Ccatbcm065 - Yadhukrishna - K - S - Cyril Joy P

“STUDY ON THE IMPACT OF COVID-19 ON USAGE OF
DIGITAL PAYMENT SERVICES AMONG COLLEGE

STUDENTS IN CHRIST COLLEGE, IRINJALAKUDA”
Project report submitted to
CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA
In partial fulfilment of the requirements for the award of the degree of
BACHELOR OF COMMERCE
Submitted by
YADHUKRISHNA K.S
(Reg.No:CCATBCM065)
Under the guidance of
Asst. Prof. JEBIN K DAVIS
POST GRADUATE & RESEARCH DEPARTMENT OF COMMERCE
CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA
UNIVERSITY OF CALICUT
MARCH 2022
CERTIFICATE
This is to certify that the project titled, “STUDY ON THE IMPACT OF COVID-19 ON
USAGE OF DIGITAL PAYMENT SERVICES AMONG COLLEGE STUDENTS IN
CHRIST COLLEGE, IRINJALAKUDA” by Mr. YADHUKRISHNA K.S, is a bona-fide
record of work done under my guidance and supervision in partial fulfilment of the
requirements for the award of the degree of Bachelor of Commerce.
Dr. JOSHEENA JOSE Prof. Jebin K Davis. Asst. Professor
( Head of the department) ( Project Guide )

DECLARATION
I, YADHUKRISHNA K.S, hereby declare that the bona-fide record of “STUDY ON THE
IMPACT OF COVID-19 ON USAGE OF DIGITAL PAYMENT SERVICES AMONG
COLLEGE STUDENTS IN CHRIST COLLEGE, IRINJALAKUDA” done in partial
fulfilment of the B.Com degree program of Calicut University under the guidance of Prof.
Jebin K Davis, Asst Professor, Post Graduate and Research Department of Commerce, Christ
College (Autonomous), Irinjalakuda.
I also declare that the project has not formed the basis of reward of any degree or any other
similar title to any other University.
Place: Irinjalakuda YADHUKRISHNA K.S
Date: 24-03-2022 CCATBCM065

ACKNOWLEDGEMENT
I would like to take the opportunity to express my preferred thanks and gratitude to all who
have helped me with sound advice and able guidance.
Above all, I express my eternal gratitude to the Lord Almighty under whose divine guidance;
I have been able to complete this work successfully.
I would like to express my sincere obligation to Fr. Dr. Jolly Andrews CMI for providing
various facilities.
I acknowledge my sincere thanks to Dr. Josheena Jose, Head of the Department, for
providing proper help and encouragement in the preparation of this report.
I express my deep sense of gratitude to Jebin K Davis, Asst. Professor, for providing valuable
guidance and encouragement during the preparation of the project.
I would like to express my preferred gratitude to all the faculties of the department for their
interest and cooperation in this regard.
I express my sincere thanks to the friends and family for their support in completing this
report successfully.
Place: Irinjalakuda YADHUKRISHNA K.S
Date: 24-03-2022
CONTENTS
SL NO. TITLE PAGE NO.
LIST OF TABLES
1
2 LIST OF FIGURES
3 CHAPTER 1: INTRODUCTION 1-5
4 CHAPTER 2: REVIEW OF LITERATURE 6-13
5 CHAPTER 3: THEORETICAL FRAMEWORK 14-25
6 CHAPTER 4: DATA ANALYSIS AND 26-52

INTERPRETATION
7 CHAPTER 5: FINDINGS, SUGGESTIONS & 53-56

CONCLUSIONS
8 BIBLIOGRAPHY 57-58
9 APPENDIX 59-63
LIST OF TABLES
TABLE NO. TITLE PAGE NO.
Table 4.1 Classification of respondents on the basis of gender 27
Table 4.2 Classification of respondents on the basis of having 28

a bank account
Table 4.3 Classification of respondents on the basis of
whether they use any digital payment services for 29
any kind of online transaction
Table 4.4 Classification of respondents on the basis of use of 30
smartphones for banking
Classification of respondents on the basis of
Table 4.5 whether digital banking eased their life activities 31
Classification of respondents on the basis of usage
Table 4.6 of online payments in their online shopping 32
Table 4.7 Classification of respondents on the basis of 33
frequency of usage of digital banking
medium used for transfer money
Classification of respondents on the basis of their
Table 4.9 opinion about whether e-banking services are 35
cheaper than traditional banking services
Table 4.10 Classification respondents on the basis of their 36
opinion about whether they faced any problems
regarding e-banking
Table 4.11 Classification of respondents on the basis of various 37
problems regarding e-banking
Table 4.12 knowledge of different digital payment services 38
available
Table 4.13 whether they will encourage e-banking services 44
preference of various digital payment apps
Classification of respondents on the basis of type 46
Table 4.15 payment made through digital payment apps
Table 4.16 Classification of respondents on the basis 47
satisfaction of digital payment apps
Table 4.17 whether their usage of digital payment services 48
increased after outbreak of COVID-19
Table 4.18 frequency of usage of digital payment during 49
lockdown period
Table 4.19 frequency of usage of digital payment post the 50
lockdown period
Table 4.20 opinion regarding the reason for the preference 51
from traditional to digital payments services during
COVID-19
Table 4.21 opinion regarding the factors that hampered other 52
people’s use of digital payment system
LIST OF FIGURES
FIGURE NO. TITLE PAGE N0.

Figure 4.1 Classification of respondents on the basis of gender 27
Figure 4.2 Classification of respondents on the basis of having a 28

bank account
Classification of respondents on the basis of whether
Figure 4.3 they use any digital payment services for any kind of 29
online transaction
Figure 4.4 Classification of respondents on the basis of use of 30
smartphones for banking
Figure 4.5 digital banking eased their life activities 31
Classification of respondents on the basis of usage of
Figure 4.6 online payments in their online shopping 32
Figure 4.7 Classification of respondents on the basis of frequency 33
of usage of digital banking
Figure 4.8 Classification of respondents on the basis of medium 34
used for transfer money
Figure 4.9 Classification of respondents on the basis of their
opinion about whether ebanking services are cheaper 35
than traditional banking services
Classification respondents on the basis of their opinion
Figure 4.10 about whether they faced any problems regarding e- 36
banking
Figure 4.11 Classification of respondents on the basis of various 37
problems regarding e-banking
Figure 4.12.1 Figure showing the respondents knowledge level about 39
banking cards
unified payment interface
mobile banking
internet banking
point of sale
Table 4.13 Classification of respondents on the basis of whether 44
they will encourage ebanking services
Classification of respondents on the basis of preference
Table 4.14 of various digital payment apps 45
Table 4.15 Classification of respondents on the basis of type
payment made through digital payment apps 46
Table 4.16 Classification of respondents on the basis satisfaction 47
of digital payment apps
Table 4.17 their usage of digital payment services increased after 58
outbreak of COVID-19
Classification of respondents on the basis of frequency
Table 4.18 of usage of digital payment during lockdown period 49
Classification of respondents on the basis of frequency
Table 4.19 of usage of digital payment post the lockdown period 50
Table 4.20 opinion regarding the reason for the preference from 51
traditional to digital payments services during COVID-
19
Table 4.21 opinion regarding the factors that hampered other 52
people’s use of digital payment system
CHAPTER-1
INTRODUCTION
1
1.1 Introduction
In The 21st Century the development of a country cannot be imagined without the
development of information technology. With this development not Only, the global goal can
be achieved but also the economic social challenges of the country can be overcome. The
digital India program was launched in 1st July 2015. The goal of this program is the
Empower India digitally by starting a digital revolution. The government wants to deliver i
most of its services electronic forms and encourage cooperation of people with this campaign.
Then the common people will be able to avail government services using internet and smart
phones. One of the most important steps making India digital is through transforming its
financial transactions into digital format.
In India has more than 45Crore smart phone users for who mobile is the new wallet. Digital
payment can help in keeping the commerce connected Means, we can serve our customers
right from convenience of their home without the physical presence. Digital payments are
convenient, because money is transferred instantaneously from one account to another. There
is no need for travelling to banks to deposit or withdraw cash because money is within the
digital format.
The COVID-19 pandemic has hit the global economy and even the Indian economy badly.
Across the country from March 24th lockdown started. Offices, malls, temples, schools,
colleges and hotels were all closed as a result of this. This has had a huge impact on the
digital payment system. People preferred to utilize digital payment system before COVID-19,
but since the pandemic, the number of users has risen dramatically. There are several digital
payment modes available in India and around the world. The main digital payment modes are
debit card, credit card, mobile wallets, internet banking and many more. The smartphones are
playing an important role in COVID-19 situation, because during home delivery of goods,
online streaming of live shows, movies and entertainment these all situation managed by
digital tools. During the pandemic a digital payment has played a vital Role in keeping our
economy in a better position. Digital Transfers have a huge role to play in the case of
business payment through that government can reduce the physical contact between people
and the spread of disease in COVID-19 situation. This COVID-19 has improved digital
payment systems have been helping in managing the epidemic in the timely, systematic and
Clam manner.
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1.2 Statement of the problem
People's fears of COVID-19 have prompted a different response. A section of the population
prefers online transactions because they are secure because there is no personal touch and
they are quick to settle. They like it because of the user-friendly apps, discounts, rewards, and
widespread acceptance. Despite the benefits, some people believe that offline transactions are
traditionally a safer and secure way of payment. As a result, the focus of this research is on
determining the impact of the COVID-19 on usage digital payment.
1.3 Scope of the study
Online payment involves transferring money without any paper money changing hands.
When barter system was abolished and money was accepted as a medium of exchange, it was
the paper currency or metallic coins that did the job. But as technical advancements happen in
every field, money also underwent a major technological change. And that resulted in the so
called digital money or online payment system. The study is relevant because in the present
context of COVID-19 pandemic, people have started thinking of digital money. This is
because scientists proved that virus and bacteria may spread through the paper currency or
metallic coins exchanged by people. So there is a greater risk of fast spreading diseases. Also
nowadays, people like to use digital payments because of the speed and convenience
provided by it.
1.4 Significance of the study
Today’s digital banking presents a huge opportunity for expanded financial inclusion and
fundamental service extension. In the developing world, over half of the population owns a
mobile phone. The problem is that there are 25 billion people and over 200 million small
businesses that need basic financial services and financing. Beyond financial services, digital
finance has the potential to improve access to other sector such as agriculture, transportation,
water, health, education, and clean energy. Payment constitutes the backbone of a nation’s
economy. With more consumers choosing to online payment methods to acquire commodities
and other necessities in the current pandemic crisis, the function of the financial sector has
taken significant relevance. Despite the magnitude of the crisis, payment market
infrastructure, scheme remittances, operators, and bank payment processing system have all
exhibited resilience, ensuring that payment services are available and secure at all times. It’s
unclear how this epidemic will affect payment and global economics, but volume growth will
3
either be muted or lower than expected. In post pandemic scenarios where being Contactless
is critical to preventing virus transmission, digitalization will take major stage. At the same
time, payment will need to get closer to their clients in order to renew their customers faith in
their brands. In the POST-COVID, payment companies with strong fundamentals and focus
on digital payment are most likely to emerge as leaders. Thus, it is very important to focus a
study on digital payment service and online banking in Kerala.
1.5 Objectives of the study
1.5.1 To make a comparative analysis of digital payment services before and during COVID-
19.
1.5.2 To investigate the level of usage of digital payment among college student.
1.6 Research methodology
1.6.1 Data collection
The questionnaire is prepared on the Google form for collecting primary data. Secondary data
was collected from various publications, including journals, magazines, and India’s statistical
websites.
1.6.2 Research design
This study is both analytical and descriptive in nature. It includes different kind of surveys
and fact finding enquires. The major purpose of this research is the analysis of the impact of
COVID-19 on usage of digital payment services.
1.7 Sample design
It was very difficult to conduct a study on entire population from Kerala. So, representative
sample was drawn for the purpose of the study.
1.7.1 Sample population
The population of this study is the students of Christ College.
1.7.2 Sample frame
Whatsapp group of students is taken to be the sample frame for collection of data.
4
1.7.3 Sampling technique
For the study used the convenience sampling technique. The sample survey has been
conducted based on prepared schedule of questions which cover various aspects of digital
payments which are essential for the present study. The collected data are tabulated.
Percentage analysis is used for the analysis of data. For the study, bar diagram and pie
diagram are used.
1.7.4 Sample size
The data has been collected from 80 students.
1.8 Limitation of the study
1.8.1 Due to the covid-19 pandemic, there were many restrictions.
1.8.2 Due to the pandemic, data collection was limited to an online questionnaire. There is no
personal interview is being conducted.
1.8.3 The study is limited to Christ College students only.
1.9 Chapterization
Chapter 1 – Introduction
Chapter 2 – Review of literature
Chapter 3 – Theoretical framework
Chapter 4 – Data analysis and interpretation
Chapter 5 – Findings, Suggestions & conclusions
5
CHAPTER-2
REVIEW OF LITERATURE
6
2.1 REVIEW OF LITERATURE
1. AĞAN Büşra (2020) studied the influence of the Covid-19 pandemic on the financial
banking sector. The goal of this article is to examine the digital payment system's response to
the Covid-19 pandemic by charting the evolution of debit and credit card payment amounts
from 2019 to 2020, as well as to establish a causal relationship between GDP and credit card
expenditure. The findings revealed that the Granger causality test only works in one
direction, from GDP to credit card, and that there is no second-way causality between them.
2. Jimmi jose and DR.Sebastian Tharapil Joseph (2021) studied in the current pandemic
crisis, it is best for everyone to avoid physical contact, mingling with others, and going to
physical brick and mortar stores and shopping centres. The use of digital payment systems
has grown dramatically, and their importance has grown by leaps and bounds as well. This
study aims to verify the impacts of digital payment systems and their impact on individual
savings, as well as to learn about people's perceptions of digital payment systems and their
impact on their money savings. During Covid-19, 200 samples were chosen based on gender,
age, occupation, qualification, and yearly income to learn about digital payment, using a
digital payment app, the benefits and purpose of using a digital payment app, time savings,
and the influence on money generation
3. Allicia Deana Santosa, Nuryanti Taufik, Faizal Haris Eko Prabowo, Mira Rahmawati
(2021) examined the baby boomer and X generation's intentions to use digital payments in
the future (Unified Theory of Acceptance Technology). During the epidemic, data was
collected from 320 consumers aged 40 to 74 who had just started utilising digital payments.
The data was analysed using structural equation modelling. The findings show that UTAUT
indicators have a favourable impact on user satisfaction. Inertia is influenced by user
pleasure. Overall contentment and inertia have a good impact on intention to continue. As a
result, digital payment firms and banks with digital services can broaden their target
demographic beyond Millennial by focusing on the older generation, such as baby boomers
and the X generation
4. S.Manoharan, Saravanan M.P, S.Paneerselvam (2021) examined that how people plan
to use digital payments throughout the epidemic. Using the judgmental sampling technique, a
survey questionnaire was created to acquire the relevant information from 271 respondents.
SPSS and AMOS were used to analyse the data. Effort expectation and habit were found to
7
have a favourable effect on behaviour intentions among the seven constructs studied. The
effects of social influence, enabling condition, and price value on behaviour intentions were
not found. A fairly substantial negative link between performance expectancy and hedonic
motivation on behaviour intentions was also discovered. When compared to previous
research, our findings for a few constructs were consistent with previous findings, while
others were not.
5. C Chaudhari , A Kumar (2021) founded that The Indian economy has shown a rise in
digital payments in the retail sector as a result of the pandemic. When comparing the pre-
pandemic financial year 2019/20 to the pandemic-hit financial year 2020/21, there was a
significant increase in both volume and value in the digital payments (retail) sector. The
impact has been favourable, demonstrating the ability of India's digital payment infrastructure
to handle a significant number of financial transactions via digital platforms. The seeds of
demonetization seeded on November 8, 2016, through demonetization, have produced fruit,
allowing the payment system to smoothly navigate the huge spike in digital payments
expected in 2021.
6. MUSYAFFI, Ayattulloh Michael, SARI, Dewi Augustin pratama, RESPATI

Kiamayanti (2021) has explained Performance expectancy, effort expectancy, and personal
innovativeness all had a strong favourable effect on behavioural intention to use digital
banking, according to this study. Perceived security, on the other hand, has a strong
detrimental impact on behavioural intention. Furthermore, social influence has little
discernible effect on behavioural intention. Facilitating Conditions and behavioural intention,
on the other hand, have a considerable favourable impact on the use of digital payments. The
outcomes of this study show that, particularly in the COVID-19 epidemic, the usage of
technology and personal mental variables influences the adoption of digital payments.
7. Wesam Shishah, Soha Alhelaly (2021) studied the COVID-19 outbreak in Saudi Arabia,
an opinion survey was performed to investigate the experience of using contactless payment
technology. Researchers also looked at the factors that may have influenced this situation.
The findings revealed that since the commencement of the COVID-19 pandemic, favourable
experiences with contactless payment technology had increased. Moreover, the survey found
that the major reasons for adopting contactless technology for payment during the
coronavirus outbreak were health safety and hygiene, whereas the main issue for not using it
was transaction security.
8
8. Abhilasha Gupta, Rashi Singhal (2021) the study analyses the concept of digital payment
as well as the impact of COVID-19 on digital payment services, particularly at the grassroots
level in India's towns and villages. The study incorporates some of the viewpoints or findings
of other researchers who have offered their expertise in a related field. According to the
findings of this study, there has been a significant increase in the use of digital payment
services through various applications in Indian towns and villages, which was not as high
before the global pandemic. COVID-19
9. DR. Anil jain, DR. Apurva sarupria, Ankitha Kothari (2020) their research suggest that
COVID-19 has provided a significant boost to the Indian economy, particularly in sectors
such as food and beverages, entertainment, and others, according to the study. Digital
payment services have seen a large increase, jumping from 5% to 30%. The entertainment
and hotel business makes a significant contribution to the economy, accounting for over 40%
of total GDP.
10. Alradianty, BR Aditya (2021) this study indicated The primary aim of this study is to
give data about the relationship between demographic variables and digital payment service
awareness among Indonesian students. This research was based on a sample of 104 students
from various Indonesian higher education institutions. According to the findings of this
survey, there was no significant difference between the demographics of Indonesian students
and their awareness of digital payment services. This study's findings will help digital
payment service providers get a better understanding of student awareness of digital payment
services in Indonesia.
11. S Singh, R Rana (2017) this study indicated the perception of digital payment by
consumers has a major and positive impact on its adoption. The structured questionnaire was
used as a research instrument to learn more about how people think about digital payments.
In Delhi, 150 people were polled for primary data. The responses were analysed using
ANOVA and frequency analysis. Based on demographic parameters such as gender, age,
profession, and annual income of the patients, ANOVA shows that there is no significant
variation in customer perception. However, education was discovered to have a significant
impact on digital payment adoption.
12. R. Singhal (2021) studied that digital services provided by banks present banks with a
variety of alternatives for the benefit of their consumers Shoppers have a favourable view of
digital payment systems, as well as a positive impact on their utilisation. Business banks
9
supply distinctive services to their potential consumers as one of the largest providers of
financial and monetary services in our smart cities and the bush of rural areas. She discovered
that the RBI and the Indian government had made some notable concessions with the
introduction of a non-financial system of postponed payments. The continuous increase in
media transmission, as well as innovation, has boosted the voluntary framework of
computerised instalments.
13. NK Jayasiri, NJ Kariyawasam (2016) this study indicated that lack of information
about the features of e-banking compared to traditional banking. Furthermore, it was
discovered that a lack of information about how to access the Internet, as well as a lack of
Internet access facilities, lead to a negative attitude toward e-banking. Increasing banking
users' awareness of the benefits of e-banking services, as well as increasing Internet
connection facilities and knowledge, can be considered as improvement strategies to
encourage more traditional banking consumers to adopt Internet Banking.
14. AM Franciska, S Sahayaselvi (2017) the study identifies many kind of digital Payment
transactions that ordinary people utilise in their daily lives. This research highly depends on
secondary data. The results show that the digital revolution has made cashless transactions
simple. As a result, a total of 4018 billion was transacted using mobile banking in 2015-2016,
up from 60 billion in 2012-13. Mobile networks, the Internet, and electricity are all boosting
the reach of digital payments to more rural locations. As a result, it is safe to assume that the
future transaction system will be cashless.
15. BG Shobha (2020) examined the current state of various digital payments and discovered
that the use of digital modes has increased dramatically in the last five years. However, cash
continues to play a significant role due to a lack of adequate infrastructure and technical
issues that must be solved soon. The focus of the research is to get policymakers' attention so
that the benefits of digitalization reach everyone.
16. M Tirupathi, G Vinayagamoorthi (2019) in their research work the Digital India
scheme is a shows a strong of the Indian government, with the aim of transforming India into
a digitally enabled society where people may save time and money. One of the declared
parties of Digital India is "Faceless, Paperless, cashless." The digital payment system is
becoming more popular as banks and financial institutions move away from cash and toward
a cashless economy. The current government is encouraging citizens to use cashless
transactions, which will assist the government in achieving economic growth in India. The
10
goal of this case study is to determine the impact of digital payment apps before and after
demonetization
17. V. Raja (2012) investigated the various levels of bank-provided internet banking
services. It also compares and contrasts traditional banking with online banking. It outlines
the various benefits of internet banking as well as the successful security measures taken by
various banks to ensure secure financial transactions.
18. Arvind Kumar (2017) examined demonetization has a liquidity impact on the economy.
Demonetization is a major transition to a cashless economy with a greater emphasis on
electronic transactions. Another beneficial impact of demonetization will be an increase in
the usage of credit/debit cards, net banking, and other online payment systems, which will not
only cut transaction costs but also provide a slew of additional benefits
19. Sanghita Roy, Indrajit Sinha (2014) investigated the elements that influence customer
adoption using the Technology Acceptance Model. Factor Analysis is used to identify
accurate and consistent variables in survey-based questionnaires. The proposed model
represents the degree to which each acceptance factor is met, predicting adoption and
highlighting areas for improvement.
20. Mayank Jindal, Vijay Laxmi Sharma (2020) had studied effective online banking can
be in preventing the COVID-19 pandemic. To achieve the goals of this paper, a survey was
conducted. It has been shown that online banking played a crucial role in protecting people
throughout the COVID-19 period. When it came to online bill payment, prepaid mobile
phone recharge, and dish TV, people felt fully safe from the COVID-19 virus.
11
Reference
1. Büşra, AĞAN. (2020). The impact of COVID-19 pandemic process on digital payment
system: The case of Turkey. Avrasya Sosyal ve Ekonomi Araştırmaları Dergisi, 7(7), 229-
240.
2. Jimmi jose and DR. Sebastian tharapil joseph (2021). Effects of digital payment system
and its impact on saving of individual with special reference to Kaushambi during Covid-19.
3. Allicia Deana Santosa, Nuryanti Taufik, Faizal Haris Eko Prabowo, and Mira Rahmawati.
(2021). Continuance intention of baby boomer and X generation as new users of digital
payment during COVID-19 pandemic using UTAUT2. Journal of Financial Services
Marketing, 26(4), 259-273.
4. Manoharan, S., Saravanan, M. P., & Paneerselvam, S. (2021). Digital Payment and Its
Growth in the Time of COVID–19. Transnational Marketing Journal, 9(2), 319-334.
5. C Chaudhari , A Kumar(2021). Study of Impact of The Covid-19 Outbreak on Digital

Payment in India. Vidyabharati International Interdisciplinary Research Journal, 12(02), 99-
102.
6. MUSYAFFI, Ayattulloh Michael, SARI, Dewi Augustin pratama, RESPATI Kiamayanti

(2021). Understanding of Digital Payment Usage during COVID-19 Pandemic: A Study of
UTAUT Extension Model in Indonesia. The Journal of Asian Finance, Economics and
Business, 8(6), 475-482.
7. Shishah, W., & Alhelaly, S. (2021). User experience of utilising contactless payment
technology in Saudi Arabia during the COVID-19 pandemic. Journal of Decision
Systems, 30(2-3), 282-299.
8. Abhilasha Gupta, Rashi Singhal. (2021). Impact of COVID-19 on Digital Payment

Services at Towns and Villages. IJCRT2106045 International Journal of Creative Research
Thoughts (IJCRT).
9. Jain, A., Sarupria, A., & Kothari, A. (2020). The Impact of COVID-19 on E-wallet’s
Payments in Indian Economy. International Journal of Creative Research Thoughts, 8(6),
2447-2454.
12
10. Iradianty, A., & Aditya, B. R. (2021, March). Student Awareness of Digital Payment
Services (Case Study in Indonesia). In Journal of Physics: Conference Series (Vol. 1823, No.
1, p. 012036). IOP Publishing.
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mode. Journal of Internet Banking and Commerce, 22(3), 1-14.
12. Singhal, R. (2021) IMPACT AND IMPORTANCE OF DIGITAL PAYMENT IN

INDIA. INTERNATIONALJOURNALOF
MULTIDISCIPLINARYEDUCATIONALRESEARCH, 10(2), 3.
13. Jayasiri, N. K., & Kariyawasam, N. J. (2016) Awareness and usage of internet banking
facilities in Sri Lanka.
14. Franciska, A. M., & Sahayaselvi, S. (2017). An Overview On Digital

Payments. International Journal of Research, 4(13), 2101-2111.
15. Shobha, B. G. (2020). DIGITAL PAYMENTS-ANALYSIS OF IT’S PRESENT

STATUS IN INDIA.
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payment methods: A case study perspective analysis. International Journal of scientific &
technology research, 8(8), 394-397.
17. Raja, V. (2012) Global e-banking scenario and challenges in banking system. Asian
Journal of Research in Banking and Finance, 2(3), 92-101.
18. Arvind Kumar. (2017) Demonetization and cashless banking transactions in India.
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payment system in Indian banking sector–a study. International Journal of Scientific and
Engineering Research, 5(1), 177-187.
20. Mayank Jindal, Vijay Laxmi Sharma (2020) Usability of online banking in India during
COVID-19 pandemic. Available at SSRN 3750566.
13
CHAPTER-3
THEORETICAL FRAMEWORK
14
3.1 Digital payments on world level
Digital payment is a financial exchange that takes place online between buyers and sellers. It
became very popular due to the widespread use of internet based shopping and banking.
Different payment system are available for secure online payments like online credit card and
debit card payment system, online electronic cash system, electronic cheque system smart
card based digital payment system, digital wallets, etc.
In the recent COVID-19 pandemic situation and subsequent lockdown caused significant
uncertainty in decision with respect to quantum and timing of spending and payments among
consumers. It is reflected by a 49% decline in value of overall digital payment modes. If we
consider on the future of cash as a means of transacting post the pandemic cash remains the
preferred mode of payment for many people in India. Many of the retailers, wholesalers and
customers are not part of the digital system. The COVID-19 pandemic has disrupted every
aspect of how societies function, forcing government, business, educators and regular citizens
to adapt to a “new normal” way of conducting daily activities. More accelerating E-
commerce sales in the United states, online retailers that relied on digital payment raked in
billions: Amazon and Wal-Mart, the country’s two largest companies, together earned an
extra $10.7 billion in 2020 a 56% increase in profit compared to 2019. In the developing
world, businesses, school, and families were forced to seek out digital technologies as their
governments imposed draconian lockdowns that paralyzed in-person activities. Many used
the internet as a tool to sustain their social, economic, and political lives through the
pandemic. A study by the international finance corporation found that there was an excess
growth in internet usage of 1.3% in lower-middle-income countries between January and
March 2020, while upper-middle-income countries remained steady. The digital
transformation also hit the education sector in the world. Distance-learning initiatives were
spun up, even for kindergarten-age children, and other online education platforms served
many more enrolees than before. For example, Byju (an Indian learning app for K-12
education) saw a 60% growth in the number of users in 2020, having made registration free
for users.
3.2 Digital payment service in India
Contactless, cashless, and paperless payment techniques are all examples of digital payment
services. Through services like smartphone apps and AI/machine learning, technology has
15
enabled the world to adopt these more convenient financial transactions. With the
liberalisation of the banking system and the introduction of new technologies such as
Magnetic Ink Character Recognition (MICR), Automated Teller Machines (ATM), and so on,
the digital payment environment in India has seen a continuous shift since the 1990s.
Following that, in 2010 a slew of new payment products (stored value cards, wallets, and
recharge coupons) as well as service providers was introduced. India is exceeding several
advanced non-cash economies in terms of digital payments growth.
The growth trajectory has been accelerated by demonetization in November 2016 and the
government's and regulators' continuous drive for a cashless economy. The Indian digital
payments market was worth INR 1,638.49 trillion in FY 2019 and is predicted to rise to INR
4,323.63 trillion by FY 2024, with a compound annual growth rate (CAGR) of 22% from FY
2020 to FY 2024.
Technological advancements have helped the sector in equal measure. In the digital payment
industry, the country has experienced many innovative and cutting-edge product innovations
during the previous ten years. With the emergence of a younger generation that has grown up
with mobile phones and connectivity, technological developments in digital payments have
been adopted more quickly. India is deemed to have a more developed digital payment
ecosystem than 25 other nations, including the United Kingdom, China, and Japan, according
to a survey performed on characteristics such as round-the-clock availability of services,
adoption, and immediacy of payments.
The government has also continued to be involved in the payments business through its
targeted regulatory initiatives. While demonetization facilitated the digital transformation of
the Indian payments ecosystem indirectly, other initiatives such as the Digital India
programme (under the Ministry of Electronics and Information Technology or MeitY), the
Jan Dhan Yojna, which stipulates electronic payments for businesses with a turnover of more
than INR50crore, and a slew of other incentive and awareness programmes have directly
assisted the industry's development. Several of these significant innovations and initiatives
have transformed the way India does business. For example, initiatives such as the United
Payments Interface (UPI), Bharat Interface for Money (BHIM), RuPay cards, FASTags,
wallet interoperability, cash recyclers, or FinTech innovations such as radio frequency
identification (RFID) based fuelling apps, all-in-one quick response (QR) code for merchants,
and QR-based cash withdrawals on ATMs; digital India clearly holds an extremely promising
16
future. Consumer awareness and security concerns, on the other hand, remain among the
industry's largest challenges, requiring continued combined efforts from banks, payment
providers, regulators, and the government
3.2.1 Types of digital payments
Payment gateway is a digital payment services, it officer a fast and user-friendly processing
of payment in information. Some the important types of digital payment services are given
below
1. Banking cards
Cards are one of the most extensively used payment methods, offering a variety of features
and benefits such as payment security, convenience, and so on. Debit/credit or prepaid
banking cards have the advantage of being able to be used for various sorts of digital
payments. To make a cashless payment, customers can keep card information in digital
payment apps or mobile wallets. Visa, Rupay and MasterCard, among others, are some of the
most reputable and well-known card payment systems. Banking cards can be used for online
shopping, digital payment apps, point-of-sale machines, and internet transactions, among
other things.
2. Internet banking
It is an e-payment system which permits the customers to operate his account directly without
the intervention of the bank staff. The method of conducting banking transactions over the
internet is referred to as internet banking. Many services, such as transferring money, making
a new fixed or regular deposit, terminating an account, etc., are available. E-banking or
online banking are other terms for internet banking. Internet banking is typically used to
make NEFT, RTGS, or IMPS digital fund transfers. Banks provide consumers with a variety
of financial services via their websites, and users can access their accounts using a username
and password. Unlike visiting a physical bank, internet banking services have no time
constraints and can be used at any time and on any day of the year. Internet banking services
have a lot of potential.
17
3. Mobile banking
Conducting digital payments through a compact mobile device is very convenient due to its
light weight and small size banks and other financial institution are exploring the users of
mobile to allow their customers to access accounts information and make transaction. For
example, through mobile banking, customers can purchase share, transfer money from one
account to another pay bills.
4. UPI (Unified payment interface)
UPI is an interoperable payment system that allows any consumer with any bank account to
send and receive money via a UPI-enabled app. The service allows users to link multiple
bank accounts to a UPI application on their smartphone, allowing them to seamlessly conduct
financial transfers and collect requests 24 hours a day, 365 days a year. UPI's main benefit is
that it allows users to send money without a bank account or an IFSC code. All you'll need is
a Virtual Payment Address to get started. There are numerous UPI apps available on the
market, and they are compatible with both Android and IOS devices.
5. BHIM (Bharat interface for money)
Users can use the UPI app to make payments through the BHIM app. This also works with
UPI, and transactions can be completed with the help of a VPA. The BHIM interface makes it
simple to link one's bank account. Multiple bank accounts can be linked as well. Anyone with
a phone number, a debit card, and a bank account can use the BHIM app. Money can be
transferred to various bank accounts, virtual addresses, or Aadhaar numbers. Many banks
have also partnered with the NPCI and BHIM to provide customers with access to this
platform. Bharat interface for money is one of the apps which allow the users to make
payments try Unified payment interface application. It is very useful for the users to link
multiple bank account and payments can be done through debit card if anyone has valid bank
account.
6. Mobile wallet
A mobile wallet is a form of virtual wallet that may be accessed through the use of an app. To
allow safe payments, the digital or mobile wallet holds bank account or debit/credit card
information or bank account information in an electronic file. A mobile wallet can also be
stored with funds and used to make payments and acquire goods and services. It was no
18
longer necessary to use credit or debit cards or know the CVV or 4-digit pin. Many banks
have established e-wallet services in the country, and there are also a number of private
businesses. Paytm, Mobikwik, Freecharge, and other mobile wallet apps are available.
7. AEPS (Aadhar enabled payment system)
AEPS, which stands for Aadhaar Enabled Payment System, can be used for all financial
operations, including balance enquiries, withdrawing money, cash deposits, payment
transactions, and Aadhaar to Aadhaar fund transfers, among others. Based on Aadhaar
verification, all payments are executed through a banking correspondent. There is no need to
go to a branch, produce debit or credit cards, or even sign a paper in person. Only if your
Aadhaar number is registered with the bank where you have an account can you use this
service. The NPCI has taken another step to encourage digital payments in the country.
8. USSD (Unstructured supplementary service data)
It is a digital payment mechanism that can be used to conduct mobile transactions without the
need to download an app. These forms of payments can be made even if you don't have
access to a mobile data network. The USSD and the National Payments Corporation of India
are both supporting this service (NPCI). The primary goal of this form of digital payment
service is to promote participation among underprivileged groups of society and to
incorporate them into regular banking. This service can be used to make fund transfers,
examine bank statements, and inquire about balances. This type of payment method also has
the advantage of being available in Hindi.
9. PoS (Point of sale machines)
Traditionally, point-of-sale (PoS) terminals were those that were put in all stores where
customers could make purchases using credit or debit cards. It's usually a small device that
reads credit cards. However, as a result of digitization, the scope of PoS is increasing, and it
is now available on mobile devices and through web browsers. Physical PoS, Mobile PoS,
and Virtual PoS are three different types of PoS terminals. Physical point-of-sale terminals
are those found in shops and stores. Mobile PoS terminals, on the other hand, function with a
smartphone or tablet. This is beneficial to entrepreneurs because they do not need to invest in
costly electronic registers. Payments are processed using web-based apps in virtual PoS
systems.
19
10. Bank prepaid card
A bank prepaid card is a bank-issued, pre-loaded debit card that is either single-use or
reloadable for many usage. It differs from a traditional debit card in that the latter is
permanently linked to your bank account and can be used several times. A prepaid bank card
may or may not be affected. Any customer with a KYC-compliant account can create a
prepaid card by visiting the bank's website. The most popular uses of these cards are for
corporate gifts, reward cards, or single-use cards for giving.
3.2.2 Advantages of digital payment
1. Faster, easier, more convenient
One of the most significant benefits of cashless payments is that they speed up the payment
process and eliminate the need to fill out extensive information. There is no need to queue for
an ATM or carry cards in your wallet. Customers will also have access to banking services 24
hours a day, seven days a week, including holidays, as a result of the migration to digital.
Many services, such as digital wallets and UPI, are built on this basis.
2. Economical and less transaction fee
Many payment applications and digital payments do not charge a transaction fee or a service
charge for the services they provide. One such example is the UPI interface, which allows
customers to use services for free. Costs are being reduced via a variety of digital payment
options.
3. Waivers, discounts and cash backs
Customers that use digital payment applications and mobile wallets are eligible for a variety
of discounts and rewards. Many digital payment banks provide generous cash back offers.
Customers would appreciate this, and it will also serve as a motivator to become cashless.
4. Digital record of transactions
Another advantage of going digital is the ability to keep track of all transactions. Customers
may keep track of each and every payment they make, regardless of how small the
transaction goes.
20
5. One stop solution for paying bills
Utility bills can now be paid through a variety of digital wallets and payment apps. Whether
it's a mobile phone bill, an internet bill, or an electricity bill, all of these utility bills may be
paid with ease using a single app.
6. Helps keep black money under control
Digital transactions will help the government in keeping track of things and, in the long term,
will help in the elimination of the movement of black money and fake notes. Aside from that,
the cost of minting currency will be reduced, which will help the economy.
7. Safety and efficient tracking
Managing and dealing with cash is a time-consuming and difficult process. Along with the
risk of financial loss, there is also the difficulty of carrying cash and keeping it safe. With
digital payments, one may easily keep their funds safe in an online format. Thanks to UPI,
internet banking, and mobile wallets, you can now make and receive payments with just your
smartphone. Furthermore, several digital payment channels give customers with regular
updates, notifications, and statements so they can keep track of their funds.
8. Economic progress
When customers see how easy, convenient, and secure online payments are, they transact
more online. As a result, an increasing number of people are comfortable purchasing goods
online, investing electronically, and transferring funds through electronic methods. The
advancement of the economy is aided by a rise in money flow and online business. This is
why new online businesses are started every day, and many more are profitable.
9. Contactless
During the COVID-19 pandemic, people started searching for ways to avoid human contact
in order to avoid becoming infected with the coronavirus. As a result, the demand for
contactless payments has grown. Contactless POS terminals can be used in any business to
reduce the need for human contact. In this approach, the payee simply needs to maintain his
phone close to the terminal for his payment to be processed automatically. You can also
enable your clients to pay with QR codes or One-Time Passwords (OTP).
21
3.2.3 Disadvantages of digital payment
1. Risk of Theft
India will have to toughen its cyber security because of hacking within banks and private
accounts happening globally. Many situations have occurred in which cybercriminals have
deceived individuals and stolen money.
2. Technical Problems
As it is an online service, it could go down due to technological problems, causing problems
for customers who depend on it 100 percent for their payments.
3. Low Literacy Rate

One of the major causes of a variety of existing problems is a low literacy rate. It is not easy
to establish a cashless economy in India or to create a digitally literate India. Many areas still
lack electricity or running water. As a result, computers and the internet are a long way off. A
large portion of the population lives in rural areas, which lack basic essentials. In these
impoverished areas, people rely solely on currency. If they have to depend on someone for
online activity, they may be duped.
4. Economic Disparity
If the traditional payment method is totally replaced by a cashless system, it is likely that
purchasing smartphones or devices will become necessary. In a country like India, where
many residents struggle to meet their basic needs, buying a smartphone is definitely a luxury
that these impoverished people cannot afford. If cashless transactions become the norm,
society would become more unequal because not everyone can afford it.
5. Identification Fraud
One of the main drawbacks of the cashless transaction in the Indian subcontinent is the
potential of identity theft. The risk of hacking is increasing as the amount of online fraud
rises with each passing day. Not everyone is tech-savvy or well-versed in all of the ways in
which technological devices can be used. Many people may wind up dissolving their real
identity while attempting to conduct digital transactions in a nasty lurker-infested online
forum.
22
3.3 Direction of digital payment
The pandemic has resulted in a major shift in digital payments. The shock has accelerated
trends while also changing their direction. Shifts like the widespread acceptance of
contactless payments in nations like the United States, the United Kingdom, and Australia
aren't passing trends; they're here to stay. And, in addition to benefiting customers, payment
digitization opens up huge prospects for micro, small, and medium businesses, many of
which have been affected particularly hard by the crisis.
3.4 Impact of COVID-19 on digital payments
The global digital banking market generated over $803.8 billion in revenue in 2018, and is
expected to increase at a 10% compound annual growth rate (CAGR) to $1,702.4 billion by
2026. The industry has experienced substantial growth in the past, but due to the unexpected
COVID-19 outbreak, the market is likely to grow even more in 2020, owing to the growing
popularity of mobile payment solutions. This expansion will be driven in large part by
changing customer behaviour, with people shifting their attention away from bank branches
and toward online banking.
Bank operations have been hampered as a result of COVID-19's worldwide spread.

Borrowers and businesses have suffered losses, with weak sales growth and profit declines.
On the other hand, some have seen this pandemic as an opportunity to create digital products.
As a result, banks have been successfully utilising the digital tool and attractively providing
alternatives to in-person banking and tangible transactions.
The COVID-19 pandemic has shown a positive impact on the digital banking business.
According to financial trends, this is a good moment for banks and credit unions to learn
about their clients' expectations from financial institutions. Banks have established business
models to support and meet consumers' financial demands, and today leverage diverse
technologies such as artificial intelligence (AI) and human resources to influence marketing,
innovation, and the digital delivery of products and services. This aspect is considerably
driving digital banking usage and will push market expansion throughout the COVID-19
pandemic.
23
Moreover, during this pandemic, customers' acceptance of online banking has expanded, as
has their use of online and digital banking substitutes. For example, according to a recent
survey, 35% of consumers have increased their use of online banking since the COVID-19
issue, with 17% saying they used it before the epidemic as well. Simultaneously, 30% of
consumers have increased their use of mobile banking, with 11% doing so significantly more.
As a result, digital banking services and product supply will continue to operate during the
COVID-19 pandemic.
The digital payments sector has shown a 30% decrease in transaction value in the current
COVID-19 situation, and latest data from the National Payments Corporation of India (NPCI)
testifies to a substantial reduction in the months when lockdowns were implemented
(primarily due to the impact on the travel, hospitality and retail sectors). However, at such
instances, the government and regulator have pushed for digital payments through National
electronic funds transfer, immediate payment service, UPI, BHIM, and other means to reduce
the use of physical cash, which carries a higher risk of COVID-19 transmission. Such efforts,
combined with the liberalisation of the economy, are shown in the fast recovery of various
digital payment systems on the National Payments Corporation of India (NPCI). This clearly
suggests that, while COVID-19's negative impact on digital payments is large, it is not
lasting, and India's digital payment ecosystem is anticipated to evolve quickly in the post-
COVID-19 period to assist shape the country's progress.
COVID-19 could be India's "demonetization moment" in terms of digital service delivery. In

2016, a lack of cash under an unanticipated demonetization programme combined with a pre-
existing national tech infrastructure accelerated the growth of digital payments. Now, in the
midst of a different kind of macroeconomic shock, entrepreneurs across India's formidable
start-up ecosystem are pivoting business models in unexpected ways, leveraging technology
to solve constructive challenges for their user and small business customers arising from the
country's significant health and economic crises.
3.5 COVID-19 impact on digital payment app usage in India
Until 2019, digital payments receivables were slow and varied by country due to culture
demonetization and technology. However the long term uncertainty of the COVID-19 issue
will result in the public being accommodated in digital payment platforms, almost as such
24
power. By the end of 2019, with more than 5.1 billion unique users and 3.7 billion unique
internet users which help smooth the adoption of digital payment platform.
Data are released by RBI showed that in January to march 2021 mobile transactions recorded
56% growth in volume to 8.3 billion. A lot of mobile app payments like Google pay,
phonepe, paytm, Bharat pay which is running in the UPI.
25
CHAPTER-4
DATA ANALYSIS & INTERPRETATION
26
Table 4.1
Classification of respondents on the basis of gender
Gender Number of respondents Percentage
Male 42 52.5
Female 38 47.5
TOTAL 80 100
(Source: Primary data)
Table no 4.1 shows the classification on the basis of gender. Among 80 samples 53% of
respondents are male and 48% of respondents are females.
Figure 4.1
Classification of respondents on the basis of gender
47.50% Male
52.50% Female
27
Table 4.2
Classification of respondents on the basis of having a bank account
Particulars Number of respondents Percentage
Yes 79 98.8
No 1 1.2
TOTAL 80 100
Table no 4.2 shows that out of 80 respondents 98.8% of respondents have a bank account and
1.2% respondent does not have bank account.
Figure 4.2
Classification of respondents on the basis of having a bank account
1.20%
Yes
No
98.80%
28
Table 4.3
Classification of respondents on the basis of whether they use any digital

payment services for any kind of online transaction
Yes 75 93.8
No 5 6.3
TOTAL 80 100
Table no. 4.3 reveals that among 80 samples 93.8% of respondents use digital payment
services for online transaction and 6.3% of respondents do not use digital payment services
for online transaction
Figure 4.3
Classification of respondents on the basis of whether they use any digital

payment services for any kind of online transaction
6.30%
Yes
No
93.80%
29
Table 4.4
Classification of respondents on the basis of use of smartphones for

banking
Yes 64 80
No 16 20
TOTAL 80 100
Table no.4.4 shows that 80% of respondents are using smartphones for banking transaction,
20% of respondents do not use smartphones for banking transactions.
Figure 4.4
Classification of respondents on the basis of use of smartphones for

banking
20%
Yes
No
80%
30
Table 4.5
Classification of respondents on the basis of whether digital banking

eased their life activities
Yes 77 96.3
No 3 3.7
TOTAL 80 100
Table no 4.3 shows that 96.3% of respondents believe that digital banking has eased their life
activities
Figure 4.5
Classification of respondents on the basis of whether digital banking eased

their life activities
3.70%
Yes
No
96.30%
31
Table 4.6
Classification of respondents on the basis of usage of online payments in

their online shopping
More frequently 30 37.5
Frequently 26 32.5
Occasionally 19 23.8
Rarely 5 6.3
TOTAL 80 100
Table no.4.6 reveals that, out of 80 respondents 37.5% are more frequently using online
payments for their online shopping, 32.2% of respondents are using frequently, 23.8% of
respondents are using occasionally, and 5% of respondents are using rarely
Figure 4.6
Classification of respondents on the basis of usage of online payments in

their online shopping
6.30%
23.80% 37.50%
More frequently
Frequently
Occasionally
32.50% Rarely
32
Table 4.7
Classification of respondents on the basis of frequency of usage of digital

banking
Daily 5 6.3
Weekly 35 43.7
Monthly 33 41.3
Yearly 6 7.5
Never 1 1.2
TOTAL 80 100
Table no. 4.7 shows that classification on the basis of frequency of usage of digital banking.
Among 80 samples 43.7% of respondents use e-banking services weekly, 41.3% respondents
are using monthly, 7.5% of respondents are using yearly, 6.3% of respondents are using
daily and 1.2% of respondents are never used e-banking services
Figure 4.7

banking
1.20% 6.30%
7.50%
Daily
Weekly
Monthly
41.30% 43.70% Yearly
Never
33
Table 4.8
Classification of respondents on the basis of medium used for transfer

money
At the bank teller 9 11.3
Cash deposited machine 4 5
Mobile apps 53 66.3
Internet banking 9 17.5
TOTAL 80 100
Table no. 4.8 shows that 66.3% of respondents transfer money through mobile apps, 17.5%
of respondents are using internet banking, 11.5% of respondents are using bank teller, 5% of
respondents are using cash deposited machine
Figure 4.8
Classification of respondents on the basis of medium used for transfer

money
11.30%
17.50%
5%
At the bank teller

Cash deposited machine
Mobile apps
Internet banking
66.30%
34
Table 4.9
Classification of respondents on the basis of their opinion about whether e-

banking services are cheaper than traditional banking services
Yes 72 90
No 8 10
TOTAL 80 100
Table no. 4.9 shows that 90% of respondents says that e-banking services are cheaper than
traditional banking services and 10% of respondents says that e-banking services are not
cheaper than traditional banking services
Figure 4.9
Classification of respondents on the basis of their opinion about whether e-

banking services are cheaper than traditional banking services
10.00%
Yes
No
90.00%
35
Table 4.10
Classification respondents on the basis of their opinion about whether they

faced any problems regarding e-banking
Yes 57 71.3
No 23 28.7
TOTAL 80 100
Table no. 4.10 shows that 71.3% of respondents did not faced problem in e-banking, 28.7%
of respondents are faced problems in e-banking.
Figure 4.10
Classification respondents on the basis of their opinion about whether they

faced any problems regarding e-banking
28.70%
Yes
No
71.30%
36
Table 4.11
Classification of respondents on the basis of various problems regarding e-

banking
Security problem 14 24.5
Digital illiteracy 11 19.3
Delay in transaction 23 40.5
Others 9 15.7
TOTAL 57 100
Table no 4.11 shows that 40.5% of respondents feel delay in transaction has the major
problem regarding e-banking, 24.5% of respondents feel security problem, 19.3% of
respondents feel digital illiteracy, 15.7% of respondents feel other problems.
Figure 4.11
Classification of respondents on the basis of various problems regarding e-

banking
15.70%
24.50%
Security problem
Digital illiteracy
19.30%
40.50% Delay in transaction
Others
37
Table 4.12
Classification of respondents on the basis of knowledge of different digital

payment services available
Types of digital Very Low=2 Medium=3 High=4 Very high=5

payment services low=1
Banking cards 5 10 15 19 31
Unified payment
interface 11 13 17 16 23
Mobile banking 4 5 19 25 27
Internet banking 7 4 16 28 25
Point of sale 11 24 23 19 3
38
Graphs showing the respondents knowledge of different digital payment
services available:
1) Banking cards
Figure 4.12.1
45.00%
40.00% 38.75%
35.00%
Number of respondents (%)
30.00%
25.00% 23.75%
20.00% 18.75%
15.00%
12.50%
10.00%
6.25%
5.00%
0.00%
Very low Low Medium High Very high
Level of knowledge
The above graph shows the respondents level of knowledge about banking cards
Level of knowledge has taken on x- axis and number of respondents (%) has taken on Y- axis
38.75% of respondents have very high level of knowledge about banking cards, 23.75% of
respondent’s have high level of knowledge about banking cards, 18.75% of respondents have
medium level knowledge about banking cards, 6.25% of respondents have low level
knowledge about banking cards, 12.5% of respondents have very low level knowledge about
banking cards.
39
2) Unified payment interface
Figure 4.12.2
35.00%
30.00% 28.75%
25.00%
Number osf respondents (%)
21.25%
20.00%
20.00%
16.25%
15.00% 13.75%
10.00%
5.00%
0.00%
Level of knowledge
The above graph shows the respondents level of knowledge about Unified payment interface
28.75% of respondents have very high level of knowledge about Unified payment interface ,
20% of respondent’s have high level of knowledge about Unified payment interface, 21% of
respondents have medium level knowledge about Unified payment interface, 16.25% of
respondents have low level knowledge about Unified payment interface, 13.75% of
respondents have very low level knowledge about Unified payment interface
40
3) Mobile banking
Figure 4.12.3
40.00%
35.00% 34%
31.25%
30.00%
25.00% 23.75%
20.00%
15.00%
10.00%
6.25%
5.00%
5.00%
0.00%
Level of knowledge
The above graph shows the respondents level of knowledge about Mobile banking
33.75% of respondents have very high level of knowledge about Mobile banking, 31.25% of
respondent’s have high level of knowledge about Mobile banking, 23.75% of respondents
have medium level knowledge about Mobile banking, 6.25% of respondents have low level
knowledge about Mobile banking, 5% of respondents have very low level knowledge about
Mobile banking
41
4) Internet banking
Figure 4.12.4
40%
35%
35%
31.25%
30%
25%
20%
20%
15%
10% 9%
5%
5%
0%
very low Low Medium High Very high
Level of knowledge
The above graph shows the respondents level of knowledge about Internet banking
31.25% of respondents have very high level of knowledge about Internet banking, 35% of
respondent’s have high level of knowledge about Internet banking, 20% of respondents have
medium level knowledge about Internet banking, 5% of respondents have low level
knowledge about banking cards, 8.75% of respondents have very low level knowledge about
Internet banking
42
5) Point of sale
Figure 4.12.5
35.00%
30.00%
30.00% 28.75%
25.00% 23.75%
Number of respondents
20.00%
15.00%
12.75%
10.00%
5.00% 3.75%
0.00%
Level of knowledge
The above graph shows the respondents level of knowledge about Point of sale
3.75% of respondents have very high level of knowledge about Point of sale, 23.75% of
respondent’s have high level of knowledge about Point of sale, 28.75% of respondents have
medium level knowledge about Point of sale, 30% of respondents have low level knowledge
about Point of sale, 12.75% of respondents have very low level knowledge about Point of
sale
43
Table 4.13
Classification of respondents on the basis of whether they will encourage e-

banking services
Yes 77 96.3
No 3 3.7
TOTAL 80 100
Table no.4.12 shows that96.3% of respondents will suggest others to use e-banking services
and 3.7% of respondents will not suggest e-banking services to others.
Figure 4.13
Classification of respondents on the basis of whether they will encourage e-

banking services
3.70%
Yes
No
96.30%
44
Table 4.14
Classification of respondents on the basis of preference of various digital

payment apps
Google pay 51 63.7
PhonePe 15 18.8
Paytm 11 13.7
Others 3 3.7
TOTAL 80 100
Table no.4.13 shows 63.7% of respondents are most prefer Google pay app, 18.8% of
respondents are prefer phonepe app, 13.7% of respondents are prefer paytm and 3.7% of
respondents are prefer other digital payment apps.
Figure 4.14
Classification of respondents on the basis of preference of various digital

payment apps
3.70%
13.70%
18.80% Google pay
63.70% Phone pay

Paytm
Others
45
Table 4.15
Classification of respondents on the basis of type payment made through

digital payment apps
Mobile recharge 45 56.3

Utility services 9 11.2
Fee payment 18 22.5
All of the above 6 7.5
Others 2 2.5
TOTAL 80 100
Table no.4.14 shows that 56% of respondents use digital payments for recharge, 22.5% use it
for fee payments, and 11.2% use it for utility payments.
Figure 4.15
Classification of respondents on the basis of type payment made through

digital payment apps
2.50%
7.50%
Mobile recharge
22.50% Utility services

Fee payment
56.30% All of these
Others
11.20%
46
Table 4.16
Classification of respondents on the basis satisfaction of digital payment

apps
Yes 77 96.3
No 3 3.7
TOTAL 80 100
Table no.4.15 shows that 96.3% of respondents are satisfied with digital payment apps and
3.7% of respondents are not satisfied with digital payment app.
Figure 4.16
Classification of respondents on the basis satisfaction of digital payment

apps
3.70%
Yes
No
96.30%
47
Table 4.17
Classification of respondents on the basis of whether their usage of digital

payment services increased after outbreak of COVID-19
Strongly agree 41 51.2

Agree 33 41.3
Neutral 5 6.3
Disagree 1 1.2
Strongly disagree 0 0
TOTAL 80 100
Table no.4.16 shows that 51.2% of respondents strongly agree that digital payment services
increased after outbreak of COVID-19, 41.3% of respondents agree to this statement, 6.3% of
respondents have a neutral opinion about this statement to this statement, 1.2% of
respondents disagree to the statement, 0% of respondents are strongly disagree to this
statement
Figure 4.17
Classification of respondents on the basis of whether their usage of digital

payment services increased after outbreak of COVID-19
1.20%
6.30% 0.00%
Strongly agree
Agree
Neutral
41.30% 51.20%
Disagree
Strongly disagree
48
Table 4.18

payment during lockdown period

Frequently 33 41.3
Occasionally 7 8.8
Rarely 3 3.7
TOTAL 80 100
Table no.4.17 shows that 46.3% of respondents are using digital payment more frequently
during lockdown period, 41.3% of respondents using frequently, 8.8% of respondents are
using occasionally, and 3.7% of respondents are use rarely.
Figure 4.18

payment during lockdown period
3.70%
8.80%
46.30% More frequently
Frequently
41.30%
Occasionally
Rarely
49
Table 4.19

payment post the lockdown period

Frequently 30 37.5
Occasionally 13 16.2
Rarely 3 3.8
TOTAL 80 100
Table no.4.18 shows that 42.2% of respondents are using digital payment more frequently on
post lockdown period, 37.5% of respondents are using frequently, 16.2% of respondents are
using occasionally and 3.8% of respondents are use rarely.
Figure 4.19

payment post the lockdown period
50
Table 4.20
Classification of respondents on the basis of their opinion regarding the
reason for the preference from traditional to digital payments services
during COVID-19
Fast and convenience 38 47.5

Safe and secured 24 30
No physical contact in 17 21.3
making payments
Rewards 1 1.2
TOTAL 80 100
Table no.4.19 shows that47.5% of respondents chose online payments as it is fast and
convenience, 30% of respondents prefers online payments as it safe and secured, 21.3 % of
respondents prefer online payments as it no physical contact in making payments and 1.2%
of respondents use digital payments for rewards.
Figure 4.20

reason for the preference from traditional to digital payments services during
COVID-19
1.20%
21.30% Fast and convenience

47.50%
Safe and secured
30% No physical contact in making

payments
Reward and offers
51
Table 4.21

factors that hampered other people’s use of digital payment system
Digital illiteracy 35 43.8

Lack of infrastructure 17 21.3
Security 12 15
Additional charges 6 7.5
Others 10 12.5
TOTAL 80 100
Table no.4.20 shows that43.8% of respondents think digital illiteracy has hampered the use of
digital payment services,15% of respondents think lack of infrastructure, 7.5% of respondents
think security, 12.5% of respondents think other factors, and 7.5% of respondents think
additional charges are reasons.
Figure 4.21

factors that hampered other people’s use of digital payment system
12.50%
7.50%
43.80%
Digital illiteracy
15% Lack of infrastucture
Security
Additonal charges
21.30%
Others
52
CHAPTER-5
FINDINGS, SUGGESTIONS &
CONCLUSION
53
5.1 Findings
1. The research found out that almost all (99%) of the respondents possesses a bank
account in their name. there was only one respondent having no bank account.
2. 94% of the respondents used digital payment services for doing any kind of online
transaction. This shows that majority of the people are aware about digital payments.
3. More respondents (80%) use smartphone for banking. This shows that people are
more inclined towards using smartphone rather than other devices for banking.
4. 96% of respondents tell that digital banking eased their life activities. It shows people
are satisfied with digital banking.
5. More than two-thirds of a respondent (70%) uses online payments in their online
shopping frequently. This shows that people have convenience in using online
payments.
6. The number of respondents who use digital banking services daily is only 6%. But the
weekly and monthly users are 44% and 41% respectively.
7. 66% of the respondents used mobile apps for transfer of money and 18%use internet
only a few students used other medium like bank teller, cash deposit machine etc. so,
respondents have more affection to mobile banking.
8. 90% of respondents believe that e-banking services are cheaper than traditional
banking.
9. Majority of the respondents (70%) argue that there are problems in e-banking. The
most commonly faced problems are delay in transaction and security problems. So if
these problems are treated then more people will be volume of such transaction will
increase.
10. 50 out of 80 respondents have high knowledge on banking cards. Most of the
respondents are also familiar with, mobile banking, e-banking and UPI. But only a
little percentage of respondents has high knowledge on point of sale.
11. 96% of the respondents said that they will encourage others to use e-banking
services. So it shows that respondents are very happy with digital banking irrespective
of some small problems.
12. Most of the respondents (64%) are using Google pay app for their digital payment.
The second place is occupied by Phonepe with 19% respondents.
54
13. Most of the respondents use digital payments for mobile recharge, followed by fee
payment, utility services etc.
14. Most of the respondents (96%) are very satisfied with the digital payment apps. This
also shows that mobile devices are mostly preferred by respondents.
15. Most of the respondents (92%) agree that their use of digital payments have increased
after outbreak of COVID-19.
16. Most of the respondents’ frequency of using digital payments increased during the
lockdown period. This shows that COVID-19 has a huge and positive impact on the
number of digital payment transactions.
17. 48% of respondents said that speed and convenience is the major factor that led to the
increase of digital payments during the pandemic period. 21% says that digital
payments will help in reducing physical contact and thus lead to reduction in the
transmission of diseases.
18. Most of the respondents feel that it may be digital illiteracy that may have hampered
the use of digital payments by other people during COVID-19 pandemic.
5.2 Suggestions
1. In order to raise awareness among students in colleges, schools, and other

institutions, digital financial services should be taught as part of the curriculum.
2. The bank's website should be available in regional languages such as Malayalam to
make it more user-friendly and engaging. The drive to create customer confidence
should be strengthened.
3. The government should make efforts to ensure that digital payments are widely
accepted.
4. Banks should organize workshops for their clients, which will allow them to express
their issues and get solutions at the appropriate time.
5. Simple & easy to use Mobile applications software for On-Line banking services
should be made available to customers at free of cost.
55
5.3 Conclusion
Digital payment services have transformed the entire environment of financial transactions.
These digital payment platforms provide a mechanism where money gets transferred from
one person to another person quickly without any paper money being exchanged. The
transaction is settled in real time that these digital payments have led to a major positive
impact on businesses worldwide. Geographical location of the payer and payee is not at all a
constraint in the digital environment. The biggest advantage of using online payment system
is indeed the ease and convenience of using it. The importance of digital payments has been
made more clear when the world came to a standstill due to the COVID 19 pandemic. In
those difficult times, online payment systems have made sure that the businesses operate
smoothly and efficiently.
The study found out that majority of the students of Christ College (Autonomous)
Irinjalakuda are aware about digital payment services and they are active users of it. The
students are satisfied with digital payment services. But at the same time, they have some
concerns like, security problems, delay in transaction etc. if these are overcome, then
definitely more people will be attracted towards it. Covid-19 pandemic had definitely a
positive impact on digital payments. There has been growth in the number of digital
payments systems. And the financial literacy of others must be improved.
56
BIBLIOGRAPHY
57
Bibliography
1. www.googlescholar.com
2. https://www.bankbazaar.com/ifsc/digital-
payment.html#:~:text=There%20are%20various%20types%20and,cards%2C%20mob
ile%20banking%2C%20etc.
3. India - COVID-19 impact on digital payment apps 2020 | Statista
4. https://www.aplustopper.com/advantages-and-disadvantages-of-cashless-
economy/
5. https://assets.kpmg/content/dam/kpmg/in/pdf/2020/08/impacting-digital-
payments-in-india.pdf
58
APPENDIX
59
Questionnaire
STUDY ON THE IMPACT OF COVID-19 ON USAGE OF DIGITAL

PAYMENT SERVICES AMONG COLLEGE STUDENTS IN CHRIST
COLLEGE, IRINJALAKUDA
1. Name
2. Gender
Male
b) Female
3. Do you have a bank account?
1) Yes
2) No
4. Do you use smartphone for any financial/banking transaction?
1) Yes
2) No
5. Did internet banking ease your life activities?
1) Yes
2) No
6. Does E-banking saves your time?
1) Yes
2) NO
7. How often do you use online payments in your online shopping?
1) Very low
2) Low
3) High
4) Very high
8. How frequently you use E-banking services?
1) Daily
2) Weekly
3) Monthly
60
4) Yearly
5) Never
9. How do you typically (most often) transfer money?
1) At the bank teller
2) Cash deposit Machine
3) Mobile Apps
4) Internet Banking
10. Do you think mobile banking services are cheaper than traditional banking services?
1) Yes
2) No
11. Did you face any problems regarding E-banking services?
1) Yes
2) No
12. If you faced any problems regarding e-banking services what are they
1) Security problems
2) Digital illiteracy
3) Delay in transaction
4) Others
12. On the scale 1 to 5 (low to high), how would you rate your knowledge of all digital
payment services available through
Types of digital Very Low=2 Moderate=3 High=4 Very high=5

payment services low=1
Banking cards
Unified payment
interface
Mobile banking
Internet banking
Point of sale
61
13. Will you encourage others to use E-banking services?
1) Yes
2) No
14. Do you use any digital payments for any kind of online transaction?
1) Yes
2) No
15. from the following which one you prefer more?
1) Google pay
2) PhonePe
3) Paytm
4) Others
16. What kind of payments you usually do through these apps?
1) Mobile Recharge
2) Utility services (electricity, water, bills)
3) Fee payment
4) Others
16. Are you satisfied with these apps?
1) Yes
2) No
17. The usage of my digital payment services after the outbreak of COVID-19 has increased?
1) Strongly agree
2) Agree
3) Neutral
4) Disagree
5) Strongly Disagree
18. How frequently did you using digital payment in during lock lockdown?
1) More Frequently
2) Frequently
3) Occasionally
4) Rarely
19. How frequently are you using digital payment post lockdown?
62
1) More Frequently
2) Frequently
3) Occasionally
4) Rarely
20. What do you think the reason for the preference from offline to online payment during
COVID-19?
1) Fast and Convenience
2) Safe and secured
3) No physical Contact in making payment
4) Reward and offers
21. According to you what are the factors that hampered other people’s use of digital
payment system
1) Digital illiteracy
2) Lack of infrastructure
3) Security
4) Additional Charges
5) Others
63

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“STUDY ON THE IMPACT OF COVID-19 ON USAGE OF

DIGITAL PAYMENT SERVICES AMONG COLLEGE

Project report submitted to

CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

In partial fulfilment of the requirements for the award of the degree of

Under the guidance of

Asst. Prof. JEBIN K DAVIS

POST GRADUATE & RESEARCH DEPARTMENT OF COMMERCE

CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

Dr. JOSHEENA JOSE Prof. Jebin K Davis. Asst. Professor

( Head of the department) ( Project Guide )

Place: Irinjalakuda YADHUKRISHNA K.S

Date: 24-03-2022 CCATBCM065

Place: Irinjalakuda YADHUKRISHNA K.S

SL NO. TITLE PAGE NO.

3 CHAPTER 1: INTRODUCTION 1-5

4 CHAPTER 2: REVIEW OF LITERATURE 6-13

5 CHAPTER 3: THEORETICAL FRAMEWORK 14-25

6 CHAPTER 4: DATA ANALYSIS AND 26-52

7 CHAPTER 5: FINDINGS, SUGGESTIONS & 53-56

TABLE NO. TITLE PAGE NO.

Table 4.1 Classification of respondents on the basis of gender 27

Table 4.2 Classification of respondents on the basis of having 28

FIGURE NO. TITLE PAGE N0.

Figure 4.2 Classification of respondents on the basis of having a 28

1.3 Scope of the study

1.4 Significance of the study

1.5 Objectives of the study

1.6 Research methodology

1.6.1 Data collection

1.6.2 Research design

1.7 Sample design

1.7.1 Sample population

The population of this study is the students of Christ College.

1.7.2 Sample frame

1.7.4 Sample size

The data has been collected from 80 students.

1.8 Limitation of the study

1.8.1 Due to the covid-19 pandemic, there were many restrictions.

1.8.3 The study is limited to Christ College students only.

Chapter 2 – Review of literature

Chapter 3 – Theoretical framework

Chapter 4 – Data analysis and interpretation

Chapter 5 – Findings, Suggestions & conclusions

6. MUSYAFFI, Ayattulloh Michael, SARI, Dewi Augustin pratama, RESPATI

5. C Chaudhari , A Kumar(2021). Study of Impact of The Covid-19 Outbreak on Digital

6. MUSYAFFI, Ayattulloh Michael, SARI, Dewi Augustin pratama, RESPATI Kiamayanti

8. Abhilasha Gupta, Rashi Singhal. (2021). Impact of COVID-19 on Digital Payment

12. Singhal, R. (2021) IMPACT AND IMPORTANCE OF DIGITAL PAYMENT IN

14. Franciska, A. M., & Sahayaselvi, S. (2017). An Overview On Digital

15. Shobha, B. G. (2020). DIGITAL PAYMENTS-ANALYSIS OF IT’S PRESENT

3.2 Digital payment service in India

3.2.1 Types of digital payments

4. UPI (Unified payment interface)

5. BHIM (Bharat interface for money)

7. AEPS (Aadhar enabled payment system)

8. USSD (Unstructured supplementary service data)

9. PoS (Point of sale machines)

3.2.2 Advantages of digital payment

1. Faster, easier, more convenient

2. Economical and less transaction fee

3. Waivers, discounts and cash backs