CHAPTER 1: INTRODUCTION

1.1 Overview

Electronic payment offers each and every individual the advantage of using things
without paying for them in cash. Electronic payment the term was initially invented by
IBM's showcasing Internet group in 1996. Electronic payment framework link with
various distinctive applications and web pages including the utilization of MasterCard,
check card, Automated Teller Machine (ATM), Electronic Fund Transfer (EFT), online
payment that acts as a most convenient method for client in processing for the
payment. Electronic payment system is a method of payment over an electronic system,
for example, the web. E-Payment is a technique in which an individual can make Online
Payments for his merchandise and enterprises without physical exchange of money and
cheque, independent of time and area.

In the nation like India where 90% of its population depend on ordinary payment
framework i.e. physical money and check instead of electronic payment, it is not all that
easy to consider and settle on the premise of cost and advantage of utilizing E-Payment
framework

The Reserve Bank of India being the central bank of India has made certain initiatives
for Safe, Efficient, Accessible, Secure, Sound, and authorized payment frameworks in
the nation. The Board for Payment and Settlement Systems (BPSS), a sub-advisory
group of the Central Board of the Reserve Bank of India is the finest strategy making
body on payment frameworks in the nation. The BPSS is enabled for approving and
setting principles for controlling and administering all the payment and settlement
frameworks in the nation. The initiatives taken by RBI in the mid-eighties and mid-
nineties concentrated on innovation

based outcomes for the change of the payment and settlement framework system,
combined with the presentation of new payment system.

Financial System in India At present consists of 27 Public Sector Banks including SBI
and its 5 partners and 19 nationalized banks. Also there are two banks, which have
1
been permitted by RBI as "Other Public Sector Banks" IDBI and Bhartiya Mahila Bank.
As on September 2015 there are 46 outside banks from 26 nations working as
branches in India and 39 banks from 21 nations working as agent workplaces in India.

1.2 TYPES OF E-PAYMENT FRAMEWORK

(1) Internet–Based payment framework

There are three types of Internet-Based payment framework i.e.

E-money: - Electronic money is money which exists only in banking computer systems
and is not held in any physical form. In the United States, only a small fraction of the
currency in circulation exists in physical form. The need for physical currency has
declined as more and more citizens use electronic alternatives to physical currency.

Credit Card: - A credit card is usually a plastic card issued by a financial institutions
generally Banks giving the holder an option to borrow some money from the institution,
usually at the time of sale (Point Of Sale). Credit cards charge a certain amount of
interest and are primarily used for financing for a lesser duration of time.

Debit Card: - Just like credit cards Debit cards are also in the plastic form that directly
deducts money from the consumer’s account to pay for their expenses. Debit cards
reduces the need for carrying cash or physical cheque to make payment for purchases.

2
(2) Electronic Transaction-Based payment framework

There are two models of Electronic transaction Based payment framework i.e.

Secure Electronic Transaction: - Secure electronic transaction (SET) protocol is used

to ensure the secured financial transaction & transmission of credit card information via
Internet. It blocks the details of credit card information, and hence preventing
merchants, hackers and thieves to gain access to their private information.

Cyber Cash: - Cyber cash is an online web based service that verifies the customer
credit card information automatically then debiting the customers bank account with the
certain amount and crediting it in the bank account of merchant electronically. Cyber
cash serves as a platform between bank’s financial network and the merchant.

1.3 Limitation of traditional payment system as compared to

electronic payment system

There are various reasons which signifies that there is a vast difference between
traditional mode of payment and modern mode of payment (E-payment) depending on
their effectiveness and efficiency, durability, safety and security reasons etc.

Usability issues Security

issues Eligibility issues
Usage cost for customers is high
Consistency issue
Efficiency issue

3
1.4 Component of effective electronic payment system:-

1. Consumer and browser:-

A consumer first interact with the electronic based commerce system through a web
server and then uses the hyperlink from the mall to get access to merchant’s home
page.

2. Shopping mall:-

A shopping mall is a virtual place where most consumer visit for buying various things
for which they are looking for after evaluating from various shopping malls online and
you may also have to pay to list yourself with one or more well-known mall.

3. Merchant systems:-

It consists of the main website page of the merchant online shop and also some related
software which will manage the webpage of the merchant.

Banking network: - Network of Banking consists of various components such as bank

that processes the online transaction, for the given merchant the bank maintains the
account for the merchant authorized and processes the payment to the merchant’s bank
& also maintain a link with the customer’s bank for verifying the transaction.

4
 CHAPTER 2: LITERATURE REVIEW

Sanghita Roy, Dr. Indrajit Sinha: - In today’s era of innovation & technology, Internet
is one of the most important tools to new & existing businesses in the recent times.
Globalization, financial liberalization and technological revolution have opened the door
of new and more efficient delivery & processing channels as well as more innovative
product and services in banking industry. “With increasing educational qualification in
the country and growing wealth of many of the consumers” needs of the individuals are
continually changing and they are involving themselves more into financial decisions.
After various regulations and reforms in Indian Banking payment system like Debit
Card, Credit Card, ECS, EFT, RTGS, NEFT have offered variety of services to the
customers. Despite increase in electronic payment system over traditional cheque
based system, its adoption rate in India is relatively slow.

In the works of Taylor and Todd (1995) and Geffen and Straub (1997), it was
observed that gender has a direct influence on adoption of technology with men and
women having different rates of computer technologies adoption.

Gikandi and Bloor (2009) used time series data to investigate the determinants of
adoption and influence of e-commerce involving 90% of the retail banks in Kenya.

Mookerji (1998) in his research work concluded that India is a fastest growing country
but still it is in the evolutionary stage of internet banking. They expect that a large
sophisticated and highly competitive internet banking market be developed in upcoming
time.

5
Filotto and Barnett (1997 & 1998) is of the opinion that still the youth is accepting ATM
to carry out their daily transaction and hard money is acting as means of payment. But
the young customers are more comfortable in using e-banking as a tool for payment.

Jeevan (2000) observed that electronic mode of payment offers comparatively low cost
and highly value added financial services to the customers. Development in the
technology, competition and lifestyle has certainly changed the phase of banking and
nowadays banks are also looking for innovative & differentiated ways to deliver their
services to customers.

Joseph (1999) examined the influence of internet on various banking activities

especially on the payment side. They found 6 primary factors which are considered
convenience and accuracy, feedback, complaint management, efficiency, queue
management & accessibility.

Mols (1999) acknowledged that internet banking is an innovative delivery channel which
offers comparatively less waiting time and have lower cost structure as compared to the
traditional channels. As a result internet banking has a high acceptability by those
customers those who have a higher rate of acceptability towards new technology.

Snellman, Vesala and Humphrey (2001) defines E-Payments as any payment service
that makes use of information and communications technologies including Integrated
Circuit (IC) cards, cryptography and telecommunications. However, in this study, E-
Payment refers to delivery multichannel that provides for electronic exchange of
monetary substances without physical contact of the transacting parties. It includes all
electronic transactions as well as e-cheque payment. E-Payment provides means of
transacting business and settling financial commitment electronically without necessarily
touching cash in a cashless society.

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Bergendahl & Lindblom, 2006; ECB, 2001; Raja, 2008; Oginni, 2013). ECB (2001)

viewed E-Payment as an electronic preservation of economic substance on an

intelligent device generally employed to make payments of undertakings apart from the
person who issues it without involving bank accounts in the transaction, though acting
as a prepaid bearer instrument, elsewhere E-Payment is viewed as the use of credit
cards, automated teller machines, debit cards, stored value cards, mobile wallets and
others of similar nature to make payments (Oginni, 2013).

Aastha Gupta and Munish Gupta (2013), in their research paper “Electronic mode of
payment- A study on Indian banking system” showcased that banking system in India
has seen a lot of innovative upliftment over the span of time. This development in the
area of ICT has certainly resulted in various innovations and wide use of internet based
mode of payment. In the Indian banking system there are numerous option for
electronic payment. In the rural areas these services are not provided by banking
institutions because of lack of ICT connectivity and other infrastructural facilities.

Mamta, Prof. Hariom tyagi, Dr. Abhishek Shukla (2016); Electronic payment includes
the method of payment which does exclude physical money or cheque. It includes e-
wallet, net banking etc. The threat to the online payments are misuse of private
information with respect to customers. Therefore, and until the utilization of electronic
marks is across the board, we should utilize the innovation accessible for the minute to
ensure a sensible least level of security on the system.

(Humphrey et al, 2001) Electronic payment ensures the wide range of advantage to
both business and buyers as diminished costs, more prominent accommodation and
more secure, solid methods for payment and settlement for products and ventures
offered worldwide over the web or other electronic systems. One such advantage is that
electronic payment empowers customers to deal with their day to day exchanges
without approaching their bank. Electronic payments items could spare traders time and
cost in dealing with money (Appiah and Agyemang, 2006).

7
Achal Hardia and Kapil Sharma (2013) says that usage of web internet among youth
has seen a huge amount of growth over the time frame and this has given new
approach to online retailers. The research paper makes an endeavor to concentrate on
the effect of “demographic components, gender, age, qualification Background and
income for online payment”. It was observed in the research that females shop more
over internet henceforth internet based shopping ought to concentrate heavily on female
customers.

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 CHAPTER 3: RESEARCH METHODOLOGY

3.1 Research Objectives

The principle objective of this study are :

 Finding of most influencing factors among the factors that influence the
customers’ adoption of electronic payment services in India

 Finding the most popular electronic payment system among various electronic
payment options.

 Study the level of awareness and usage of E-Payment techniques among

different age group, different income group with their educational level by
demographic analysis

 Finding the reasons of unpopularity or constraints and providing suggestions for

further improvements for E-Payment acceptance.

3.2 Research Design

In this research study on E-payment “Descriptive and exploratory” research design has
been used. The objective of this type of research methodology is to analyse and explain
the data and its characteristics pertaining to the present study. Descriptive research is
used to gather current info. About "what exists" in consideration with variables &
conditions in a particular situation. Exploratory research helps in exploring various
questions but does not provide final solutions or conclusions to the existing problems. It
helps in research design, data collection and sampling.

9
3.3 Scope of the study

After researching about various modes of online payments I came to know about recent
trends and methods evolved out of this technology such as PayPal, citrus pay or safety
Pay. After going through many research papers and asking the respondents about their
perception on E-Payments I came to a know that with the passage of time these
credit/debit cards will also become obsolete because now there are many other options
with the customer to pay

their bills either through their e-wallet or Paytm because we see the development of
mobile payment technologies which helps in making the device more flexible to use as
you will be able to store your debit/credit card info. On your SIM. Most customers want
to go with that mode of payment which will help them in reducing their transaction time
and reduce their steps, and by having your banking system info. Saved in your device it
only take to click on ‘buy now” button.

3.4 Sampling

I have used convenience sampling technique which is also called as opportunity

sampling. This technique is a kind of non- probability sampling. It is a sampling
technique which includes respondents who are easy to reach. This is the strategy for
picking things discretionarily and in an unstructured way from the population. Individuals
from the population were chosen according to their ease to access. The sample
included online shoppers, friends & family, younger generation which use internet as
their primary tool to access to things, working and non- working individuals.

3.5 Sample Size

In order to conduct the market research successfully, a sample of 150 respondents has
been taken to study the customer perception towards E-Payment.

10
3.6 Sampling technique

Convenience sampling technique is used in the study.

3.7 Sampling area

The area of sampling research was Delhi/NCR.

11
3.8 Limitations of the study

The survey was conducted in the area of Delhi NCR only.

There are some factors which cannot be evaluated in terms of the quantitative data.

 Some customers were not willing to give their contribution in the survey with their
personal information

 Most of the respondents did not have the knowledge about internet because of
which they could not be the part of the survey.

The study may not provide accurate analysis and conclusion because many people
would be biased at the time of giving interview in terms of attitude, impression and
behaviour.

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CHAPTER 4: DATA COLLECTION & ANALYSIS

4.1 Data collection method

For the purpose of the survey both primary data and secondary data has been used.
Structured questionnaire is used for collection of primary data for the purpose of
research. Various websites and journals are used for the purpose of collecting
secondary data.

4.2 Sources of Data collection

Primary Data: Responses of Customers from different professions and different age
groups of Delhi NCR are used for the purpose of research through structured
questionnaire.

Secondary data: Data was collected from various websites and journal.

4.3 Statistical Software

The software used for the analysis on the nominal data collected through the survey is
IBM SPSS.

4.4 Presentation and processing of the data for analysis

This study was carried out through a set of structured questionnaire. The data collected
was presented in IBM SPSS report for the future analysis, various tools have been
applied according to the relevance of the study.

4.5 Outcomes and interpretation of outcomes.

survey Report:

Following are the findings based on the survey done during the “The study on consumer
perception towards electronic payment system”.

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Questionnaire survey

1. Analysis on operational bank account respondent’s use :

TABLE 1.1 OPERATIONAL BANK ACCOUNT

Cumulative
Frequency Per cent Valid Per cent Per cent

Valid AXIS 6 4.0 4.0 4.0

AXIS, others 2 1.3 1.3 5.3
HDFC 16 10.7 10.7 16.0
HDFC, ICICI 3 2.0 2.0 18.0
HDFC, others 3 2.0 2.0 20.0
HDFC, PNB, others 3 2.0 2.0 22.0
ICICI 10 6.7 6.7 28.7
others 37 24.7 24.7 53.3
PNB 21 14.0 14.0 67.3
PNB, others 2 1.3 1.3 68.7
PNB, SBI, ICICI 1 .7 .7 69.3
SBI 26 17.3 17.3 86.7
SBI, AXIS, others 2 1.3 1.3 88.0
SBI, HDFC 3 2.0 2.0 90.0
SBI, HDFC, AXIS, 6 4.0 4.0 94.0
others

SBI, ICICI 2 1.3 1.3 95.3

SBI, ICICI, others 2 1.3 1.3 96.7
SBI, others 5 3.3 3.3 100.0
Total 150 100.0 100.0

Source: IBM SPSS 23

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AXIS 16

HDFC 34

ICICI 18

SBI 47

PNB 27

Others 62

Figure1.1 OPERATIONAL BANK ACCOUNT

Operational Bank Account

70

60

50

40

30

20

10

AXIS HDFC ICICI SBI PNB Others

Source: Excel 2013

15
INTERPRETATION:

The above shown table and figure represents the no. of users having their bank
accounts in various banks. Most of them have their accounts with SBI i.e. 47 out of 150
rd
respondents almost 1/3 of them have their accounts with SBI and then HDFC, PNB,

ICICI, AXIS in this order. Other category involved various banks such as IDBI, OBC,
SYNDICATE, DENA, CORPORATION etc.

16
2. Analysis on availability of Master/visa/Maestro/Rup aye card

TABLE 1.2 AVAILABILITY OF MASTER/VISA/MAESTRO/RUP AYE CARD

Cumulative
Frequency Per cent Valid Per cent Per cent

Valid No 21 14.0 14.0 14.0

Yes 129 86.0 86.0 100.0

Total 150 100.0 100.0

Source: IBM SPSS 23

Figure 1.2 AVAILABILITY OF MASTER/VISA/MAESTRO/RUP AYE CARD

Source: IBM SPSS 23

INTERPRETATION:

The above table and graph shows whether respondents have the card to do the
cashless transaction or not because this is the basic condition required to make any E-
Payment and without which one will not be able to use E-Payment. Out of 150, 129
respondents have these card and only 21 do not have card.

17
3. Analysis on the usage of E-payment service regularly.

TABLE 1.3 USAGE OF E-PAYMENT SERVICE REGULARLY

Cumulative
Frequency Per cent Valid Per cent Per cent

Valid No 30 20.0 20.0 20.0

Yes 120 80.0 80.0 100.0
Total 150 100.0 100.0

Source: IBM SPSS 23

Figure 1.3 USAGE OF E-PAYMENT SERVICE REGULARLY

Source: IBM SPSS 23

INTERPRETATION:

The above table shows that 80% of the respondents regularly use E-Payment
service whereas remaining 20% are amongst those who resist to use E-Payment
service because of many reasons.

18
4. Analysis on how frequently they use E-payment service.

Table 1.4 FREQUENT USE OF E-PAYMENT SERVICE

Cumulative
Frequency Percent Valid Percent Percent

Valid yearly 30 20.0 20.0 20.0

Daily 40 26.7 26.7 46.7
monthly 24 16.0 16.0 62.7
quarterly 2 1.3 1.3 64.0
weekly 54 36.0 36.0 100.0
Total 150 100.0 100.0

Source: IBM SPSS 23

Figure 1.4 FREQUENT USE OF E-PAYMENT SERVICE

Source: IBM SPSS 23

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INTERPRETATION:

The above graph and table clearly specifies that 36% of the respondents use E-
Payment service regularly. Infact 26% use these electronic based payment system
because now the government is launching certain initiatives on cash transaction to
curb black money and corruption. As the outcome of which the E-Payments usage is
increasing rapidly.

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5. Analysis on Payment option availed.

Table 1.5 PAYMENT OPTION AVAILED

Cumulative
Frequency Percent Valid Percent Percent

Valid 30 20.0 20.0 20.0

Credit card 18 12.0 12.0 32.0
Debit card 55 36.7 36.7 68.7
Net Banking 30 20.0 20.0 88.7
Paytm (wallets) 17 11.3 11.3 100.0
Total 150 100.0 100.0

Source: IBM SPSS 23

Figure 1.5 PAYMENT OPTION AVAILED

Source: IBM SPSS 23

INTERPRETATION:

The above table and graphical representation represent the various option one could
avail for the E-Payment. 36% respondents use debit cards since they have a dual
usage as an ATM as well as E-Payment. After that 20% goes with net banking which
is more convenient and more transparent way to make any transaction.

21
6. Analysis on E-Payment service is easy to use

Table 1.6 E-Payment service is easy to use

N Valid 119

Missing 31

Mean 4.412

Std. Deviation .8173

Variance .668

Cumulative

Frequency Percent Valid Percent Percent

Valid 1.0 3 2.0 2.5 2.5

3.0 7 4.7 5.9 8.4

4.0 44 29.3 37.0 45.4

5.0 65 43.3 54.6 100.0

Total 119 79.3 100.0

Missing System 31 20.7

Total 150 100.0

Source: IBM SPSS 23

22
Figure 1. 6 E-Payment service is easy to use

Source: IBM SPSS 23

INTERPRETATION:

According to the responses of the respondents 43% strongly agree with the ease of
usage of E-Payment service and only a few 2% strongly disagree on this part. These
2% can also get to use E-Payment if provided with the knowledge how to use E-
Payment and its benefits. 30% respondents agree with the ease of usage of E-Payment
service.

Mean value is 4.412 i.e. most of the respondents agree to ease of usage.

23
7. Analysis on E-Payment services is a time saving process

Table 1.7 E-Payment is time saving process

E-Payment service is time saving

process

N Valid 120

Missing 30

Mean 4.567

Std. Deviation .7750

Variance .601

Cumulative

Frequency Percent Valid Percent Percent

Valid 1.0 3 2.0 2.5 2.5

3.0 3 2.0 2.5 5.0

4.0 34 22.7 28.3 33.3

5.0 80 53.3 66.7 100.0

Total 120 80.0 100.0

Missing System 30 20.0

Total 150 100.0

Source: IBM SPSS 23

24
Figure 1. 7 E-Payment is time saving process

Source: IBM SPSS 23

INTERPRETATION:

More than 50% respondents are of the opinion that E-Payment is a time saving process
and just merely 2% are of the opinion that it is not. Mean value stands here at 4.56
which clearly shows that on an average the population agrees to the fact that E-
Payment is time saving process.

25
8. Analysis on E-Payment service is cost effective.

Table 1.8 E-Payment is cost effective

E-Payment service is cost

effective

N Valid 120
Missing 30
Mean 3.825
Std. Deviation 1.0425
Variance 1.087

Cumulative

Frequency Percent Valid Percent Percent

Valid 1.0 6 4.0 5.0 5.0

2.0 5 3.3 4.2 9.2

3.0 26 17.3 21.7 30.8

4.0 50 33.3 41.7 72.5

5.0 33 22.0 27.5 100.0

Total 120 80.0 100.0

Missing System 30 20.0

Total 150 100.0

Source: IBM SPSS 23

26
Figure 1. 8 E-Payment is cost effective

Source: IBM SPSS 23

INTERPRETATION:

rd
1/3 respondents are of the opinion that E-Payment service is cost effective in nature to

them because of various offers we could get by using E-Payment service either by the
service provider or in the form of cash back/ rewards from the company. Mean value is
3.85 i.e. on an average a respondent agree to the cost effectiveness of the E-Payment
feature.

27
9. Analysis on E-Payment Services provide transparency

Table 1.9 E-Payment service provides transparency

E-Payment service provides

transparency

N Valid 120

Missing 30

Mean 4.058

Std. Deviation 1.0635

Variance 1.131

Cumulative

Frequency Percent Valid Percent Percent

Valid 1.0 6 4.0 5.0 5.0

2.0 2 1.3 1.7 6.7

3.0 22 14.7 18.3 25.0

4.0 39 26.0 32.5 57.5

5.0 51 34.0 42.5 100.0

Total 120 80.0 100.0

Missing System 30 20.0

Total 150 100.0

Source: IBM SPSS 2

28
Figure 1. 9 E-Payment service provides transparency

Source: IBM SPSS 23

INTERPRETATION:

Around 60% of the respondents are of the opinion that E-Payment provides
transparency in their transactions. Average being 4.05 which clearly shows the
agreed respondents that E-Payment is transparent.

29
10. Analysis on E-Payment service provides safety and security

Table 1.10 E-Payment provides safety and security

E-Payment service provides safety and

security

N Valid 120

Missing 30

Mean 3.742

Std. Deviation .9482

Variance .899

Cumulative

Frequency Percent Valid Percent Percent

Valid 1.0 3 2.0 2.5 2.5

2.0 7 4.7 5.8 8.3

3.0 34 22.7 28.3 36.7

4.0 50 33.3 41.7 78.3

5.0 26 17.3 21.7 100.0

Total 120 80.0 100.0

Missing System 30 20.0

Total 150 100.0

Source: IBM SPSS 23

30
Figure 1. 10 E-Payment provides safety and security

Source: IBM SPSS 23

INTERPRETATION

rd
1/3 of the respondents are of the opinion that E-Payment provides safety and

security to their online transaction because of the various development in the

technology. Even after various incidents of cybercrime people in today world feel like
safe with E-Payment system.

31
11. Level of satisfaction derived after using E-Payment services

Table 1.11 Level of satisfaction derived after using E-Payment service

What is the level of satisfaction derived after

using electronic mode of payment?

N Valid 120
Missing 30

Mean 4.092

Std. Deviation .9074

Variance .823

Cumulative

Frequency Percent Valid Percent Percent

Valid 1.0 6 4.0 5.0 5.0

3.0 8 5.3 6.7 11.7

4.0 69 46.0 57.5 69.2

5.0 37 24.7 30.8 100.0

Total 120 80.0 100.0

Missing System 30 20.0

Total 150 100.0

Source: IBM SPSS 23

32
Figure 1. 11 Level of satisfaction derived after using E-Payment service

Source: IBM SPSS 23

INTERPRETATION:

From the above table and graphs we conclude that 70% of the respondents are
satisfied with the electronic mode of payment because it provides convenient to the
user and also provides transparency, safety& security which attracts more and more
people to use this method of payment.

33
12. E-investment

Table 1.12 E-investment

E-investment

N Valid 120

Missing 30

Mean 1.858

Std. Deviation .7702

Variance .593

Cumulative

Frequency Percent Valid Percent Percent

Valid 1.0 45 30.0 37.5 37.5

2.0 47 31.3 39.2 76.7

3.0
28 18.7 23.3 100.0

Total 120 80.0 100.0

Missing System 30 20.0

Total 150 100.0

Source: IBM SPSS 23

34
Figure 1.12 E-investment

Source: IBM SPSS 23

INTERPRETATION:

Electronic mode of investment is a new of its kind and people have started adopting to
it. According to the table and graph shown above around 30% rarely invest through
electronic mode of payment but around 18% of the respondents have started adopting
E-investment and will grow further as technology advances.

35
13. E-Shopping

Table 1.13 E-shopping

E-shopping

N Valid 120

Missing 30

Mean 2.517

Std. Deviation .6349

Variance .403

Cumulative

Frequency Percent Valid Percent Percent

Valid 1.0 9 6.0 7.5 7.5

2.0 40 26.7 33.3 40.8

3.0 71 47.3 59.2 100.0

Total 120 80.0 100.0

Missing System 30 20.0

Total 150 100.0

Source: IBM SPSS 23

36
Figure 1. 13 E-shopping

Source: IBM SPSS 23

INTERPRETATION:

According to the table and the graph e-shopping has gained the pace and 47% of the
respondents respond in favor of the e-shopping that they frequently use electronic mode
of shopping because there is a boom in e-commerce nowadays which have certainly
changed their shopping habits.

37
14. E-ticket

Table 1.14 E-ticket

E-ticket

N Valid 120

Missing 30

Mean 2.692

Std. Deviation .5152

Variance .265

Cumulative

Frequency Percent Valid Percent Percent

Valid 1.0 3 2.0 2.5 2.5

2.0 31 20.7 25.8 28.3

3.0 86 57.3 71.7 100.0

Total 120 80.0 100.0

Missing System 30 20.0

Total 150 100.0

Source: IBM SPSS 23

38
Figure 1. 14 E-ticket

Source: IBM SPSS 23

INTERPRETATION

According to the table and graph e-ticketing has an edge over every other activity. 57%
of the respondents frequently pay electronically for their tickets and merely 2% retaliate.
The mean value for the same stands at 2.69 which shows that majority of the
respondents pay for their tickets through online mode.

39
15. Bank statement

Table 1.15 Bank statement

Bank statement

N Valid 118

Missing 32

Mean 2.297

Std. Deviation .7316

Variance .535

Cumulative

Frequency Percent Valid Percent Percent

Valid 1.0 19 12.7 16.1 16.1

2.0 45 30.0 38.1 54.2

3.0
54 36.0 45.8 100.0

Total
118 78.7 100.0

Missing System 32 21.3

Total 150 100.0

Source: IBM SPSS 23

40
Figure 1.15 Bank statement

Source: IBM SPSS 23

INTERPRETATION

According to the table and graph majority of respondents i.e. around 36% are in favor
that they frequently use electronic mode to have their bank statement. Generally net
banking supports this feature of checking your account statement and you do not have
to go to your bank to access to that.

41
16. Fund transfer

Table 1.16 Fund transfer

Fund transfer

N Valid 120

Missing 30

Mean 2.250

Std. Deviation .7697

Variance .592

Cumulative

Frequency Percent Valid Percent Percent

Valid 1.0 24 16.0 20.0 20.0

2.0 42 28.0 35.0 55.0

3.0 54 36.0 45.0 100.0

Total 120 80.0 100.0

Missing System 30 20.0

Total 150 100.0

Source: IBM SPSS 23

42
Figure 1. 16 Fund transfer

Source: IBM SPSS 23

INTERPRETATION

36% of the people also uses electronic mode as a tool for transferring funds to their
friends, relatives, etc. Mean value being 2.25 which clearly states that majority of the
respondents use electronic mode to transfer funds as well which was earlier not
possible and you have to visit you bank to transfer to other bank account.

43
17. Reasons for not using E-Payment services

Table 1.17 Reasons for not using E-Payment service

Cumulative

Frequency Percent Valid Percent Percent

Valid 1 .7 .7 .7

ease of use 2 1.3 1.3 2.0

Fees 10 6.7 6.7 8.7

Fees, Network issues 3 2.0 2.0 10.7
lack of knowledge 7 4.7 4.7 15.3
lack of knowledge, lack of

resources, lack of physical 3 2.0 2.0 17.3

evidence, Network issues

lack of physical evidence 3 2.0 2.0 19.3

lack of resources 3 2.0 2.0 21.3
less reliable 10 6.7 6.7 28.0
Network issues 16 10.7 10.7 38.7
No issue as such 1 .7 .7 39.3
safety issue 25 16.7 16.7 56.0
safety issue, Fees 10 6.7 6.7 62.7
safety issue, lack of knowledge 3 2.0 2.0 64.7

safety issue, lack of knowledge,

lack of resources, lack of 5 3.3 3.3 68.0

physical evidence, Fees

safety issue, lack of knowledge, 17 11.3 11.3 79.3

less reliable

safety issue, lack of resources, 3 2.0 2.0 81.3

Fees

safety issue, lack of resources,

lack of physical evidence, less 2 1.3 1.3 82.7

reliable

safety issue, less reliable 5 3.3 3.3 86.0

safety issue, less reliable, Fees 8 5.3 5.3 91.3

safety issue, Network issues 13 8.7 8.7 100.0

Total 150 100.0 100.0

Source: IBM SPSS 23

44
 safety issue 91

ease of use 2.0

lack of knowledge 24

lack of resources 16.0

lack of physical evidence 13.0

less reliable 42.0

Fees 39.0

network issues 35.0

Others 1.0

Source: Excel 2013

Figure 1. 17 Reasons for not using E-Payment service

Chart Title

100
90
80
70
60
50
40
30
20
10
0

safety issue ease of use lack of lack of lack of less reliable fees networ others
knowledge resources physical k
issues
evidance

Source: Excel 2013

45
INTERPRETATION:

From the above bar graph and table various reasons that is to why people retaliate to
use electronic mode of payment we came to know that the first and foremost reason for
their retaliation is safety issue they feel like that their personal info. Is not safe when
they are transacting online or they might become a victim of cybercrime. After that is the
reliability issue which turns out to be at 42 respondents feel that online payment are less
reliable this could be due to the data tampering or leaking of data info. From the sellers
part.

46
18. Cross tab Analysis between Profession * how often do they use E-
Payment service

Cases

Valid Missing Total

N Percent N Percent N Percent

Profession * How often do 150 100.0% 0 0.0% 150 100.0%

you use E-Payment service?

Source: IBM SPSS 23

PEARSON CHI- SQUARE TEST

Hypothesis is set up where:

H0: No association exists between Profession & how often do they use E-Payment
service

H1: Association exists between Profession & how often do they use E-Payment service.

47
Table 1.18 Profession * how often do they use E-Payment service

How often do you use E-Payment service?

yearly Daily monthly quarterly weekly Total

Profession Businessman 5 7 5 0 10 27
Service 6 9 4 2 14 35

Student 19 24 15 0 30 88

Total 30 40 24 2 54 150

Chi-Square Tests

Asymptotic Significance (2-

Value Df sided)

Pearson Chi-Square a 8 .457

7.762
Likelihood Ratio 7.058 8 .530

N of Valid Cases 150

Source: IBM SPSS 23

48
Figure 1. 18 Profession * how often do they use E-Payment service

Source: IBM SPSS 23

INTERPRETATION:

Here we have plotted crosstab between two variables profession and how often do they
use E-Payment service. The crosstab helps you to find out the association between the
variable. The cross tab cluster bar graph shows that majority of the student, service and
businessman use E-Payment services on weekly basis

Pearson’s chi-square test

As the tabulated value of chi-square at degree of freedom 8. 5% level of significance is

0.457 which is more than the 0.05 so H1 is rejected and H0 is accepted. Therefore,
we can conclude that and association exists between the Profession and how often do
they use E-Payment service.

49
19. Cross tab Analysis between Gender * do you use E-Payment
services

Table 1.19 Gender * do you use E-Payment services

Cases

Valid Missing Total

N Percent N Percent N Percent

Gender * Do you use E-

Payment service 150 100.0% 0 0.0% 150 100.0%

regularly?

Gender * Do you use E-Payment service regularly? Cross tabulation

Do you use E-Payment service regularly?

No Yes Total

Gender Female 17 48 65

Male 13 72 85

Total 30 120 150

Asymptotic

Significance (2- Exact Sig. (2- Exact Sig. (1-

Value df sided) sided) sided)

Pearson Chi-Square a 1 .099

2.715

Continuity Correction 2.079 1 .149

Likelihood Ratio 2.693 1 .101

Fisher's Exact Test .105 .075

N of Valid Cases 150

Source: IBM SPSS 23

50
Figure 1. 19 Gender * do you use E-Payment services

Source: IBM SPSS 23

INTERPRETATION:

Here we have plotted crosstab between two variables Gender and do you use E-
Payment service regularly. The crosstab helps you to find out the association between
the variable. The cross tab cluster bar graph shows that majority of the male uses E-
Payment service regularly.

Pearson’s chi-square test

As the tabulated value of chi-square at degree of freedom (1).5% level of significance is

0.099 which is more than the 0.05 so H1 is rejected and H0 is accepted. Therefore,
we can conclude that and association exists between the Gender and do they use E-
Payment service regularly.

51
20. Analysis One sample t-test on “what is the level of satisfaction
after using E-Payment Service.

Table 1.20 Level of satisfaction after using E-Payment service

N Mean Std. Deviation Std. Error Mean

What is the level of satisfaction derived

after using electronic mode of payment? 120 4.092 .9074 .0828

One-Sample Test

Test Value = 3

95% Confidence Interval

Mean of the Difference

t df Sig. (2-tailed) Difference Lower Upper

What is the level of

satisfaction derived after 13.178 119 .000 1.0917 .928 1.256

using electronic mode of

payment?

Source: IBM SPSS 23

INTERPRETATION

By running a one sample t-test we would really want to know whether the sample I
have (Level of satisfaction after using electronic mode of payment) comes from
a normal population which has a mean 3.0.

The top row provides the value of the known or hypothesized population mean you
are comparing your sample data to. Moving from left to right “t” column, “df” and the
statistical Significance (sig. 2 tailed) (p-value) of the sample test.

52
In the above table p < 0.05 (i.e. p = 0.00). Therefore it can be concluded that the
population means are statistically significantly different.

t (119) = 13.178, p = 0.000

The section in the extreme right corner of the table shows that the mean difference in
population means is 1.09 and the 95% confidence interval of the difference are 0.928
and 1.256.

53
21. Analysis ONE SAMPLE T-TEST on E-Payment service is easy to
use.

Table 1.21 E-Payment service is easy to use

N Mean Std. Deviation Std. Error Mean

e-payment service is easy to

Use 119 4.412 .8173 .0749

One-Sample Test

Test Value = 3

95% Confidence Interval of the

Difference

Mean
t df Sig. (2-tailed) Difference Lower Upper

e-payment service is
easy to use 18.843 118 .000 1.4118 1.263 1.560

Source: IBM SPSS 23

INTERPRETATION

By running a one sample t-test we would really want to know whether the sample I
have (E-payment service is easy to use) comes from a normal population which
has a mean 3.0.

The top row provides the value of the known or hypothesized population mean you
are comparing your sample data to. Moving from left to right “t” column, “df” and the
statistical Significance (sig. 2 tailed) (p-value) of the sample test.

54
In the above table p < 0.05 (i.e. p = 0.00). Therefore it can be concluded that the
population means are statistically significantly different.

t (118) = 18.843, p = 0.000

The section in the extreme right corner of the table shows that the mean difference in
population means is 1.42 and the 95% confidence interval of the difference are 1.263
and 1.560.

55
 CONCLUSION AND RECOMMENDATIONS

Internet is emerging as the major platform in every field and spreading itself over the
globe. Nowadays Indian Baking system has undergone a significant transformation
change in it because of the introduction of internet in it and certainly it has made
banking easy for many customers. Due to the developments in Information &
Communication technology (ICT) the payment system in India has seen certain
innovations which were not possible without the internet. But the benefits of these
innovation are not being effectively delivered to the rural part of the country because of
lack of ICT connectivity in these areas.

This paper has certainly focused on studying the perception of customers towards E-
Payment services in India. Four main objectives of the research are considered and we
have tried to gather as much responses from the customer which will help us in
directing the research in a proper direction with an aim of achieving the objectives. First
objective was to analyze the most important factor that is being considered by the
customers before using e-payment service in India. Ease of usage in e-payment service
is most influential factor that attracts the customers towards it and at the same time
safety issue and reliability are some of the reasons due to which the customers retaliate
from it. Second, finding the most popular e-payment option being adopted by the
customers with which they are comfortable. Third is the level of awareness they have
and fourth is the reason for the unpopularity of e-payment option in today’s world.

E-payment have seen a tremendous growth in India but still most of the transaction are
cash based but after the Demonetization in India most of the people are being forced to
use E-payment mode and also the government initiative to make it a cashless economy.
Key contributors towards strengthening the E-payment system in India are Innovation,
Incentive, customer convenience and legal framework.

E-payment provides greater freedom to individuals in making various payment be it their

tax, or purchasing something online, fees, fines etc. at their convenient location at any
time of the day according to their convenience. After conducted this research it is not
possible to tell which is the best E-payment option because almost every option is
similar to each other in some way or the other and differ only in minor details.

56
 REFERENCES

 Karamjeet kaur, Dr. Ashutosh Pathak(2015), E-Payment system on E-Commerce

in India, International Journal of engineering research and Applications, Vol. 5
Issue 2

(Part-1) PP 79 – 87 retrieved from

http://www.ijera.com/papers/Vol5_issue2/Part%20-%201/M502017987.pdf

 Mamta, Prof. Hariom Tyagi, Dr. Abhishek Shukla(2016), The Study of Electronic
Payment Systems, International Journal of advanced research in computer
science and software engineering, Vol. 6 Issue 7, July 2016 retrieved from
https://www.ijarcsse.com/docs/papers/Volume_6/7_July2016/V6I7-0135.pdf

 Astha Gupta, Munish Gupta(2013), Electronic mode of payment- A study of Indian

Banking system, International Journal of enterprise computing and business
systems, Vol. 2 Issue 2, July 2013 retrieved from
http://www.ijecbs.com/July2013/1.pdf

 Dr. Uday singh Rajput(2015), Customer perception on E-Banking service, Pacific

Business review International, Vol. 8 Issue 4 retrieved from

http://www.pbr.co.in/October2015/11.pdf

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 Sanghita Roy, Dr. Indrajit Sinha(2014), Determinants of customer
acceptance of electronic payment system in Indian banking sector, Vol. 5 Issue
1, January 2014

retrieved from http://www.ijser.org/researchpaper/Determinants-of-Customers-

Acceptance-of-Electronic-Payment.pdf

 Saba Abid(2016), Electronic payment system: An evolution in Indian Banking

system, IOSR journal of economics & finance, Vol. 7 Issue 2 Ver. III, PP 25 – 30,
retrieved from http://www.iosrjournals.org/iosr-jef/papers/Vol7-Issue2/Version-
3/E0702032530.pdf

 Dennis Abrazhevich, Electronic payment system : A user centered perspective

and

Interaction Design retrieved from

http://www.idemployee.id.tue.nl/p.markopoulos/downloadablePapers/ThesisAbra
zhev ich.pdf

 Ajeet singh, Karan singh, Shahazad, M.H. Khan, Manik chandra(2012), Secure
payment system for electronic transaction, International Journal of advanced
research in computer science and software engineering, Vol. 2 Issue 3 retrieved
from
https://www.ijarcsse.com/docs/papers/March2012/volume_2_Issue_3/V2I30029.p
df

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 NiranjanaMurthy M, E-Commerce(2014): Recommended payment online
method: Paypal, International Journal of computer science & Mobile computing,
Vol. 3 Issue 7

Pg. 669 – 679 retrieved from

http://www.ijcsmc.com/docs/papers/July2014/V3I7201499a46.pdf

 Vasudha singh, supriya, S. P. joshna (2016), Issues and challenges of electronic

payment systems, International journal of innovative Research & development,
Vol.5 Issue 2 retrieved from www.ijird.com/index.php/ijird/article/view/85974

 Chirag Parmar, A comparative study on various payment options, International

journal on recent & innovation trends in computing and communication Vol. 3
Issue 4 retrieved from http://www.ijritcc.org/download/1431398570.pdf

59
 ANNEXURE

Study of consumer perception on E-Payment system

Questionnaire

Name

Occupation

Age

Mark only one oval.

Below 20 yrs

20-30 yrs

30-50 yrs

Above 50 yrs

Gender

Mark only one oval.

Male

Female

60
Income

Mark only one oval.

Less than 2 lakh

2-4 lakh

4-8 lakh

Above 8 lakh

In which bank do you have you have your operational bank Account? Check
all that apply.

SBI

HDFC

PNB

ICICI

AXIS

Others

Do you have a Master/visa/Maestro/Rup aye card? * Mark

only one oval.

Yes

No

61
 Do you use E-Payment service regularly? * Mark
only one oval.

Yes Skip to question 9.

No Skip to question 22.

Untitled Section

How often do you use E-payment service? Mark

only one oval.

Daily

weekly

monthly

quarterly

yearly

Which of the following E-Payment option you avail? Mark

only one oval.

Net Banking

Debit card

Credit card

Paytm (wallets)

62
E-Payment service is easy to use Mark
only one oval.

1 2 3 4 5
Strongly disagree strongly agree

E-Payment service is time saving process Mark

only one oval.

1 2 3 4 5
Strongly disagree strongly agree

E-Payment service is cost effective Mark

only one oval.

1 2 3 4 5
Strongly disagree strongly agree

E-Payment service provides transparency Mark

only one oval.

1 2 3 4 5
Strongly disagree strongly agree

E-Payment service provides safety and security Mark

only one oval.

1 2 3 4 5
Strongly disagree strongly agree

63
What is the level of satisfaction derived after using electronic mode of payment? Mark
only one oval.

1 2 3 4 5
Highly dissatisfied highly satisfied

E-investment

Rate the following in context with E-Payment

Mark only one oval.

1 2 3

Rarely Frequently

E-shopping

Mark only one oval.

1 2 3

Rarely Frequently

E-ticket

Mark only one oval.

1 2 3

Rarely Frequently

64
Fund transfer Mark only
one oval.

1 2 3

Rarely Frequently

Untitled Section

Reason for not using e-payment services? Check

all that apply.

Safety issue

ease of use

Lack of knowledge

lack of resources

Lack of physical evidence

less reliable

Fees

Network issues

other:

65