A STUDY ON CONSUMER PREFERENCE TOWARDS DIGITAL
PAYMENT SERVICES IN MADURAI CITY
1.1 INTRODUCTION:
A digital payment system means a system in which all transactions are done using cards
or digital means where circulation of physical currency is minimal. Cashless payment doesn’t
mean that all business transactions to be done without cash or complete absence of cash, it is a
process of getting desire cream from the less cashless transaction and preventing tax evasion and
corruption. Over the periods of time several service providerscreate a number of apps and
wallets for making the payments to others accepts the same from the others also. A user or a
consumer makes payments instantly from anywhere and anytime without physical presence in
the bank branches. A few examples of cashless modes and payments are Mobile wallet, plastic
money and net banking.
A user or a consumer makes payment instantly from anywhere and anytime without
physical presence in the bank branches. The parties two want to use these systems directly and
indirectly benefitted in many ways such as less tie is required for settlement of transactions, a
faster transaction, convenience and lower risk, easy for tax calculation, more transparency and
accountability and it minimizes the maintenance costs. Though, it has both the advantages and
disadvantages and keeping in mind the recent development as well as the reforms of banking
sectors, it is high time for all of us to learn about the use of digital payment system. However, the
system of cashless payment is not free from any challenges. The challenges which have been
noticed in the running of the system are low level of literacy, poor systems, lack of awareness,
less knowledge of operating system, costly, less numbers of banking systems, cyber-crimes and
language barrier etc. Despite the above challenges, the government has taken several steps to
reduce the cash transactions in recent periods.
One of the major changes in economic environment by demonetizing the high value
currency notes of –Rs.500 and Rs.1000 from 8th November 2016 and try to make India as
cashless economy. The changing payments systems have shown mixed reaction in the use of
modern digital payments modes of transaction. Presently around 60 percent of the transactions in
India are taken place through digital platforms. To popularize and speed up of adoption of digital
payment, there are many numbers of digital payment systems are launched in India. Hence the
study has been taken toanalyze the study on consumer preference towards digital payment
services in Madurai city.
1.2. OBJECTIVE:
1. To study about digital payment system.
2. To analyze the personal factor of the respondent.
3. To know the consumer preference towards the digital payment services.
4. To study the level of satisfaction of digital payment using consumers.
5. To find out the major problems faced by the consumer while using digital
payment services.
6. To offer suitable suggestion to promote the importance of digital payment
services to the consumers.
1.3. IMPORTANCE OF THE STUDY
A digital payment occurs when goods or services are purchased through the use of
various electronic mediums. There is no use of cash or cheques. Payments have evolved from the
barter system to cash to card payments to digital payments. According to Statista, in India, the
total transaction value of digital payments in 2019 amounts to US$64,787 million. Many
companies are developing the applications and methods more seamless for both customers as
well as merchants. Payments have evolved from the barter system to cash to card payments to
digital payments.
Digital payments have the upper hand over making cash transactions since a digital
payment platform can be blocked immediately in case of theft. But it is not the same with cash
payments, since the cash once gone, has minimal to zero possibility of coming back to you.
Moreover, carrying bundles of cash with oneself while traveling is never recommended and
neither is easy. A digital payment services will help to promote the cashless transactions and
cashless economy. This study helps to understand consumer preferencetowardsdigital payments
and know the satisfaction level and problems faced by the digital payment users.
1.4 STATEMENT OF THE PROBLEM
The use of digital payment system is obviously beneficial and has been implemented by
millions of companies all over the world, in line with its benefits, companies and customers have
also faced certain challenges. One of the challenges encountered is that the e- payment system
requires some degree/level of literacy. That is, some customers that make use of digital payment
system are not well knowledgeable or do not know how to use the digital payment system to seal
a transaction on their own. While another problem identified is that most of the customers are
security conscious. Digital payments are very much used in recent years due to convenience,
speedy transactions, saving time etc., In Madurai city, where digital payments are still new and
consumers are less familiar to make transactions.
1.5 SCOPE OF THE STUDY
The present study is to know the consumer preference towards digital payments services
in Madurai city. In this study, the preference and problems of digital problems has been
analyzed. The scope of the study covers the major problems faced by the consumers while using
digital payment services and study the level of satisfaction of the consumers.
1.6 REVIEW OF LITERATURE
Reviews are secondary data collected from various related journals and published online
articles relating to the consumer preference towards digital payment services they are as follows.
1
Bamasak (2011) concluded that there was a greater future for m-payment. An illegal use
of mobile phones and security of payments through mobile phones were the serious issues in
digital payment system.
1
Bamasak, O., (2011), “Exploring Consumers Acceptance of Mobile Payments-An Empricial Study”, International
Journal Information Technology, Communications and Convergence, 1:pp.173-185
2
Liu, et al (2012) found that digital wallet payments gave additional convenience to
consumers by providing flexible payment options and increasing speed of transactions.
Padashetty and Kishore3 (2013) revealed that ease of use, expressiveness and trust
influenced adoption of digital payment through wallets and these also acted as motivators to
adopt digital payment.
Rouibah (2015)4 showed that poor security, lack of trust, fear of failure, high charges and
poor familiarity were the major constraints that affected e-payments. Besides, security features of
internet, banking facilities, privacy and quality of services were also affecting adoption of epayments.
Rathore (2016)5 Stated that digital payment using wallet was highly convenient for
consumers in purchasing products though online without physical movement across places.
2
Liu, S., Zhuo, Y., Soman, D., and Zhao, M., (2012), “The Consumer Implication of the Use of Electronic and Mobile
Payment ststems” Rotman school of Management, University of Toronto, Toronto.
3
Padashetty, S., and Kishor, K.S., (2013), “An Emprical study on Consumer Adoption of Mobile Paymet in
Bangalore City-A Case Study”, Researchers world 4: pp.83-84
4
Rouibah, K., (2015), “Digital Payment Systems Use and satisfaction in an Arabic”, Issues in Information System,
16(2):pp.177-187
5
Rathor, H.S., (2016), “ Adoption of Digital Wallet by Consumers. BVIMSR’s Journal of Management Research,
8:pp.69-71.
Garg & Pachal, (2016)6 in their article on “Study on Introduction of Cashless Economy in
India 2016: Benefit & Challenge’s found that the introduction of cashless economy in India seen
as a step in right direction . It helps in growth and development of economy in India.
Singh (2017)7 concluded that there was significant difference between education of
consumers and adoption of digital payment. The perception of consumers for digital payment
had positive and significant effect on adoption of digital payment among consumers.
Kokila, V., & Ushadevi, R. (2017)8 in their paper on “A study on consumer behavior on
cashless tr ansaction in U.T of Puducherry” suggested to the bankers to adopt the strategy of
incentivize of cashless transactions, way of creation of awareness about digital payments and
discourage consumer for cash payments by the way of proper implementation and supervision of
restrictions for cash based transaction.
6
Garg, preeti & Panchal, Manvi (2016), Study on Introduction of /cashless Economy in India 2016: Benefit &
Chellenge’s IOSR Journal of Business and Management (UISO-JBM) e-ISSN:2278-487X, P-ISSN:2319-7668, Volume
19, Issue 4. Ver. II (Apr.2017),pp116-120
7
Sha msher Sigh, (2017) , “Study of Consumer Preception of Digital Payment Mose” Journal of Internet Banking
and Commerce, 22(3).pp.1-14.
8
Kokila, v., & Ushadevi, R, (2017), A study on consumer on cashless transaction in U.T of Puducherry, Kaav
International Journal of Economic, Commerce & Business Management, KIJECBM/APR-JUN (2017)/VOL-4/ISS2/A29PAGENO.207-216
Borhan Omar Ahmad Al-Dalaien (2017)9 in his paper on: Cashless Economy in India:
Challenges Ahead” revealed that cashless economy is not beneficial to the general public.
Shendge & Shelar (2017)10 in their article on “Impact and Importance of Cashless
Transaction in India” highlights the growing acceptance of digital payments modes in India. The
results show that India is undergoing the process of modernization in money transactions, with e
payment services; it is just gaining an unprecedented momentum. A large number of businesses,
even street vendors, are now accepting electronic payments, prompting the people to learn to
transact the cashless way at a faster pace than ever before.
1.7 RESEARCH METHODOLOGY
In this study descriptive in nature. Data has been collected through primary and
secondary data. Primary data was collected using structured interview schedule, secondary data
was collected from books, journals, newspapers, other published sources, and websites.
9
Borhan Omar Ahmad A1-Dalaien (2017) Cashless Economy in India: Challenges Ahead Asian Journal of Applied
Science and Technology (AJAST) Volume 1, Issue 7, Pages 168-174.
10
Shendge & Shelar (2017), Impact and Importance of Cashless Transaction in India, International journal of
Current Trends in Engineering & Research (IJCTER) e- ISSN 2455-1392 Volume 3 Issue 4, April 2017 pp.22-28.
1.8 PERIOD OF THE STUDY
The study was conducted on December 2019 to February 2020
1.9. SAMPLE DESIGN
The study is entitled as ‘A study on consumer preference towards digital payment services in
Madurai city’ a survey was conducted among 48 respondents by using structured interview
schedule method.
1.10. DATA COLLECTION
The field work of the study was collected from various part of Madurai city. Distribution
methodology followed in data collected is given under.
Total no of questionnaire distributed:59
Total no of questionnaire received from respondents:56
No of questionnaire discarded:8
Total no of sample taken for study is:48
1.11 FRAMEWORK OF ANALYSIS
To measure the consumer preference towards digital payment services in Madurai city following
statistical tools are used with the help of SPSS package.

Percentage analysis

Weighted average score ranking

One – way ANOVA
1.12 LIMITATION OF THE STUDY

The study is confined to Madurai city only.

The study is based upon the consumer preferences of digital payments.

The data collected for the research is primary and secondary data given by the
respondents.

Due to shortage of time and other factors the study has been limited 48 respondents only.
Chapter 2
2.1 DIGITAL PAYMENT SERVICES
Digital payment is a type of cashless payment where the payment is made through digital nodes.
These digital nodes are used by both, the payer and the payee. Also called electronic payment, no
hard cash or physical form of cash is used in digital payments. Digital payments are entirely
made online and they are convenient, instant, and time-saving. The aim of digital payment is to
make a paperless, cashless, and digitally empowered economy.
When we talk about cash payments, we first have to withdraw cash from the bank account. Then,
we can use the cash to pay at stores, shops, etc. Lastly, the shopkeeper goes to the bank and
deposits the cash paid by you. This entire process is time-consuming. On the contrary, in digital
payment, the money is transferred directly from the payer’s bank account to the payee’s account
instantly.
The digital payment is convenient and offers the flexibility of making a payment anytime and
anywhere. This method has speedup the transaction cycle. In addition, post demonetization,
people have slowly started taking the digital payment method. Today, even small shop owners
and small-time merchants are accepting digital payment.
2.2 History of Digital payments Services:
Digital payments have their roots in the 1870s, when western union debuted the
electronic fund transfer (EFT) in 1871. Since then people have been enamored with the idea of
sending money to pay for goods and services without necessarily having to be physically present
at the point-of-sale. Technology has been a driving factor in the development of electronic
payments. Today, making a purchase is as easy as tapping a button on your smartphone. Work
with streamlining payment methods has been hard-won, From the 1870s until the late 1960s,
payments underwent a slow but gradual transformation. In the 1910s, the Federal Reserve of
America began using the telegraph to transfer money. In the 1950s, Diner’s Club International
established itself as the first independent credit card company, soon followed by American
Express. In 1959, American Express introduced the world to the first plastic card for electronic
payments.
Entering the 1970s, people became more reliant on computers as part of the buying process.
Then along came the Internet. In the 1960s, ARPANET, a precursor to the modern web was built
as a military network to improve communication. In the 1990s, online internet banking services
were offered to bank customers. Those first online payment systems were anything but userfriendly-users had to have specific encryption knowledge and use data transfer protocols. Soon,
development across the web, and the eventual invention of web 2.0, set the stage for online sites
to participate in what’s now known as e-commerce.
2.3 Types of digital payment services
1. UPI
UPI or Unified Payment Interface works through the mobile. You can either use Mobile apps or
USSD technology. In this method the fund gets transferred between the two accounts
immediately. The system works 24 x7 all days. As of now there is no charge for this payment.
To use the UPI payment method, you have to download the one of the UPI apps. There are
scores of UPI apps, such as Phonepe, Google pay, BHIM etc.In the beginning, you have to go
through the registration process. In this process your bank account gets linked using your mobile
number.You have to also set an UPI PIN for the linked bank account. This PIN is required for
making a payment.UPI apps are a faster solution to send money using VPA or even IFSC and
account number. But they have some limitations also.
2. QR CODE
You must have seen the QR code in the shops. This payment method is also based on the UPI.
The money is immediately transferred from one account to another.To make payment through
the QR code you must have the UPI App. The app scans the QR code to fetch the details of the
merchant.
Once you have the name of the merchant, you can make payment immediately. In this method,
you pay to a person without knowing the account number, UPI ID or mobile number.You have to
enter the UPI PIN to complete the transaction.
3. AEPS
AEPS is an Aadhaar based digital payment mode. The term AEPS stands for Aadhaar Enabled
Payment Service.Customer needs only his or her Aadhaar number to pay to any merchant. AEPS
allows bank to bank transactions. It means the money you pay will be deducted from your
account and credited to the payee’s account directly.You need to link your Aadhaar number to
your bank account to use AEPS.
You can use AEPS with the help of PoS (Point of sale) machines. You can withdraw or deposit
cash, send money to another Aadhar linked account with it.The good thing about AEPS is that it
doesn’t need your signature, bank account details or any password. It uses your fingerprint as a
password. No one can forge your fingerprints; it is the most secure digital payment mode.
4. USSD
USSD banking is a mobile banking based digital payment mode. This method is also based on
the UPI System. But this method, does not require a smartphone or internet connection.You can
easily use it with any normal feature phone. USSD banking is as easy as checking your mobile
balance.You can use this service for many financial and non-financial operations such as
checking balance, sending money, changing UPI PIN etc.
The *99# code works as a bridge between your telecom operator’s server and your bank’s server.
It uses your registered mobile number to connect with your bank account. Hence, dial *99# with
your registered number only. USSD banking has a transaction limit of Rs. 5000 per day per
customer. RBI has also set a maximum charge of Rs. 2.5 per operation.
5. CARDS
Cards are provided by banks to their account holders. These have been the most used digital
payment modes till now.Many of us use cards for transferring funds and making digital
payments. Credit cards, debit cards and prepaid cards are the main types of cards. You can also
use Rupay debit card for digital payments. Credit card are issued by banks and some other
entities authorized by RBI. These cards give you the ability to withdraw or use extra money.
Credit cards are used for domestic as well as international payments.
Debit cards are issued by the bank where you have your account. You can use these cards for the
money in your account. The payments you make with these cards debit from your account and
credit immediately to the payee’s account. You can use these cards to make payments to one
bank account to another.
Prepaid cards are another type of cards which you use to pay digitally. You must have to
recharge these cards before using just like prepaid SIM cards.Cards are one of the best modes
when you pay at portals or E-commerce sites. But if we talk about paying to merchants it is not
the most suitable way. It charges 0.75% – 2.0% on transactions. Also, you cannot use cards to
pay if the merchant does not have a PoS (swipe) machine.
6. E-WALLET
E-wallet or mobile wallet is the digital version of your physical wallet with more functionality.
You can keep your money in an E-wallet and use it when needed.Use the E-wallets to recharge
your phone, pay at various places and send money to your friends. If you have a smartphone and
a stable internet connection, you can use E-wallets to make payments.E-Wallets also give
additional cashback offers. Some of the most used E-wallets are State bank buddy, ICICI
Pockets, Freecharge, Paytm, phonepe etc.E-Wallets are an easy and faster way to make payments
but have some limitations.
2.4 Advantages of Digital Payment Services:
Digital Payments through digital cards help in getting reward point for making every purchase
either through swiping them at POS terminals or doing an online purchase. Moreover, doing
transacting through financial apps also provide you cashback offers for up to 10-15% which is,
however, capped to an amount certain limit. You can avail such benefits while e-shopping,
especially during festive seasons. Nowadays trouble-free transactions can be executed by a few
clicks sitting anywhere at any point in time. Digital payments through mobile wallets and mobile
banking apps, which can be easily downloaded onto a smartphone, brings a hassle-free
transactions mechanism for all users who have a bank account. “Customers’ branch visits have
decreased over the past few years as more financial transactions migrate from branch to mobile,
online and self-services channels”.
1. Easy and Convenient
Digital payments are easy and convenient. You do not need to take loads of cash with you. All
you need is your mobile phone or Aadhaar number or a card to pay. UPI apps and E-Wallets
made digital payments easily.
2. Pay or Send money from anywhere
With digital payment modes, you can pay from anywhere anytime. Suppose your close friend’s
mother fell ill at night. He called you at midnight and asked some money. Don’t worry, you can
send money to your friend using digital payment modes such as UPI apps, USSD or E-Wallets.
3. Written record
You often forget to note down your cash spending’s. Or even if you note, it takes a lot of time.
But you do not need to note your spending’s every time with digital payments. These are
automatically recorded in your passbook or inside your E-Wallet app. This helps to maintain
your record, track your spending’s and budget planning.
4. Less Risk
Digital payments have less risk if you use them wisely. If you lose your mobile phone or
debit/credit card or Aadhar card you don’t have to worry a lot. No one can use your money
without MPIN, PIN or your fingerprint in the case of Aadhar. But it is advised that you should
get your card blocked if you lost it. Also call the helpline of your E-wallet to suspend the wallet
account to prevent anyone from using your wallet money.
2.5 Disadvantages of Digital Payment Services:
Using electronic payments systems has become a daily activity for almost
everyone all around the world since with the introduction of the internet, online transactions are
made fast and easy. As we can see most product and service provider are interacting with the
customers online through their websites and use the advantages of electronic payment systems to
improve their business. While most of the people prefer the convenience and speed of electronic
transactions, we cannot ignore disadvantages of electronic payment system. Security risks
involved in electronic transactions and the privacy concerns raised by them is considerable.
1. Difficult for a non-technical person
As most of the digital payment modes are based on mobile phone, the internet and cards. These
modes are somewhat difficult for non-technical persons such as farmers, workers etc.
2. The risk of data theft
There is a big risk of data theft associated with the digital payment. Hackers can hack the
servers of the bank or the E-Wallet you are using and easily get your personal information. They
can use this information to steal money from your account.
3.Overspending
You keep limited cash in your physical wallet. Hence, you think twice before buying anything.
But if you use digital payment modes, you have all your money with you always. This can result
in overspending.
2.6 Impact of Digital Payment Services
Global business is driven by technology and innovations. In many cases,
technologicalinnovations change the face of the businesses and the ways through which
businesses are carried out.Technological innovations have also changed the prospect of payment
systems. Moderntechnologies have turned traditionalcash-based payments systems into a
cashless paymentssystem whichis moreefficient and effective.
The features of digital payments like the ease ofuse,convenience,safetyand speed made
digitaltransactions lucrative in the field of payments than a traditional system. Digital payments
emerge as a favouritemode of payments all over the world including India. Digital payments
have been picking up rapidly in India since 2014 due to “Digital India” initiatives of the
government, internet penetration, smart-phone penetration and adoption of the technologies by
the people.
Digital payments have many advantages. Cashless payments discourage robbery and cash related
crimes. An efficient payments system increases the efficiency of financial markets and the
financial system as a whole, boosts consumer confidence, and facilitates trade both in goods and
services. Digital payments ensure efficient and effective payments among the parties involved at
a minimum cost. Researchers found that cashless payments bring operational efficiency, better
revenue and lower operating cost to the business people. Thus, higher operational efficiency
synergized with the lower operational cost of the businesses leads to higher revenue and business
growth. When the economy has an efficient payment system, macroeconomic variables will
show positive effects. Electronic card payments have a meaningful impact on the world
economy.
A lot of transactions have been witnessed in different sectors over the recent years. This can be
attributed to technology. Various sectors are now using technology in almost all the activities
they are doing. One industry that has benefited a lot from the use of technology is business.
Trading has improved significantly, and you can now buy and sell goods through various online
platforms. Paying for such products can also be done online. Others service providers have also
introduced their online payments. Online payments are usually made though banks or other
money transfer services. You will get one that allow you to make automatic recurring payment
Malaysia. You should look for the best online payment system or service provider so that you
may have a smooth time throughout the process. Something you should consider is the rates
charged for transferring money from one person to another or option to another look for one with
reasonable prices.
2.7 Evolution of Digital Payment Services
Tracing its way back to the 50s, was when the first-ever cashless payment took place. Though
India saw the onset of cashless transactions pretty late, the world had already started accepting
this mode of payments much before us. Back in the day, the options were limited and so was the
usage. People were not very keen and didn’t really want to do the give and take through a system
that didn’t involve cash. Their behaviour was very much justifiable as
1. The cashless system involved their hard-earned money.
2. The entire process and system were extremely complicated back then.
Fast forward to today, we see a large part of our daily activities majorly dependent on cashless
transactions. But it took a lot of years and strenuous revisions in the system to come up with
something seamless, secure and reliable. Developing a secure payment system was a challenge
of the past which the world seems to have tackled pretty well.
The evolution of digital payments has been that of numerous upgradations and convenience
focused systems. Now multiple players in the market are taking care of the financial convenience
aspect of consumers.
As we are talking about payments which equals cash, it is very much apparent that it all started
with the banks. A conventional bank of the past was just about deposits and lending. As the
needs of the consumers evolved the banking business caught on the wagon and we saw them
entering into investments and insurance, which usually were products offered to their customers
by a 3rd party. The situation was a big win for both the parties as the customer now got his
required services at the footstep of the bank and banks got to generate more revenue.
PLASTIC MONEY 1950s:
The history and evolution of Payment cards have been a really extensive one! Dating back to the
50s was when the first-ever credit card payment took place. A general-purpose credit card was
issued in 1958 by the Bank of America. It was initially made out of paper but later they upgraded
it to a card similar to what we use today. Later on, other companies like Barclays, London and
Llyods Bank also issued bank cards in 1969 and 1972 respectively. Credit cards were the firstever revolution in the history of payments that initiated a cashless mode of payments.
Recently there have been certain studies carried out to measure the success of credit/debit cards
as the economy has progressed. According to certain studies, payment cards have helped in the
efficiency of payments while maintaining a transparent transaction history.
The electronic card payment system has furthered adding more value and cleaner business
proceedings to all the aspects of the business ecosystem, including consumers, merchants and the
government.
ONLINE BANKING 1990s:
The advent of online banking began in the 1990s with the availability of internet. If not for the
origination and development of the internet we would have been far from making progress in the
space of digital payments.
Online banking changed the entire scenario of financial services. Today we are far from the brick
and mortar banks. We don’t need to be physically present at a bank to carry out various banking
services as everything happens at our fingertips.
Stanford Federal Credit Union was the first-ever institution to initiate online banking. However,
the system back then wasn’t very must efficient and user-friendly and required a special
understanding of the system.
The millennial generation is the flag bearer of online banking further driving its usage to an
optimum. Activities such as sending money, withdrawal of cash, checking account balance has
only been possible due to the presence of a robust online banking system.
TELECOM COMPANIES 2007:
Later we saw telecom companies dive into this space with m-pesa a Kenyan innovation by
Safaricom-Vodafone’s subsidiary. Like any other digital payment system, this one was also
started to fulfil people’s needs in a convenient non-stressful way. This system was more like a
direct mobile to bank connection since we are talking about 2007 when the mobiles weren’t very
much app-based and smartphones hadn’t reached a wide population. Telecom companies later
scaled up this system of payments through new ventures like mobile wallets, payments bank
licenses along with insurance amongst the other services.
E-WALLETS 2011:
Now, after almost, more than 5 decades we have tech platforms with most of them entering the
financial technology space. Business giants like Apple, Google and Facebook coming up with
offerings like Apple Card, Facebook Pay and Google’s partnership with banks has a lot to
explain about people’s reliance on digital payments and that they are here to stay.
Digital payments have transformed the way the retail industry has been functioning and has
bought a bouquet of benefits to the consumers and businesses alike.
UPI 2016:
Amidst all the evolutions that the cash economy has progressed through, India made it possible
to develop a system that would help in making real-time payments at the drop of a hat. Unified
Payments Interface, commonly known as UPI was developed by NPCI- National Payments
Corporation of India in the year 2016. It has enabled inter-bank transactions on a real-time basis
which has extensively facilitated the use of a digital payment system in India. Multiple bank
accounts can be linked to a single app, and any UPI client app can be used to carry out
transactions.
We have come a long way in developing a disruptive technology in the space of digital
payments. However, the future of digital payments lies in further optimising safe and secure user
experience.
Keeping the user at the centre of development is going to be a vital step from hereon, rather than
focusing on profitability. Hence, the user’s needs are to be addressed first and desirability should
be the prime consideration before we come up with a new technological offering to ease out the
digital payment space.
Demonetization disrupted the cash economy for a while with a rise in digital payments. Digital
payments growth has been accelerated by four years due to demonetization. Since then, the cash
is back, but mobile payments are being used twice as much. Currently, less than 5% of the
transactions are cashless and there has been a strong push by the government for digital
payments by promoting mobile-based payment method like USSD as well as Aadhar based
payments like AEPS and mobile ATMs. There is an audacious goal to reach 30 billion digital
payment transaction this financial year as per credit sussie, digital payments are going to reach 1
trillion USD in next 5 years by FY2023 from the existing 200 billion USD. This growth is going
to be led by mobile payment industry. There are plenty of cashless payment options that have
grown in last 3 years.
2.8 Summary
The detail study on digital payment services, the people have finally started believing in the
power of the plastic money in the form of credit card/debit card, and other channels of electronic
payment. Online banking has gained prominence due to unavailability of enough cash in the
market. Moreover, E-commerce modes of making payments have also become popular, as most
of the people have now started making payments of even Rs 50 through the digital modes. All
these developments are considered to be good for the healthy growth of the economy.
Chapter 3
PERCENTAGE ANALYSIS AND WEIGHTED AVERAGE SCORE RANKING
Frequency Table
3.1 GENDER WISE CLASSIFICATION
s.no
1
2
Total
Dimension
Male
Female
No. of respondents
26
22
48
Percentage
54.2
45.8
100
3.1.1 Figure
Gender wise classification
26
0%
46%
22
54%
Interpretation
Table 3.1 shows that 26 respondents were male, they have accounted for a total
54.2percent while 22 respondents were female and they worked out to 46 percent. From the
above table, it is concluded that majority of the respondents belong to the male category.
3.2 AGE WISE CLASSIFICATION
S.no
Dimension
No. of respondents
Percentage
1
18-24
15
31.3
2
25-31
12
25.0
3
32-38
7
14.6
4
Above 38
14
29.1
48
100
Total
3.2.1 Figure
Age wise classification
29%
31%
15
12
7
15%
25%
14
Interpretation
From the Table 3.2 is observed that 31.3 percent of respondents were belong to the age group of
18 to 24, 25 percent of the respondents belong to the age group of 25 to 31. 14.6 percent of the
respondents belong to the age group of 32 to 38, remaining 29.1 percent of the respondents were
above 38 years. Majority of the respondents belong to the category of 18-24.
3.3 EDUCATION
S.no
Dimension
No. of respondents
Percentage
1
School level
10
20.8
2
Under graduate
20
41.7
3
Post graduate
6
12.5
4
Professionals
12
25
48
100
Total
3.3.1 Figure
Gender
10
25% 21%
12%
20
6
42%
12
Interpretation
From the table 3.2 is observed that 41.7 percent of respondents were belong to the under
graduate, 25 percent of the respondents belong to the professionals, 20.8 percent of the
respondents belong to the school level, remaining 12.5 percent of the respondents are post
graduates. Majority of the respondents belong to the Under graduates.
3.4 OCCUPATION
S. no
Dimension
No. of respondents
Percentage
1
Students
13
27
2
Employee
21
43.8
3
Professionals
11
22.9
4
Home maker
3
6.3
48
100
Total
3.4.1 Figure
Occupation
6%
23%
27%
13
21
11
44%
3
Interpretation
From the table 3.4 is observed that 43.8 percent of the respondents were belong to the
employees, 27 percent of the respondents belong to the students, 22.9 percentage of
therespondents belong to the students, remaining 6.3 percent of the respondents are home
makers. Majority of the respondents belong to the employee.
3.5 INCOME
S. no
Dimension
No. of respondents
Percentage
1
Below 10000
10
20.8
2
10,000-20,000
18
37.5
3
20,000-30,000
11
22.9
4
Above 30,000
9
18.8
48
100
Total
3.5.1 Figure
Income
19%
21%
10
18
11
23%
37%
9
Interpretation
From the table 3.5 is observed that 37.5 percent of the respondents were belong to the income of
10,000-20,000, 22.9 percent of the respondents belong to the income of 20,000-30,000, 20.8
percent of the respondents belong to the income of below 10,000, remaining 18.8 percent of the
respondents are above 30,000. Majority of the respondents belong to the category of 10,00020,000.
3.6 MARITAL STATUS
S. no
Dimension
No. of respondents
Percentage
1
Married
25
52.1
2
Unmarried
23
47.9
48
100
Total
3.6.1 Figure
Marrital status
25
0%
48%
23
52%
Interpretation
From the table 3.5 is observed that 52.1 percent of the respondents were belong to the marital
status of married, 47.9 percent of the respondents belong to the marital status of unmarried.
Majority of the respondents were belong to the category of married.
3.7 FREQUENCY
S. no
Dimension
No. of respondents
Percentage
1
Daily
10
20.5
2
Twice a week
13
27.4
3
Thrice a week
10
20.8
4
Once a month
15
31.3
48
100
Total
3.7.1 Figure
Frequency
31%
21%
21%
10
13
27%
10
15
Interpretation
From the table 3.7 is observed that 31.3 percent of the respondents were belong to the frequency
of once a month, 27.4 percent of the respondents belong to the frequency of twice a week, 20.8
percent of the respondents belong to the frequency of thrice a week, remaining 20.5 percent of
the respondents were belong to the frequency of daily. Majority of the respondents belong to the
category of once a month.
3.8 METHODS
S. no
Dimension
No. of respondents
Percentage
1
Amazon pay
5
10.4
2
Phone pe
12
25
3
Google pay
21
43.8
4
Paytm
10
20.8
48
100
Total
3.8.1 Figure
Methods
5
21% 10%
25%
12
21
44%
10
Interpretation
From the table 3.8 is observed that 43.8 percent of the respondents were belong to the google
pay, 25 percent of the respondents belong to the phonepe, 20.8 percent of the respondents belong
to the Paytm, remaining 10.4 percent of the respondents are amazon pay. Majority of the
respondents belong to the google pay.
3.9 SOURCE OF INFORMATION
S. no
Dimension
No. of respondents
Percentage
1
Social media
16
33.3
2
Friends
22
45.8
3
Magazines
2
4.2
4
News paper
8
16.7
48
100
Total
3.9.1 Figure
Source of information
17%
4%
16
33%
22
2
46%
8
Interpretation
From the table 3.9 is observed that 45.8 percent of the respondents were belong to the source of
information from friends, 33.3 percent of the respondents belong to the source of information
from social media, 16.7 percent of the respondents belong to the source of information from
television, remaining 4.2 percent of the respondents belong to the source of information from
magazines. Majority of the respondents belong to the category of friends.
WEIGHTED SCORE
Preference of consumer towards digital payment service
S. No
Dimension
Strongly
agree
1
Convenient
2
4
Safe and
secure
Offer and
coupons
Save time
5
Transparency
6
User friendly
14
(29.2%)
10
(20.8%)
10
(20.8%)
17
(35.4%)
12
(25.0%)
16
(33.3%)
3
Agree
Neutral Disagree Strongly TOTAL Ran k
disagree
Score
19
4
(39.6%) (8.3%)
7
16
(14.6%) (33.3%)
12
19
(25.0%) (39.6%)
17
4
(35.4%) (8.3%)
9
15
(18.8%) (31.3%)
19
0
(39.6%)
(0%)
Total
8
(16.7%)
11
(22.9%)
4
(8.3%)
7
(14.6%)
5
(10.4%)
10
(20.8%)
3
(6.3%)
4
(8.3%)
3
(6.3%)
3
(6.3%)
7
(14.6%)
3
(6.3%)
177
III
152
VI
166
IV
182
I
158
V
179
II
1014
Interpretation
The opinion of preference of consumer towards digital payment services indicates the statement
that maximum score of 182. Second, third, fourth, fifth, sixth are 179, 177, 166, 158, 152
respectively. This is easy to read, informative and useful.
Problem faced while using digital payment services
S. No
Dimension
Strongly
agree
Agree
1
Risk of fraud
2
Lack of
knowledge
Restrictions
7
(14.6%)
2
(4.2%)
0
(0%)
4
(8.3%)
5
(10.4%)
13
(27.1%)
13
(27.1%)
21
(43.8%)
16
(33.3%)
14
(29.2%)
31
(64.6%)
30
(62.5%)
3
4
5
6
Internet
access
Technical
Problem
Inconvenient
for offline
sale
Total
Neutral Disagree Strongly TOTAL
disagree
Score
9
(18.8%)
11
(22.9%)
16
(33.3%)
20
(41.7%)
12
(25.0%)
5
(10.4%)
8
(16.7%)
8
(16.7%)
10
(20.8%)
10
(20.8%)
0
(0%)
0
(0%)
11
(22.9%)
6
(12.5%)
6
(12.5%)
0
(0%)
0
(0%)
0
(0%)
141
V
149
IV
138
VI
156
III
185
II
200
I
969
Interpretation
The opinion of problems faced while digital payment services indicates the statement that
Maximum score of 200. Second, third, fourth, fifth, sixth are 185, 156, 149, 141, 138
respectively. This is easy to read, informative and useful.
Rank
Level of satisfaction of digital payment using consumers
S.no
1
2
3
4
5
6
Dimension Fully
Satisfied Neutral Not
Not at
Satisfied
Satisfied all
satisfied
Ease of use 9
18
3
10
8
(18.8%) (37.5%) (6.3%) (20.8%) (16.7%)
Security
9
14
10
8
7
(18.8%) (29.2%) (20.8%) (16.7%) (14.6%)
Cash backs 4
21
6
11
6
(8.3%)
(43.8%) (12.5%) (22.9%) (12.5%)
Less risk
9
13
13
8
5
(18.8%) (27.1%) (27.1%) (16.7%) (10.4%)
Convenient 10
14
13
5
6
(20.8%) (29.2%) (27.1%) (10.4%) (12.5%)
More
7
14
12
7
8
efficient
(14.6%) (29.2%) (25.0%) (14.6%) (16.7%)
Total
Total Rank
154
III
154
III
150
IV
157
II
161
I
149
V
925
Interpretation
The opinion of level of satisfaction of digital payment using consumers indicates the statement
That maximum score of 161. Second, third, fourth, fifth are 157, 154, 154, 150, 149 respectively.
This is easy to read, informative and useful.
Chapter 4
ONE WAY ANOVA
4.1 Relationship between Gender and Preference of consumer towards digital payment
services
In order to test were there is any relationship between the Gender and Preference of consumer
towards digital payment services provided by one-way anova has been applied to following
hypothesis.
Table 4.1.1 The result of one-way anova test
Dimension
F
Sig
Result
Convenient
3.290
.029
S
Safe and secure
2.941
.043
S
Offer and coupons
.846
.476
NS
Save time
7.956
.000
Transparency
4.252
.010
S
User friendly
.184
.907
NS
Interpretation
Table 4.1.1 Shows that the agreed value of the preference of consumer towards digital payment
services. With regards to overall agreed level the value of the level of significance is greater than
0.05 the null hypothesis is accepted. Hence it is concluded that the personal factor gender has not
influenced agreed level.
4.1.2 Relationship between Age and Preference of consumer towards digital payment
services
In order to test were there is any relationship between the Age and Preference of consumer
towards digital payment services provided by one-way anova has been applied to following
hypothesis.
Table 4.1.2 The result of one-way anova test
Dimension
F
Sig
Result
Convenient
.816
.371
NS
Safe and secure
.006
.939
NS
Offer and coupons
1.789
.188
NS
Save time
11.815
.001
S
Transparency
1.927
.172
NS
User friendly
1.844
.181
NS
Interpretation
Table 4.1.2 Shows that the agreed value of the preference of consumer towards digital payment
services. With regards to overall agreed level the value of the level of significance is greater than
0.05 the null hypothesis is accepted. Hence it is concluded that the personal factor age has not
influenced agreed level.
4.1.3 Relationship between Education and Preference of consumer towards digital payment
services
In order to test were there is any relationship between the Education and Preference of consumer
towards digital payment services provided by one-way anova has been applied to following
hypothesis.
Table 4.1.3 The result of one-way anova test
Dimension
F
Sig
Result
Convenient
1.961
.134
NS
Safe and secure
4.009
.013
S
Offer and coupons
2.884
.046
S
Save time
6.639
.001
S
Transparency
3.974
.014
S
User friendly
3.253
.030
S
Interpretation
Table 4.1.3 Shows that the agreed value of the preference of consumer towards digital payment
services. With regards to overall agreed level the value of the level of significance is greater than
0.05 the null hypothesis is accepted. Hence it is concluded that the personal factor education has
not influenced agreed level.
4.1.4 Relationship between Occupation and Preference of consumer towards digital
payment services
In order to test were there is any relationship between the Occupation and Preference of
consumer towards digital payment services provided by one-way anova has been applied to
following hypothesis.
Table 4.1.4 The result of one-way anova test
Dimension
F
Sig
Result
Convenient
1.307
.284
NS
Safe and secure
2.188
.103
NS
Offer and coupons
1.219
.314
NS
Save time
1.527
.221
NS
Transparency
1.689
.183
NS
User friendly
.340
.797
NS
Interpretation
Table 4.1.4 Shows that the agreed value of the preference of consumer towards digital payment
services. With regards to overall agreed level the value of the level of significance is greater than
0.05 the null hypothesis is accepted. Hence it is concluded that the personal factor occupation
has not influenced agreed level.
4.1.5 Relationship between Income and Preference of consumer towards digital payment
services
In order to test were there is any relationship between the Income and Preference of consumer
towards digital payment services provided by one-way anova has been applied to following
hypothesis.
Table 4.1.5 The result of one-way anova test
Dimension
F
Sig
Result
Convenient
.896
.475
NS
Safe and secure
1.492
.221
NS
Offer and coupons
.732
.575
NS
Save time
1.000
.418
NS
Transparency
.402
.806
NS
User friendly
1.316
.279
NS
Interpretation
Table 4.1.5 Shows that the agreed value of the preference of consumer towards digital payment
services. With regards to overall agreed level the value of the level of significance is greater than
0.05 the null hypothesis is accepted. Hence it is concluded that the personal factor income has
not influenced agreed level.
4.2 Relationship between Gender and Problem faced while using digital payment services
In order to test were there is any relationship between the Gender and Problem faced while using
digital payment services assistants provided by one-way Anova has been applied to following
hypothesis.
Table 4.2.1 The result of one-way anova test
Dimension
F
Sig
Result
Risk of fraud
3.924
.014
S
Lack of knowledge
5.661
.002
S
Restrictions
.152
.928
NS
Internet access
1.005
.399
NS
Technical problem
6.764
.001
S
Inconvenient for
.369
.775
NS
offline sales
Interpretation
Table 4.2.1 Shows that the agreed value of the problems faced while using digital payment
services. With regards to overall agreed level the value of the level of significance is greater than
0.05 the null hypothesis is accepted. Hence it is concluded that the personal factor gender has not
influenced agreed level.
4.2.2 Relationship between Age and Problem faced while using digital payment services
In order to test were there is any relationship between the Age and Problem faced while using
digital payment services assistants provided by one-way Anova has been applied to following
hypothesis.
Table 4.2.2 The result of one-way anova test
Dimension
F
Sig
Result
Risk of fraud
1.755
.192
NS
Lack of knowledge
.032
.859
NS
Restrictions
.044
.835
NS
Internet access
.236
.629
NS
Technical problem
3.757
.059
NS
Inconvenient for
.415
.522
NS
offline sales
Interpretation
Table 4.2.2 Shows that the agreed value of the problems faced while using digital payment
services. With regards to overall agreed level the value of the level of significance is greater than
0.05 the null hypothesis is accepted. Hence it is concluded that the personal factor age has not
influenced agreed level.
4.2.3 Relationship between Education and Problem faced while using digital payment
services
In order to test were there is any relationship between the Education and Problem faced while
using digital payment services assistants provided by one-way Anova has been applied to
following hypothesis.
Table 4.2.3 The result of one-way anova test
Dimension
F
Sig
Result
Risk of fraud
.715
.548
NS
Lack of knowledge
.509
.678
NS
Restrictions
1.157
.337
NS
Internet access
7.098
.001
S
Technical problem
.198
.897
NS
Inconvenient for
.485
.695
NS
offline sales
Interpretation
Table 4.2.3 Shows that the agreed value of the problems faced while using digital payment
services. With regards to overall agreed level the value of the level of significance is greater than
0.05 the null hypothesis is accepted. Hence it is concluded that the personal factor education has
not influenced agreed level.
4.2.4 Relationship between Occupation and Problem faced while using digital payment
services
In order to test were there is any relationship between the Occupation and Problem faced while
using digital payment services assistants provided by one-way Anova has been applied to
following hypothesis.
Table 4.2.4 The result of one-way anova test
Dimension
F
Sig
Result
Risk of fraud
1.518
.223
NS
Lack of knowledge
.936
.431
NS
Restrictions
3.189
.033
S
Internet access
.549
.652
NS
Technical problem
.506
.680
NS
Inconvenient for
2.508
.120
NS
offline sales
Interpretation
Table 4.2.4 Shows that the agreed value of the problems faced while using digital payment
services. With regards to overall agreed level the value of the level of significance is greater than
0.05 the null hypothesis is accepted. Hence it is concluded that the personal factor occupation
has not influenced agreed level.
4.2.5 Relationship between Income and Problem faced while using digital payment services
In order to test were there is any relationship between the Income and Problem faced while using
digital payment services assistants provided by one-way Anova has been applied to following
hypothesis.
Table 4.2.5 The result of one-way anova test
Dimension
F
Sig
Result
Risk of fraud
1.001
.417
NS
Lack of knowledge
.614
.655
NS
Restrictions
.688
.604
NS
Internet access
.240
.914
NS
Technical problem
.737
.572
NS
Inconvenient for
.790
.538
NS
offline sales
Interpretation
Table 4.2.5 Shows that the agreed value of the problems faced while using digital payment
services. With regards to overall agreed level the value of the level of significance is greater than
0.05 the null hypothesis is accepted. Hence it is concluded that the personal factor income has
not influenced agreed level.
4.3 Relationship between Gender and Level of satisfaction of digital payment using
consumers
In order to test were there is any relationship between the Gender and Level of satisfaction of
digital payment using consumers assistants provided by one-way Anova has been applied to
following hypothesis.
Table 4.3.1 The result of one-way anova test
Dimension
F
Sig
Result
Ease of use
1.279
.293
NS
Security
1.198
.322
NS
Cash backs
.776
.514
NS
Less risk
.241
.867
NS
Convenient
5.660
.002
S
More efficient
1.854
.151
NS
Interpretation
Table 4.3.1 Shows that the desire level of the satisfaction of digital payment using consumers.
With regards to overall desire level the value of the level of significance is greater than 0.05 the
null hypothesis is accepted. Hence it is concluded that the personal factor gender has not
influenced desire level.
4.3.2 Relationship between Age and Level of satisfaction of digital payment using
consumers
In order to test were there is any relationship between the Age and Level of satisfaction of digital
payment using consumers assistants provided by one-way Anova has been applied to following
hypothesis.
Table 4.3.2 The result of one-way anova test
Dimension
F
Sig
Result
Ease of use
.816
.371
NS
Security
.016
.901
NS
Cash backs
2.218
.143
NS
Less risk
.202
.655
NS
Convenient
.906
.346
NS
More efficient
2.700
.107
NS
Interpretation
Table 4.3.2 Shows that the desire level of the satisfaction of digital payment using consumers.
With regards to overall desire level the value of the level of significance is greater than 0.05 the
null hypothesis is accepted. Hence it is concluded that the personal factor age has not influenced
desire level.
4.3.3 Relationship between Education and Level of satisfaction of digital payment using
consumers
In order to test were there is any relationship between the Education and Level of satisfaction of
digital payment using consumers assistants provided by one-way Anova has been applied to
following hypothesis.
Table 4.3.3 The result of one-way anova test
Dimension
F
Sig
Result
Ease of use
1.472
.235
NS
Security
3.149
.034
S
Cash backs
.727
.541
NS
Less risk
.117
.950
NS
Convenient
2.540
.069
NS
More efficient
.131
.941
NS
Interpretation
Table 4.3.3 Shows that the desire level of the satisfaction of digital payment using consumers.
With regards to overall desire level the value of the level of significance is greater than 0.05 the
null hypothesis is accepted. Hence it is concluded that the personal factor education has not
influenced desire level.
4.3.4 Relationship between Occupation and Level of satisfaction of digital payment using
consumers
In order to test were there is any relationship between the Occupation and Level of satisfaction of
digital payment using consumers assistants provided by one-way Anova has been applied to
following hypothesis.
Table 4.3.4 The result of one-way anova test
Dimension
F
Sig
Result
Ease of use
8.568
.000
Security
2.364
.084
NS
Cash backs
1.583
.207
NS
Less risk
2.004
.127
NS
Convenient
2.414
.079
NS
More efficient
5.437
.003
S
Interpretation
Table 4.3.4 Shows that the desire level of the satisfaction of digital payment using consumers.
With regards to overall desire level the value of the level of significance is greater than 0.05 the
null hypothesis is accepted. Hence it is concluded that the personal factor occupation has not
influenced desire level.
4.3.5 Relationship between Income and Level of satisfaction of digital payment using
consumers
In order to test were there is any relationship between the Income and Level of satisfaction of
digital payment using consumers assistants provided by one-way Anova has been applied to
following hypothesis.
Table 4.3.5 The result of one-way anova test
Dimension
F
Sig
Result
Ease of use
.293
.881
NS
Security
.735
.573
NS
Cash backs
.252
.907
NS
Less risk
.742
.569
NS
Convenient
.466
.760
NS
More efficient
.939
.451
NS
Interpretation
Table 4.3.5 Shows that the desire level of the satisfaction of digital payment using consumers.
With regards to overall desire level the value of the level of significance is greater than 0.05 the
null hypothesis is accepted. Hence it is concluded that the personal factor income has not
influenced desire level.
INTERVIEW SCHEDULE
1. Gender:
a) Male
b) Female
2. Age:
a) 18-24
b) 25-31
c) 32-38 d) above 38
3. Education:
a) School level b) Under graduate c) Post graduate d) Professionals
4. Occupation:
a) Student b) Employee c) Professionals d) Home maker
5) Income:
a) Below 10000 b) 10000-20000 c) 20000-30000 d) Above 30000
6) Marital status:
a) Married b) Unmarried
7)How frequently do you use the digital payment services?
a) Daily b) Twice a week c) Thrice a week d) Once a month
8) Which method do you prefer in digital payment services?
a) Amazon pay b) Phonepe c) Google pay d) Paytm
9) Where did you get an information about digital payment services?
a) Social media b) Friends c) Magazines d) Television
10) Preference of consumer towards digital payment services.
S.no
1
Dimension
Convenient
2
Safe and secure
3
Offer and coupons
4
Save time
5
Transparency
6
User friendly
Strongly
agree
Agree Neutral Disagree Strongly
disagree
11) Problems faced while using digital payment services
S.No
Dimension
Stronglyagree Agree
Neutral
Stronglydisagree
Disagree
1.
Risk of
fraud
2.
Lack of
knowledge
3.
Restrictions
4.
Internet
access
5.
Technical
problem
6.
Inconvenient
for offline
sales
12) Level of satisfaction of digital payment using consumers
S.NO
Dimension
Fully
satisfied
1.
Ease of use
2.
Security
3.
Cash backs
4.
Less risk
5.
Convenient
6.
More
efficient
Satisfied
Neutral
Not
Not at all
satisfied
satisfied