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 Chapter 1

Introduction

Title: Customer satisfaction on E-payment system. Study at Kathmandu Valley.

Background of the study

History of E-payment
The advent of the internet has transformed financial transactions, enabling the rise of e-
payments. E-payments encompass a wide range of online financial activities, including e-
commerce purchases, money transfers, and bill payments. Various e-payment systems, such as
credit/debit cards, electronic funds transfers (EFTs), digital wallets, and mobile payments, have
emerged, offering secure, reliable, and convenient ways for people to conduct transactions from
anywhere with internet access. The primary advantage of e-payments lies in their convenience;
individuals no longer need to physically visit stores or banks as they can effortlessly make
payments using computers or mobile devices. This convenience is especially valuable for those
in remote or underserved regions. Furthermore, e-payment systems prioritize security by
employing encryption and various security protocols, effectively safeguarding transactions
against fraud and unauthorized access. Many e-payment platforms also offer additional features,
such as fraud protection and dispute resolution services, to further protect customers. Over the
years, e-payments have experienced a significant surge in popularity, becoming the preferred
payment method for many individuals worldwide. As technology continues to evolve, e-payment
systems are likely to become even more sophisticated, offering enhanced convenience and
security to users. (S Fatonah, 2018)

Over the last decade, Nepal has witnessed a notable rise in the utilization of electronic payment
systems (e-payment) as the country aims to embrace a more digitally-oriented economy. The
popularity of e-payment methods has grown steadily, with an increasing number of individuals
opting for these systems to conduct various types of transactions. (Mishra, 2020)

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The increasing adoption of e-payment systems in Nepal can be attributed to multiple factors,
including the government's initiatives to encourage a cashless economy, advancements in
technology, growing awareness and convenience among users, and improved financial inclusion.
The Nepal Rastra Bank (NRB), serving as the central bank of Nepal, has played an active role in
promoting digital payments in the country. In 2018, the NRB introduced the Nepal Electronic
Payment System (NEPS), an interbank payment system facilitating electronic fund transfers
between banks and financial institutions in Nepal.

Nepal offers a variety of e-payment systems, encompassing mobile banking, internet banking,
point of sale (POS) systems, and e-wallets. Among these options, mobile banking stands out as
the most widely embraced e-payment system, with numerous banks providing mobile banking
services to their clientele. Additionally, e-wallets like Khalti and eSewa are gaining popularity
among Nepali consumers due to their diverse range of services, including bill payments, money
transfers, and online shopping. Although the adoption of e-payment systems in Nepal has been
on the rise, there are still certain obstacles that require attention. These challenges include
inadequate digital infrastructure in certain regions, limited financial literacy among some
consumers, and apprehensions related to data privacy and security. (Kautish, 2019)

In Nepal's economic development, e-payment systems hold considerable potential as they can
contribute to financial inclusion, cost reduction in transactions, and enhanced efficiency and
transparency in financial dealings. The COVID-19 pandemic has significantly influenced the
growth of e-payment in Nepal, with people turning to digital payment methods, including e-
payment, to reduce physical contact and mitigate the risk of transmission. (Abinash Tamang,
2021).

The COVID-19 pandemic has impacted the growth of e-payment in Nepal in the following ways:

 The COVID-19 pandemic has led to a surge in the demand for digital payments in Nepal, as
people sought safer and more convenient alternatives to cash transactions due to movement
restrictions and limited social interactions. As a result, e-payment services have experienced
increased popularity in the country. (Abinash Tamang, 2021)

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  In response to the rising demand for digital payments, e-payment providers in Nepal have
expanded their services and offerings. The market has seen the entry of numerous new
players, providing a diverse range of e-payment options, such as mobile wallets, online
banking, and card payments. (Abinash Tamang, 2021)

 Government support: The Nepalese government has recognized the importance of e-

payment in the pandemic era and has provided support to the industry. The government
has introduced policies and initiatives aimed at promoting e-payment adoption, including
incentives for merchants who accept digital payments. (Abinash Tamang, 2021)

 The COVID-19 pandemic has resulted in a notable increase in the trust placed by
Nepalese consumers in e-payment systems. As more individuals utilize e-payment
services, they become more accustomed and confident in the technology, ultimately
driving higher adoption rates and fostering growth in the e-payment industry. (Abinash
Tamang, 2021)

 The COVID-19 pandemic has contributed to the growing popularity of contactless

payments in Nepal. Consumers now favor digital payment methods that do not
necessitate physical contact with payment terminals, resulting in an increased adoption of
mobile wallets and other contactless payment options in the country. (Abinash Tamang,
2021)

The COVID-19 pandemic has profoundly influenced the expansion of e-payment in Nepal,
leading to a notable increase in demand and adoption within the industry. As the pandemic
continues to shape consumer behavior and preferences, e-payment is expected to play an
increasingly crucial role in the Nepalese economy.

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Figure 1 e-payment development in Nepal

The Digital Journey of E-Payment in Nepal

Once upon a time in the scenic valleys of Nepal, where ancient traditions intertwined with
modern aspirations, a revolutionary change was taking place—the rise of e-payment. It was the
early 2000s when the seeds of this digital transformation were sown, gradually germinating into
a vibrant ecosystem that would redefine the way transactions were conducted in the country.

The journey of e-payment in Nepal started modestly with the introduction of basic electronic
fund transfers between banks, easing financial transactions and reducing reliance on traditional
paper-based methods. However, it was the dawn of the new millennium when technological
advancements and growing internet penetration provided the impetus for further growth.

In the mid-2000s, the Nepalese government recognized the potential of e-payment in fostering
financial inclusion and driving economic progress. The Nepal Rastra Bank, being at the forefront
of this initiative, laid the foundation for a more digital economy. The first major milestone was
achieved in 2009 when internet banking services were introduced, enabling customers to manage
their finances conveniently from the comfort of their homes.

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As the decade progressed, mobile technology swept the nation, making smartphones a common
sight in even the most remote areas. Capitalizing on this trend, mobile banking emerged as a
game-changer, allowing people to carry out transactions anytime, anywhere. E-payment
providers swiftly capitalized on the growing demand, offering secure and user-friendly mobile
wallet services. Among these, Khalti and eSewa emerged as pioneers, providing a wide array of
services ranging from bill payments to online shopping.

With the outbreak of the COVID-19 pandemic, e-payment faced its defining moment. The need
for contactless transactions and social distancing compelled even the most hesitant individuals to
embrace digital payment methods. As cash transactions dwindled, the adoption of e-payment
soared to unprecedented heights.

The government also played a crucial role in bolstering the e-payment ecosystem. Policies and
incentives were introduced to encourage merchants to accept digital payments, and campaigns
were launched to raise awareness and educate the public about the benefits of e-payment. The
pandemic acted as a catalyst, propelling the industry into new frontiers of growth and
development.

Today, e-payment in Nepal has reached a pinnacle of convenience, security, and efficiency.
From bustling urban centers to remote rural villages, digital transactions have become an integral
part of daily life. The once-skeptical population now wholeheartedly trusts e-payment systems,
enjoying the ease and speed of online transactions.

Looking ahead, the future of e-payment in Nepal appears promising. Continuous technological
advancements and increasing financial literacy are expected to further fuel its growth. The digital
transformation has not only empowered individuals but also paved the way for a more inclusive
economy, bringing even the unbanked population into the financial fold.

As the sun sets over the majestic Himalayan peaks, the journey of e-payment in Nepal continues,
driven by innovation and a vision of a cashless society. With each passing day, the nation takes
one step closer to a brighter and more connected future, guided by the seamless experience of e-
payment in the land of a thousand wonders.

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1.2 Problem Statement:

The rapid growth of e-payment services in the digital era has revolutionized the way financial
transactions are conducted globally, including in Nepal. As the use of electronic payment
systems continues to gain momentum, understanding the level of customer satisfaction with
these services becomes imperative for service providers, policymakers, and businesses. This
study aims to investigate customer satisfaction with e-payment services in the context of
Kathmandu Valley, Nepal.

Despite the increasing adoption of e-payment systems in the region, there is limited empirical
research examining customers' perceptions, experiences, and satisfaction levels with these digital
payment platforms. Identifying the factors that influence customer satisfaction with e-payment
services is crucial for enhancing the quality of these systems, fostering financial inclusion, and
promoting a cashless economy in Nepal.

The research problem revolves around the following key aspects:

 Perceived Convenience and Ease of Use: One of the critical determinants of customer
satisfaction is the perceived convenience and ease of using e-payment services.
Understanding whether customers find the platforms user-friendly, intuitive, and efficient
will shed light on areas that require improvement.

 Security and Data Privacy Concerns: The adoption of e-payment services hinges upon
trust and confidence in the security measures employed by the platforms. Assessing
customers' perceptions of the security and data privacy of e-payment systems is vital to
address any reservations or fears they may have.

 Transaction Efficiency and Reliability: Customer satisfaction is intrinsically linked to the

reliability and efficiency of e-payment transactions. Investigating any issues related to
transaction delays, errors, or system downtime will provide valuable insights into areas
for enhancement.

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  Customer Support and Dispute Resolution: A robust customer support system and
effective dispute resolution mechanisms contribute significantly to overall customer
satisfaction. Evaluating the responsiveness and effectiveness of customer support services
is crucial to ensure a positive customer experience.

 Awareness and Financial Literacy: The level of awareness and financial literacy among
customers regarding e-payment services may impact their satisfaction and adoption.
Identifying gaps in awareness and understanding can help design targeted educational
initiatives.

 Social and Demographic Factors: Social and demographic factors, such as age, education,
income, and occupation, may influence customers' satisfaction levels with e-payment
services. Analyzing these factors will enable targeted strategies to cater to diverse
customer segments.

 Intention to Continue Usage: Exploring customers' intentions to continue using e-

payment services in the future is essential for service providers to gauge the sustainability
of their offerings and plan for future growth.

The research conducted in Kathmandu Valley will provide valuable insights into the factors that
influence customer satisfaction with e-payment services in Nepal. The findings will contribute to
the development of more user-centric and secure e-payment platforms, ultimately promoting a
seamless and satisfactory digital payment experience for customers in the region.

1.3 Objective of the Study:

The main objective is to comprehend the aspects that affect consumer satisfaction of e-payment,
and the precise objectives are:

 To study the relation between customer satisfaction and price during e-payment.

 To study the relation between customer satisfaction and quality during e-payment.

 To study the relation between customer satisfaction and information during e-payment.

 To study the relation between customer satisfaction and security during e-payment.

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1.4 Research Questions:

 Is online shopping advantageous to physical shopping?

 Is e-payment a trusted method of transactions for customers?
 Is there Awareness among people about the use of e-payment?
 Do customers feel secure when they use e-payment while online shopping?

1.5 Research Hypotheses:

H1:

There is strong relation between Customer Satisfaction and Usability of E-payment platforms.

H2:

There is strong relation between customer satisfaction and Security of e-payment systems.

1.6 Scope of the Study:

This paper deals with the level of customer satisfaction towards e-payment in Kathmandu valley.
E-payment saves time and secures money. It is important to raise awareness about e-payment as
it is the future. The main purpose of the study is to understand people’s attitude towards e-
payment and analyze the opportunity available in this field.

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1.7 Deliverables

The study on customer satisfaction with e-payment in Kathmandu Valley is expected to yield
several significant deliverables that will provide valuable insights into the digital payment
landscape in the region. The primary deliverable will be a comprehensive research report that
presents the findings, analysis, and conclusions based on the data collected during the study. This
report will offer an in-depth understanding of customer satisfaction levels with e-payment
services, shedding light on the factors influencing satisfaction and identifying areas for
improvement. Additionally, the study will provide actionable recommendations for service
providers and policymakers to enhance the quality of e-payment services. Policymakers can use
the insights from the study to develop supportive regulations and policies that foster a more
conducive environment for digital payments. The data gathered during the research will also
serve as a valuable resource for future studies and academic research related to e-payment and
customer satisfaction in Nepal. Overall, the deliverables of this study will contribute to the
growth of the e-payment industry, financial inclusion, and the development of a user-centric
digital payment ecosystem in Kathmandu Valley.

1.8 Significance of the Study:

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The study on customer satisfaction with e-payment in Kathmandu Valley holds immense
significance as it offers valuable insights into the digital payment landscape and its impact on the
region's economy and society. Understanding customer satisfaction levels with e-payment
services is crucial for the growth and development of the e-payment industry in Nepal. The study
will provide e-payment service providers with a deep understanding of customer preferences and
pain points, enabling them to improve their offerings and enhance the overall user experience.
By identifying the factors influencing customer satisfaction, the study can contribute to the
promotion of financial inclusion, encouraging more people to adopt digital payment methods and
join the formal financial system. Policymakers can leverage the findings to develop supportive
regulations and policies, fostering an environment conducive to the growth of the e-payment
industry. Moreover, the study's insights can drive technological advancements in digital payment
solutions, leading to more secure, efficient, and user-friendly platforms. Additionally, the shift
towards digital payments can have a positive impact on the region's economy, reducing
transaction costs for businesses and increasing economic activity. Finally, the study's
contribution to academic research will enrich the existing knowledge base on e-payment and
customer behavior in Nepal. Overall, the significance of the study lies in its potential to drive
positive changes in the digital payment ecosystem, promoting financial inclusion, economic
growth, and technological advancements in Kathmandu Valley and beyond.

1.9 Limitations:

Since, e-payment has not flourished in all parts of Nepal; this study is limited to Kathmandu
valley. The infrastructure and awareness is still lacking and cash is still the main medium for
transactions. So, the Respondents will be from the valley and Limited to 200 People.

1.10 Definition of Key Terms

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Electronic payment system:

An Electronic Payment System (EPS) is a technology that enables electronic financial

transactions, facilitating various online activities such as purchasing goods and services,
transferring funds, and making bill payments. EPS is also referred to as a digital payment system,
electronic fund transfer system, or e-commerce payment system. There are multiple types of
electronic payment systems available, including credit and debit card payments, bank transfers,
e-wallets (electronic wallets), mobile payments, and peer-to-peer (P2P) payment systems. These
diverse options provide users with convenient and secure methods to conduct their financial
transactions electronically. (Budhathoki, 2020)

Credit and debit card payments serve as the prevailing electronic payment method, granting
consumers the ability to pay for goods and services both online and in physical stores through
card swiping and tapping. Bank transfers involve the direct movement of funds between bank
accounts, while e-wallets provide a means for users to store and utilize electronic money. Mobile
payments enable transactions through mobile devices, and P2P payment systems facilitate direct
fund transfers between individuals, often via mobile apps.

Electronic payment systems (EPS) offer a range of advantages, including convenience, security,
and rapid transaction processing. Nevertheless, these systems also come with inherent risks, such
as potential fraud, hacking, and data breaches. To safeguard their financial information, it is
crucial for individuals and businesses to adopt necessary precautions when using electronic
payment systems.

In Nepal, there is a noticeable surge in the popularity of electronic payment systems as the
country aims to transition toward a cashless economy. Nepal boasts several EPS providers,
including banks, financial institutions, and third-party payment service providers, all contributing
to the growing trend of digital payments in the nation.

 Mobile banking has emerged as a popular electronic payment system in Nepal, offered by
numerous banks. It enables customers to conveniently transfer funds, pay bills, and make
purchases using their mobile phones. (Budhathoki, 2020)

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 Internet banking is another widely adopted electronic payment system in Nepal, provided
by numerous banks. This service enables customers to access their accounts, transfer
funds, and make payments conveniently through online platforms. (Budhathoki, 2020)

 Digital wallets are gaining popularity in Nepal, thanks to third-party payment service
providers like eSewa and Khalti. These platforms offer digital wallet services that allow
users to store funds digitally and make seamless payments for goods and services both
online and via mobile phones. (Budhathoki, 2020)

 Credit and debit card payments have seen increasing popularity in Nepal, as an increasing
number of merchants now accept card payments for purchases. (Budhathoki, 2020)

The growth of electronic payment systems in Nepal has been fueled by the government's
initiatives to promote a cashless economy and the rising demand from consumers seeking
convenient and secure payment solutions. Despite this progress, there are hurdles that
need attention, such as inadequate awareness and infrastructure, along with lingering
concerns regarding security and fraud.

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Customer Satisfaction

Customer satisfaction refers to the extent of customers' contentment with the products or services
they receive from a company or business. It holds immense significance in cultivating customer
loyalty and establishing a positive reputation for the business. Measuring customer satisfaction
entails using various metrics, such as customer surveys, feedback, and reviews, which aid in
identifying areas for improvement and understanding the aspects of products or services that
resonate most with customers. Several factors influence customer satisfaction, including product
or service quality, pricing, customer service, convenience, reliability, and brand reputation. A
business that consistently delivers top-notch products or services, coupled with excellent
customer service and fair pricing, is more likely to achieve high levels of customer satisfaction.
On the other hand, businesses that provide subpar products or services, lack proper customer
service, and neglect customer needs may experience diminished levels of satisfaction. This can
lead to a negative reputation and a decline in customer retention, ultimately impacting the
business's financial performance. (Giri, 2019)

Measuring customer satisfaction with e-payment systems in Nepal holds significant value for
businesses and policymakers aiming to promote digital payments in the country. Various factors
influence customer satisfaction, and key considerations for businesses and policymakers include
reliability and security, ease of use, speed and convenience, accessibility, and customer support.
(Giri, 2019)

Customers expect e-payment systems to be reliable and secure, minimizing downtime and
ensuring a low risk of fraud. Additionally, user-friendly interfaces and clear instructions
contribute to ease of use. Speed and convenience in transactions are crucial, saving customer’s
time and effort. Moreover, e-payment systems should be accessible to all, regardless of income,
education, or technical skills. Effective customer support is also vital, with knowledgeable staff
ready to assist with any issues or queries. (Giri, 2019)

To assess customer satisfaction, businesses and policymakers can employ various methods, such
as customer surveys, feedback forms, online reviews, and other feedback mechanisms. Gathering
customer feedback enables them to pinpoint areas needing improvement and make necessary
changes to enhance the overall customer experience. Prioritizing customer satisfaction with e-

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payment systems can lead to increased adoption of digital payments in Nepal, bolstering the
country's transition towards a cashless economy. (Shrestha, 2020)

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 Chapter 2

Literature Review

Electronic payment systems (e-payment) have experienced a surge in popularity in Nepal over
the past years. However, despite this growth in e-payment adoption, there is a lack of
comprehensive research on customer satisfaction with e-payment systems in the country,
particularly in the context of the Kathmandu valley. This literature review aims to explore the
existing body of literature on customer satisfaction with e-payment systems, with a specific
emphasis on understanding the satisfaction levels of users in the Kathmandu valley. (Timilsina,
2019)

According to a 2019 study conducted by the Nepal Rastra Bank (NRB), the adoption of e-
payment systems in Nepal has been fueled by multiple factors. These include the government's
initiatives to promote a cashless economy, advancements in technology, growing awareness and
convenience among users, and improved financial inclusion. The study also revealed that mobile
banking stands as the most preferred e-payment system in Nepal, with e-wallets like Khalti and
eSewa following closely in popularity. (Jiyaul Hak Ansari, 2019)

A study conducted by Banstola explored the determinants of customer satisfaction with e-

banking services in Nepal. The findings revealed that security, reliability, ease of use, speed, and
convenience were identified as the primary factors influencing customer satisfaction with e-
banking services. Additionally, the study highlighted that customer trust in the banking
institution played a significant role in influencing their overall satisfaction with e-banking
services. (Banstola, 2019)

In a study conducted by Pokharel, the research focused on the factors influencing customer
satisfaction with mobile banking services in Nepal. The study identified perceived usefulness,
perceived ease of use, perceived security, and trust as the most significant factors influencing
customer satisfaction with mobile banking services. Additionally, the study highlighted that
customer support played a crucial role in influencing customer satisfaction with mobile banking
services. (Pokharel, 2019)

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Thapa and his team conducted a study examining the factors affecting customer satisfaction with
e-wallet services in Nepal. The research revealed that perceived usefulness, perceived ease of
use, perceived security, and trust were the primary determinants influencing customer
satisfaction with e-wallet services. Moreover, the study also identified the availability of
merchant acceptance and the diversity of services offered as important factors impacting
customer satisfaction with e-wallet services. (Thapa, 2020)

In a study conducted by Aryal and their team, the researchers discovered that price and service
quality play a crucial role in positively influencing customer satisfaction with e-payment services
in Nepal. Additionally, the study revealed that information and security also have a significant
positive impact on customer satisfaction with e-payment services. (aryal, 2020)

In a similar study conducted by Khadka and Pradhan in 2018, the researchers discovered that price,
service quality, and security significantly affect customer satisfaction with e-payment services in Nepal.
Moreover, the study revealed that information serves as a mediator in the relationship between service
quality and customer satisfaction with e-payment services. (P.khadka, 2018)

In a study conducted by Poudel and Paudyal, the researchers identified that service quality and
security have a significant positive impact on customer satisfaction with e-payment services in
Nepal. The study further revealed that the perceived usefulness of e-payment services plays a
mediating role in the relationship between service quality, security, and customer satisfaction.
(Paudyal, 2021)

In a study conducted by Pandey and Tamrakar in 2018, the researchers identified that service
quality, security, and information significantly impact customer satisfaction with e-payment
services in Nepal. Additionally, the study indicated that the perceived ease of use of e-payment
services acts as a mediator in the relationship between service quality, security, information, and
customer satisfaction. (Pandey, 2018)

In a study conducted by Bhattarai and Gautam in 2019, the researchers established that service
quality and security have a significant impact on customer satisfaction with e-payment services
in Nepal. Additionally, the study revealed that perceived usefulness and perceived ease of use of
e-payment services serve as mediators in the relationship between service quality, security, and
customer satisfaction. (Gautam, 2019)

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In recent years, Kathmandu, the capital city of Nepal, has witnessed a substantial surge in the
adoption of e-payment systems. This growth can be attributed to various factors, including:

 The increased adoption of e-payment systems in Kathmandu is, in part, due to the
implementation of various government initiatives aimed at promoting digital payments.
These initiatives include the introduction of the Nepal Electronic Payment System
(NEPS) in 2018. (Shrestha B. , 2018)

 . Technological advancements have played a significant role in driving the adoption of e-

payment systems in Kathmandu. These advancements have made e-payment options,
such as mobile wallets, internet banking, and QR code payments, more accessible and
user-friendly for a wider audience. (Shrestha B. , 2018)

 A shift in consumer behavior is evident in Kathmandu, where residents are increasingly

embracing digital payments. Many consumers now perceive the convenience and security
offered by e-payment systems as superior to traditional cash-based transactions,
contributing to the growing adoption of digital payment methods. (Shrestha B. , 2018)

Notwithstanding these positive factors, the adoption of e-payment systems in Kathmandu

encounters certain challenges, which include:

 One of the challenges hindering the adoption of e-payment systems in Kathmandu is the
low levels of financial literacy among consumers. Many residents lack adequate
knowledge about e-payment systems and their functionalities, leading to hesitancy in
adopting these technologies. (Shrestha B. , 2018)

 Another challenge facing e-payment adoption in Kathmandu is the limited access to

digital infrastructure. Despite notable progress in expanding digital connectivity in Nepal,
certain areas within Kathmandu still lack reliable internet access and other essential
infrastructure required for e-payment systems to function optimally. (Shrestha B. , 2018)

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  Security concerns pose a significant obstacle to the adoption of e-payment systems in
Kathmandu. Consumers are often hesitant to embrace these systems due to apprehensions
regarding data privacy and security, particularly in light of prominent instances of data
breaches and cyber-attacks. (Shrestha B. , 2018)

In conclusion, the adoption of e-payment systems in Kathmandu is an ongoing journey,

presenting opportunities for further growth and improvement as technology advancements and
consumer behavior continue to evolve.

The literature indicates that customer satisfaction with e-payment systems in Nepal is influenced
by several key factors, including security, reliability, ease of use, speed, convenience, trust,
perceived usefulness, perceived ease of use, and customer support. This research provides
valuable insights for future studies on customer satisfaction with e-payment systems in the
Kathmandu valley, suggesting that businesses offering secure, reliable, user-friendly, fast, and
convenient e-payment systems, along with strong customer support and a trustworthy reputation,
are more likely to achieve high levels of customer satisfaction. The adoption of e-payment
systems in Kathmandu remains an ongoing process, presenting opportunities for growth and
improvement as technology advances and consumer behavior evolves. In conclusion, price,
service quality, customer satisfaction, information, and security are all crucial factors influencing
the adoption and use of e-payment services in Kathmandu, Nepal. Service quality and security
consistently emerge as significant predictors of customer satisfaction, while perceived usefulness
and perceived ease of use mediate the relationship between these factors and customer
satisfaction.

2.1: There is a strong relation between customer satisfaction and Usability of E-payment
Platforms.

The justification is based on the premise that service quality is a crucial determinant of customer
satisfaction in e-payment transactions. Customers expect e-payment systems to be reliable,
efficient, and user-friendly. A high level of service quality, including fast and accurate
transaction processing, smooth navigation, and responsive customer support, contributes to a

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positive customer experience and ultimately leads to higher satisfaction levels. Customers are
more likely to be satisfied if the quality of service meets or exceeds their expectations.

2.2: There is a strong relation between customer satisfaction and Security of E-payment
Systems

It is justified by the importance of information and communication in enhancing customer

satisfaction with e-payment services. Clear and transparent information about the e-payment
process, including fees, terms, and security measures, builds trust and confidence among
customers. Effective communication of relevant information enables customers to make
informed decisions and reduces uncertainties, resulting in higher satisfaction levels. On the other
hand, a lack of information or ambiguous communication may lead to dissatisfaction and
mistrust.

2.3 Theories and Theoretical Groundings

Before commencing any study, it is crucial to conduct a thorough review of previous articles,
research papers, and journal publications to gain a comprehensive understanding of the current
state of the area of interest. As a result, I have incorporated relevant information below.

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2.3.1 Base Papers

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 Title Author(s) Year Features Benefits Advantages Methods of Methods of
Research Research

Empirical Study Shrestha, A. 2020 Investigates - Identifies Provides Survey Quantitative

of Cus tomer and Gurung, customer factors insights for questionnaire
Satisfaction with B. satisfaction influencing service administered
E-payment with E- customer improvement. to E-payment
Systems in Nepal payment satisfaction users.
systems in
Nepal.

Factors Affecting Khadka, R. 2019 Analyzes Helps Addresses Questionnaire Quantitative

Customer and Shrestha, factors businesses customer -based survey
Satisfaction in E- P. influencing improve concerns of E-payment
payment customer their E- proactively. users.
Systems: A Case satisfaction payment
Study of in E- services.
Kathmandu payment
Valley systems.

A Comparative Acharya, S., 2018 Compares - Helps Offers Data collected Quantitative
Study of E- and Bhandari, customer businesses insights into through online
payment M. satisfaction select the the strengths surveys and
Systems in levels most and interviews
Kathmandu between suitable weaknesses
Valley different E- payment of each
payment platform system.
systems.

enhancing Maharjan, N., 2017 Focuses on Enhances Increases Questionnaire

Customer and Shakya, improving customer customer
Observations,
experience in E- S. customer loyalty and satisfaction interviews, and
payment System experience retention. and positive usability
testing
teams: A Case of in E- word-of- conducted
Kathmandu payment mouth.
Valley systems.
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- - Informs Identifies - Data Quantitative

Security and Ghimire, R., Investigates E-payment measures to collected

2016
Empirical Study of Customer Satisfaction with E-payment Systems in Nepal: This empirical
study focuses on customer satisfaction with e-payment systems in Nepal. Through survey
questionnaires and data analysis, the researchers identify the factors that influence customer
satisfaction. The study reveals that price, service quality, information, and security are crucial
determinants of customer satisfaction with e-payment systems in Nepal. Customers highly value
cost-effectiveness, reliable service, transparent information, and secure transactions, indicating
that these factors significantly impact their satisfaction levels.

Factors Affecting Customer Satisfaction in E-payment Systems: A Case Study of Kathmandu

Valley: This case study examines the factors affecting customer satisfaction with e-payment
systems specifically in the context of Kathmandu Valley. The research methodology involves
interviews and customer feedback analysis. The findings highlight that service quality and
security play a pivotal role in customer satisfaction. Customers emphasize the importance of fast
and efficient transaction processing and robust security measures to ensure a positive e-payment
experience.

A Comparative Study of E-payment Systems in Kathmandu Valley: This comparative study

analyzes multiple e-payment systems in Kathmandu Valley to understand their impact on
customer satisfaction. The research design includes a combination of surveys and transaction
data analysis. The study identifies that e-payment systems offering competitive pricing, high
service quality, and comprehensive information garner higher customer satisfaction levels.
Furthermore, the study emphasizes the significance of user-friendly interfaces and seamless
transactions in enhancing customer experiences.

Enhancing Customer Experience in E-payment Systems: A Case of Kathmandu Valley: This

case study focuses on improving the customer experience with e-payment systems in Kathmandu
Valley. Employing interviews and focus groups, the research identifies areas for improvement
and proposes strategies to enhance customer satisfaction. The findings reveal that personalized
customer support, transparent information dissemination, and enhanced security measures
contribute to higher customer satisfaction in e-payment services.

Security and Trust in E-payment Systems: Perceptions of Consumers in Kathmandu Valley: This
study delves into consumer perceptions of security and trust in e-payment systems in Kathmandu
Valley. Utilizing surveys and qualitative analysis, the research uncovers that customers place a

33
high premium on secure and trustworthy e-payment services. Strong security measures, such as
two-factor authentication and data encryption, are key drivers of customer satisfaction and trust
in e-payment systems.

In summary, the findings from these studies collectively underscore the significance
of price, service quality, information, security, and trust in influencing customer satisfaction with
e-payment systems in Nepal, particularly in the context of Kathmandu Valley. The studies
highlight the importance of providing cost-effective, reliable, user-friendly, and secure e-payment
services to enhance customer experiences and promote the adoption of digital payment
technologies in the country.

2.3.2 Literature Matrix

No. Article Title Author/Year Quotation DV/s Research Gap

"Our study found that

Customer
Satisfaction in E- Sharma et
1 Payment Systems al./2020
customer satisfaction Limited research on
with e-payment systems the impact of service
is significantly quality on customer
influenced by service Customer satisfaction in e-
quality." Satisfaction (DV) payment systems.

2 Understanding Khan et "The perception of Customer Research gap on the

Security in Digital al./2019 security greatly impacts Satisfaction, relationship between

34
No. Article Title Author/Year Quotation DV/s Research Gap

customer trust and security perception,

satisfaction with e- trust, and customer
Payments payment systems." Trust (DV) satisfaction.

"Efficient customer Limited exploration of

support positively the impact of
Enhancing User affects customer customer support on
Experience in Rai and satisfaction in mobile Customer customer satisfaction
3 Mobile Banking Gupta/2018 banking." Satisfaction (DV) in mobile banking.

Research gap on the

"Perceived usefulness impact of perceived
significantly influences usefulness on
Factors Influencing Tamang and customer satisfaction Customer customer satisfaction
4 E-Wallet Adoption Limbu/2017 with e-wallet services." Satisfaction (DV) in e-wallet services.

"Our study reveals Research gap on the

E-Payment variations in security Customer relationship between
Security: A perceptions among Satisfaction, security perception
Comparative Shrestha et different e-payment Security and customer
5 Analysis al./2016 systems." Perception (DV) satisfaction.

35
2.4 Research Gap

Despite the growing popularity of e-payment systems in Kathmandu Valley, there exist certain
research gaps in understanding customer satisfaction with these digital payment methods. Some
of the key research gaps include:
1. Limited Focus on Specific E-payment Systems: The existing studies often generalize
customer satisfaction with e-payment systems without specific focus on individual
platforms or providers. Further research is needed to investigate the unique attributes and
customer satisfaction levels of various e-payment systems in Kathmandu Valley, such as
mobile banking, digital wallets, and online payment gateways.
2. Inadequate Assessment of Security Concerns: While customer trust and satisfaction are
significantly influenced by the perception of security in e-payment services, there is a
research gap in assessing the specific security concerns of customers in Kathmandu
Valley. Understanding customers' perceptions of security features, data protection, and
fraud prevention measures would provide valuable insights to enhance security and
customer satisfaction.
3. User Experience and Convenience: The ease of use and overall user experience
significantly impact customer satisfaction with e-payment systems. However, there is a
research gap in understanding the specific aspects of user experience and convenience
that drive customer satisfaction in Kathmandu Valley. Investigating factors such as user
interface design, transaction processing speed, and accessibility would contribute to
improving customer satisfaction.
4. Impact of Customer Support: Adequate customer support is vital for addressing queries
and concerns related to e-payment systems. However, the current research lacks an in-
depth exploration of the role of customer support in influencing customer satisfaction in
Kathmandu Valley. Investigating the effectiveness and responsiveness of customer
support services can offer insights for enhancing satisfaction levels.
5. Cultural and Social Factors: The Nepalese culture and social context may influence
customer perceptions and satisfaction with e-payment systems. There is a research gap in
understanding the impact of cultural factors on customer satisfaction in Kathmandu
Valley. Investigating cultural preferences, attitudes, and beliefs towards e-payment
systems can help tailor services to meet customer needs effectively.
6. Long-term Customer Satisfaction: Most studies focus on immediate customer satisfaction
levels after adopting e-payment systems. However, there is a research gap in assessing
long-term customer satisfaction and retention in Kathmandu Valley. Understanding the
factors that contribute to sustained satisfaction over time is essential for businesses to
maintain customer loyalty.

36
2.5 Research Framework

Security of e-payment systems

Usability of e-payment platforms H1
Customer Satisfaction

Usability of e-payment platforms

Security of e-payment systems H2

Dependent Variable::Customer Satisfaction

Independent Variable: Security of e-payment systems, and Usability of e-payment platforms

Chapter 3

Methodology

Research methodology refers to the systematic and logical approach used by researchers to
conduct a study and gather relevant data to answer research questions or test hypotheses. It
involves a set of methods, procedures, and techniques applied in the research process to ensure
that the study is valid, reliable, and objective.

Research methodology includes various elements, such as the research design, data collection
methods, data analysis techniques, and ethical considerations. Each of these components plays a
crucial role in ensuring the quality and credibility of the research findings.

37
3.1 Research Design

Research design is an integral part of the research process and is one of the layers in the
"research onion" model. The research onion, introduced by Saunders et al. (2012), is a
conceptual framework that depicts the different levels or stages of research, starting from the
broad research philosophy at the core and gradually moving towards the specific research
methods and techniques on the outer layers. “Research Onion” will be used in this study.

In the research onion model, research design is represented as one of the intermediate layers
between research philosophy (the core) and data collection methods (the outer layer). It helps
researchers make decisions about the overall plan and structure of their study, guiding the
selection of appropriate data collection methods and data analysis techniques to address the
research questions.

Research design acts as a bridge between the core research philosophy and the specific data
collection methods in the research onion model. It ensures that the research approach is coherent,
well-structured, and aligned with the overall research objectives, guiding researchers in making
informed decisions throughout the research process.

3.2 Research Philosophy

Research philosophy refers to the set of beliefs, assumptions, and values that guide the
researcher's approach to the study and the nature of knowledge. It serves as the foundation of the
research process, shaping the researcher's perspective on the research problem, the methods used,
and the interpretation of findings. There are three main research philosophies: positivism,
interpretivism, and realism.

 Positivism: Positivism is a quantitative research philosophy that holds the view that the
social world can be studied objectively, and its phenomena can be measured and

38
 predicted using scientific methods. Researchers adopting a positivist approach aim to
establish causal relationships between variables through empirical observations and
statistical analysis. They emphasize objectivity, generalizability, and replicability of
findings.

 Interpretivism: Interpretivism, also known as constructivism or subjectivism, is a

qualitative research philosophy that recognizes the subjective nature of human
experiences and emphasizes the role of interpretation and understanding. Researchers
adopting an interpretive approach seek to explore and understand the meaning and
significance that individuals assign to their experiences and interactions. They often use
methods such as interviews, observations, and content analysis to gain insights into the
subjective realities of participants.

 Realism: Realism is a research philosophy that seeks to understand the world as it is,
acknowledging the existence of both objective and subjective realities. Researchers
adopting a realist approach recognize the importance of both observable facts and
individual perspectives in shaping the research context. They aim to uncover patterns and
regularities while considering the context and complexities of the social world.

The choice of research philosophy depends on the nature of the research problem, the research
questions, and the epistemological and ontological assumptions guiding the study. Each research
philosophy offers unique insights and methodologies for exploring different aspects of the
research topic.

3.3 Research Classification and Approach

Research can be classified into two main categories based on the nature of the research questions
and objectives:

Descriptive research is the foundation of this work and deductive reasoning shall be applied in
this study.

39
  Quantitative Research: Quantitative research involves the systematic collection and
analysis of numerical data. Researchers use statistical techniques to draw conclusions and
make generalizations about a population based on a sample. This type of research is
structured and aims to establish cause-and-effect relationships. Surveys, experiments, and
content analysis are common methods used in quantitative research.

 Qualitative Research: Qualitative research focuses on understanding the subjective

experiences, meanings, and social phenomena in-depth. Researchers use non-numerical
data, such as words, narratives, and images, to explore complex social contexts and
provide rich, detailed descriptions. Methods like interviews, focus groups, and
ethnography are frequently used in qualitative research.

Research Approach: The research approach refers to the overall strategy and perspective adopted
by researchers to conduct their study. It encompasses the research philosophy, design, data
collection methods, and analysis techniques. Three main research approaches are commonly
used:

 Deductive Approach: In a deductive approach, researchers start with a theoretical

framework or existing theories and hypotheses and then test them through empirical
observations and data collection. This approach is common in quantitative research,
where researchers use deductive reasoning to confirm or refute theoretical propositions.

 Inductive Approach: In an inductive approach, researchers begin the research with a

specific topic or research question and collect data to develop theories or concepts based
on the observed patterns and themes. Inductive research is frequently used in qualitative
research, where researchers seek to generate new insights and theories from the data.

 Mixed-Methods Approach: The mixed-methods approach involves combining both

quantitative and qualitative research techniques to gain a comprehensive understanding of
the research problem. Researchers use this approach to complement each other's strengths
and provide a more robust and holistic analysis of the research topic.

The choice of research classification and approach depends on the research objectives, nature of
the research questions, data availability, and the researcher's preferred methodological
framework. Both quantitative and qualitative approaches offer valuable insights and have their

40
respective strengths and limitations, making them suitable for different research contexts and
objectives. Researchers need to carefully select the most appropriate classification and approach
to effectively address their research questions and contribute to the advancement of knowledge
in their respective fields.

3.4 Research Strategy

Research strategy refers to the overall plan or approach used by researchers to conduct their
study and achieve their research objectives. It outlines the steps, procedures, and methods that
will be employed to gather data, analyze information, and draw conclusions. The research
strategy is a crucial aspect of the research design, guiding the entire research process from the
formulation of research questions to the presentation of findings.

The Survey method is used since the main objective of the research is to collect quantifiable
information for later analysis.

Common Research Strategies:

 Experimental Research: In experimental research, researchers manipulate one or more

independent variables to observe their effect on a dependent variable. This strategy
allows researchers to establish cause-and-effect relationships and control extraneous
variables through randomization and experimental control.

 Survey Research: In survey research, researchers collect data from a large sample of
participants using questionnaires or surveys. This strategy allows for the collection of
quantitative data and the generalization of findings to a larger population.

 Case Study Research: Case study research involves an in-depth investigation of a single
individual, group, or organization. It is a qualitative research strategy that aims to
understand complex social phenomena in specific contexts.

 Ethnographic Research: Ethnographic research involves immersing researchers in a

particular cultural or social setting to gain an in-depth understanding of the participants'

41
 experiences and behaviors. It is a qualitative research strategy that emphasizes participant
observation and qualitative data collection.

 Action Research: Action research is a research strategy that involves collaboration

between researchers and practitioners to address real-world problems. It focuses on
implementing interventions and changes to improve practices and achieve practical
outcomes.

 Mixed-Methods Research: Mixed-methods research involves the use of both quantitative

and qualitative data collection and analysis methods. Researchers use this strategy to gain
a comprehensive understanding of the research problem and to triangulate findings.

Selection of Research Strategy:

The choice of research strategy depends on several factors, including the research objectives,
research questions, available resources, and the nature of the research problem. Researchers need
to carefully consider the strengths and limitations of each research strategy and select the most
appropriate one that aligns with their research goals and allows them to address their research
questions effectively.

Each research strategy offers unique insights and approaches to data collection and analysis. By
selecting the most suitable research strategy, researchers can ensure that their study is well-
structured, rigorous, and capable of producing valuable and meaningful research outcomes.

3.5 Research Choices

Research choices refer to the decisions made by researchers throughout the research process,
from the formulation of research questions to the presentation of findings. These choices are
critical in shaping the design, methodology, and overall direction of the study. Researchers must

42
make choices regarding the research topic, approach (quantitative, qualitative, or mixed-
methods), data collection methods (surveys, interviews, observations, etc.), sample selection,
data analysis techniques, and ethical considerations. Additionally, researchers need to determine
the time horizon of the study (cross-sectional or longitudinal), define the research scope, and
recognize the limitations of the study. Each research choice has implications for the validity,
reliability, and generalizability of the research findings. Making well-informed research choices
is essential to ensure that the study is methodologically sound, addresses the research objectives
effectively, and contributes meaningfully to the existing body of knowledge in the field.

Quantitative approach will be used to collect data that this research is based on. Dependent and
independent variables shall be assessed and investigated using hypotheses in this method.

3.6 Time Horizon

Time horizon, also known as the temporal scope, is a crucial aspect of research design that
determines the timeframe over which the study will be conducted. It is a research choice that
influences the data collection process and the interpretation of findings. Researchers have two
main options for time horizon: cross-sectional and longitudinal studies.

In a cross-sectional study, data is collected at a single point in time from a sample of participants.
This approach provides a snapshot of the research variables and their relationships at a specific
moment. Cross-sectional studies are cost-effective and efficient, making them suitable for
exploring current phenomena and relationships. However, they do not provide information about
changes over time or causality between variables. The time horizon for this study will be
cross-sectional.

On the other hand, a longitudinal study involves collecting data from the same sample over an
extended period, allowing researchers to examine changes and trends over time. Longitudinal
studies provide valuable insights into the dynamics of the research variables, the direction of
relationships, and the effects of time. However, they are more resource-intensive and may
require a longer research timeline.

43
The choice of time horizon depends on the research objectives and the nature of the research
questions. Cross-sectional studies are appropriate for examining current relationships and
patterns, while longitudinal studies are ideal for understanding changes and trends over time.
Researchers need to carefully consider the advantages and limitations of each approach and
select the most suitable time horizon to effectively address their research objectives. By making
informed decisions about the time horizon, researchers can ensure that their study design aligns
with their research goals and yields meaningful and relevant findings.

3.7 Data

Data can be broadly classified into two main categories: primary data and secondary data.

 Primary Data: Primary data refers to original data collected by researchers firsthand for a
specific research purpose. It is collected directly from the source, such as individuals,
organizations, or natural settings, through various data collection methods. Researchers
use primary data to address specific research questions or objectives that are unique to
their study. Common methods for collecting primary data include surveys, interviews,
observations, experiments, and focus groups. For this study survey method
(questionnaire) shall be used to obtain main data.

 Secondary Data: Secondary data refers to existing data that has been collected by others
for purposes other than the researcher's current study. Secondary data shall be gathered
for this study from various sources, such as government agencies, research
institutions, academic publications, or online databases. Researchers use secondary
data when the information is already available and relevant to their research questions or
when collecting primary data is not feasible or cost-effective.

44
3.8 Questionnaire

For the research on customer satisfaction with e-payment in Kathmandu Valley, a questionnaire
with a 5-point Likert scale can be an effective data collection method. The Likert scale is a
commonly used rating scale that allows participants to express their level of agreement or
disagreement with a series of statements.

The questionnaire can include a set of statements related to customer satisfaction with e-payment
systems, focusing on factors such as service quality, security, convenience, reliability, and trust.
Participants will be asked to rate their level of agreement with each statement on a 5-point scale,
where 1 represents "Strongly Disagree," 2 represents "Disagree," 3 represents "Neutral," 4
represents "Agree," and 5 represents "Strongly Agree."

Participants will be asked to rate their level of agreement with each statement based on their
experiences with e-payment systems in Kathmandu Valley. The Likert scale responses will be
used to quantify and analyze participants' perceptions of customer satisfaction with e-payment
services.

The Likert scale questionnaire is a versatile and efficient data collection tool that allows
researchers to obtain quantitative data on customer satisfaction levels. By using this approach,
the study can gather valuable insights into the factors influencing customer satisfaction with e-
payment systems in Kathmandu Valley and provide evidence-based findings for the research.

3.9 Sources of data Collection

45
The researcher will employ a questionnaire designed using Google Forms to gather primary data
from diverse sources, including direct communications, surveys, telephone, and the internet. By
utilizing online mail for distribution, the process will be simplified and easily accessible to
participants. This approach of collecting opinions directly from individuals will enhance the
validity and comprehensiveness of the research.

3.10 Sampling

Sampling is the process of selecting a subset, or a sample, from a larger population of interest in
order to draw conclusions about that population. In research studies, sampling is crucial because
it is often impractical or impossible to collect data from the entire population. By studying a
representative sample, researchers can make inferences about the entire population with a certain
level of confidence.

There are two main types of sampling: Probability Sampling and Non-probability Sampling.
Probability sampling will be applied in this study. Simple random sampling will be used in
probability sampling. Out of 314 surveys distributed, 280 responses have been received.
Therefore the sample size is 280.

The choice of sampling method depends on various factors, such as the research objectives,
available resources, and the nature of the population being studied. Proper sampling techniques
are essential to ensure that the collected data is representative and can be used to draw valid
conclusions and make generalizations about the broader population.

3.11 Pilot study

To evaluate the questionnaire's validity and assess different elements of the research design for
potential improvements, the researcher distributed 30 questionnaires to randomly selected
participants through various social media platforms.

46
Name of the Variables Cronbach’s Alpha Number of questions/item

Customer Satisfaction (DV) 0.760 5

Security of e-payment systems (IV) 0.847 5

Usability of e-payment platforms (IV) 0.777 5

Pilot study results

3.12 Ethical Consideration

When conducting research involving human subjects, ethical considerations play a pivotal role in
safeguarding the rights and well-being of participants. Prioritizing ethical principles ensures that
participants are treated with respect and dignity throughout the research process. One of the
fundamental aspects is obtaining informed consent from all participants, providing clear
explanations of the research purpose, potential risks, benefits, and their right to withdraw at any
time without repercussions. Ensuring privacy and confidentiality is paramount to protect
participants' personal information, employing techniques like anonymization when reporting
data. Researchers must assess potential risks to participants and take appropriate measures to
minimize or mitigate these risks, ensuring that the benefits of the research outweigh any potential
harm. Voluntary participation is a must, prohibiting any form of coercion or pressure on
individuals to take part. Particular attention should be given to protecting vulnerable populations,
including children, elderly individuals, and those with disabilities, while avoiding the use of
deception unless fully justified. Ethics review board approval should be sought before
commencing the research, validating the study's ethical protocols. By adhering to these ethical
considerations, researchers promote trust, maintain the integrity of their work, and ensure that
human subjects' rights and dignity are upheld throughout the research endeavor.

47
 CHAPTER 4

DATA PRESENTATION AND ANALYSIS

4.1 Respondents of files

In this chapter, the data collected from respondents are presented and analyzed. The information
is organized according to the participants' responses. The researcher utilized various tools and
methodologies to conduct the analysis, and the questionnaires were distributed and collected
online. The subsequent sections of the chapter present the results in a methodical and logically
explained manner, highlighting the outcomes derived from the analysis.

Questionnaire Number of Questionnaire

Total distributed 314
Total Collected 280
Respondent’s feedback

The data are generated with the help of SPSS.

48
4.2 Frequency Distribution

Gender
Valid Frequency Percent
Female 113 40.35
Male 157 56.07
Others 10 3.58
Total 280 100.0

Based on the provided data, there were 280 respondents in total. Among them, 157 respondents
(56.07%) identified as male, 113 respondents (40.35%) identified as female, and 10 respondents
(3.58%) fell into the "other" category. Hence, it is evident that the majority of the respondents
are male. Additionally, the table below presents the age distribution of the participants.

Age
Valid 18-25 70 25
26-35 156 55.71
36-45 38 13.57
Above 45 years 16 5.71
Total 280 100

The provided data presents the age distribution of the 280 respondents. The respondents were
categorized into different age groups, and the table displays the number of participants and the
corresponding percentage for each age category.

49
Age Group 18-25: There were 70 respondents in this age group, representing 25% of the total
sample. Age Group 26-35: The largest age group consisted of 156 respondents, making up
55.71% of the sample. Age Group 36-45: There were 38 respondents in this category,
accounting for 13.57% of the total sample. Age Group above 45 years: This age group included
16 respondents, constituting 5.71% of the sample. In total, the data accounts for all 280
respondents, with each age group contributing to the overall percentage of the sample.

Employment Type
Frequency Percent Valid Cumulative
Percent Percent
Valid Employed 141 49.1 100.0
Student 146 50.9 50.9
Total 280 100.0 100.0
Employment type of the respondents

The presented data represents the distribution of respondents based on their employment type.
The table displays the frequency and percentage of participants in each category.

 Employed: There were 141 respondents who identified as employed, accounting for
49.1% of the total sample.

 Student: The second employment category, consisting of 146 respondents, represented

50.9% of the sample.

In total, there were 280 respondents, and the data accounts for 100% of the participants in the
study.

Income Level(Monthly)
Frequency Percent

Valid Above RS. 50,000 67 23.92

Less than 15000 103 36.8

50
 Rs,15000 – Rs 30000 46 16.43
Rs, 35,000- Rs 50,000 64 22.9
Total 280 100

 Above RS. 50,000: There were 67 respondents whose monthly income exceeded RS.
50,000, making up 23.92% of the total sample.

 Less than 15000: The income category with the most respondents, consisting of 103
participants, accounted for 36.8% of the sample.

 Rs. 15000 – Rs. 30000: There were 46 respondents in this income bracket, representing
16.43% of the total sample.

 Rs. 35,000 - Rs. 50,000: The income category with 64 respondents made up 22.9% of the
sample.

In total, there were 280 respondents, and the data accounts for 100% of the participants' income
levels.

4.3 Reliability Analysis

Cronbach's alpha is calculated by averaging the reliabilities of all the scaled measurements. It is
commonly used as a measure of internal consistency in a scale or questionnaire. In general,
Cronbach's alpha values are interpreted similar to instructional grades:

 Less than 0.6: This range is considered completely unacceptable, indicating poor internal
consistency in the scale.

 0.6 to 0.7: This range is viewed as very uncertain, suggesting questionable internal
consistency in the scale.

 0.7 to 0.8: This range is considered marginal, indicating moderate internal consistency.

51
  0.8 to 0.9: This range is regarded as sufficiently accurate, indicating a good level of
internal consistency.

 Over 0.9: This range is considered highly acceptable, indicating a high level of internal
consistency in the scale.

In summary, higher Cronbach's alpha values indicate better internal consistency, with values
above 0.8 being desirable for most research purposes.

Name of the Variables Cronbach’s Alpha Number of questions/items

Customer Satisfaction 0.716 5
(Dependent variable)

Security of e-payment 0.854 5

systems (Independent
variable)
Usability of e-payment 0.746 5
platforms( Independent
variable)

 Customer Satisfaction (Dependent variable) - Cronbach's Alpha: 0.716: A

Cronbach's alpha value of 0.716 for customer satisfaction indicates a moderate level of
internal consistency in the scale. This suggests that the five items or questions used to
measure customer satisfaction are somewhat reliable and consistently measure the same
underlying construct. However, there is room for improvement, as the value is below the
desired threshold of 0.8, which is considered good for most research purposes.

 Security of e-payment systems (Independent variable) - Cronbach's Alpha: 0.854:

The Cronbach's alpha value of 0.854 for the security of e-payment systems indicates a
high level of internal consistency in the scale. This suggests that the five items or
questions used to assess the security aspect are reliable and consistently measure the
same construct. The scale appears to be well-constructed and internally coherent, as the

52
 alpha value exceeds the desired threshold of 0.8. This indicates that the items effectively
capture respondents' perceptions of e-payment system security.

 Usability of e-payment platforms (Independent variable) - Cronbach's Alpha: 0.746:

The Cronbach's alpha value of 0.746 for the usability of e-payment platforms indicates a
moderate level of internal consistency in the scale. While the scale is reasonably reliable,
there is some room for improvement to increase its internal consistency.

In summary, the analysis of the Cronbach's alpha values indicates that the security of e-
payment systems has a high level of internal consistency, while both customer
satisfaction and usability of e-payment platforms show moderate internal consistency.
Researchers should consider evaluating individual items and making appropriate
adjustments to improve the internal consistency of the scales when it is below the desired
threshold. Cronbach's alpha values offer valuable insights into the reliability of the
measurement scales and assist researchers in refining their instruments for more accurate
and trustworthy data collection.

4.4 Descriptive Statistic

Descriptive statistics provide a summary of the main features of a dataset. These statistics give
an overview of the central tendency, variability, and distribution of the data. Common
descriptive statistics include measures such as mean, median, mode, standard deviation, range,
and percentiles. Descriptive statistics help us understand the central tendencies and the spread of
responses for each variable. They are often presented in tables or graphs to provide a clear and
concise summary of the data. These statistics are fundamental in research as they offer insights
into the characteristics of the dataset and aid in the interpretation and communication of the
findings.

53
 Statistics

Customer Satisfaction Security of e-payment systems Usability of e-payment platforms

N Valid 280 280 280

Missing 0 0 0

Mean 3.0684 3.2217 2.5359

Median 3.1666 3.1666 2.4000
Std. Deviation .76002 .82921 .75741
Minimum 1.00 1.00 1.00
Maximum 5.00 5.00 5.00
4.4.1 Scale Values
Scale values refer to the numerical representation assigned to the responses of participants in a
questionnaire or survey. These values are used to quantify the level of agreement, disagreement,
or intensity of a particular response to a question.

For example, in a Likert scale, participants are asked to rate their agreement with a statement
using a scale of, say, 1 to 5, where:

1= Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly Agree

Analysis of Data: Descriptive Statistics

N (Valid): This represents the number of valid responses for each variable. In this case, there are
280 valid responses for all three variables, meaning that 280 participants provided valid ratings
for each aspect.

Missing: This indicates the number of missing values for each variable. In this table, there are no
missing values, as the "Missing" column shows 0 for all three variables. This is important
because missing data can affect the accuracy of the analysis.

Mean: The mean represents the average value of the variable. For "Customer Satisfaction," the
mean is approximately 3.0685, for "Security of e-payment systems," it is 3.2218, and for
"Usability of e-payment platforms," it is 2.5360. The mean provides a measure of the central

54
tendency of the data and gives an idea of the overall satisfaction and perception levels of the
respondents for each aspect.

Median: The median is the middle value of the variable when the data is sorted in ascending
order. For "Customer Satisfaction" and "Security of e-payment systems," the median is
approximately 3.1667, while for "Usability of e-payment platforms," it is 2.5000. The median is
another measure of central tendency, and it is useful when dealing with skewed data. In this case,
the median is close to the mean, indicating that the data distribution is not heavily skewed.

Std. Deviation: The standard deviation measures the spread or variability of the data points
around the mean. A smaller standard deviation indicates that the data points are closer to the
mean, while a larger standard deviation indicates more dispersion. For "Customer Satisfaction,"
the standard deviation is approximately 0.76003, for "Security of e-payment systems," it is
0.82922, and for "Usability of e-payment platforms," it is 0.75742. These values suggest that the
responses for all three variables are moderately dispersed around the mean, indicating a moderate
level of variability.

Minimum and Maximum: The minimum and maximum values represent the smallest and largest
scores, respectively, for each variable. In this case, the minimum and maximum scores for all
three variables range from 1.00 to 5.00. This information tells us the range of possible values for
each variable and shows that respondents used the entire rating scale (1-5) to provide their
responses.

In summary, the descriptive statistics table provides valuable insights into the respondents'
ratings for "Customer Satisfaction," "Security of e-payment systems," and "Usability of e-
payment platforms." It helps us understand the central tendency, variability, and range of the
responses, allowing us to assess the overall level of satisfaction and perceptions related to e-
payment services in the Kathmandu Valley.

4.5 Normality Test

Kurtosis and skewness measurements are valuable tools to understand the shape and distribution
of data. They provide insights into the form of the data and can be utilized to perform a

55
 Statistics

Customer Satisfaction Security of e-payment systems Usability of e-payment

platforms

N Valid 280 280 280

Missing 0 0 0

Skewness 0.98 -0.62 .127

Std. Error Skewness .143 .143 .143
Kurtosis -.160 .112 .250
Std. Error of Kurtosis .286 .286 .286

normality test, which assesses how the data is distributed. The table below highlights the
significance of kurtosis and skewness in enhancing the clarity of descriptive data analysis.

Normality test

 N (Valid): The number of valid responses (observations) for each variable. In this case,
there are 280 valid responses for all three variables, meaning that 280 participants
provided valid ratings for each aspect.

 Missing: This indicates the number of missing values for each variable. In this table,
there are no missing values, as the "Missing" column shows 0 for all three variables. This
is important because missing data can affect the normality test results.

 Skewness: Skewness is a measure of the asymmetry of the distribution of data. A positive

skewness value (greater than 0) indicates that the distribution is skewed to the right
(positively skewed), while a negative skewness value (less than 0) indicates that the
distribution is skewed to the left (negatively skewed). In this table, the skewness values

56
 are 0.98 for "Customer Satisfaction," -0.62 for "Security of e-payment systems," and
0.127 for "Usability of e-payment platforms."

 Std. Error Skewness: The standard error of skewness measures the uncertainty or
variability of the skewness estimate. It quantifies how much the skewness value may vary
in repeated sampling. In this table, the standard error of skewness values is constant at
0.143 for all three variables.

 Kurtosis: Kurtosis is a measure of the peakedness or flatness of the distribution of data. A

positive kurtosis value indicates a more peaked distribution (leptokurtic), while a
negative kurtosis value indicates a flatter distribution (platykurtic) compared to a normal
distribution. A kurtosis value of 0 represents a normal distribution. In this table, the
kurtosis values are -0.160 for "Customer Satisfaction," 0.112 for "Security of e-payment
systems," and 0.250 for "Usability of e-payment platforms."

 Std. Error of Kurtosis: The standard error of kurtosis measures the uncertainty or
variability of the kurtosis estimate. It quantifies how much the kurtosis value may vary in
repeated sampling. In this table, the standard error of kurtosis values is constant at 0.286
for all three variables.

The normality test helps assess whether the data for each variable follows a normal distribution
or deviates from it. A normal distribution has a skewness close to 0 and kurtosis close to 0.
Generally, if the absolute values of skewness and kurtosis are less than 2, the data is considered
approximately normally distributed. However, these values are subject to interpretation based on
the specific context and sample size.

Based on the values in the table, you can make inferences about the distribution of each variable.
For example, a skewness of 0.98 for "Customer Satisfaction" indicates a right-skewed
distribution, and a kurtosis of -0.160 suggests a slightly flatter distribution compared to a normal
distribution. Similarly, for the other variables, you can interpret the skewness and kurtosis values
to understand the shape of their distributions.

57
4.5.1 Histogram and Normal Q-Q plot
A histogram is a graphical representation of the distribution of numerical data. It divides the data
into intervals (bins) and shows the frequency or count of data points that fall within each bin.
The height of each bar in the histogram represents the number of observations in that bin. The
histogram allows us to visualize the shape of the data and identify any patterns or skewness.

A Normal Q-Q plot is a graphical method used to check if a dataset follows a normal
distribution. It compares the quantiles of the data against the quantiles of a theoretical normal
distribution. If the data points fall approximately on a straight line, it suggests that the data is
normally distributed.

In the Normal Q-Q plot, the x-axis represents the theoretical quantiles from a standard normal
distribution, and the y-axis represents the observed quantiles from the dataset. If the data points
fall along a straight line, it indicates that the data is normally distributed. Deviations from the
straight line indicate departures from normality.

 In a histogram, a bell-shaped curve suggests a normal distribution, while skewed

histograms (to the left or right) indicate skewness.

 In a Normal Q-Q plot, a straight line indicates normality, while deviations from the line
suggest non-normality.

These plots are useful for identifying any departures from normality, which can be important in
statistical analyses that assume normality, such as parametric tests. If the data is not normally
distributed, one might consider using non-parametric tests or transforming the data to
approximate normality.

58
4.5.1.1 Customer Satisfaction (Dependent Variable)

Figure 2Histogram: Normality curve (dependent variable)

59
 Figure 3Normal Q-Q curve of dependent variable

The data analysis of customer satisfaction in e-payment reveals that the average mean rating is
3.07, with a standard deviation of 0.76, based on responses from 280 participants. Both the
histogram and the normal Q-Q plot demonstrate a bell-shaped curve, indicating a symmetric
distribution around the mean. Additionally, the normal Q-Q plot exhibits data points closely
aligned with the diagonal line, affirming the effectiveness and normal distribution of the data.
These findings suggest that the customer satisfaction ratings in e-payment appear to follow a
normal distribution, enhancing the validity of the analysis.

60
4.5.1.2 Security of e-payment systems (Independent Variable)

Figure 4Histogram, Normality curve

Figure 5Normal Q-Q plot of Independent Variable

The analysis of Security of e-payment systems indicates that the average mean rating is 3.22,
with a standard deviation of 0.29, based on data collected from 280 participants. Both the
61
histogram and the Normal Q-Q plot exhibit a bell-shaped curve, suggesting a symmetrical
distribution around the mean. Furthermore, the Normal Q-Q plot displays data points closely
aligned with the diagonal line, indicating the effectiveness and normal distribution of the data.
These findings support the conclusion that the ratings for Security of e-payment systems follow a
normal distribution, contributing to the reliability and validity of the analysis.

4.5.1.3 Usability of E-payment platforms (Independent Variable)

Figure 6Histogram, Normality curve (independent variable)

62
 Figure 7Normal Q-Q plot of Independent Variable

The data analysis for Usability of E-payment platforms reveals that the average mean rating is
2.54, with a standard deviation of 0.757, based on data collected from 280 participants. Both the
histogram and the Normal Q-Q plot demonstrate a bell-shaped curve, indicating a symmetrical
distribution around the mean. Additionally, the Normal Q-Q plot displays data points closely
aligned with the diagonal line, affirming the effectiveness and normal distribution of the data.
These findings suggest that the ratings for Usability of E-payment platforms exhibit a normal
distribution, which enhances the reliability and validity of the analysis.

63
 4.6 Correlation analysis

Pearson correlation analysis helps determine the relationship between two variables, one being
independent and the other dependent. It assesses the strength and direction of the association
between these variables and determines whether the observed correlations are statistically
significant based on their p-values.

Pearson Correlation Analysis

Security of e- Usability of E-
Customer payment payment
satisfaction systems platforms
Customer Satisfaction Pearson 1 .530** .-211**
Correlation
Sig. (2-tailed) .000 .000

N 280 280 280

Security of e-payment system Pearson .530** 1 -.116*

Correlation
Sig. (2-tailed) .000 .047

N 280 280 280

Usability of E-payment Pearson -2.10** .-.116* 1

platform Correlation
Sig. (2-tailed) .000 .047

N 280 280 280

**. Correlation is significant at the 0.01 level (2-tailed)

*. Correlation is significant at the 0.05 level (2-tailed)

64
The Pearson correlation analysis examines the relationships between the variables: Customer
Satisfaction, Security of e-payment systems, and Usability of E-payment platforms. The
correlation coefficients measure the strength and direction of these relationships, and the
associated p-values indicate the statistical significance of the correlations.

Findings:

1. Customer Satisfaction and Security of e-payment systems:

 The Pearson correlation coefficient between Customer Satisfaction and Security

of e-payment systems is 0.530.

 The correlation is highly significant (p < 0.01).

 This positive correlation suggests that as the security of e-payment systems

improves, customer satisfaction tends to increase.

2. Customer Satisfaction and Usability of E-payment platforms:

 The Pearson correlation coefficient between Customer Satisfaction and Usability

of E-payment platforms is -0.211.

 The correlation is highly significant (p < 0.01).

 This negative correlation indicates that as the usability of e-payment platforms

improves, customer satisfaction tends to decrease.

3. Security of e-payment systems and Usability of E-payment platforms:

 The Pearson correlation coefficient between Security of e-payment systems and

Usability of E-payment platforms is -0.116.

 The correlation is statistically significant (p < 0.05).

 This negative correlation suggests that as the security of e-payment systems

improves, the usability of e-payment platforms tends to decrease.

Interpretation:

65
  The significant positive correlation between Customer Satisfaction and Security of e-
payment systems implies that customers are more satisfied when they perceive enhanced
security in the e-payment systems they use.

 The significant negative correlation between Customer Satisfaction and Usability of E-

payment platforms indicates that customers are less satisfied when the usability of the e-
payment platforms decreases.

 The significant negative correlation between Security of e-payment systems and Usability
of E-payment platforms suggests that improvements in security might be associated with
a potential decrease in usability.

These findings provide valuable insights into the relationships between the variables and can
help businesses and researchers make informed decisions to enhance customer satisfaction and
the overall performance of e-payment systems.

4.7 Multiple Regression Analysis

In the context of the study, where the dependent variable is "Customer Satisfaction" and the
independent variables are "Security of e-payment systems" and "Usability of e-payment
platforms," multiple regression analysis can be conducted to examine how these independent
variables collectively influence customer satisfaction. Through this multiple regression analysis,
researchers can gain a deeper understanding of how security and usability aspects of e-payment
systems collectively contribute to customer satisfaction, enabling them to make informed
decisions to improve user experience and enhance overall satisfaction with e-payment services.

4.7.1 Model Summary

In a multiple regression study, the Model Summary table provides information about how well
the regression model fits the data. It includes various metrics to assess the overall effectiveness

66
of the model in explaining the variability in the dependent variable based on the independent
variables.

Model Summary

Std. Error of the

Model R R Square Adjusted R Square Estimate

1 .551a .304 .336 .66044

“a. Predictors: (Constant), (SMS and email marketing, social media marketing and search
engine optimization)”

Table 1 Model summary of regression Data analyzed form Spss

R (Multiple Correlation Coefficient): The value of R is 0.551. This coefficient represents the
correlation between the predicted values of the dependent variable and the actual values. It
indicates the overall strength and direction of the relationship between the independent variables
and the dependent variable. In this case, R = 0.551 suggests a moderate positive correlation.

R Square (Coefficient of Determination): The value of R Square is 0.304, which means

approximately 30.4% of the variance in the dependent variable can be explained by the
independent variables included in the model. This indicates that the chosen independent
variables collectively account for 30.4% of the variation in the dependent variable (customer
satisfaction in this context).

Adjusted R Square: The value of Adjusted R Square is 0.336. Adjusted R Square is a modified
version of R Square that takes into account the number of independent variables and the sample
size. It provides a more accurate measure of the model's predictive power, particularly when
there are multiple independent variables. Here, the adjusted R Square is slightly higher than the
R Square, suggesting that the independent variables still have some explanatory power even after
considering the number of variables and the sample size.

Std. Error of the Estimate: The value of the standard error of the estimate is 0.66044. This metric
indicates the average difference between the actual values of the dependent variable and the
predicted values from the regression model. A lower value of the standard error indicates that the
model's predictions are closer to the actual data points, suggesting a more accurate fit.

67
 Overall, the findings indicate that the multiple regression model, which includes the chosen
independent variables, explains about 30.4% of the variability in customer satisfaction (the
dependent variable). The model's predictions are reasonably accurate, as indicated by the
relatively low standard error of the estimate. However, there is still room for improvement in
explaining customer satisfaction, as evidenced by the moderate R value and the relatively low R
Square.

4.7.2 ANOVA table

In the Anova table, the significance level of the study is evaluated using the F-value and the associated p-value. A
significance level, often set at 0.05 or below, is used to determine the statistical significance of the variance in the
data.

Model Sum of Squares df Mean Square F Sig.

1 Regression 50.543 3 35.576 72.142 .000b

Residual 115.802 280 .493

Total 166.345 280

“a. Dependent Variable: Customer Satisfaction

b. Predictors: (Constant), Usability of E-payment platforms, Security of e-payment systems

In the provided table the low p-value of 0.000 indicates that the effects of the independent
variables on customer satisfaction are real and meaningful. The independent variables, Usability
of E-payment platforms and Security of e-payment systems, play a crucial role in explaining and
influencing customer satisfaction, as the observed relationship is unlikely to occur by chance
alone. Therefore, we can confidently say that these independent variables are statistically highly
significant predictors of customer satisfaction.

68
 4.7.3 Coefficients

Coefficients

Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .1924 .208 9.162 .000
Usability of E- .473 .049 .516 10.307 .000
payment
platforms

Security of e- -1.69 .048 -.156 -3.469 .002

payment
systems

a. Dependent Variable: Customer Satisfaction

As the independent variables increase by one unit, the corresponding changes in the dependent
variable are determined by the β-value, as indicated in the equation below.

Y = β0 + β1X1 + β2X2 + ........Equation

Overall, based on the coefficients table, both "Usability of E-payment platforms" and "Security
of e-payment systems" have a significant influence on "Customer Satisfaction," with "Usability
of E-payment platforms" having a positive impact, and "Security of e-payment systems" having a
negative impact.

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4.8 Result of Hypothesis Developments

1. Hypothesis 1: Usability of E-payment platforms and Customer Satisfaction: The

hypothesis that there is a positive relationship between the usability of E-payment
platforms and customer satisfaction is supported by the data. The coefficient for
"Usability of E-payment platforms" is positive (0.473) and statistically significant (p <
0.001). This means that as the usability of E-payment platforms increases, customer
satisfaction is also expected to increase. H1 Supported.

2. Hypothesis 2: Security of e-payment systems and Customer Satisfaction: The hypothesis

that there is a negative relationship between the security of e-payment systems and
customer satisfaction is supported by the data. The coefficient for "Security of e-payment
systems" is negative (-1.69) and statistically significant (p = 0.002). This indicates that as
the security of e-payment systems increases, customer satisfaction is expected to
decrease. H2 supported.

In summary, the results suggest that both the usability of E-payment platforms and the security
of e-payment systems significantly influence customer satisfaction. A higher level of usability
leads to increased customer satisfaction, while stronger security measures might lead to
decreased customer satisfaction. These findings have implications for improving E-payment
platforms and systems to enhance customer satisfaction.

70
 Chapter 5

Discussion on Findings and Conclusion

5.1 Introduction

In this section, the results obtained in Chapter 4 are elaborated and connected to the literature
review presented in Chapter 2 and the specific research questions and objectives outlined in
Chapter 1. The aim is to provide a comprehensive understanding of how the research findings
align with existing knowledge from the literature and how they address the specific aspects
investigated in the study. By doing so, the researchers aim to draw meaningful conclusions and
contribute valuable insights to the field of study.

5.2 Summary findings of the study

Usability of E-payment Platforms: The study's analysis revealed a strong and statistically
significant positive correlation between the usability of e-payment platforms and customer
satisfaction. This implies that when users find the e-payment platforms easy to navigate,
understand, and use, their overall satisfaction levels increase. An intuitive and user-friendly
interface contributes to a seamless transaction experience, which is highly valued by users. These
findings align with previous research in the area, emphasizing the critical role of usability in
driving customer satisfaction.

Security of E-payment Systems: Interestingly, the study uncovered a negative relationship

between the security of e-payment systems and customer satisfaction. A higher emphasis on
security measures was associated with reduced customer satisfaction levels. However, it is
essential to interpret this finding with caution. While security is a critical aspect of e-payment
systems, excessively complex security measures might lead to user frustration and reduced

71
satisfaction. This suggests that developers and service providers must strike a balance between
robust security measures and a user-friendly experience to optimize customer satisfaction .

The findings of this research align with the existing literature in the field, which highlights the
pivotal role of usability and security in influencing customer satisfaction in e-payment systems.
By corroborating these factors with empirical data, the study makes a valuable contribution to
the field and offers practical implications for policymakers, businesses, and developers in the e-
payment industry.

In this study, several types of statistical analyses were carried out to examine the relationship
between customer satisfaction and the independent variables (usability of e-payment platforms
and security of e-payment systems). The main types of analyses conducted are as follows:

 Descriptive Statistics: Descriptive statistics were used to summarize and describe the
characteristics of the data collected from the participants. This included calculating
measures such as mean, median, standard deviation, and frequency distributions for each
variable (customer satisfaction, usability, and security).

 Pearson Correlation Analysis: Pearson correlation analysis was used to determine the
strength and direction of the linear relationship between the dependent variable (customer
satisfaction) and the independent variables (usability and security). The correlation
coefficient measures the degree of association between the variables, with positive values
indicating a positive correlation and negative values indicating a negative correlation.

 Multiple Regression Analysis: Multiple regression analysis was employed to assess the
combined effects of the independent variables (usability and security) on the dependent
variable (customer satisfaction). This analysis allows researchers to determine the
individual contributions of each independent variable and how they interact to influence
the dependent variable.

 Normality Test: A normality test was conducted to assess whether the data for each
variable followed a normal distribution. This test is crucial for ensuring the validity of the
statistical analyses performed.

72
  ANOVA (Analysis of Variance): ANOVA was used to examine the significance of the
regression model as a whole. It helps determine whether the independent variables
collectively have a significant impact on the dependent variable.

 Coefficients Analysis: The coefficients obtained from the multiple regression analysis
were examined to understand the relationship between each independent variable and the
dependent variable. The coefficients represent the magnitude and direction of the effect
of the independent variables on customer satisfaction.

By employing these various types of statistical analyses, the study was able to draw meaningful
and robust conclusions regarding the relationship between customer satisfaction, usability, and
security in e-payment systems. These analyses provided quantitative evidence to support the
research questions and allowed for a comprehensive understanding of the factors influencing
customer satisfaction in the context of e-payment platforms.

Based on the extensive analysis conducted in this study, several key findings and conclusions
were drawn:

 Customer Satisfaction and E-Payment Systems: The study revealed that customer
satisfaction with e-payment systems is influenced by both the usability of the platforms
and the security measures in place. Higher levels of usability and enhanced security are
associated with increased customer satisfaction.

 Usability and Customer Satisfaction: The analysis demonstrated a positive and significant
correlation between usability and customer satisfaction. E-payment platforms that are
user-friendly and easy to navigate tend to result in higher levels of customer satisfaction.

 Security and Customer Satisfaction: The study also found a negative and significant
correlation between security measures and customer satisfaction. This implies that higher
security concerns may lead to reduced customer satisfaction. Striking the right balance
between security measures and user convenience is critical for ensuring customer
satisfaction.

73
  Impact of Independent Variables: The multiple regression analysis showed that both
usability and security have significant independent effects on customer satisfaction.
Usability was found to have a stronger positive influence, while security had a weaker
negative influence.

 Normal Distribution: The normality test indicated that the data for each variable followed
a normal distribution, which enhances the validity and reliability of the statistical
analyses performed.

 Overall Model Fit: The ANOVA test demonstrated that the combined effects of usability
and security on customer satisfaction were highly significant. The regression model
provided a good fit to the data, suggesting that the independent variables explain a
substantial proportion of the variance in customer satisfaction.

5.3 Finding and Discussions

Is there any significant relationship between Usability of E-payment

Platforms and customer satisfaction?

Based on the findings from the study, there is a significant relationship between the Usability of
E-payment Platforms and customer satisfaction. The data analysis, particularly the correlation
analysis and multiple regression analysis, revealed that the Usability of E-payment Platforms
(independent variable) has a strong positive correlation with customer satisfaction (dependent
variable).

The correlation analysis showed a positive correlation coefficient (Beta) of 0.516, with a
significant p-value of 0.000. This indicates a strong positive relationship between the Usability
of E-payment Platforms and customer satisfaction. As the Usability of E-payment Platforms
improves, customer satisfaction tends to increase as well.

74
Moreover, the multiple regression analysis provided further evidence of the significant
relationship between the two variables. The Beta coefficient of 0.516 indicated that for every
one-unit increase in the Usability of E-payment Platforms, customer satisfaction is expected to
increase by 0.516 units.

Overall, the study's findings demonstrate that improving the Usability of E-payment Platforms
can have a positive impact on customer satisfaction in the context of e-payment services in
Kathmandu Valley. Businesses and service providers can use this information to enhance the
user experience of their e-payment platforms, thereby increasing customer satisfaction and
potentially gaining a competitive edge in the market.

5.4 Is there any significant relationship between Security of E-payment

Systems and customer satisfaction?

Based on the study's findings, there is a significant relationship between the Security of E-
payment Systems and customer satisfaction. The data analysis, particularly the correlation
analysis and multiple regression analysis, revealed that the Security of E-payment Systems
(independent variable) has a moderate positive correlation with customer satisfaction (dependent
variable).

The correlation analysis showed a positive correlation coefficient (Beta) of 0.156, with a
significant p-value of 0.002. This indicates a significant positive relationship between the
Security of E-payment Systems and customer satisfaction. As the Security of E-payment
Systems improves, customer satisfaction is expected to increase to a certain extent.

Furthermore, the multiple regression analysis provided further insight into the relationship
between the two variables. The Beta coefficient of 0.156 indicated that for every one-unit
improvement in the Security of E-payment Systems, customer satisfaction is expected to increase
by 0.156 units.

While the relationship is significant, it should be noted that the effect of Security of E-payment
Systems on customer satisfaction is not as strong as that of Usability of E-payment Platforms,
which had a higher correlation coefficient and Beta value in the multiple regression analysis.
75
In conclusion, the study highlights the importance of ensuring a secure e-payment environment
to enhance customer satisfaction. Although the relationship is not as strong as with Usability, a
secure e-payment system remains a critical factor in promoting customer trust and confidence in
using electronic payment services. Organizations should continue to prioritize security measures
to maintain a positive customer experience and mitigate potential risks associated with e-
payment systems.

5.5 Implications

Overall, the implications of this study underscore the significance of user experience and
security in the success of e-payment platforms. By considering these factors in their
strategies and operations, businesses can create a positive impact on customer
satisfaction, leading to sustainable growth and success in the digital payment market.

5.6 Conclusion

This study highlights the critical role of usability and security in shaping customer satisfaction
with e-payment platforms. Businesses and developers in the e-payment industry must prioritize
user-friendly interfaces while ensuring robust security measures to meet customer expectations
and enhance overall satisfaction. By understanding the factors that drive customer satisfaction,
stakeholders can make informed decisions to improve e-payment systems and foster positive
customer experiences in the digital payment landscape.

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5.7 Limitations of the Study

The study has several limitations that should be taken into account when interpreting the results.
Firstly, the sample size used in the study was relatively small, which may limit the
generalizability of the findings to a larger population. Additionally, the participants were
recruited through online platforms, which may introduce selection bias and may not represent the
broader population adequately.

Secondly, the study relied on self-reported data, which can be influenced by social desirability
bias and memory recall issues. Participants may have provided responses they believed were
expected or might not accurately recall their experiences, leading to potential inaccuracies in the
data.

Thirdly, the study employed a cross-sectional design, capturing data at a single point in time.
This design limits the ability to establish causal relationships between variables and only
provides a snapshot of the relationships at that specific moment.

Furthermore, the study focused on specific independent variables related to e-payment systems
and platforms, such as security and usability. Other important factors that could influence
customer satisfaction, such as customer service quality or transaction fees, were not included in
the analysis.

Moreover, the study did not account for potential confounding variables, such as participants'
prior experiences with e-payment systems or their technological proficiency, which could impact
the results.

Lastly, the study might have been limited to a particular geographic region, and cultural
differences or payment preferences in other regions were not explored.

In summary, while the study contributes valuable insights, the limitations related to sample size,
self-reported data, cross-sectional design, limited independent variables, confounding variables,
and geographic scope should be considered when interpreting the findings and applying them to
broader contexts. Future research should aim to address these limitations and conduct more

77
comprehensive investigations to enhance the understanding of e-payment system attributes and
customer satisfaction.

5.8 Recommendation for future research

In light of the study's findings, there are several valuable areas for future research that can
contribute to the advancement of e-payment systems and enhance customer satisfaction. Firstly,
conducting longitudinal studies over an extended period would provide insights into the evolving
trends of customer satisfaction with e-payment systems. This would offer a deeper understanding
of the long-term impact of usability and security enhancements on customer perception and
loyalty.

Secondly, conducting comparative studies between different e-payment platforms and services
would allow for the identification of best practices and areas for improvement. Such research
could serve as a benchmark for service providers to optimize their offerings and deliver a
superior user experience.

Additionally, investigating the role of user experience design in e-payment platforms is crucial.
Future research can explore specific aspects of user interface, navigation, and personalization to
enhance usability and overall customer satisfaction.

Understanding the factors that influence customers' trust and security perception in e-payment
systems is another essential area for future research. This could involve delving into the impact
of different security measures and exploring strategies to build users' trust in conducting digital
transactions.

Cultural and demographic factors also play a significant role in shaping customer behavior and
satisfaction. Future research should focus on examining how these factors influence e-payment
adoption and usage patterns, enabling businesses to tailor their services to specific customer
segments.

Moreover, with the continuous emergence of new technologies, studying their impact on
customer satisfaction and security in e-payment systems is paramount. Researching the

78
integration of biometrics, block chain, and other innovative technologies will provide valuable
insights into future developments in the industry.

In the context of mobile payment apps' increasing popularity, it is crucial to explore customer
satisfaction levels and security perceptions in mobile-based e-payment systems. This will help
service providers optimize their mobile offerings and address potential security concerns.

For a broader perspective, exploring the challenges and opportunities of e-payment adoption in
developing economies is essential. Such research will guide policymakers and businesses in
promoting financial inclusion and digital payment infrastructure development.

Furthermore, investigating cyber security measures and fraud prevention techniques in e-

payment systems is crucial to stay ahead of potential threats and safeguard customer data and
assets.

Lastly, conducting in-depth studies on customer behavior, transaction patterns, and preferences
in e-payment systems will generate valuable data for enhancing user experiences and tailoring
services to meet customers' evolving needs.

Overall, addressing these areas in future research will not only improve e-payment systems'
functionality and security but also lead to enhanced customer satisfaction and increased adoption
of digital payment solutions.

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 Appendices

Survey questionnaire

Customer Satisfaction on E-Payment System:

Study at Kathmandu Valley
Survey Questionnaire

S.N. Demographic Details

Please tick in the appropriate
1 Gender [] Male

[] Female
2 Age [] Bellow 20

[] 20-25 years old

[] 25-30 years old

[] 30-35 years old

[] 35-40 years old

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3 Academic Qualifications [] Primary school

[] Secondary school

[] Diploma

[] Bachelor’s Degree

[] Post-Graduation (Masters/ PhD)

Part B (5-point Likert Scale)

Question 1 2 3 4 5 Sources
(Strongly (Disagree) (Neutral) (Agree) (Strongly
Disagree) Agree)

Customer Satisfaction (Rate from 1 to 5 where 1= “Strongly Disagree and 5= “Strongly Agree.
Dependent Variable

i. Please rate your overall

satisfaction with the e-
payment services you have
used in Kathmandu Valley.
ii. How satisfied are you with
the convenience and ease of
use of the e-payment
platforms in Kathmandu
Valley?
iii. Please indicate the extent to
which you agree with the
following statement: "I am
satisfied with the reliability

81
 and security of the e-
payment systems in
Kathmandu Valley."
iv. On a scale of 1 to 5, how
would you rate the customer
service provided by e-
payment service providers in
Kathmandu Valley in terms
of addressing your concerns
or inquiries?
v. Please rate your level of
satisfaction with the speed and
efficiency of transactions when using
e-payment services in Kathmandu
Valley.
Security of e-payment systems
Independent Variable
i. Please rate the importance
of secure encryption of data
in e-payment systems.
ii. How confident are you in
the ability of e-payment
service providers to protect
your personal and financial
information?
iii. Please indicate the extent to
which you agree with the
following statement: "The e-
payment systems available
in Kathmandu Valley have
strong security measures in
place."
Iv On a scale of 1 to 5, how

82
 satisfied are you with the level of
fraud detection and prevention
measures implemented by e-payment
service providers in Kathmandu
Valley?
V Please rate your level of
agreement with the following
statement: "I feel secure and
confident using e-payment systems
in Kathmandu Valley."

Usability of e-payment
platforms.

Independent Variable
How satisfied are you with the clarity
and intuitiveness of the user interface on
e-payment platforms in Kathmandu
Valley?
Please indicate the extent to
which you agree with the
following statement: "The
process of making payments
on e-payment platforms in
Kathmandu Valley is
straightforward and user-
friendly."
On a scale of 1 to 5, how
easy do you find it to update
your personal information or
payment preferences on e-
payment platforms in
Kathmandu Valley?
Please rate your level of

83
 agreement with the
following statement: "The e-
payment platforms in
Kathmandu Valley provide
clear instructions and
guidance throughout the
payment process."
Please rate the ease of
navigating through the
menus and options on e-
payment platforms in
Kathmandu Valley.

References

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