majority (47%) of the respondents use mobile payment to avoid risk
to physical money.
• The majority (23%) of the respondents usage of mobile payments is four
to six times per week.
• The majority (66%) of the respondents has only one credit card.
• The majority (36%) of the respondents mostly prefer card for online
shopping.
• The majority (67%) of the respondents start using mobile payments
more after pandemic.
• The majority (41%) of the respondents think yes, they started spending
more than traditional way.
• The majority (59%) of the respondents has no problems in mobile
payments.
• The majority (38%) of the respondents are highly satisfied towards
mobile payments.
• The majority (36%) of the respondents are highly dissatisfied of rewards
from using mobile payments.
• The majority (35%) of the respondents are satisfied of speed of
transaction of mobile payments.
• The majority (35%) of the respondents are satisfied of convenience of
transaction of mobile payments

pg. 47
 Chi-square test:

• There is no significant relationship between educational background and

satisfaction towards payment speed.
• There is a significant relationship between Gender and spending more
while you use mobile payments.

5.2: SUGGESTIONS

• People are more aware about the online payments and People are more
confident in using digital mode of payments through mobile applications and
there is a wider increase in growth rate so it is the best opportunity to expand
the infrastructure for the companies
• Currently, there is a mix of cash and cashless transactions happening across the
country, while many enablers are working towards turning the cashless
economy dream into a reality.
• Effective planning and regulation of digitization would help Indian economy to
compete with the mature economies in the coming years.
• India is gradually transitioning from a cash-centric to cashless economy rapidly
after pandemic, a large number of businesses, even street vendors, are now
accepting electronic payments, prompting the people to learn to transact the
cashless way at a faster pace than ever before, so within few years with good
infrastructure it can become full cashless
• Mobile payment providers can collaborate with the telecom companies for
better and fast network connectivity.

pg. 48
5.3: CONCLUSION

From the research, it can be concluded that the usefulness of mobile payment platforms
is one of the main drivers of their business. The level of access, convenience and comfort as
help payment easy.

Mobile payment increases the consumption expenditure of students, and they spend
more while compared to traditional payment, even the rewards are not satisfied they didn’t
change from using mobile payments, it is convenient mode and reduces risk of carrying money
and it is very useful in online purchase and even local vendors made their payment options
digital.

Digital transactions are traceable, therefore easily taxable, leaving no room for the
circulation of black money. The whole country is undergoing the process of modernization in
money transactions, with mobile payment services gaining momentum, and with that we can
eradicate black money

pg. 49
ANNEXURES

QUESTIONNAIRE

1. Name
2. Age
▪ 18 – 24
▪ 24 - 28
▪ more than 28
3. Gender
▪ male
▪ female
4. Education background
▪ under graduate
▪ post graduate
▪ school level
▪ research scholar
5. What mode of online payments used the most
▪ Cards
▪ UPI
▪ Mobile Wallet
▪ NEFT
▪ RTGS
▪ net banking
6. What UPI app is mostly used by you
▪ Gpay
▪ Pay tm
▪ Phonepe
▪ BHIM
▪ CRED
▪ Amazon pay
▪ Others
7. Reasons for preference of mobile payment
▪ Cashback
▪ Easy to transact

pg. 50
 ▪ No risk of carrying physical
▪ Security
8. How often you use online mode of payment
▪ once in a week
▪ two to three times per week
▪ four to six times per week
▪ once per day
▪ more than once per day
▪ rare
9. How many credit cards do you have
▪ one
▪ two
▪ three
▪ more than three
10. What mode do you use while online purchase
▪ cards
▪ UPI
▪ net banking
▪ cash on delivery
11. Do you start using mobile payments more after pandemic
▪ yes
▪ no
12. Do you think you spend more while you use mobile payments and not traditional way
▪ yes
▪ no
▪ maybe
13. How often you have problems in mobile payments
▪ rare
▪ frequently
▪ none
14. Satisfaction level towards mobile payments
▪ Highly Satisfied
▪ Satisfied
▪ Neutral

pg. 51
 ▪ Dissatisfied
▪ Highly Dissatisfied
15. Satisfaction level towards rewards from using mobile payments
▪ Highly Satisfied
▪ Satisfied
▪ Neutral
▪ Dissatisfied
▪ Highly Dissatisfied
16. Satisfaction towards payment speed
▪ Highly Satisfied
▪ Satisfied
▪ Neutral
▪ Dissatisfied
▪ Highly Dissatisfied
17. Satisfaction convenience of the services provided
▪ Highly Satisfied
▪ Satisfied
▪ Neutral
▪ Dissatisfied
▪ Highly Dissatisfied

Books referred

• C.R.Kothari- Research Methodology Methods and Techniques, Second Edition 2000,

WishwaPrakashan, New Age international Pvt.Ltd.Delhi.
• P.A Navanitham - Business mathematics and statistics, Jai publisher, trichy 2013.

pg. 52
Websites

• https://www.businessofapps.com/data/mobile-payments-app-market
• https://www.businessofapps.com/data/mobile-payments-app-market
• https://techcrunch.com/2016/06/17/the-evolution-of-the-mobile-payment/
• https://en.wikipedia.org/wiki/Mobile_payment
• https://docs.google.com/forms/u/0/
• https://www.uncdf.org/article/7823/did-the-covid-19-pandemic-accelerate-growth-of-
mobile-money
• https://en.wikipedia.org/wiki/Unified_Payments_Interface
• https://www.bis.org/statistics/payment_stats/commentary2112.htm
• https://www.worldbank.org/en/news/press-release/2022/06/29/covid-19-drives-
global-surge-in-use-of-digital-
payments#:~:text=The%20pandemic%20has%20also%20led,the%20start%20of%20t
he%20pandemic.
• https://scholar.google.co.in/
• https://onlinelibrary.wiley.com/doi/abs/10.1111/fcsr.12069
• https://www.researchgate.net/

Journals referred

• Organisational Design to Succeed in Mobile Money Author: Philip Levin -

https://www.gsma.com/mobilefordevelopment/wp-
content/uploads/2012/10/2012_MMU_Organisational-design-to-succeed-in-mobile-
money.pdf
• IMPACT OF NEW TRENDS: SWOT ANALYSIS OF ONLINE AND MOBILE
BANKING: CASE STUDY OF A DJIBOUTIAN BANK, by Tessir Fahmi ALI Master
of International Finance Student, Istanbul Commerce University, Turkey
tessirfahmi@gmail.com, ORCID ID: 0000-0001-8701-1017 and Prof. Dr. Figen
YILDIRIM Istanbul Commerce University, Faculty of Business, Turkey
figen@ticaret.edu.tr, ORCID ID: 0000-0002-9247-2245 -
https://dergipark.org.tr/en/download/article-file/1127737

pg. 53
 • A STUDY ON IMPACT OF MOBILE PAYMENT WITH SPECIAL REFERENCE
TO YOUTHS, Authors - Prof. Satyajitsinh Gohil, Assistant Professor, Parul Institute
of Management and Research & Khushbu Vinchhi, Neha Yewale, Student MBA
Department, Parul University, Vadodara, Gujarat -
http://eprajournals.net/index.php/JEBR/article/view/1577
• “It must be necessary, it has to cover a need”: The adoption of mobile telephony among
pre-adolescents and adolescents1 by Rich Ling and Per Helmersen Telenor R&D
richard-seyler.ling@telenor.com -
https://d1wqtxts1xzle7.cloudfront.net/6407851/2000_necesary_need-
libre.pdf?1390846114=&response-content-
disposition=inline%3B+filename%3DIt_must_be_necessary_it_has_to_cover_a_n.pd
f&Expires=1679072668&Signature=cXoNIEBqP~0c6DgfQzsnf~A~bM2tSBCUActd
UtT10J7lPxvdpHMUPbmH9NYmeacCn84sb2ohZyv6-
48xSxkzOi3SsbnnEDMtiDgfSOUSd6s4wUpRhOCtMn1cjzvc2jKmlJfUf2VDTQMS
XVcC34HL1DuPe1Cpcr6Sq2ZGGe1aGpjdP0WzyAYj2k0m4e86MLlSo7o5DfNPOn
qqUUAwjx~1AZWyfajnt9rt9PWTtoiQsosKXe~w51OeiLSzIzqFp2qoDL5sc8AG8fw
T2Bw7mcdVnLnhSjo4hV7wP-0O5PAfBycY1ji9Ia-
Jyz026pY2402lMWurofenhf7LfX~O8ktOwg__&Key-Pair-
Id=APKAJLOHF5GGSLRBV4ZA
• Adoption of Mobile Payment Technology by Consumers, authors - Jamie Lynn Garrett,
Robert Rodermund, NaRita Anderson, Sara Berkowitz and Cliff A. Robb -
https://www.ssc.wisc.edu/~carobb/wp-content/uploads/2016/08/fcsr12069.pdf
• Title: Mobile Payment Adoption during the COVID-19 Pandemic in Germany Authors:
Niklas Herget and Philip Steinmüller Krey - http://hj.diva-
portal.org/smash/get/diva2:1559437/FULLTEXT01.pdf
• Analysis of the Influence of Mobile Payment on Consumer Behavior by JingXue, Li
Lin - Advances in Social Science, Education and Humanities Research, volume 328,
4th International Conference on Humanities Science and Society Development
(ICHSSD 2019)
• The impact of mobile payment on payment choice by Tobias Trütsch - Financ Mark
Portf Manag (2016) 30:299–336, DOI 10.1007/s11408-016-0272-x
• The impact of openness on the market potential of multi-sided platforms: a case study
of mobile payment platforms by Jan Ondrus, Avinash Gannamaneni, Kalle Lyytinen -

pg. 54
 https://d1wqtxts1xzle7.cloudfront.net/46948254/jit20157a-
libre.pdf?1467443534=&response-content-
disposition=inline%3B+filename%3DThe_impact_of_openness_on_the_market_pot.
pdf&Expires=1679073202&Signature=f-KHgSByXDKJLH2tc4Zuei-
Tl0si7aIZiU53kWR8axCj7VnAwgYOgxBIjV3JmkoUJ2XS5EIruxZ6tWQC~H06nDo
Jl~RBrEiXx5QqNKxhMoZ1mhKx4RMyg4-
ifhZPCusaSr8CMQNSkFKJ66CFLfZFeEcybqXdk2lcXn3ScovOaxJIjj1cBVB4-
LyM0ETOgm7OcHZQGqGK0L9bZjXZ68dyn5BT7CwwaiN2ArTj0doCG3Qq0QrY
my-nWo4Jtw-IEp4V2YphzJEttP78-waazbAIzkZ8dDvuLwmalMDcvC-
1VQJLtokUGJifH5FXJCHKJzN9yFr7dUwy2VOcTx9JyGuQ9w__&Key-Pair-
Id=APKAJLOHF5GGSLRBV4ZA
• Role of gender on acceptance of mobile payment -
https://www.researchgate.net/publication/263367851_Role_of_gender_on_acceptance
_of_mobile_payment
• A STUDY ON IMPACT OF MOBILE WALLETS AMONG UNIVERSITY
STUDENTS IN CHENNAI CITY by Ezhil Maran K P, Assistant Professor,
Department Of Commerce Faculty Of Science And Humanities, Srm Institute Of
Science And Technology ,Kattantkulathur – 603202, Mail Id:
ezhilmarankp@gmail.Com - https://www.pramanaresearch.org/gallery/prj-p1236.pdf
• MOBILE PAYMENT ADOPTION AMONG YOUTH: GENERATION Z AND
DEVELOPING COUNTRY PERSPECTIVE by Authors: Drsonal Purohit, Mudra
Institute of Communications, Ahmedabad (MICA), Ms Jaspreet Kaur, Shakti
Chaturvedi,REVA Business School -
https://www.researchgate.net/publication/361950115_MOBILE_PAYMENT_ADOP
TION_AMONG_YOUTH_GENERATION_Z_AND_DEVELOPING_COUNTRY_
PERSPECTIVE

SOFTWARE USED FOR ANALYSIS

• IBM SPSS Statistics 22

pg. 55