RESEARCH PROJECT ON

A STUDY ON CONSUMER BEHAVIOUR TOWARDS E-PAYMENT SYSTEM

Submitted in partial fulfillment of the requirements for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

By

DHRUV SHARMA 35819101721

Gitarattan International Business School

Guru Gobind Singh Indraprastha University, Delhi

CONTENTS

Topic Page No

Certificate 4
Acknowledgement 5
Chapter I: Introduction 6-13
Chapter II: Review of Literature 14-16
Chapter III: Research Methodology 17-18

a.) Research Design

b.) Data Collection
c.) Data Sampling
d.) Statistical tools used

Chapter IV: Data Analysis & Interpretation 19-31

Chapter V: Findings 19-31
Chapter VI: Conclusions & Suggestions 32-33
References/ Bibliography 34
 CERTIFICATE
This is to certify that the Project titled “RESEARCH PROJECT” is an academic work done by
“Dhruv Sharma” submitted in the partial fulfillment of the requirement for the award of the Degree
of „Bachelors of Business Administration‟ from Gitarattan International Business School. It has
been completed under the guidance of Mr.Rajesh Makol. The authenticity of the project work will
be examined by the viva examiner which includes data verification, authenticity of information etc.
and it may be rejected due to non fulfillment of quality standards set by the institute.

Signature of the Faculty Guide

 ACKNOWLEDGEMENT
Every work involves efforts and inputs of various kinds and people. I am thankful to all those
people who have been helpful enough to me to the extent of their being instrumental in the
completion and accomplishment of the project entitled “RESEARCH PROJECT”. I am very
thankful to Mrs. Sheetal Chadha for her timely guidance, supervision & encouragement that have
helped me to get this golden opportunity and who provided me their expert advice, inspiration &
moral support. I thank her for contributing and guiding me for the same, the valuable suggestions &
guidance provided by her really helped me in successful accomplishment of my project.

Last but not the least I would like to express my heartiest gratitude to my family members and
friends. Their motivation, love and moral support boosted my confidence to work sincerely and in
an effective way. Thank you for being my guide and motivator throughout this difficult path.

DHRUV SHARMA
 CHAPTER 1
INTRODUCTION
INTRODUCTION

The development of the Internet as one of modern information technology media has spread and
developed in all areas of society around the world in Indonesia. No exception in economics. With
the Internet, facilitating the delivery and dissemination of information becomes faster, broader,
and more accurate. E-commerce is one of the results of Internet implementation in the economic
field.
eMarketer [1], explained that the global e-commerce market would reach a population of $25.038
trillion in 2019, there was an increase of 4.5% from the previous year. It is also a form of decline
from the previous five years when ecommerce sales grew between 5.7% and 7.5% annually.
E-commerce in Indonesia is growing with the support of the community that is increasingly active
in the purchase of goods or services through the Internet. E-commerce makes Indonesian people
easier to do shopping activities without spending time and energy because of the ease of making
the interest is increasing and increasingly encouraging the growth of e-commerce in Indonesia.
According [2], Indonesia has the best and most popular e-commerce namely, Tokopedia, Shopee,
Bukalapak, Lazada, and Blibli where each ecommerce has already mastered market share in
Indonesia and does not cover the possibility of opportunities for other ecommerce to thrive. The
payment system in e-commerce in Indonesia raises due to financials tool that more effective than
traditional payment systems. E-Payment present to replace the cash payment system, makes sales
and buying activities of goods and services increased so that e-payment becomes an essential part
of the E-commerce payment system.
E-Payment Systems is a technology system that provides services to make payments for goods and
services made on the Internet. According to [3], E-payment is an innovation in payment
mechanisms that use electronic media without cash. It can also define as an electronic value
transfer of the payment made by the payer to the receiver through the mechanism of E-Payment.
In general, E-payment refers to online payments using the Internet. It has various benefits for
buyers, sellers, ecommerce, banks, organizations, and governments. It also efficient and reliable
payment system makes the transaction process faster, transparent, time-saving, cost-effective and
increased trust between sellers and buyers. Further according to[4], the trend in payment
methods in Indonesia is divided by the value of usage: Bank transfer, card, digital wallet, cash, and
others.
The online payment system does have various benefits, and many people enjoy the ease and
speed in the process of the online transaction. However, the online payment system itself has
many risks that may occur during the transaction process—the negative impact of the use of
payment unbreakable (E-payment). One of them is the behavior of a person to be impulsive and
often make repeated purchases. Impulsive buying is an unplanned decision to buy goods or
services—the decision to buy an item or service suddenly and be influenced by various aspects.
According to [5], he was explaining that trust is one of the factors of community behavior that is
always shopping in ecommerce. With the public's confidence on the Internet, this makes the
community more confident and makes the person's impulsive behavior increasingly higher.
Therefore, the number of people spending increase over the years.

What are the different types of e-commerce payment systems?

When you purchase goods and services online, you pay for them using an electronic medium. This mode of
payment, without using cash or cheque, is called an e-commerce payment system and is also known as
online or electronic payment systems.

The growing use of internet-based banking and shopping has seen the growth of various e-commerce
payment systems and technology has been developed to increase, improve and provide secure e-payment
transactions.

Paperless e-commerce payments have revolutionised the payment processing by reducing paper work,
transaction costs, and personnel cost. The systems are user-friendly and consume less time than manual
processing and help businesses extend their market reach.

The different types of e-commerce payments in use today are:

Credit Card
The most popular form of payment for e-commerce transactions is through credit cards. It is simple to use;
the customer has to just enter their credit card number and date of expiry in the appropriate area on the
seller’s web page. To improve the security system, increased security measures, such as the use of a card
verification number (CVN), have been introduced to on-line credit card payments. The CVN system helps
detect fraud by comparing the CVN number with the cardholder's information

Debit Card
Debit cards are the second largest e-commerce payment medium in India. Customers who want to spend
online within their financial limits prefer to pay with their Debit cards. With the debit card, the customer
can only pay for purchased goods with the money that is already there in his/her bank account as opposed
to the credit card where the amounts that the buyer spends are billed to him/her and payments are made
at the end of the billing period.

Smart Card
It is a plastic card embedded with a microprocessor that has the customer’s personal information stored in
it and can be loaded with funds to make online transactions and instant payment of bills. The money that is
loaded in the smart card reduces as per the usage by the customer and has to be reloaded from his/her
bank account.

E-Wallet E

+-Wallet is a prepaid account that allows the customer to store multiple credit cards, debit card and bank
account numbers in a secure environment. This eliminates the need to key in account information every
time while making payments. Once the customer has registered and created E-Wallet profile, he/she can
make payments faster.

Netbanking
This is another popular way of making e-commerce payments. It is a simple way of paying for online
purchases directly from the customer’s bank. It uses a similar method to the debit card of paying money
that is already there in the customer’s bank. Net banking does not require the user to have a card for
payment purposes but the user needs to register with his/her bank for the net banking facility. While
completing the purchase the customer just needs to put in their net banking id and pin.

Mobile Payment
One of the latest ways of making online payments are through mobile phones. Instead of using a credit card
or cash, all the customer has to do is send a payment request to his/her service provider via text message;
the customer’s mobile account or credit card is charged for the purchase. To set up the mobile payment
system, the customer just has to download a software from his/her service provider’s website and then link
the credit card or mobile billing information to the software.
Advantages of e-payment technology
Increased Speed and Convenience

E-payment is very convenient compared to traditional payment methods such as cash or check. Since you
can pay for goods or services online at any time of day or night, from any part of the world, your customers
don't have to spend time in a line, waiting for their turn to transact. Nor do they have to wait for a check to
clear the bank so they can access the funds they need to shop. E-payment also eliminates the security risks
that come with handling cash money.

Increased Sales

As internet banking and shopping become widespread, the number of people making cash payments is
decreasing. According to Bankrate, more than two-thirds of consumers carry less than $50 a day, meaning
electronic alternatives are increasingly becoming the preferred payment option. As such, epayment enables
businesses to make sales to the customers who choose to pay electronically and gain a competitive
advantage over those that only accept traditional methods.

Reduced Transaction Costs

While there are no additional charges for making a cash payment, trips to the store typically cost money,
and checks also need postage. On the other hand, there are usually no fees – or very small ones – to swipe
your card or pay online. In the long run, e-payment could save both individuals and businesses hundreds to
thousands of dollars in transaction fees.

Disadvantages of e-payment technology

Security Concerns

Although stringent measures such as symmetric encryption are in place to make e-payment safe and secure,
it is still vulnerable to hacking. Fraudsters, for instance, use phishing attacks to trick unsuspecting users into
providing the log-in details of their e-wallets, which they capture and use to access the victims' personal
and financial information. Inadequate authentication also ails e-payment systems. Without superior identity
verification measures like biometrics and facial recognition, anyone can use another person's cards and e-
wallets and get away without being caught. These security concerns may make some people reluctant to
use e-payment systems.

Disputed Transactions

If someone uses your company's electronic money without your authorization, you would identify the
unfamiliar charge and file a claim with your bank, online payment processor or credit card company.
Without sufficient information about the person who performed the transaction, though, it can be difficult
to win the claim and receive a refund.

Increased Business Costs

E-payment systems come with an increased need to protect sensitive financial information stored in a
business's computer systems from unauthorized access. Enterprises with in-house e-payment systems must
incur additional costs in procuring, installing and maintaining sophisticated payment-security technologies.

Uses of E-payment Systems

• How to use an e-payment company?

The first step is choosing which e-payment company to use. Popular choices include PayPal, Apple Pay and
Google Pay.

When you’ve chosen a company, most will ask you to:

• set up an account – register your details and follow the instructions

• connect a bank card – enter your credit or debit card details.

When you’re registered, you’ll be able to pay for purchases using your new account details.

• What does it cost?

• It’s usually free to use e-payment services to buy things – although you might be charged for selling.
• These companies make their money by charging retailers.
• You might be charged for making or receiving payments in foreign currencies, or if you spend more
money than you have access to.
• PayPal also charges an ‘inactivity fee’ of up to $10 if you don’t log into or use your account for at least
one year and your account has some money in it. If this applies to you, set a reminder to log into your
account once a year to avoid the charge.

• What are the drawbacks?

E-payment companies aren’t protected by the Financial Services Compensation Scheme (FSCS).

This means you might not get compensation if your e-payment company goes out of business.

Even if you pay using a credit card through PayPal, or similar service, you won’t get the additional
protection under section 75 of the Consumer Credit Act.

When choosing a provider, check the service you’ll get and the protection it offers for your money.

PayPal does offer its own ‘Buyer Protection’ Scheme, but it’s not a guarantee that you’ll get your
money back if things go wrong.
 CHAPTER 2
LITRATURE
REVIEW
LITERATURE REVIEW

A.Theory of Planned Behavior

Theory of Planned Behavior was developed of the Theory of Reasoned Action. In Theory of
Reasoned Action, it is explained that one's intention of behavior is determined based on two
factors: attitude toward behavior and subjective norm Fishbein (1980) and Ajzen (1975), while in
Theory of Planned Behavior added one more factor that determines the interest of the perceived
behavioral control [6].

The motivation to do behavior is influenced by attitudes towards behavior, explaining the beliefs
of a person who can access and the consequences of the behavior, called Behavioral beliefs. The
subjective norm describes the belief that an individual or group approves or does not conduct a
behavior based on a norm or rule that is applicable and considered necessary, called normative
beliefs. The third is perceived behavioral control, which is an understanding or conviction of ease
or difficulty that encourages a person to commit a behavior.

B. E-Commerce

E-commerce is the use of the Internet, the Web, and mobile apps and browsers running on mobile
devices to transact business. More formally, digitally enabled commercial transactions between
and among organizations and individuals [7]

E-commerce or electronic commerce is part of e-business, where the activities of distribution,

purchase, sale, marketing of goods and services, and transfer of funds using the Internet.
Ecommerce commenced in 1994 when first-time bannerelectronics can be used for promotional
purposes and advertising on a website. The term E-commerce begins when companies utilize
Electronic Data Interchange (EDI) technology to share business documents with other companies
such as purchase orders or invoices electronically.

C. E-Payment Systems

E-Payment Systems is an innovation in payment mechanisms that use electronic media without
involving the use of cash. E-Payment Systems can be defined as a system of electronic value
transfer of the payment made by the payer to the receiver through the mechanism of E-Payment.
E-Payment services provide a Web-based interface service that allows users to access, manage
bank accounts, and remotely deal. In general, E-payment refers to online payments using the
Internet [8]. According to [9], there are several types of e-payment: Payment Card, E-Wallet, Smart
Card, E-Cash, and E-Check.

[10] E-Payment can usefulness based on convenience leads to how an E-Payment can make
consumers comfortable, reduce the use of costs such as time, effort, and effort when conducting
transactions. Security leads to the use of payment methods used to provide a sense of security
and protection from threats

Advantages lead to accessible in various locations when wanting to make a transaction, having the
right connectivity between time and the source of the funds used. Complexity leads to the use of
natural and not sophisticated e-payments. Cost leads to a low-cost service. Trust leads to the
payment method used to be trustworthy and has a transparent company [11].

D. Impulsive Buying

Impulsive buying is considered a buying behavior that is done without planning. An impulsive
purchase is a condition where consumers buy a product in a sudden, robust, and sustainable
manner. These behaviors provide a fun boost and make consumers more emotional. Impulsive
buying often occurs without considering the consequences that occur after being done [12].

There are four types of impulsive buying: pure impulse purchases, impulse purchase reminders,
impulse purchase suggestions, and planned impulse purchases [13].

According to [14][15][16] explains that Impulsive buying can be caused by internal factors such as
Age, Gender, Emotion. External factors include the type of payment method, the attributes of a
product, social factors, media, promotion of an item or service. Besides, the trust provides a boost
to increase the impulsive behavior of a person [17].

E. Trust to Company

Trust is an assumption of a person to be more confident of a thing based on information provided

or through a source that gives positive value so that it encourages a person's trust level to dare to
try and do so [18].

Consumer trust depends on how consumers are perceptual about e-commerce. When consumers
felt the company could be trusted, consumers will assume that the information provided is
appropriate and correct so that the company will increase the value of their trust by providing
precise and trustworthy information so that consumers will feel safe and reduce the perception of
existing risks [19].

F. Behavior Control

According to [6], the factors influencing a person's intention to behave is perceived as the
controllevel behavior. Perceive behavior control is an understanding or belief in the ease or
difficulty that encourages a person to conduct a particular behavior. It is an individual's ability to
control behavior in a condition under the control of the individual. Perceive Behavior Control is a
significant factor in determining the interest in buying a product or service [20].

G. Purchase Intention in E-Commerce

According to [21], the intention is a desire to do an action. If the intention or desire to do

something more powerful, eating the performance will also be produced firmer, based on the
Theory of Planned Behavior, one's attitude can attract people in sequential order in the purchase
intention.

Purchase interest is a consumer behavior that suggests planning or willing to purchase a particular
product or service in the future [22]. Purchase intention will increase if a consumer's environment
supports it and will positively impact consumer purchase intention [23].

Purchase intention from consumers will be affected by the control of consumer behavior, where
consumers have resources such as time, money, opportunity, and more. When individuals are
interested in a product or service if they have the intention to buy, also when they hear
information from buyers who have used or bought the product, it will increase the interest of
buying consumers [24][25][26].

OBJECTIVES
The objective of this paper is to understand consumer perception and the factors important for the use of
epayment technologies in India.

• To understand the different concepts of e-payment systems.

• To study the benefits of e-payment technologies.
• To study the factors influencing the users towards e-payment system.
• To study the growth and sales of companies that offer e-payment services.
• To understand the different concepts of e-payment systems.

RATIONALE FOR CHOOSING THE TOPIC

1. Wide Variety of Roles:

Nowadays everyone is taking advantage of the availability of e-payment systems like smart cards, forex
cards and it‟s a very sophisticated network of technologies that we use in our daily life and we think it has
made our lives so easy.

2. Stability:

After the discovery of plastic money in 1966 the world got know to the most common payment systems like
debit cards, credit cards, these can be used to conduct online transactions. They can also be used at products
or services at the various point of sales.

3. Technology The automotive industry sits right at the forefront of technological advancements, with a constant
search for fresh ideas. Companies are not shy to invest huge amounts of money into the research and
development of new technologies. There are few sectors that provide so much opportunity to be involved in
exciting new technological developments.
 CHAPTER 3 RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY OF THE STUDY

The study is an exercise involving estimation of parameters as regard to organizational

requirements- Research was designed so as to get the relevant information that can be used for
various organizational purposes.

DATA SOURCE:

Research included collecting both primary and secondary data.

PRIMARY DATA is the first hand data, new data gathered to help solve the problem at hand.
Data is collected personally for the specific project through research. Questionnaire was prepared
to gather information on the company marketing and services. The sample size is of 100 people.
SECONDARY DATA is the is the second hand data collected by someone else with is gathered
through internet, publications, articles, company books, etc. For example-websites like
Wikipedia, yourarticlelibrary, etc.
DATA COLLECTION: The data collection method used was none other than survey method
which is usually incorporated for collection of raw information. The survey method is
advantageous because it helps to collect a great deal of information about an individual
respondent.

SURVEY: The type of survey undertaken was that of sample type keeping in consideration the
time constraint and paraphimotic, besides the viability of census survey. The sample survey thus
being taken to the right path to reach the desired destination was carefully planned to convert of
the operation by using selected samples.
 STATISTICAL TOOL: The tool for obtaining the information was questionnaire. A structured
questionnaire was administered. The questionnaire was designed in the view both major and
minor objective of study.

SAMPLING: With the customer being unknown and given the time and resource constraints
random sample was obtained from different people. (Sample Size-100)

DATA COMPLETION AND ANALYSIS: After the data was collected, it was analysed by using pie
charts and bar charts and interpretation for each question is made.

Pie chart=It is a type of graph in which a circle is divided into sectors that each represent a proportion
of the whole.

Bar Chart=It is a diagram in which the numerical values of variables are represented by the height or
length of lines or rectangles of equal width.

POPULATION: The population on which this survey is done are mostly from middle class families
and they prefer to use e-payment systems.
 CHAPTER 4 FINDINGS AND
ANALYSIS
FINDINGS:

Q1.What is your age?

Age

51+

36-50

No. of People
26-35

18-25

0 5 10 15 20 25 30 35

INTERPRETATION:

From the data received from a sample size of 100 People, 32 people are in age between
18-25Yrs, which makes the majority of sample size.
Q2.What

is your monthly income?

Monthly Income

100k+

50k-100k

10k-50k

Under 10k

0 5 10 15 20 25 30 35 40 45 50

INTERPRETATION:

From the data received from a sample size of 100 People, 45 people earn monthly
income of 10k-50k, which makes the majority of sample size. This means that
almost all the people in this survey use e-payments system because they earn well to
spend on purchasing.

is your gender?
Q3.What

Gender

Others

Male

Female

0 10 20 30 40 50 60

INTERPRETATION:

From the data received from a sample size of 100 People, 53 are male and 47 are
female, so the males make the majority of votes in this research

is your job status?

Q4.What

Job

Retired

Unemployed

Job
Employed

Student

0 10 20 30 40 50

INTERPRETATION:

From the data received from a sample size of 100 People, 45 people from 100 are
students and make the majority of sample size. So from the the data received we can
check how many of the majority of people here use e-payment systems.
Q5.What payment method do you use the most for normal purchasing?

Payment Mode

Payment Applications

Cash

Credit Card

Debit Card

0 5 10 15 20 25 30 35 40 45

INTERPRETATION:

From the data received from a sample size of 100 People, 39 people out of 100
people us Debit Card for their spendings, that means that they rell on their own
money deposited in their bank account.

Q6.Why you use that e-payment method?

 Why you use this e-payment mode

It gives credit facility

Secure

Fast

Easy to use

0 5 10 15 20 25 30 35 40

INTERPRETATION:

From the data received from a sample size of 100 People, 37 people like to use
epayment methods because they are easy to use.

Q7.Have you ever faced any problem in that payment system?

 Faced any problem/issues?

Yes
No

INTERPRETATION:

From the data received from a sample size of 100 People, 78 people have never faced
any problem regarding e-payment methods, so that means there systems are rarely
down and are avilable 24/7 and 365 Days in year.

Q8.How frequent do you use this payment system?

 Frequency of using E-Payment Methods

Everyday
Thrice a week
Twice a week
Once a week
Never used

INTERPRETATION:

From the data received from a sample size of 100 People, 36 people use e-payment
methods twice a week that means they only need to use these methods twice a week,
they are more dependent on cash.

Q9.Do you carry cash?

 Use of Cash

Occasionally

Always

Sometimes

No

0 10 20 30 40 50 60 70

INTERPRETATION:

From the data received from a sample size of 100 People,61people always carry cash
but still most of them prefer using e-payments than using cash.

Q10. Will you use cash if payment method isn‟t working or you‟ll use some other
payment method?
 If e-payment is not working you will use cash

I'll use Credit

Other E-payment

Definitely

0 10 20 30 40 50 60 70

INTERPRETATION:

From the data received from a sample size of 100 People, 58% of people will use
cash over other methods of payments. This means that e-payment system is not that
much recommended if other methods fail.

Q11. What e-payment technique do you use the most?

 Most used E-Payment Methods

Other

Payment Application

Credit Card

Debit Card

UPI

0 5 10 15 20 25 30 35 40 45

INTERPRETATION:

From the data received from a sample size of 100 People, 39 people use mostly UPI
services, and only a few use traditional card methods like Debit & Credit Cards.

Q12.How many Card Companies do you know from below?

Rupay

Visa

MasterCard

American Express

Discover Card

Capital One
 Knowledge about Card Companies

All

3 to 4

2 to 3

Less than 1

0 5 10 15 20 25 30 35 40 45 50

INTERPRETATION:

From the data received from a sample size of 100 People, 47 peopleonly know about
2 or 3 Credit Card Companies that means that in india only a few people know names
of these companies.

Questionnaire:

Q1.What is your age?

Q2.What is your monthly income?

Q3.What is your gender?

Q4.What is your job status?

Q5.What payment method do you use the most for normal purchasing?

Q6.Why you use that e-payment method?

Q7.Have you ever faced any problem in that payment system?

Q8.How frequent do you use this payment system?

Q9.Do you carry cash?

Q10. Will you use cash if payment method isn‟t working or you‟ll use some other
payment method?

Q11. What e-payment technique do you use the most?

Q12.How many Card Companies do you know from below?

Rupay

Visa

MasterCard

American Express

Discover Card

Capital One

CONCLUSION

Based on data collection and processing, the resulting outcome and the discussion
above can be concluded as: E-Payment Systems, which have a significant impact on
Impulsive Buying. The existence of an Electronic Payment System makes people
more impulsive because Electronic Payment has the advantage that makes it easy
for people to make a payment process and is safe and does not take time. EPayment
System has a significant impact on Trust to Company. The existence of an E-Payment
system increases people's trust in the company, including the products or services
that the company has. Because e-payment systems have good security and
payments are made safely, and people's personal information will not spread
anywhere, which increases the level of trust for its users; therefore, the existing risk
becomes unheard. Impulsive Buying, which has a significant impact on Trust to
Company. Impulsive buying which make people are comfortable with the product
and seldom show dissatisfaction. Consumers obtain satisfaction through the impulse
purchase process and establish trust with the company. Trust to a company which
gives a significant impact on intention to purchase in E-Commerce. People's trust in
the company will increase the purchase intention that people have, and people will
feel comfortable and loyal to the company and will always buy again if they have
high trust. Behavior Control gives a significant impact to Purchase Intention in
ECommerce, ability to control behavior in a condition under the control of the
individual. In some cases Behavior Control give negative impact. For further
research, it is recommended to find out the other indicators on the E-Payment
System to prove that increase purchase intention in E-Commerce. It is
recommended for using other indicators on the Impulsive buying variable to find out
what is the other impulsive that can impact Intention to purchase. It is
recommended to search other indicators on the Behavior Control variable to prove
that Behavior Control will have a significant impact on Purchase Intention. It is
possible to obtained repeated decisions purchase with a significant impact on
ECommerce.

REFERENCES/BIBLIOGRAPHY

1.https://www.scribd.com

2.https://www.wikipedia.org

3.https://www.investopedia.com

4.https://www.seedinvest.com

5.www.jetir.org

6.https://www.academia.edu

7.https://www.researchgate.net

8.www.mejournal.in