MINOR PROJECT

“A STUDY ON DIGITAL PAYMENT SYSTEM IN INDIA”

Submitted to
COMMERCE DEPT. RSS (PG) COLLEGE

PILUKHUWA, HAPUR

In partial fulfillment for the award of the degree of

Bachelor of Commerce

Submitted by
ANUJ KUMAR
B.COM VI SEM
ROLL. NO. R210030303015

Under the Guidance of

DR. ANJU RANI (HOD)

COMMERCE DEPT. RSS (PG) COLLEGE
PILUCKHUWA HAPUR
Academic Year 2023 - 2024
 CERTIFICATE

This is to certify that “ANUJ KUMAR ” has submitted the project report titled “A STUDY ON
DIGITAL PAYMENT SYSTEM IN INDIA” towards partial fulfillment of B.COM degree
examination. This has not been submitted for any other examination and does not form part of
any other course undergone by the candidate.

It is further certified that he has ingeniously completed his project as prescribed by RSS (PG)
COLLEGE PILUKHUWA, HAPUR .

MR. ANIL KUMAR Dr. ANJU RANI

(Project Guide) (Co-ordinator)

Place:
PILUKHUW A
Date:
 DECLARATION

I here-by declare that the project with “A STUDY ON DIGITAL PAYMENT

SYSTEM IN INDIA” has been completed by me in partial fulfillment of
BACHELOR OF COMMERCE degree examination as prescribed by
RSS (PG) COLLEGE PILUKHUWA HAPUR and this has not been
submitted for any other examination and does not form the part of any
other course undertaken by me.

ANUJ KUMAR

Place:
Date:
 ACKNOWLEDGEMENT

With immense pride and sense of gratitude, I take this golden opportunity to express my
sincere regards to DR. PREMLATA, PRINCIPLE RSS (PG) COLLEGE PILUKHUWA
HAPUR

I am extremely thankful to my Project Guide Mr. Anil kumar for his guideline throughout
the project. I tender my sincere regards to Co-ordinator, Dr. Anju Rani for giving me
outstanding guidance, enthusiastic suggestions and invaluable encouragement which helped
me in the completion of the project.

I will fail in my duty if I do not thank the Non-Teaching Staff of the college for their
corporation.
I would like to thank all those who helped me in making this project complete and successful.

ANUJ KUMAR
Place:
PILUKHUWA

Date:

INDEX

PAGE
Sr.No. PARTICULARS
No.

1. Introduction 1

2. Industry Profile 4

3. Company Profile 9

4. Research Study

10
 Problem definition
 11
 Objectives

 Hypothesis 13

15
 Scope of the study
5. Research Methodology 17

6. Data Analysis & Interpretation 19

7. Conclusion & Limitations 27

8. Recommendations & Suggestions 38

9. Bibliography 40

Annexure 42

 Questionnaire 44

45
 Data Collection

Abstract: -

India used to be predominantly a cash-based economy, but in recent years, the

digital payments industry in India has seen a shift as a result of increased
technology innovation and an emphasis on digitalization. Consumers take
advantage of digital's convenience and speed payments. This does not imply that
cash transactions are completely absent from economic contexts, but rather that
the total amount of cash payments is kept to a bare minimum An electronic
payment system, also a cashless economy or environment is one in which a
society has little or no currency and must rely on electronic channels such as
debit cards, online banking, multifunctional ATMs, mobile payments, and
electronic funds transfer internet banking to conduct transactions. A cashless
environment does not imply a disregard for money; rather, it refers to a society
in which people perform transactions on the internet. In today's economy,
money is transferred electronically. The growth of e-payment culture, as well as
 the expansion of infrastructural facilities, are essential to attain the goal. In this
project, the topics that are covered Overview of global payment system, India's
digital payment system, varieties of digital payment systems in India,
advantages and disadvantages, RBI initiative on digital payment and fraud in
digital payment, and India's payment system moving ahead A comparison of
banking cards, UPI, NEFT, RTGS, IMPS, and mobile wallets is also included.

Keywords: Digital Banking, Internet Banking, Digital Payments, Mobile Payments,

Digital Economy, Demonetization, Mobile Wallets.
Introduction: -

People all across the world expect things to be done faster and more efficiently, thus
technology in banking plays a critical role. Technology enables humans to complete
even the most difficult tasks with ease. In the 1980s, technology was brought into the
banking industry. Demonetization has created a major growth India has a lot of
potential for digital payments, and digital wallet companies have taken use of it to grow
their market share. Demonetization has given Indian customers a once-in-a-lifetime
opportunity to accept digital payment as an alternative to cash. Over the last two
decades, India's banking system has undergone substantial changes. Branch operations
have evolved drastically since the introduction of digital media.

Even today, banks provide more services than only lending money and receiving
deposits. With the development of mobile and online banking, the entire nature of the
services provided by banks has transformed. Time and location are no longer barriers
for using bank services, and the present generation strives to avoid visiting actual bank
branches as much as possible. The bulk of banks have moved to digital operations and
are continuously seeking to innovate to stay ahead of the competition. Apart from
payment system advancements, digital technology also gave birth to the concepts of
mobile wallets and payment banks. Since the barter economy was replaced with coins
and paper currencies, the payments system has experienced a significant shift, slowly
but steadily evolving towards a cashless mode. The internet has changed the way the
world works, and payments are no exception. One such internet-era option is digital
payment.

Following demonetization, it was revealed that the use of digital transactions, such as
credit and debit card transactions, as well as mobile wallet transactions, has surged.
Following demonetization, people began to embrace digital transactions, and small
business merchants and shop owners began to accept digital payments as well. Thanks
to the digital payment system, payments may now be done in a fraction of a second.
This revolution did not occur in a single day; rather, it occurred over time. In India, the
use of a digital payment system has increased the quantity of financial transactions.
The goal of this study is to use secondary data to compare digital payment modalities
in India.

We will look at digital transactions in a cashless economy and the drop in cash
payments as a result of the rise of digital transactions in this research piece.
Literature Review: -

This article will explain a cashless system, detail online banking operations in India,
explore government efforts to promote the cashless system in India, and discuss
cashless economy and electronic payment system issues. The purpose of this study is to
investigate the major challenges that Indians face as they transition to a cashless
society. To achieve the goals of this exploratory style of personal study, interviews will
be conducted. Hasan and colleagues (Hasan et al., 2020). The goal of this research is to
assess recent digital banking trends in India, as well as the challenges that banks
confront in implementing them. The study is analytic in nature and is based on
secondary data. The concept of digital banking is still developing in India's financial
sector It is projected to provide a plethora of opportunities as well as significant risks to
India's basic banking character. As a result, the goal of this article is to analyse the
benefits and drawbacks of going digital in the Indian banking sector, as well as
proposed solutions to these problems. 2017 (Sharma & Piplani). The goal of this study
is to examine the advantages of digitising payment processes. The goal of this study is
to see how much different digital payment methods are accepted by clients. For
primary data, 183 persons were polled in Hyderabad. The chi-square method was used
to statistically analyse the data collected through the questionnaire. Suma Vally and
Hema Divya (Suma Vally and Hema Divya, 2018). This research focuses on the
Unified Payment Interface (UPI), a new generation payment system developed in India
by the National Payment Corporation of India. The Unified Payment Interface (UPI) is
a real-time, mobile- centric interbank payment system that has the potential to
revolutionise and universalize digital payments in the digital era. The paper covers the
growth of payments systems in India and investigates in depth the technology powering
the Unified Payment Interface, focusing on its architecture and security systems,
utilising empirical and theoretical literature analysis. In terms of price, consumer
convenience, settlement timeframes, and security, UPI is a significant improvement
over current payment systems, and it has gained universal support. (2017, Gochhwal).
The purpose of the paper is to give mobile wallets, debit/credit cards, internet banking,
mobile banking, digital payment apps, the Unified Payments Interface (UPI) service,
and bank prepaid cards, among other sorts of digital payments. (2019, On &
Environment). India has begun the process of becoming a digital nation. India's digital
India plan aims to transform the country into a digitally empowered society. Faceless,
paperless, and cashless is one of Digital India's stated goals. Digital payments,
according to the Indian government, will create jobs, minimise risks connected with
cash, such as robbery, corruption, and the storage of huge sums of money in cash, and
increase transparency in operations and governance. This article looks at how the
payment industry has evolved over time, from coins to paper money to plastic money
to e-wallets. 2019 (Padmaja & Venkata Durga Rao). The Digital India project of the
Indian government also emphasises the use of electronic payment methods.
Technology has played an important role in the banking industry's growth and
development. Following the digitalization of India's financial
sector, the concept of banking has changed dramatically. In India, commercial banks
are aiding their customers in the development of a user-friendly E-Payment platform.
The researcher looked at the relationship between seven variables to assess the
adoption of e-payment systems in Madurai district: technological qualities, security,
trust, social impact, internet connectivity, perceived ease of use, perceived utility, and
intention to use. The study's findings show that Trust, Perceived Usefulness, and
Perceived Ease of Use are statistically significant, showing that these variable
influences e-payment intention positively. 2021) (M. Chandrasekaran). The study
shows that demonetization and the associated decreased availability of currency notes
caused the Indian population to transfer to digital platforms, and that the following
change in currency note supply did not totally reverse this trend. This leads to the
conclusion that effective policy reforms can shift consumer preferences, and the Indian
economy can become less cash-based. Kumar and Puttanna (Kumar & Puttanna, 2018).
This study looked into Indian public views on the establishment of a cashless economy.
The study was conducted in the Delhi region, with data collected through a
standardised questionnaire and assessed using a basic percentage approach. A cashless
economy, according to the respondents, will help to reduce black money, counterfeit
currency, terrorism, cash-related robberies, and increase our country's economic
prosperity. Cyber fraud, a high rate of illiteracy, public perceptions, and a lack of
transparency and efficiency in the digital payment system are all important roadblocks
that could obstruct policy implementation. According to the survey, India's effort to a
cashless economy is a great step in the right way. It adds to India's economic
development and progress. Garg and Panchal (2017) While aggregate country-level
data can show individuals' overall preferences, we use a novel online survey-based
dataset to understand how factors such as 'perception' and 'faith' in digital payments, as
well as online fraud experience, influence consumer payment behaviour. While age,
gender, and wealth are major factors in influencing this decision, there is solid evidence
that a person's perception of digital payment methods, as well as her belief in the wider
payments framework and banking system in general, influences her use of these
instruments. The extent to which previous online fraud experience deters depending on
the transaction's objective, different types of digital payments are used. (Shree and
colleagues, 2021). The goal of this article is to show the potential and challenges that
have recently surfaced in the rural banking industry, with a focus on digitization, as
well as to investigate the importance of digital literacy in today's financial climate. The
goal of this research is to learn more about the digital technology and procedures
utilised by banks in rural India, as well as how rural customers perceive and respond to
these services. 2019 (Singh & Malik). The goal of this essay is to look at how
digitalization is affecting the Indian economy, as well as the difficulties and
opportunities that come with it. The study's approach entails an in-depth analysis of the
data. evaluation of current literature and publications created by the Indian government
The current research is based on secondary data from books, articles, journals, research
papers, and the internet. Tigari (Tigari,
2018). "Digital" is the current buzzword in every sector. Banking, like other
businesses, is undergoing a global shift toward digitization. In order to maintain a
competitive edge and deliver the best service to their clients in all sectors, banks are
heavily investing in digital operations. The decision to digitise by the banking industry
is crucial. By mastering digitization, banks may be able to improve customer service.
Customers are accommodated, and as a result, time is saved. As a result of
digitalization, manual procedures, transactions, and exercises have all been transformed
into digital services. As a result, the current study, which was based on secondary data
sources, was done on the digital revolution in the Indian banking sector. 2020 (Shifa
Fathima). This study will aid technology developers, managers, and mobile payment
service providers in focusing on the quality elements of the technology as well as the
value proposition. This is one of the few research that has looked into the technical
aspects of mobile wallets. The study discovered that mobile wallet system and service
quality had a substantial impact on perceived security. Users' perceptions of the
usability and security of mobile wallets were found to have a significant impact on
their intention to use them in the future. Routray and colleagues (Routray et al., 2019).
The report also looked into the impact of rising food prices. Financial inclusion is
influenced by the use of mobile phones and the internet. According to the study,
government initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), Aadhar
Enabled Payment Systems (AEPS), and Direct Benefits Transfer; Reserve Bank of
India regulatory reforms like Immediate Payment Service (IMPS), Prepaid Payment
Instruments, and differentiated banks; digital revolution, and active participation of
private technology companies are facilitating a successful transition into a financially
inclusive economy. (2019, Agrawal). This research will help academics analyse future
FinTech trends and determine the best ways for India's E-payment sector to reach
growth capability. It will also identify the scope of a future empirical study that may be
done to produce an analytical conclusion regarding the various aspects that impact
customers decisions to make digital payments. (Nigam et al., 2021)
Objectives of the study: -

1. To compare between different methods of digital payment system in India.

2. To determine the issues faced in digital payment by people.

3. To identify the factors that influencing the growth of digital payment among

the people.

4. To identify the most preferred mode of digital payment by the people in India.
Scope of the study: -

1. Digital payment system in India and the methods of digital payment in India

2. RBI’s circular on this and their FAQs in this behalf

3. Scope for digital payment system in the foreseeable future – both globally and
in India

4. Issues and challenges in this behalf.

Methodology: -

The information was gathered from both primary and secondary sources. Customers
using Digital payment service following the epidemic in India provided primary data,
which was obtained using a questionnaire based on customer satisfaction, customer
behaviour, and customer response. A total of 60 people took part in the survey were
chosen. A structured questionnaire containing closed-ended and open-ended items was
created. The questionnaire's questions span all areas of study. Our target audience was
a mix of students, office workers and business people, individuals on the go,
housewives. Secondary data was gathered from a variety of sources, including
scholarly

journals and social media, newspapers and pages. The data acquired by the survey was
interpreted using descriptive analysis questionnaire.
Type of research: Quantitative Research:

This research is a quantitative research study because it attempts to

measure the use of digital payments for banking in India. The
questionnaire has a structured format.

Types of research design: Descriptive research design:

Descriptive research design is best research design which best

describes. This study can be concluded as based on the facts that is in
this study, problem is clearly defined, hypothesis are framed,
information needed is clearly defined.

Population:

For the purpose of this study the population chosen is the people from India.

Sampling techniques:

For the purpose of the study convenience sampling has been used. a
convenience sample is a type of non-probability sampling method
where the sample is taken from a group of people easy to contact or
to reach.

Sample Size: For this study 60 people responses are taken.

Sample Area: The area of the research is India.

Age Group: From 18 onwards

Data Collection Tool: Questionnaire

Concept Overview: -

How payment system evolves as technology advances: -

Technology is increasingly affecting our lives in practically every manner possible, and
this is no longer news. We literally live in a virtual world where 50% of what we used
to do is now digitalized, mechanised, or impacted by technology.

The pre-technology era: Various forms of payments occurred before the digital age
and the Renaissance, where precious metals and other assets were used to make
payments in a barter system. This was a mechanism that only climes have. What was
accepted as payment in Central Asia was not the same as what was accepted in Africa.
Then came the coins, followed by the paper, and finally the mint notes, which were no
longer differentiated by climate. Paper and mint notes are used as legal money in
countries all over the world. The only difference is the local currency, but one thing
remains constant: actual cash is used to make payments all around the world.
The post-technology era: All of this changed when technology entered the picture, and
the twenty-first century was defined by a wave of digital improvements that swept the
globe. The financial sector was the hardest damaged by the technology revolution. The
banks have changed dramatically. To reduce the length of lines in banking halls,
automated teller machines (ATMs) and cards were introduced. You could transfer
funds to friends and relatives using the same ATM cards without having to physically
place cash in their hands. Without the typical cash-in-hand system, you may even pay
your phone bills through the ATM. In the financial realm, terms like credit cards, debit
cards, and any other smart card you can think of have become clichés.

That wasn't all, though. While certain sections of the world were still attempting to
absorb and adjust to new financial trends assisted and abetted by technology, mobile
payments erupted like a volcano, and the world accepted a cashless payment system.
You may now send money to anyone, anywhere in the globe, from the comfort of your
own home. You may now shop, pay bills, buy airtime, book aeroplane tickets, eat, go
to the gym, and do so much more without ever having to hand over actual currency.
Payments have never been so simple and enjoyable.

Digital Payment system in India: -

As of March 2020, the overall transaction value of the Digital Payments system was
around 4572 crores, exceeding the Government of India's objective of 4,000 crores.
Swiping of Debit Cards at Points of Sale (Po’s) climbed by 27% in March 2019
compared to the same month previous year, while swiping of Credit Cards increased by
22%. According to RBI statistics, ATM withdrawals grew by only 15%. Due to the
shutdown on March 20, these figures fell by 15.47 percent and 12.23 percent,
respectively. In order to achieve a "Cash-Lite" payment society, the RBI produced a
Vision Document on "Payments and Settlements Systems in India: Vision 2019-2021,"
a three-year Road-Map to augment digital payments solutions among the masses where
the system has yet to be reached. For future development, the RBI is also exploring
implementing an Offline Digital Payments solution, which is a means of payment that
does not require the use of the internet or a smartphone. Today, over 566 million
people utilise the internet, with 627 million predicted by the end of 2019. Rural India,
which had a 35 percent increase in digital penetration, was the driving force behind it.
In India, the government is considering making QR code-based payment systems
mandatory in all stores. The number of people using digital payment systems at least
once a month has surpassed 100 million.
Types of Digital Payment System in India: -

1. Banks’ Credit/Debit Card: In India, this is the most popular and widely used
method of digital payment options. You can receive a debit card as soon as you
open an account with a bank in India. Depending on your preference or bank, the
card may be a Visa, Mastercard, or RuPay card. Maestro, Diners Club, and Visa
Electron are the other forms of debit or credit card providers in India. Customers
pay no transaction fees when making payments with debit or credit cards. The
merchant, however, is responsible for transaction fees, which vary depending on
the transaction value and card type.

2. Banks Prepaid Card: A prepaid card issued by a bank is also known as a gift
card or a pre-loaded debit card that can be used once or reloaded several times.
Any KYC-compliant account holder can order a prepaid card from the Bank's
official websites or establish one through the Bank's Net Banking services.
Depending on the bank, the prepaid card can be Visa or RuPay enabled. Prepaid
cards are commonly used for corporate gifts, reward cards, or any single-use gift
card. Up to a specific amount, the Prepaid card can be used to withdraw money
from an ATM or to make an online transaction at any Payment Gateway. In
India, some of the most well-known banks that provide prepaid cards are:

 Axis Bank Prepaid Card

 HDFC Bank Prepaid card

 SBI Prepaid Card

 ICICI Bank Prepaid card

 YES Bank Prepaid card

  Kotak Bank Prepaid card

3. Unified Payments Interface (UPI): UPI, or Unified Payments Interface, is one

of the most creative Digital Payments systems launched by the National
Payments Corporation of India (NPCI) in India, and maybe the greatest payment
solution in the world to date. According to NPCI data, there are 148 active UPI
member banks that offer UPI to their customers, as well as more than 33 third-
party UPI apps in the Play Store. By transaction value, UPI transactions hit
Rs.2,06,462.31 in March 2020, surpassing debit card transactions for the fiscal
year 2018-19. The graph below shows the year-over-year growth of UPI
transaction volume. (At
 the time of writing, March 2020).

4. Offline Mode: USSD is one of India's digital payment system's offline

operations. By dialling *99#, which operates on the Unstructured Supplementary
Service Data mode, you can execute various banking functions (USSD). Balance
inquiry, mini statement, and MMID Fund Transfer are among the services
available through this mechanism. Only your mobile number and bank account
number must be registered. Though the procedure appears to be novel, it has yet
to have a significant impact on India's digital payment system.
5. Aadhar Enabled Payment System (AEPS): You can transfer money between
two Aadhaar-connected Bank Accounts or withdraw money if your account is
linked to your Aadhaar Card using this digital payment option. This process
requires biometric authentication for every transaction it does. The Business
Correspondence primarily employs this way of payment at CSP terminals for
cash withdrawal and micro- ATM work. For cash withdrawals from BC Points,
the AEPS fees are roughly Rs.15. Customers' fingerprint authentication can also
be used by the retailer to obtain payment. The gadget can be connected to a
mobile phone, and all banks have BHIM merchant apps that can be used to make
payments using this device. If the transaction amount is less than Rs.2000, the
merchant does not have to pay any transaction fees.
6. Mobile Wallet: Mobile wallets have grown in popularity in recent years, and
they are now one of the most widely used digital payment methods in India. The
rationale for this is that anyone may create a mobile wallet by just downloading
and installing the application. In the Mobile Wallet, you can keep some money in
a digital form. Many mobile wallet providers in India provide various types of
rewards or payback programmes if you use your mobile wallet to make a
purchase.
7. Internet Banking: Internet Banking was one of the first technologies to emerge
in India during the early stages of the digital payment system. In India, all
commercial banks and newly established Payment Banks have their own internet
banking portal. Some banks have integrated so many features into their internet
banking portals that you can perform all of your banking transactions through it.
The following is a list of some of India's greatest internet banking portals.

 ICICI Bank

 State Bank of India

 HDFC Bank

 Kotak Mahindra Bank

 DBS Bank
  CITI Bank

 Axis Bank

 YES Bank

8. Mobile Banking: Mobile Banking is India's greatest and most popular digital
payment mode since it is the most convenient, easy to use, and integrated with all
of the functions that we require in our daily banking. All digital payment modes,
such as IMPS, NEFT, RTGS, UPI, Bill Payments, and others, are available on a
single platform. Banks are also pushing their clients to adopt mobile banking
services because it helps to develop a Digital Payments ecosystem in India while
also reducing work strain on banks.

9. Micro ATM: At Customer Service Points, this is usually used by Business

Correspondence (CSP). By just confirming your fingerprint to the device, you can
withdraw money or deposit cash into your Aadhaar Linked Bank Account. You
can transfer funds between any bank account, but you'll need your Aadhaar
number to link the two accounts.

Popular Apps for Digital Payments System in India

 Google Pay: Uses UPI Payment Technology. No Wallet Option, one of

the most innovative Digital payment App in India.
 Paytm: Largest Mobile Wallet service provider in India. Offers UPI,
Mobile wallet and Payment Bank with RuPay card for online Payment.

 PhonePe: Very popular mobile wallet providers in India, Offers UPI &
 Mobile Wallet service along with many other essential features.
 Pay nearby: Innovative digital payment App mainly provide digital
payment solutions like Adhaar Banking, AEPS, SMS Payments, money
transfer, etc to the retailers. You can download the App here.
 BHIM: Official UPI Payment Apps, offers by NPCI, all the Commercial
Banks have integrated BHIM UPI API in their Mobile Banking Platform.
 Pockets by ICICI Bank: One of the most innovative Digital Bank cum
Wallet service providers in India. Offers UPI, Zero Balance Bank
Account, Visa Virtual Domestic Debit card as Digital Payments option.
  Kotak 811: Best Digital Bank in India, offers Visa Virtual Debit card
with international Payment option, UPI, Mobile Banking, IMPS, NEFT,
RTGS as Digital Fund transfer.
 Axis Bank ASAP: Similar services as Kotak 811. All types of Digital
payments facilities with a Virtual Bank Account.
 Payzapp from HDFC Bank: Mobile wallet with Visa Domestic Virtual
Debit Card. Offers online payment services like UPI, Debit card, mobile
wallet, etc.
 National Common Mobility Card: RuPay Contactless Card (Visa also
starts issuing NCMC) can be used for Public Transport across India, you
can get NCMC from SBI and most of the commercial Banks in India.

Data Interpretation: -

1. Age:

Age Group Frequency Percentage %

18-30 45 75
31-40 8 13.3
41-50 4 5
Above 50 3 6.7
Total 60 100
Interpretation-

This shows that the most respondents are mainly in the age group which is
between 18 to 30 years i.e., 75%. In this age, the career is in growing stage and
they have started to take responsibilities. And percentage of other age group
which is 31 to 40 years is 13.3%, 41 to 50 years is 5% and for the age of Above 50
years, the respondents are 6.7%.

2. Profession:

Profession Frequency Percentage %

Student 20 33.3

Employed 26 43.3
Self employed 11 18.3

Retired 3 5
Total 60 100
Interpretation-

This shows that the most respondents are employed 43.3%. They are working under
some private or public companies then other respondents are student 33.3%, other
responders are self-employed 18.3% involve in their own business. Lastly retired
people are 5% only.
3. Annual Income:

Annual Income Frequency Percentage %

Up to 3 lakhs 5 12
3,00,000-5,00,000 9 21
5,00,000-8,00,000 12 28
8,00,000-10,00,000 14 32
Above 10,00,000 3 7
Total 43 100

Interpretation-
This pie chart shows that majority of as 30% of respondents are earning up to 3
lakhs26.7% respondents have no income and other 25% respondents are earning
between 3,00,000 to 5,00,000. Least number of respondents are 5% and 1.7%
who earn between 8,00,000-10,00,000 p.a. and above 10,00,000 This shows that
peoples are earning good enough.
4. Do you prefer using Digital Payment?

Using Digital Payment Frequency Percentage %

Yes 53 88.3
No 7 11.7
Total 60 100
Interpretation:

This shows that most of the respondents are prefer to use Digital
payment i.e.88.3%. Only 11.7% respondents don’t prefer using
digital payment. This shows most of the respondents has a
literacy to use Digital payment platform.
 5. If so, which Mode of Digital Payment, you mostly use? How would you rank
them?

Mode of Digital Payment Rank

Card Payment 3
Net Banking 2
Mobile Banking 1

Interpretation:

This shows that most of the respondents prefer using the Mobile Banking mostly as
they have given it rank 1. Net banking on the rank 3 and Card Payment on the rank
2. Respondents prefer Mobile banking and Internet Banking more because of their
easy availability and fast transaction
6. How frequently do you use digital payment method?

Frequency of Digital Payment Frequency Percentage %

Once a month 8 13.3

5-10 times 28 46.7
More than 10 times a month 24 40
Total 60 100
Interpretation:

This shows that respondent’s prefer using digital payment very frequently.
46.7% respondents are using digital payment 5 to 10 times and more than 10
times. Only 13.3% respondents use digital payment once in month. That means
digital payment is very handy and used very frequently.

7. For Internet Banking, which platform you prefer the most?

Internet Banking Frequency Percentage %
NEFT 21 26
RTGS 23 28
IMPS 21 26
ECS 17 20
Total 82 100
Interpretation-

This shows that most of the respondents are prefer using NEFT i.e., 31.7%
as an Internet banking. Even respondents are prefer using Other and IMPS
with 26.7 & 23.3% each. Only 13.3% respondents prefer to use RTGS as an
internet banking option.

8. For Mobile Banking, which service provider do you prefer the most?

Mobile Banking Frequency Percentage %

Google Pay 15 14
Phone Pay 19 15
Paytm 25 20
PayPal `18 14
Amazon Pay 18 14
 BHIM 8 6
Jio Pay 17 14
WhatsApp Pay 4 3
Total 124 100
Interpretation:

This shows that respondents mostly use the Google Pay as a Mobile banking. Then,
Paytm is the mostly used App. Phone Pay, PayPal, Amazon pay are also used very
frequently. Least app that is prefer by the respondents are BHIM and WhatsApp pay.

9. What are the purposes that you mostly use Digital Payment for?

Purposes for using Digital Payment Frequency Percentage %

Money Transfer 20 16
Online Shopping 28 22
Offline shopping 22 17
Food 12 9
Petrol 17 13
Recharge 16 13
Travel 11 9
Interpretation:

This shows that most of the respondents use digital payment for the
purpose of Mobile Transfer. Then, the other purposes of using it Online
Shopping, food and recharge. Least purposes that respondents do not prefer
using digital payment are petrol and travel. Most of the respondents use
digital payment for the purpose of Mobile Transfer because it makes it very
convenient to pay and various discounts are available on digital payment.

10. What are the factors influence you to use Digital Payment?

Factors influence to use Digital Frequency Percentage %

Payment
No need to carry cash 18 14
Easy to use 16 12
 Fast transaction 23 18
Cash back or discount 18 14
Easy to track records 20 16
24*7 transfer 26 20
Time saving 6 4
Total 127 100
Interpretation:

This shows that most of the respondents use Digital payment because it is easy to
use and have fast transaction. Other factors that mostly influence them for using
digital payments are no need to carry cash, fast transaction and 24*7 Transfer etc.
Least factor that influence them to use digital payment is Cash back or discount.

11. What are some issues, you face when using Digital Payment?

Issues faced in using Digital Payment Frequency Percentage %

Slow Internet 10 8
 Delaying in refunding 26 21
Proceeding time 33 26
OTP problem 15 12
Unsuccessful Payment 23 18
Can’t cancel Payment if it stuck 19 15

Total 126 100

Interpretation:

This shows that most of the respondents faced the issue of Unsuccessful
payment that has be taken in while making payment through digital
platform. Other issues that are mostly faced by responses while using
digital payment are Slow Internet, can’t cancel the payment if it is stuck,
Delaying refund etc. Least issue that has been faced by respondents while
making payment through digital payment is OTP Problem.

12. Do you think Digital Payment is safe at all?

Digital payment found safe Frequency Percentage %

Yes 41 95
 No 2 5
Total 43 100
Interpretation:

This shows that most of the respondents i.e., 78.3% felt that digital payment
platforms are very safe for making the payments through it. Only 21.7%
respondents felt that they don’t find digital payment platform safe. There
could be reasons for it, they must have faced issued and fraud related to
digital payment platform.

13. Have you experienced any frauds in the digital payment method?

Experienced any frauds Frequency Percentage %

Yes 5 12

No 38 88

Total 43 100
Interpretation:

This shows that most of the respondents has not experienced any frauds in the
digital payment methods. But still 10% of the respondents have experienced
some type of frauds in digital payment methods.

14. If had experience fraud, then please explain in not more than 3 lines?

The most common fraud that has been faced by respondents are QR code fraud
in which person asked them to scan the QR code and they immediately lost the
money.
- The other frauds that faced by respondents were:

- Person called them by the name of bank manager and asked confidential
information.

- Person asked them to click on pay to receive the money.

15. How would you Rate your experience in using Digital Payment?
Rate the experience Frequency Percentage %
Extremely Satisfied 23 53
Satisfied 15 35
Dissatisfied 3 7
Not at all satisfied 2 4
Total 43 100
 Interpretation:

This shows that most of the respondents are extremely satisfied and satisfied with the
digital payment.

Only 3% respondents are dissatisfied and not at all satisfied by the digital payment
methods. These respondents could be those who encounter with frauds and faced
some issues while using the platform.
CONCLUSION: -

The digital payment system is rapidly growing in India. The peoples are using
digital payment for online shopping, money transfer & other purposes. The
reasons behind digital payments are easy to used, economical & most important
thing is safe mode of financial transactions. The Government of India also play
vital role for improvement in digital transactions.

This study examines to determine the issues faced in digital payment by people
and to identify the factors that influencing the growth of digital payment among
the people and to identify the most preferred mode
 of digital payment by the people in India. The analysis said that there are many
issues that has been faced by the peoples like unsuccessful payment and
proceeding time but there are also many benefits of using digital payment and
the factors that influencing the growth of digital payment among the people are
it is very easy to track the records and it is available 24*7 and it is very
convenient for them. And the most preferred mode of digital payment by the
people in India is Mobile Banking.

The UPI’s success has been driven in part by its convenience and free usage, the
largest share of recent growth has come from new entrants like Tez and Phone
Pay, which uses the UPI payment, offering promotional cash for new customers.

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