PROJECT REPORT

On

A STUDY ON ELECTRONIC PAYMENT GATEWAYS,

FOCUSING ON UNIFIED PAYMENT INTERFACE (UPI)
Submitted In partial fulfilment of the requirements for the award of

Masters of Computer Applications

DEPARTMENT OF COMPUTER APPLICATIONS

Submitted to: Submitted by:

Mr. Amar Monika Singh

22MCAN159
 CERTIFICATE
This is to certify that MONIKA SINGH bearing 22MCAN159, is a bonafide student of Masterof
Computer Applications course of the Institute 2022- 2024, autonomous program, affiliated to
JECRC University, Jaipur. The project report on “THE STUDY ON ELECTRONIC
PAYMENT GATEWAY FOCUSING ON UNIFIED PAYMENT INTERFACE (UPI)” is
prepared by her under the guidance of Prof. Amar, in partial fulfilment of requirements for the award
of the degree of Master of Computer Applications of JECRC University, Sitapura, Jaipur, Rajasthan.

Signature of Internal Guide Signature of HOD Signature of principal

Name of the Examiners with affiliation Signature with date

1. External Examiner

2. Internal Examine
 DECLARATION

I, Monika Singh hereby declare that the project report on “THE STUDY ON ELECTRONIC
PAYMENT GATEWAY FOCUSING ON UNIFIED PAYMENT INTERFACE (UPI)”
with reference to “ NATIONAL PAYMENT CORPORATION OF INDIA(NPCI) ” prepared by me
under the guidance of Mr.. Amar, faculty of M.C.A Department, JECRC University.

I also declare that this project report is towards the partial fulfilment of the universityregulations
for the award of the degree of Master of Computer Applications by JECRC University, Jaipur.

Signature of Student

Place:

Date:
 TABLE OF CONTENTS

SL. NUMBER CONTENTS

1 Executive summary

Chapter 1- Theoretical Background of TheStudy

2

3 Chapter 2- Industry Profile &Company Profile

4 Chapter 3- Research Methodology

5 Chapter 4- Data Analysis and Interpretation

6 Chapter 5 - Summary of Findings,Suggestion and

Conclusion

7 Bibliography
THE STUDY ON ELECTRONIC PAYMENT GATEWAY FOCUSING ON UNIFIED
PAYMENT INTERFACE (UPI)

EXECUTIVE SUMMARY

This paper studies Unified Payment Interface (UPI), a new age payment system introduced in
India by National Payment Corporation of India. Unified Payment Interface is a mobile centric,
real time interbank payment system which has the potential to transform and universalize
digital payments in India. The paper traces the evolution of payments systems in India and
examines in detail the technology behind Unified Payment Interface focusing on its
architecture and security systems through empirical and theoretical literature review. UPI is a
significant advancement as compared to extant payment system in terms of cost, ease of use
for consumers, settlement times and security and has witnessed good user adoption. Its modular
application programming interface (API) based architecture will enable development of
innovative solutions for consumers and businesses. UPI is currently in its infancy stage and
development of merchant centric UPI solutions will greatly increase the user adoption. UPI can
help bring a large part of the population within the ambit of digital economy and can be a great
tool for financial inclusion in India

Keywords -

Mobile Payments, Real Time Payments, Unified Payment Interface, Digital Payment.
 Chapter 1

THEORETICAL BACKGROUND OF THE STUDY

Background

The “Digital India” is the Indian Government’s flagship program with a vision to convert
India into a digitally empowered country. “Faceless, Paperless, Cashless” is one of supposed
function of Digital India. Digital payment system has gained importance nowadays,
especially after demonetization. The government is taking essential steps to encourage the
public to use payment gateway platforms. To promote payment gateways, it has declared
discounts on purchases of certain products digitally. It has also introduced UPI (United
Payment Interface) which is app based to transact across multiple banks. Another improved
version is set to be unveiled by the government, which makes banking transactions though
mobile phones without internet by a platform called USSD (Unstructured Supplementary
Service Data). These initiatives have provided extensive boost up to the digital payment
system in the country. Government’s other initiatives like BHIM and UPI are supporting in
transition and faster adoption of digital payments. Electronics Consumer transaction made at
point of sale (POS) for services and products either through internet banking or mobile
banking using smart phone or card payment are called as digital payment. Background with
the rapid development of science, computer and network technology, electronic-commerce
(ecommerce) has become a routine part of human life. Since it can provide new impetus to
develop business in enterprises, it is convenient for customers, especially in Business to
customer (B2C) commerce. The customer can order at home and save time for doing more
things. There is no need to visit a store or a shop. The customer can visit different stores in
the Internet in a very short time and compare the products with different characteristics. Such
are price, color and quality. Furthermore, online payment systems have a very important role
in e-commerce. E- commerce enterprises use online payment systems that refer to paperless
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monetary transactions, which has revolutionized the business processing by reducing
paperwork, transaction costs, and labor cost. Being user-friendly and less time consuming
than manual processing, electronic commerce helps a business organization expand its
market reach expansion.

As payment gateway is surging on account of growing online payment transactions in

INDIA, this study undertakes to give an insight about Payment gateways services. This study
helps in understanding the company preference of the users with regard to payment gateway.
It helps us to know the kind of service used by the users, which are provided by the payment
gateways service providers. The Study also aims to find out the factors influencing the
perception of the Customer preference with respect to Charges and risks. Recently, the RBI
had issued certain guidelines that allow the users to increase their limit to Rs.1,00,000 based
on certain KYC verification. PayTM is currently the leader in the segment has about 125
million wallet users. It sees about 60 million monthly transactions on its platform.

Significantly, as per an IAMAIIMRB‟s Digital Commerce 2015 Report, only about eight per
cent of buyers pay online using m-wallets, while 21 per cent prefer to pay using debit card,
16 per cent prefer credit cards and majority 45 per cent prefer Cash-on-delivery mode of
payment. According to reports, the early adopters of wallets were in the northern and western
parts of India, but due to the drop in smart phone prices and 3G tariffs, virtual wallets are
growing pan India. Leading private telecom operator Airtel too operates Airtel Money.
PingPay, PayZapp, Idea Money and m-pesa are some of the wallets operated by telecom
players and banks. Cab aggregator Ola has launched Ola Money, an independent wallet for
mobile recharge and money transfers. The mobile wallet user base in India has even
surpassed the total number of credit cards issued in the country. The RBI data shows that till
November 2015, around 22 million credit cards have been issued by 55 banks, while a rough
estimate shows there are more than 100 million wallet users in India. Digital wallets are the
best bet to usher in digital payments. There are three key drivers: 1. Strong growth in smart
phones: The digital payments landscape in India has witnessed unprecedented growth largely
driven by increased Smartphone penetration. Smart phone user base has increased by 60%
in the metros, but more importantly, it is the penetration in the tier 2 and 3 areas which is of
critical importance. 61 million people from tier 2 and 3 use smart phones for onlineshopping.
2. Adoption of Aadhaar & UPI: Data availability along with Aadhaar based authentication
will allow for seamless adoption of the digital wallet. Initiatives such as Aadhaar, UPI will
have a catalytic effect on the industry. Improved 3G & 4G services: 3G and 4G services are
being offered at extremely affordable prices, giving a huge boost to mobile commerce. With
4G becoming more and more affordable, we expect Smartphone users from tier 2 and 3
regions to adopt digital wallets.

The growth in spending on the Internet, together with the underlying need for secure
transactions, increases the importance of online payment systems. Online payment systems
can be broadly defined as the means and processes involved in conducting transactions
online; however, this description can be expanded to include the online monetary
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connections between sellers, buyers, financial institutions, and intermediaries. Online
payment systems have been around for several years, yet are now becoming ubiquitous with
the increased common use of the Internet. Some of the benefits provided by online payment
systems include improved cash flow efficiency, guaranteed transactions, reduced costs,
increased protection of sensitive information, and increased protection of the payment
provider. Given that fraud is a prevalent concern with online transactions, secure online
payment systems are particularly important. Despite the growth and importance of online
payment in the current global economy, little academic literature exists in this area that
integrates the disparate research streams about online payment systems and describes their
implementation. Further, online payment processes are largely ignored by traditional
textbooks, yet it is important for students to understand online payment because it represents
the most significant shift in payment in the last two hundred years. IS students are likely to
be involved in implementing, purchasing, maintaining, or interacting with these processes.
For example, several instructors note the need or desire to include online payments into e-
commerce curriculum.

REASONS TO USE ONLINE PAYMENT

Most businesses seek online payment to increase purchases by accepting bankcards. In

addition to expanding the payment options available to customers, certain inherent risks
faced by businesses can be reduced by using online credit payment. This section reviews five
ways providers bring value to businesses: improved cash flow efficiency, guaranteed
transactions, reduced costs, increased protection of sensitive information, and increased
protection of the payment provider.

Improved Cash Flow Efficiency

Online payment providers assist businesses in keeping costs of receiving payments low while
enhancing and improving the company’s ability to collect funds. Finding an efficient and
cost-effective way to collect money is of great importance for any company. Hundreds of
methods exist for a business to create a dynamic website and collect customer information,
but far fewer allow for the easy collection of funds.

Online payment providers improve cash flow efficiency for small incremental costs. Many
services offer the ability for customers to make a one-time payment or to pay by subscription.
Both methods tend to involve corresponding transaction fees, depending on the type of
account the customer selects. Transaction fees facilitate more sales without large upfront
costs.

Guaranteed Transactions

Online payment providers help reduce some of the risks associated with online purchasing
by guaranteeing transactions with proper support and by protecting sensitive information
10
[Wright, 2002]. If customers are not confident that a company will provide them with
guaranteed transactions, they may refuse to conduct business with the company, with
devastating effects on revenues. Online payment providers offer straightforward ways of
assuring business transactions over the Internet. One way is by collaborating with larger
companies and major financial institutions to obtain the resources necessary to guarantee
payments. For example, PayPal teamed up with Wells Fargo to provide greater functionality
and stability to its service.

Reduced Costs

Online payment providers help reduce costs on both the business side and the client side ofa
transaction by reducing the paper work, processing time, and human resources needed to
complete it. More important, they may also reduce data-entry errors because customers enter
their own information into the system rather than relying on a customer service representative
to enter the data for them. Online payment providers also allow companies to eliminate the
need for expensive servers, software, and administrative staff. Many businessesdo not possess
the capital to purchase and configure their own servers, nor do they want to worry about
maintenance. Furthermore, using an online payment provider can reduce costs associated
with server downtime. Since small businesses are particularly susceptible to lossescaused by
system downtime (much more than larger businesses [Ball, 2001]) reducing of downtime is
important in these environments. Using a provider also greatly reduces the needfor technically
proficient developers and administrators assuring the reliability, timeliness, and efficiency of
the payment system.

Increased Protection of Sensitive Information

Online payment providers can also decrease the potential for payment fraud by increasing
the security of sensitive information. Payment fraud is 30 times more likely in the virtual
world than in the physical world. Accordingly, consumers conducting business over the
Internet are extremely concerned with the security of their personal information [Wright,
2002]. Using an online payment provider should decrease employee access to financial
information, reduce internal employee theft, and protect sensitive customer information. An
online payment provider allows a business to control sensitive information without having to
invest in a complex web application. Once a client’s personal information is stored in the
payment provider’s database, it will not be transferred again over the Internet. To decrease
the costs of fraud further, online payment providers typically assume the risk of credit card
fraud, identity theft, and other financial fraud. Online payment providers typically are well-
equipped to provide increased data security during transmission processes through
techniques such as cryptography. Virtually all major online payment providers maintain
sophisticated fraud control groups that conduct cyber sleuthing to reduce the amount of fraud
committed with their services.

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Forms of Digital Payment

1. Banking cards: Cards are among the most widely used payment methods and come with
various features and benefits such as security of payments, convenience, etc. The main
advantage of debit/credit or prepaid banking cards is that they can be used to make other
types of digital payments. For example, customers can store card information in digital
payment apps or mobile wallets to make a cashless payment. Some of the most reputed and
well-known card payment systems are Visa, Rupay and MasterCard, among others. Banking
cards can be used for online purchases, in digital payment apps, PoS machines, online
transactions, etc.

2. USSD: Another type of digital payment method, *99#, can be used to carry out mobile
transactions without downloading any app. These types of payments can also be made with
no mobile data facility. This facility is backed by the USSD along with the National
Payments Corporation of India (NPCI). The main aim of this type of digital payment service
is to create an environment of inclusion among the underserved sections of society and
integrate them into mainstream banking. This service can be used to initiate fund transfers,
get a look at bank statements and make balance queries. Another advantage of this type of
payment system is that it is also available in Hindi.

3. AEPS: Expanded as Aadhaar Enabled Payment System, AEPS, can be used for all
banking transactions such as balance enquiry, cash withdrawal, cash deposit, payment
transactions, Aadhaar to Aadhaar fund transfers, etc. All transactions are carried out through
a banking correspondent based on Aadhaar verification. There is no need to physically visit
a branch, provide debit or credit cards, or even make a signature on a document. This service
can only be availed if your Aadhaar number is registered with the bank where you hold an
account. This is another initiative taken by the NPCI to promote digital payments in the
country.

4. UPI: UPI is a type of interoperable payment system through which any customer holding
any bank account can send and receive money through a UPI-based app. The service allows
a user to link more than one bank account on a UPI app on their smartphone to seamlessly
initiate fund transfers and make collect requests on a 24/7 basis and on all 365 days a year.
The main advantage of UPI is that it enables users to transfer money without a bank account
or IFSC code. All you need is a Virtual Payment Address (VPA). There are many UPI apps
in the market and it is available on both Android and iOS platforms. To use the service one
should have a valid bank account and a registered mobile number, which is linked to the
same bank account. There are no transaction charges for using UPI. Through this, a customer
can send and receive money and make balance enquiries.

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5. Mobile Wallets: A mobile wallet is a type of virtual wallet service that can be used by
downloading an app. The digital or mobile wallet stores bank account or debit/credit card
information or bank account information in an encoded format to allow secure payments.
One can also add money to a mobile wallet and use the same to make payments and purchase
goods and services. This eliminated the need to use credit/debit cards or remember the CVV
or 4-digit pin. Many banks in the country have launched e-wallet services and apart from
banks, there are also many private players. Some of the mobile wallet apps in the market are
Paytm, Mobikwik, Freecharge, etc. The various services offered by mobile wallets include
sending and receiving money, making payments to merchants, online purchases, etc. Some
mobile wallets may charge a certain transaction fee for the services offered.

7. PoS terminals: Traditionally, PoS terminals referred to those that were installed at all
stores where purchases were made by customers using credit/debit cards. It is usually a hand
held device that reads banking cards. However, with digitization the scope of PoS is
expanding and this service is also available on mobile platforms and through internet
browsers. There are different types of PoS terminals such as Physical PoS, Mobile PoS and
Virtual PoS. Physical PoS terminals are the ones that are kept at shops and stores. On the
other hand, mobile PoS terminals work through a tablet or smartphone. This is advantageous
for small time business owners as they do not have to invest in expensive electronic registers.
Virtual PoS systems use web-based applications to process payments.

8. Internet Banking: Internet banking refers to the process of carrying out banking
transactions online. These may include many services such as transferring funds, opening a
new fixed or recurring deposit, closing an account, etc. Internet banking is also referred to as
e-banking or virtual banking. Internet banking is usually used to make online fund transfers
via NEFT, RTGS or IMPS. Banks offer customers all types of banking services through their
website and a customer can log into his/her account by using a username and password.
Unlike visiting a physical bank, there are to time restrictions for internet banking services and
they can be availed at any time and on all 365 days in a year. There is a wide scope for
internet banking services.

9. Mobile Banking: Mobile banking is referred to the process of carrying out financial
transactions/banking transactions through a smartphone. The scope of mobile banking is only
expanding with the introduction of many mobile wallets, digital payment apps and other
services like the UPI. Many banks have their own apps and customers can download the
same to carry out banking transactions at the click of a button. Mobile banking is a wide term
used for the extensive range or umbrella of services that can be availed under this.

13
10. Bharat Interface for Money (BHIM) app: The BHIM app allows users to make
payments using the UPI application. This also works in collaboration with UPI and
transactions can be carried out using a VPA. One can link his/her bank account with the
BHIM interface easily. It is also possible to link multiple bank accounts. The BHIM app can
be used by anyone who has a mobile number, debit card and a valid bank account. Money
can be sent to different bank accounts, virtual addresses or to an Aadhaar number. There are
also many banks that have collaborated with the NPCI and BHIM to allow customers to use
this interface.

Benefits of Digital Payments

Faster, easier, more convenient: Perhaps, one of the biggest advantages of cashless payments
is that it speeds up the payment process and there is no need to fill in lengthy information.
There is no need to stand in a line to withdraw money from an ATM or carry cards in the
wallet. Also, with the move to digital, banking services will be available to customers on a
24/7 basis and on all days of a year, including bank holidays. Many services like digital
wallets, UPI, etc, work on this basis.

Economical and less transaction fee: There are many payment apps and mobile wallets that
do not charge any kind of service fee or processing fee for the service provided. The UPI
interface is one such example, where services can be utilized by the customer free of cost.
Various digital payments systems are bringing down costs.

Waivers, discounts and cashbacks: There are many rewards and discounts offered to
customers using digital payment apps and mobile wallets. There are attractive cash back
offers given by many digital payment banks. This comes as boon to customers and also acts
a motivational factor to go cashless.

Digital record of transactions: One of the other benefits of going digital is that all
transaction records can be maintained. Customers can track each and every transaction that
is made, no matter how small the transaction amount this.

One stop solution for paying bills: Many digital wallets and payment apps have become a
convenient platform for paying utility bills. Be it mobile phone bills, internet or electricity
bills, all such utility bills can be paid through a single app without any hassle.

Helps keep black money under control: Digital transactions will help the government keep
a track of things and it will help eliminate the circulation of black money and counterfeit
notes in the long run. Apart from this, this may also give a boost to the economy as the cost
of minting currency also goes down.

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 Chapter 2
INDUSTRY PROFILE

Unified Payments Interface (UPI)

Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile
application (of any participating bank), merging several banking features, seamless fund routing & merchant
payments into one hood. It also caters to the “Peer to Peer” collect request which can be scheduled and
paid as per requirement and convenience
.

With the above context in mind, NPCI conducted a pilot launch with 21 member banks. The pilot launch was on
11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. Banks have started to upload their UPI
enabled Apps on Google Play store from 25th August, 2016 onwards.

How is it unique?

• Immediate money transfer through mobile device round the clock 24*7 and 365 days.
• Single mobile application for accessing different bank accounts.
• Single Click 2 Factor Authentication – Aligned with the Regulatory guidelines, yet provides for a very
strong feature of seamless single click payment.
• Virtual address of the customer for Pull & Push provides for incremental security with the customer not
required to enter the details such as Card no, Account number; IFSC etc.
• Bill Sharing with friends.
• Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount.
• Merchant Payment with Single Application or In-App Payments.
• Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments.
• Donations, Collections, Disbursements Scalable.
• Raising Complaint from Mobile App directly.

Participants in UPI
• Payer PSP
• Payee PSP
• Remitter Bank
• Beneficiary Bank
• NPCI
• Bank Account holders
• Merchants

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UPI - Benefits to the Ecosystem participants

Benefits for banks:

• Single click Two Factor authentication
• Universal Application for transaction
• Leveraging existing infrastructure
• Safer, Secured and Innovative
• Payment basis Single/ Unique Identifier
• Enable seamless merchant transactions
Benefits for end Customers:
• Round the clock availability
• Single Application for accessing different bank accounts
• Use of Virtual ID is more secure, no credential sharing
• Single click authentication
• Raise Complaint from Mobile App directly
Benefits for Merchants:
• Seamless fund collection from customers - single identifiers
• No risk of storing customer’s virtual address like in Cards
• Tap customers not having credit/debit cards
• Suitable for e-Com & m-Com transaction
• Resolves the COD collection problem
• Single click 2FA facility to the customer - seamless Pull
• In-App Payments (IAP)
• Registration in UPI enabled application
Steps for Registration:
• User downloads the UPI application from the App Store/Banks website
• User creates his/her profile by entering details like name, virtual id (payment address), password etc.
• User goes to “Add/Link/Manage Bank Account” option and links the bank and account number with the
virtual id
Generating UPI – PIN:
• User selects the bank account from which he/she wants to initiate the transaction
• User clicks one of the option -
Change M-PIN
In the case of 3(a) -
• User receives OTP from the Issuer bank on his/her registered mobile number
• User now enters last 6 digits of Debit card number and expiry date
• User enters OTP and enters his preferred numeric UPI PIN( UPI PIN that he would like to set) and clicks
on Submit
• After clicking submit, customer gets notification (successful or decline)
In the case of 2(b) -
• User enters his old UPI PIN and preferred new UPI PIN (UPI PIN that he would like to set) and clicks
onSubmit
• After clicking submit, customer gets notification (successful or failure)

Performing a UPI Transaction:

PUSH – sending money using virtual address

16
• User logs in to UPI application
• After successful login, user selects the option of Send Money/Payment
• User enters beneficiary’s/Payee virtual id, amount and selects account to be debited
• User gets confirmation screen to review the payment details and clicks on Confirm
• User now enters UPI PIN
• User gets successful or failure message

PULL – Requesting money:

• User logs in to his bank’s UPI application
• After successful login, user selects the option of collect money (request for payment)
• User enters remitters/payers virtual id, amount and account to be credited
• User gets confirmation screen to review the payment details and clicks on confirm
• The payer will get the notification on his mobile for request money
• Payer now clicks on the notification and opens his banks UPI app where he reviews payment request
• Payer then decides to click on accept or decline
• In case of accept payment, payer will enter UPI PIN to authorize the transaction
• Transaction complete, payer gets successful or decline transaction notification
• Payee/requester gets notification and SMS from bank for credit of his bank account

Product
A. Financial Transactions: UPI supports the following financial transactions viz.
Pay Request: A Pay Request is a transaction where the initiating customer is pushing funds to the intended
beneficiary. Payment Addresses include Mobile Number & MMID, Account Number & IFSC and Virtual ID
Collect Request: A Collect Request is a transaction where the customer is pulling funds from the intended
remitter by using Virtual ID.
B. Non-Financial Transactions: UPI will support following types of non-financial transactions on any PSP
App viz
Mobile Banking Registration*
Generate One Time Password (OTP)
Set/Change PIN
Check Transaction Status
Raise Dispute/Raise query

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 Chapter 3

RESEARCH Methodology

Statement of Problem
During demonetization, digital payment took place and had a lot of significance. In recent
days after all situations getting normal, again cash transactions are increased. It is important
to study how the digital payment gateway is working in these days.

Objectives
• To know the customer preference and level of satisfaction towards the UPI scheme.
• To study about awareness of UPI payment services.
• To study the problems faced by customers in using UPI scheme.

Research Methodology
This research paper uses descriptive research. Primary data will be collected through
google forms from respondents by drawing a sample size of 200. Data which is collected
will be analysed and interpreted in systematic analytical presentation though graphs.
✓ Sampling - Integrative Sampling
✓ Sources of data – Primary Data (Based on respondents), Secondary Data (Based on
several articles, research papers of different universities and international journals.
✓ Tools of data collection – Questioner

Review of Data Collection Method

• Secondary Data
The research started with secondary data which is available on different websites,
journals and other profiles by different experts.

• Primary Data
The primary data is being collected through google forms from different
respondents who may have different way of perception. To collect this data, the
sample size is considered 200 and the analysation is done with the help of
questioner tool.

Methodology
The methodology used to get information about choice of preference towards Unified
Payment Interface of general consumer people in Bangalore city. The survey questionnaire
is designed and distributed via goggle forms. The target population for this study is the
internet user consumers in Bangalore city. Questionnaire is design to apply to a sample which

18
answered in general questions about Gender, Age group, Education level, Occupation,
Location and purchase behaviour factors.

Using Statistical Package for Social Science (SPSS) following test were administered
1. Reliability Test
2. Simple percentage analysis
3. Chi-Squared Tests.

LIMITATIONS OF THE STUDY

• Time limit is main constraints.
• Limitation of the study is the selection of existing studies which may not be
appropriate.
• Due to time limitation, I only searched a few journals. This may ignore some
other prominent empirical studies.
• The study has been conducted within the in Bengaluru city and considered all the
factors analysed for one particular city only.
• Another major limitation is; the study was conducted during pandemic lock down
of COVID19 which was restricted to meet some respondents. This may affect the
accuracy of data.

Somanjoli Mohapatra (2017)

In their study reported that the single interface across all NPCI systems besides
creating interoperability and superior customer experience. The UPI seeks to make
money transfers easy, quick and hassle free. The proliferation of smart phones, the
availability of an online verifiable identity, universal access to banking and the
introduction of biometric sensors in phones will proactively encourage electronic
payment systems for ushering in a less-cash society in India.

Radhika Basavaraj Kakade, Prof. Nupur A. Veshne (2017)

In their study reported that the UPI has made digital transaction for individuals as
easy as sending text messages. Service is available 24X7, not like RTGS or NEFT
which don’t work on holidays or during non-banking hours. This will bring enormous
efficiency in the system and help India become a truly cashless economy.

Roshna Thomas, Dr. Abhijeet Chatterjee (2017)

The study reported that UPI is a tool with compatible features that can make monetary
transactions easy and affordable to the customers though it is difficult to sideline the
challenges. A strong Aadhar platform (UID) combined with statistics for the country
pertaining to increased financial inclusion, Smartphone adoption and telecom
subscription indicate positive prospects for UPI whereas competition from mobile
wallets and possible cases of failure from banks to overcome technical errors
19
especially relating to the front-end platform designed by them may negatively impact
the scope of this innovative payment tool.

Ravish Rana (2017)

In their study reported that adoption of digital payment is influenced by the education
level of the customer. If a person has studied beyond matriculation and internet
savvy, he or she will be inclined to use the digital payment mode. It was also found
that in the areas/region where education level is high such as Delhi NCR and other
metropolitan area, the possibility of acceptance of digital payment is much higher.
The growth of users of Smartphone and internet penetration in such area also
facilitated the adoption of digital payment.

Ved Prakash Gulati (2017)

Study focuses about an Internet E-Commerce Payment Gateway is a critical
infrastructural component to ensure that such transactions occur without any hitches
and in total security over electronic networks. This component has multiple benefits
with critical ones being multiple payment options, secure transmission, multi-
currency settlements and rapid processing. While there are several payment gateways,
the paper proposes a National Internet e-Commerce Payment Gateway thatcan support
all banks and transactions.

Piyush Kumar and Dr. Dhani Shanker Chaubey (2017)

This study talks about the period when demonetization took place in India and in
those days how digital payment was adopted, about its opportunities, issues and
challenges. It talks about how behaviour of Indian society changed due to digital
payment.

Joyojit Prakash, Priyank Chandra (2018)

Using theoretical work on market and information behavior, we examined
environmental pushes for technology adoption against prevalent transactional
practices, trust, and control. We propose that the move toward digital payments must
be framed within a larger undertaking of technology-driven modernity that drives
these initiatives, rather than just the efficiency or productivity gains digital payments.

NN Murthy, BM Mehtre, KPR Rao (2016)

The study explains about the various components or subsystems making up the e-
commerce super system include Digital Payment Systems, Payment server, Payment
Gateway, Wallet, and security systems like Firewall and Intrusion Detection. Digital
Payment Systems include payment instruments like e-cheque, and credit cards. E-
Wallet is used to hold different payment instruments. Payment Server and Payment
Gateways help to realize the end-to-end payment in the electronic domain. Public

20
 Key Infrastructure is the necessary infrastructure required for effective operation of
ecommerce in real life applications.

K. Suma Vally, Dr. K. Hema Divya (2018)

The study is about how in recent days many changes took place in the payment system
like digital wallets, UPI and BHIM apps for smooth shift to digital payments.The
objective of this research paper is to study the positive impact that Digitization of
payment system. The present paper focuses on the analysis of the adoption level of
these digital payment systems by customers.

Singh, Grover (2017)

This study seeks to determine the dimensions of quality from the perspective of
“voice of the consumer”. It uses the Total Interpretive Structural Modelling (TISM)
with construct of Usefulness, Ease of Use, Security &Trust, Visual Appeal,
Complementary Relationship and Customer Service.

Sumathy, Vipin (2017)

The Digital India programme is a prestigious programme of the Government of India
with a vision to transform India into a digitally empowered society and to become a
knowledge economy. “Faceless, Paperless, Cashless” is one of professed role and
slogan of Digital India. As part of promoting cashless transactions and converting
India into less-cash society, various modes of digital payments are avai

Need of The Study

It is necessary to study on this concept to understand how people are aware and fine useful
to digital payment gateway. It is necessary to understand the significance, preference of
cashless transactions. The study particularly will be based on how it works, why it is
significant, and final analysis of the primary data collected.

21
 Chapter 4

DATA ANALYSIS OF AND INTERPRETATION

4.1 Percentage Analysis

The data which is collected from primary sources is presented in percentage and graphical
method.

Table 4.1: Gender

Valid Cumulative
Frequency Percent Percent Percent
Valid Male 106 53.0 53.0 53.0
Female 94 47.0 47.0 100.0
Total 200 100.0 100.0

Figure : 4.1 Data showing the respondents based on gender

Interpretation
The collected data shows that 53% of respondents are male and 47% respondents are female.

22
Table : 4.2 Age

Valid Cumulative
Frequency Percent Percent Percent
Valid 18 to 25 Years 90 45.0 45.0 45.0
26 to 35 Years 67 33.5 33.5 78.5
36 to 45 Years 37 18.5 18.5 97.0
46 Years and 6 3.0 3.0 100.0
above
Total 200 100.0 100.0

Figure 4.2 Data showing responses based on age

Interpretation
The collected data shows that 45% respondents are from age category 18 to 25 years.
Hence it is showing that most of the respondents are from youth generation.

23
 Table 4.3 Occupation

Valid Cumulative
Frequency Percent Percent Percent
Valid Student 57 28.5 28.5 28.5
Freelancer 54 27.0 27.0 55.5
Employee 71 35.5 35.5 91.0
Other 18 9.0 9.0 100.0
Total 200 100.0 100.0

Figure 4.3 Data based on Occupation

Interpretation
The majority of people are employee with 71% of total responses followed by student,
freelancer and other fields.

24
 Table 4.4 Income Level

Valid Cumulative
Frequency Percent Percent Percent
Valid 5000 to 10000 ₹ 18 9.0 9.0 9.0
10001 to 20000 ₹ 67 33.5 33.5 42.5
20001 to 30000 ₹ 20 10.0 10.0 52.5
30001 ₹ and 95 47.5 47.5 100.0
above
Total 200 100.0 100.0

Figure 4.4 Data based on income level

Interpretation
The majority of people that is 47.5% people belong from 30001 ₹ and above income
category. Followed by 33.5% and others.
25
Table 4.5 Awareness of UPI payment

Valid Cumulative
Frequency Percent Percent Percent
Valid Fully Aware 131 65.5 65.5 65.5
Partially 69 34.5 34.5 100.0
Aware
Total 200 100.0 100.0

Figure 4.5 Data Showing awareness of UPI

Interpretation
The above data shows that 65.5% respondents are fully aware of UPI Payment and 34.5%
respondents are partially aware of UPI

26
Table 4.6 Frequency to use UPI in a week

Valid Cumulative
Frequency Percent Percent Percent
Valid Less than 10 73 36.5 36.5 36.5
times
More than 10 127 63.5 63.5 100.0
times
Total 200 100.0 100.0

Figure 4.6 Data showing frequency to use UPI in a week

Interpretation
The data shows that 63.5% respondents use UPI for more than 10 times. 65% people do use
the UPI less than 10 times in a week.

27
Table 4.7 No. of years using UPI

Cumulative
Frequency Percent Valid Percent Percent
Valid Less than 1 year 14 7.0 7.0 7.0
1 to 2 years 18 9.0 9.0 16.0
2 to 3 years 54 27.0 27.0 43.0
3 years and above 114 57.0 57.0 100.0

Total 200 100.0 100.0

Figure 4.7 Data showing No. of years using UPI

Interpretation

The data shows that majority of respondents that is 57% are using UPI from more than 3
years or above.

28
Table 4.8 Familiar with UPI

Valid Cumulative
Frequency Percent Percent Percent
Valid Beginer 16 8.0 8.0 8.0
Average 40 20.0 20.0 28.0
Knowledge
Advanced 74 37.0 37.0 65.0
Knowledge
Expertise 70 35.0 35.0 100.0
Total 200 100.0 100.0

Figure 4.8 Data showing familiarness with UPI

Interpretation
The data above shows that 37% respondents are having advanced knowledge to use UPI as
it is a majority of responses.

29
Table 4.9 Cashback motivation

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 168 84.0 84.0 84.0
No 32 16.0 16.0 100.0
Total 200 100.0 100.0

Figure 4.9 Data showing cashback motivation

Interpretation

The above data shows that majority of people that is 84% get motivated by cashback. 16%
people shows that they do not get motivated from cashback.

30
Table 4.10 Problem of waiting time while transferring through UPI

Cumulative
Frequency Percent Valid Percent Percent
Valid Often 73 36.5 36.5 36.5
Rare 66 33.0 33.0 69.5
Never 61 30.5 30.5 100.0
Total 200 100.0 100.0

Figure 4.10 Data showing problem of problem of waiting time while transferring
through UPI

Interpretation
The data says that 36.5% people face problem of waiting oftenly while transferring the
money through UPI.

31
Table 4.11 Problem during login process

Cumulative
Frequency Percent Valid Percent
Percent
Valid Often 29 14.5 14.5 14.5
Rare 130 65.0 65.0 79.5
Never 41 20.5 20.5 100.0
Total 200 100.0 100.0

Figure 4.11 Data showing problem during login process of UPI

Interpretation

In above data the majority of people says that they rarely face the problems during UPI login
process that is 65% respondents.

32
Table 4.12 The UPI Payment is fully secured.

Valid Cumulative
Frequency Percent Percent Percent
Valid Strongly Agree 75 37.5 37.5 37.5
Agree 67 33.5 33.5 71.0
Neither agree nor 6 3.0 3.0 74.0
disagree
Disagree 20 10.0 10.0 84.0
Strongly Disagree 32 16.0 16.0 100.0
Total 200 100.0 100.0

Figure 4.12

Interpretation

Majority of respondents strongly agree that UPI payment is fully secured.

33
Table 4.13 There are too many steps involved while processing the transaction
through UPI.

Valid Cumulative
Frequency Percent Percent Percent
Valid Strongly Agree 55 27.5 27.5 27.5
Agree 72 36.0 36.0 63.5
Neither agree nor 19 9.5 9.5 73.0
disagree
Disagree 39 19.5 19.5 92.5
Strongly Disagree 15 7.5 7.5 100.0
Total 200 100.0 100.0

Figure 4.13 Data showing the responses based on likert scale

Interpretation
The above data shows that the majority of people that is 36% says that they do agree for the
statement that there are too many steps involved while processing the transaction through
UPI.
34
Table 4.14 Please rate the easy use of UPI (5 is considered as Very Easy and 1 is
considered as not easy at all)

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 2 1.0 1.0 1.0
2 2 1.0 1.0 2.0
3 12 6.0 6.0 8.0
4 106 53.0 53.0 61.0
5 78 39.0 39.0 100.0
Total 200 100.0 100.0

Figure 4.14 Data showing the responses on the basis of rating

Interpretation
The above data shows that 53% of the respondents are agree that using UPI is an easy
process.

35
 Table 4.15 The service provided by UPI is convenient (5 - very convenient, 1- Not
convenient at all)

Frequency Percent Valid Percent Cumulative Percent

Valid 1 11 5.5 5.5 5.5
2 11 5.5 5.5 11.0
3 35 17.5 17.5 28.5
4 71 35.5 35.5 64.0
5 72 36.0 36.0 100.0
Total 200 100.0 100.0

Figure 4.15 Data showing the rating on the basis of convenience of UPI services

Interpretation
The present data shows that 36% people of total respondents gave the rating of 5 as they
are strongly saying UPI is a convenient services.

36
Table 4.16 The UPI System Services provide good layout. (5 - Very Good, 1 - Not good
at all)

Valid Cumulative
Frequency Percent Percent Percent
Valid 1 12 6.0 6.0 6.0
2 12 6.0 6.0 12.0
3 12 6.0 6.0 18.0
4 94 47.0 47.0 65.0
5 70 35.0 35.0 100.0
Total 200 100.0 100.0

Figure 4.16 Data showing rating given by respondents based on UPI layout

Interpretation

The above data shows that majority of people that is 35% people gives the rating of 4 for
UPI layout.

37
Table 4.17 The UPI service contribute to the customer needs. (5 - Strongly yes, 1 - Not
at all)

Frequency Percent Valid Percent Cumulative

Percent
Valid 1 12 6.0 6.0 6.0
2 12 6.0 6.0 12.0
3 12 6.0 6.0 18.0
4 83 41.5 41.5 59.5
5 81 40.5 40.5 100.0
Total 200 100.0 100.0

Figure 4.17 Data based on rating of responses

Interpretation

As per above the data, most respondents gives the rating of 4 for the UPI service contribution
towards customer needs.

38
Table 4.18 Rating for PayTM (1 - Very Bad, 5 - Very Good)

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 8 4.0 4.0 4.0
2 12 6.0 6.0 10.0
3 33 16.5 16.5 26.5
4 68 34.0 34.0 60.5
5 79 39.5 39.5 100.0
Total 200 100.0 100.0

Figure 4.18 Data showing rating for PayTM

Interpretation

The above data showing the majority of respondents that is 39.5% people gives the rating of
5 for PayTM services.

39
Table 4.19 Google Pay

Cumulative
Frequency Percent Valid Percent
Percent
Valid 1 12 6.0 6.0 6.0
2 12 6.0 6.0 12.0
3 37 18.5 18.5 30.5
4 90 45.0 45.0 75.5
5 49 24.5 24.5 100.0
Total 200 100.0 100.0

Figure 4.19 Data showing the rating for Google Pay

Interpretation

45% people have given the rating of 4 for Google Pay services.

40
 Table 4.20 PhonePe

Cumulative
Frequency Percent Valid Percent
Percent
Valid 1 12 6.0 6.0 6.0
2 12 6.0 6.0 12.0
3 12 6.0 6.0 18.0
4 101 50.5 50.5 68.5
5 63 31.5 31.5 100.0
Total 200 100.0 100.0

Figure 4.20 Data showing rating for PhonePe

Interpretation

50.5% people gives the rating of 4 to the PhonePe UPI services

41
Table 4.21 Amazon Pay

Frequency Percent Valid Percent Cumulative Percent

Valid 1 12 6.0 6.0 6.

2 12 6.0 6.0 12.
3 24 12.0 12.0 24.
4 75 37.5 37.5 61.
5 77 38.5 38.5 100.
Total 200 100.0 100.0

Figure 4.21 Data based on rating given for Amazon Pay

Interpretation
The data indicates that most of the people have given the rating of 5 for Amazon Pay
services.

35
 Table 4.22 LazyPay

Frequency Percent Valid Percent Cumulative Percent

Valid 1 12 6.0 6.0 6.0
2 12 6.0 6.0 12.0
3 36 18.0 18.0 30.0
4 74 37.0 37.0 67.0
5 66 33.0 33.0 100.0
Total 200 100.0 100.0

Figure 4.22 Data based on rating given for LazyPay

Interpretation

According to collected data, most of the respondents have given the rating of 4 for LazyPay.

36
Table 4.23 Paypal

Frequency Percent Valid Percent Cumulative Percent

Valid 1 12 6.0 6.0 6.0
2 12 6.0 6.0 12.0
3 36 18.0 18.0 30.0
4 88 44.0 44.0 74.0
5 52 26.0 26.0 100.0
Total 200 100.0 100.0

Figure 4.23 Data showing rating given for Paypal

Interpretation

According to collected data, majority of respondents gives the rating of 4 for Paypal UPI
payment service.

37
Table 4.24 MobiKwik

Frequency Percent Valid Percent Cumulative Percent

Valid 1 12 6.0 6.0 6.0
2 12 6.0 6.0 12.0
3 24 12.0 12.0 24.0
4 77 38.5 38.5 62.5
5 75 37.5 37.5 100.0
Total 200 100.0 100.0

Figure 4.24 Data based on the rating provided by respondents for MobiKwik

Interpretation

As per collected data 38.5% people have given the rating of 4 for Mobikwik services.

38
Table 4.25 Preference of UPI payment for Bill payments

Frequency Percent Valid Percent Cumulative Percent

Valid 1 12 6.0 6.0 6.0
2 12 6.0 6.0 12.0
3 12 6.0 6.0 18.0
4 50 25.0 25.0 43.0
5 114 57.0 57.0 100.0
Total 200 100.0 100.0

Figure 4.25 Preference of Bill payment through UPI

Interpretation
According to collected data, majority of respondents prefer for Bills payments.

39
Table 4.26 Preference of UPI for Recharge of phones, DTH services

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 12 6.0 6.0 6.0
2 12 6.0 6.0 12.0
3 12 6.0 6.0 18.0
4 48 24.0 24.0 42.0
5 116 58.0 58.0 100.0
Total 200 100.0 100.0

Figure 4.26 Preference of UPI for Recharges of phones, DTH services

Interpretation
58% of total respondents majorly prefer for Mobile phone recharges and DTH service
recharges.

40
Table 4.27 Preference of UPI payment for Movie, bus, train booking.

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 12 6.0 6.0 6.0
2 12 6.0 6.0 12.0
3 12 6.0 6.0 18.0
4 116 58.0 58.0 76.0
5 48 24.0 24.0 100.0
Total 200 100.0 100.0

Figure 4.27 Data based on preference of UPI payment for movie, bus, train booking

Interpretation

According to data 58% people prefer the UPI most for Bus, Train and Movie booking.

41
Table 4.28 Online Payment of food orders.

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 12 6.0 6.0 6.0
2 12 6.0 6.0 12.0
3 23 11.5 11.5 23.5
4 104 52.0 52.0 75.5
5 49 24.5 24.5 100.0
Total 200 100.0 100.0

Figure 4.28 Data based on preference of UPI payment for food orders

Interpretation

The collected data indicates 52% of the total respondents have given the rating of 4 for the
preference of UPI payment for food orders.

42
Table 4.29 Preference of payment through UPI at the shops

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 12 6.0 6.0 6.0
2 12 6.0 6.0 12.0
3 49 24.5 24.5 36.5
4 62 31.0 31.0 67.5
5 65 32.5 32.5 100.0
Total 200 100.0 100.0

Figure 4.29 Data showing preference of UPI payment at the shops

Interpretation
As per collected data majority of respondents says that they prefer most to pay through UPI
at the shops.

43
 Reliability Analysis

By including all variables of the data, the Reliability Test is to be considered.

Following table shows the validity of the data collected from total respondents.

Table 4.30

N %
Cases Valid 200 100.0
Excludeda 0 .0
Total 200 100.0
a. Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's Alpha N of Items

.879 25

Cronbanch’s Alpha X 100

0.879 X 100

= 87.9%

Interpretation
The calculated data indicates that 87.9% of the data is reliable considering all the responses.

44
 Factor Analysis

The individual statements based on likert scale and rating examined using factor analysis
which is based on 11 individual statements.

Table 4.32
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .750

Bartlett's Test of Sphericity Approx. Chi-Square 1632.198

df 55
Sig. .000

Interpretation

KMO measure of sampling adequacy is an index to examine the appropriateness of factor

analysis. High values between 0.5 and 1.0 indicate factor analysis is appropriate. Values
below 0.5 imply that factor analysis may not be appropriate. From the above table it is seen
that Kaiser – Meyer – Olkin measure of sampling adequacy index is 0.750 and hence the
factor analysis is appropriate for the given data set. Bartlett‘s Test of Sphericity is used to
examine the hypothesis that the variables are uncorrelated. It is based on chi- Square
transformation of the determinant of correlation matrix. A large value of the test statistic will
favor the rejection of the null hypothesis. In turn this would indicate that factor analysis is
appropriate. Bartlett‘s test of Sphericity Chi-square statistics is 1632.198, hence as inferred
in KMO, factor analysis is appropriate for the given data set.

45
Table 4.33

Total Variance Explained

Rotation
Sums of
Extraction Sums of Squared Squared
Initial Eigenvalues Loadings Loadingsa
Compone
% of Cumulativ % of Cumulativ
nt Total Total Total
Variance e% Variance e%
1 4.440 40.361 40.361 4.440 40.361 40.361 4.425
2 2.147 19.514 59.876 2.147 19.514 59.876 2.242
3 1.108 10.070 69.946 1.108 10.070 69.946 1.143
4 .961 8.740 78.686
5 .846 7.691 86.377
6 .468 4.258 90.635
7 .416 3.778 94.413
8 .315 2.864 97.277
9 .197 1.789 99.066
10 .073 .660 99.726
11 .030 .274 100.000
Extraction Method: Principal Component Analysis.
a. When components are correlated, sums of squared loadings cannot be added to obtain a total
variance.

Interpretation
Eigen Value represents the total variance explained by each factor. Percentage of the total
variance attributed to each factor. All the 11 statements which is used for the study is now
reduced and grouped into 4 components which has similarity. Out of 4 components
generated, Component 1 contributed 40.361%, component 2 contributed 59.876%,
Component 3 contributed 69.946. All these contributions cumulatively stand for an overall
contribution of 69.946%.

46
Table 4.34

Component Matrixa
Component
1 2 3
The UPI Payment is fully secured. .023 .074 .663
There are too many steps involved .081 -.089 .791
while processing the transaction
through UPI.
Please rate the easy use of UPI (5 is .285 .348 .128
considered as Very Easy and 1 is
considered as not easy at all)
The service provided by UPI is .135 .830 -.026
convenient (5 - very convenient, 1-
Not convenient at all)
The UPI System Services provide .086 .801 .099
good layout. (5 - Very Good, 1 - Not
good at all)
The UPI service contribute to the .123 .802 -.112
customer needs. (5 - Strongly yes, 1 -
Not at all)
Rate the purpose of your UPI use (5 .941 -.040 -.045
- Most preferable, 1 - Do not prefer
at all) [Bill Payments]
Rate the purpose of your UPI use (5 - .931 -.045 -.024
Most preferable, 1 - Do not prefer at
all) [Recharges]
Rate the purpose of your UPI use (5 .937 -.080 .000
- Most preferable, 1 - Do not prefer
at all) [Movie, Bus, Train Booking]
Rate the purpose of your UPI use (5 .940 -.116 -.015
- Most preferable, 1 - Do not prefer
at all) [Food orders]
Rate the purpose of your UPI use (5 - .892 -.123 -.032
Most preferable, 1 - Do not prefer at
all) [Paying at shops]
Extraction Method: Principal Component Analysis.
a. 3 components extracted.

47
Interpretation
Interpretation of factors is facilitated by identifying the statements that have large loadings
in the same factor. The factor can be interpreted in terms of the statement that loads high on
it. The factors of a study on to contribute the factors and influence factors that affect to
purchase online comprises of 11 individual statements. Out of 11 statements, 3 individual
statements contribute more towards the study (69.946%)

The extracted statements/factors are

• The preference of people is payment through UPI for Bill payments.
• The preference of people is payment through UPI for payment for online food orders.
• The preference of people is payment through UPI for payment for train bookings,
bus bookings and movie ticket bookings.

48
4.4 Chi-Square Tests

Association between Gender and awareness of UPI services way of Dimension

Hypothesis

H0 – There is no relationship between gender and awareness of UPI

services.H1 – There is a relationship between gender and awareness of UPI
services.

Independent Variable is Gender and dependent variable is considered as awareness of UPI

services.

Table 4.35a
Gender * Awareness of UPI Crosstabulation

Awareness of UPI

Fully Aware Partially Aware Total

Gender Male Count 74 32 106
Expected Count 69.4 36.6 106.0

Female Count 57 37 94
Expected Count 61.6 32.4 94.0

Total Count 131 69 200

Expected Count 131.0 69.0 200.0

Interpretation
From the above calculation of cross tabulation, we have tried to find out the inter-relationship
between gender which is an independent variable and awareness of UPI services which is
dependent variable. The table shows the responses collected from male and female gender
individually.

49
 Table 4.35b

Chi-Square Tests
Asymptotic
Significance Exact Sig. (2- Exact Sig. (1-
Value df sided) sided)
(2-sided)
Pearson Chi-Square 1.855a 1 .173
Continuity Correctionb 1.471 1 .225
Likelihood Ratio 1.855 1 .173
Fisher's Exact Test .183 .113
Linear-by-Linear 1.846 1 .174
Association
N of Valid Cases 200
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 32.43.
b. Computed only for a 2x2 table

Symmetric Measures
Approximate
Value
Significance
Nominal by Nominal Phi .096 .173
Cramer's V .096 .173
N of Valid Cases 200

Interpretation
• The value of Pearson Chi-Square is 1.855
• The corresponding p-value of the test statistics p= 0.173
• Since the value of p is more than criteria value of significance level (0.05)
• The Null hypothesis (H0) is accepted in this test.
• It indicates that there is no relationship between gender and problem of waiting
time during transferring the money online. (H0).

50
 Correlation analysis

Hypothesis statement: There is no significance relationship between gender

and purpose of using the UPI. (Money transfer)

Ho1: There is no significance relationship between gender and purpose of using

the UPI. (Money transfer)

H11: There is a significance relationship between gender and purpose of using

the UPI. (Money transfer)

Correlation between gender and purpose of using the UPI. (Money

transfer)

Table 4.36

Correlationsa

Gender Bill Payments

Gender Pearson Correlation 1 -.049

Sig. (2-tailed) .489

Bill Payments Pearson Correlation -.049 1

Sig. (2-tailed) .489

a. Listwise N=200

Interpretation

The value of test statistics (Pearson correlation) is -0.049, indicating a negative

correlation. The corresponding p-value of test statistics is p=0.489. Since the value
of p is higher than criteria value of significance level (p=0.05), we do not reject the
null hypothesis. Therefore, it can be stated that there is significant no relationship
gender and purpose of using the UPI. (Money

51
 Ho2: There is no significance relationship between gender and purpose of using
the UPI. (Recharges)

H12: There is a significance relationship between gender and purpose of using

the UPI. (Recharges)

Correlation between gender and purpose of using the UPI. (Recharges)

Table 4.37

Correlationsa
Gender Recharges

Gender Pearson Correlation 1 -.049

Sig. (2-tailed) .494

Recharges Pearson Correlation -.049 1

Sig. (2-tailed) .494

a. Listwise N=200

Interpretation

The value of test statistics (Pearson correlation) is -0.049, indicating a negative

correlation. The corresponding p-value of test statistics is p=0.494. Since the value
of p is higher than criteria value of significance level (p=0.05), we do not reject the
null hypothesis. Therefore, it can be stated that there is significant no relationship
gender and purpose of using the UPI. (Recharges)

52
Ho3: There is no significance relationship between gender and purpose of using
the UPI. (Movie, Bus, Train Booking)

H13: There is a significance relationship between gender and purpose of using

the UPI. (Movie, Bus, Train Booking)

Correlation between gender and purpose of using the UPI. (Movie,

Bus, Train Booking)
Table 4.38

Correlationsa
Movie, Bus, Train
Gender
Booking

Pearson
Gender 1 -.065
Correlation

Sig. (2-tailed) .359

Pearson
Movie, Bus, Train -.065 1
Correlation
Booking
Sig. (2-tailed) .359

a. Listwise N=200

Interpretation

The value of test statistics (Pearson correlation) is -0.065, indicating a negative

correlation. The corresponding p-value of test statistics is p=0.359. Since the value
of p is higher than criteria value of significance level (p=0.05), we do not reject the
null hypothesis. Therefore, it can be stated that there is significant no relationship
gender and purpose of using the UPI. (Movie, Bus, Train Booking)

53
 Ho4: There is no significance relationship between gender and purpose of using
the UPI. (Food orders)

H14: There is a significance relationship between gender and purpose of using

the UPI. (Food orders)

Correlation between gender and purpose of using the UPI. (Food

orders)

Table 4.39

Correlationsa
Gender Food orders

Gender Pearson Correlation 1 -.057

Sig. (2-tailed) .421

Food orders Pearson Correlation -.057 1

Sig. (2-tailed) .421

a. Listwise N=200

Interpretation

The value of test statistics (Pearson correlation) is -0.057, indicating a negative

correlation. The corresponding p-value of test statistics is p=0.421. Since the value
of p is higher than criteria value of significance level (p=0.05), we do not reject the
null hypothesis. Therefore, it can be stated that there is significant no relationship
gender and purpose of using the UPI (Food orders).

54
 Ho4: There is no significance relationship between gender and purpose of using
the UPI. (Paying at shops)

H14: There is a significance relationship between gender and purpose of using

the UPI. (Paying at shops)

Correlation between gender and purpose of using the UPI (Paying at shops)
Table 4.40

Correlationsa
Paying at
Gender shops

Gender Pearson 1 -.055

Correlation

Sig. (2-tailed) .435

Paying at shops Pearson -.055 1

Correlation

Sig. (2-tailed) .435

a. Listwise N=200

Interpretation

The value of test statistics (Pearson correlation) is -0.055, indicating a negative

correlation. The corresponding p-value of test statistics is p=0.435. Since the value
of p is higher than criteria value of significance level (p=0.05), we do not reject the
null hypothesis. Therefore, it can be stated that there is significant no relationship
gender and purpose of using the UPI (Paying at shops)

55
 Linear Regression

Hypothesis statement: Impact of the UPI service and service contribute to the
customer needs.

Table 4.41

Model Summary

Adjusted R Std. Error of

Model R R Square Square the Estimate

1 .332a .110 .078 1.073

a. Predictors: (Constant), Mobikwik, PayTm, Google Pay,

Lazy Pay, PhonePe, Amazon Pay, Paypal

Above table shows the multiple regressions of UPI service and service contribute
to the customer needs. The model summary table shows R-square for this model is
0.110. This means that 11 percentage of the variation in UPI service and service
contribute to the customer needs can be explained by seven independent variable.
Table also shows Adjusted R Square for the model 0.078 and Std. Error of the
Estimate 1.073.

Table 4.42

ANOVAa
Sum of
Model Squares df Mean Square F Sig.

1 Regression 27.423 7 3.918 3.401 .002b

Residual 221.172 192 1.152

Total 248.595 199

a. Dependent Variable: The UPI service contribute to the customer needs. (5 -

Strongly yes, 1 - Not at all)

b. Predictors: (Constant), Mobikwik, PayTm, Google Pay, Lazy Pay, PhonePe,

Amazon Pay, Paypal

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 The ANOVA Table, as showed in the above table shows the F proportion for the
regression model that demonstrates the factual criticalness of the general regression
model. The F proportion is determined as a similar route for the regression model
examination. The difference Independent variable that is related to a subordinate
variable is alluded to as clarified fluctuation. The rest of the absolute change in
Independent variable that isn't related with subordinate variable is alluded as
unexplained fluctuation. The larger the F ratio the more will be the variance in the
dependent variable that is associated with the independent variable. The F ratio
=3.401. The statistical significance is .002 - the “Sig”. So we can rejectthe null
hypothesis that no relationship exists between the two variables. There is
relationship between independent and dependent variables.

Table 4.43

Coefficientsa
Unstandardized Coefficients Standardized Coefficients
Model t Sig.
B Std. Error Beta

(Constant) 2.566 .430 5.961 .000

PayTm .325 .074 .314 4.390 .000

Google Pay -.090 .137 -.087 -.660 .510

PhonePe .087 .298 .084 .293 .770

1
Amazon Pay .049 .287 .050 .171 .864

Lazy Pay .451 .303 .456 1.490 .138

Paypal -.700 .396 -.680 -1.767 .079

Mobikwik .226 .268 .229 .844 .400

a. Dependent Variable: The UPI service contribute to the customer needs. (5 - Strongly
yes, 1 - Not at all)

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 The regression model of the following form has been used
Y=a+b1x1+b2x2+b3x3+b4x4+b5x5 In the output of regression model, the value
of B gives all the coefficients of the model are as follows
• (constant)= 2.566
• b1=0.325
• b2=-0.090
• b3=0.087
• b4=-0.049
• b5=0.451
• b6=-0.700
• b7=0.226
These values can be substituted to get the value of Y (Services) = 2.566+0.325
(PayTm) -0.090(Google Pay) + 0.087 (PhonePe) - 0.049 (Amazon Pay) +
0.451(Lazy Pay) -0.700(Paypal) + 0.226(Mobikwik)
The significance level is observed to be 0.02, indicating that the model is
statistically significant.
F-value gives the fair amount of association among the variables. ANOVA
model has given an F-value of 3.918, and its significance level is 0.02. This
indicates the strength of the regression model.

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 Chapter 5

SUMMARY OF FINDINGS, SUGGESTION AND CONCLUSION

Summary of Findings
Unified Payments Interface (UPI) is one of the most significant disruptions in the payments
industry in India. As with any new technology, problems persist until UPI becomes stable. It
is predicted that cards will be history within upcoming 5 years. Until then, cards are likely to
co-exist with mobile payments until the latter becomes mature, reliable and scaleable. Cards
may also still live as legacy international standard until global standards on mobile payments
evolve.
Meanwhile, in response to UPI’s rise, we have mVISA and Masterpass. In the first phase,
UPI is restricted to banks and its partners. The recent controversy involving PhonePe and
ICICI bank has demonstrated that not all banks are really keen on partnerships as this implies
losing territory to startups and private players.
In the current design, PSPs (i.e., banks) can give a separate API to anyone to build UI and for
limited functionality (collect alone) apps. There is also a passing mention about opening up
UPI for independent developers.
UPI as a platform must also mature technically before opening up layers for developers. This
is important so that customers don’t get exposed to the beta-platform.
A majority of digital transactions in India is fulfilled by UPI. According to a recent KPMG
report, the global digital payments market is expected to touch $10.07 trillion by 2026. From
close to 1.5 million locations accepting digital payments in 2016-17, the number of
merchants accepting digital payments modes has increased to over 10 million. The path to
achieving these numbers lie in the hinterlands, where the masses still pay in cash and use
feature phones that restrict online transactions. Converting offline payments to online mode
will be important in achieving this growth.
The secret sauce behind digitisation is the rapid adoption of technology that becomes a
solution only after it solves a specific challenge. UPI has been hailed as the future of digital
payments in India, a solution that’s adding newness, stirring an uprising of new world order
in payments.
Seems like Karnataka has been pushing the right buttons. 30.10% of India’s digital
transaction makes the southern heart the numero-uno in UPI transactions. Namma Bengaluru

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lived up to its name and gobbled 40.06% of UPI transactions among the top 15 cities of India.
Maharashtra has seen a steady flow of 14.37% of UPI transactions, while Pune contributed
8.7% towards the growth. No rest for the growth rate in Andhra Pradesh, as thenumbers pile
up to a healthy 11.90%, which makes Hyderabad the second most-digitised city after
Bengaluru.
Interpretations and Findings

Reliability Analysis
The calculated data indicates that 87.9% of the data is reliable considering all the responses.

Findings based on simple percentage analysis

• The collected data shows that 53% of respondents are male and 47% respondents are
female.
• Majority of people that is 45% of respondents belong from 18 to 25 age category.
• 47.5% respondents are having income level of 30001 ₹ and above.
• The majority of people are employee with 71% of total responses.

Findings based on Factor Analysis

Out of 11 statements, 3 individual statements contribute more towards the study (69.946%)

The extracted statements/factors are

➢ The preference of people is payment through UPI for Bill payments.
➢ The preference of people is payment through UPI for payment for online food orders.
➢ The preference of people is payment through UPI for payment for train bookings,
bus bookings and movie ticket bookings.

• Findings based on Chi-Squared Tests

✓ There no relationship between gender and awareness of using UPI.

• Findings based on Correlation Tests

✓ There is significant no relationship gender and purpose of using the UPI. (Money
Transfer)
✓ There is significant no relationship gender and purpose of using the UPI. (Recharges)
✓ There is significant no relationship gender and purpose of using the UPI. (Movie,
Bus, Train Booking)
✓ There is significant no relationship gender and purpose of using the UPI (Food
orders).
✓ There is significant no relationship gender and purpose of using the UPI (Paying at
shops.

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61
 Conclusion

Bankers are divided on the UPI story so far. One group believes UPI is only attracting deal-
who will switch back to traditional methods of payments once the deals are gone. Others say
the cashbacks and rewards are essential to creating new habits and onboarding users on to
digital payments in a country where cash still rules. That while payments to merchants are
desirable as they create value, incentives are necessary to chart a path toward that.
UPI has brought a big change in peerto-peer payments and a lot of recurring cash transactions
have perhaps moved to UPI. This is a big positive for the payments ecosystem,” said Sujatha
Mohan, head of digital and new initiatives at RBL Bank, which runs its own UPI app named
BHIM RBL Pay. “Merchant adoption on an interoperable manner has begun but is not at
scale. If scale is achieved then this payment method (UPI) will be as ubiquitous as a (credit
or debit) card. Industry estimates suggest that more than 90% of UPI transactions are peerto-
peer. Regulators do not differentiate peer-to-peer payments and payments to merchants under
UPI transaction data.

BHIM registered impressive transaction volumes initially, because of its novelty factor as
well as the referral bonuses the government announced for drawing more people to the app.
That in itself was a novelty.

The Reserve Bank of India (RBI) has been trying hard to make the Indian economy a ‘cash
free economy’. It is finding ways to reduce the transactions based on cash in the entire
financial system. The UPI system seeks to make the transfers of money easy, convenient,
hassle-free and safe. As of now, 29 major banks are a part of the UPI system out of which 15
banks have already started integrating the interface into their smart phone apps and this
number will multiply very fast as the system gains popularity.
In conclusion, ETF or Digital Payment Gateway have been around for many years and the
economy has greatly benefited from this technological advance. An electronic payment
system such as credit cards has facilitated monetary transactions and even provides a way to
finance everyday purchases through credit. Because of this, bitcoins are gaining popularity
but there are still many questions and considerations of a virtual economy. However, the risk
of identity thefts, market euphoria, and privacy issues will always exists. As history has
showed us, new technology can cause irrational exuberance that only leads to overvalued
securities and ultimately end in a financial collapse. Nonetheless, new financial technology
is not yet perfected and can be very costly. But with new innovations and proper usage,
financial technology can be the key to successfully managing one’s money. The number of
transactions via real-time payments system, the Unified Payments Interface (UPI), were 1.2

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times higher than the number of debit card transactions in 2018-19, according to the Reserve
Bank of India's annual report.
According to the report, there were as many as 5.35 billion UPI-based transactions, compared
to 4.41 billion debit card payments. In a first, UPI-based transactions overtook debit card
payments, indicating a shift in consumers' choices and preferences as far as digitalpayments
are concerned. Besides UPI and debit cards, National Electronic Fund Transfer (NEFT),
prepaid payment instruments such as wallets, internet banking are some other popular e-
payment options.
The jump is phenomenal, considering UPI was launched three years ago by the RBI-backed
National Payments Corporation of India. During 2017-18, there were 915.2 million UPI
transactions, compared to 3.34 billion debit card transactions.
During 2018-19, the number of card payment transactions carried out through credit cards
and debit cards was 1.8 billion and 4.4 billion, respectively. Prepaid instruments recorded
about 4.6 billion transactions worth ₹2.12 trillion.
“The acceptance infrastructure also witnessed substantial growth, the number of point of sale
(POS) terminals increased by 21% to 3.72 million at the end of March 2019, from 3.08
million at the end of March 2018. However, during the same period, the number of ATMs
witnessed a decline from 222,247 to 221,703," the annual report said.
Another popular mode of electronic payments, mainly used by businesses, NEFT system
handled 2.3 billion transactions worth ₹228 trillion in 2018-19, up 19.1% in terms of volume
and 32.3% in terms of value against the year ago. The report said the NEFT facility was
available through 144,927 branches of 209 banks.
In a boost to the government’s digital payment plan, the banking regulator said it will make
online payment system NEFT available 24x7 from December.
The report also said that the next-generation NEFT will lead to higher degree of automation
and state-of the-art features ensuring conformity to global standards. “Introduction of ISO
20022 messaging format in NEFT would standardise messages across the payment and
settlement systems and ensure interoperability between payment systems. The Reserve Bank
will consolidate its network and storage for easier manageability and monitoring," it said.

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Suggestion

• As times and resources were one of the critical factors limiting the study, future
research should apply more timeframe and allocate more resources to conduct the
study in Bangalore city to obtain larger sample size to better represent the overall
consumer population in Bangalore.
• Study should include more variables that able better understanding about its effects
on consumer’s choice of preference as it will help consumers population purchasing
behaviour through Unified Payment Interface.
• There are other UPI service providers other than considered in to this study which
should be included in future studies.
• Majority of the responses belong to student; the suggestion is to concentrate on equal
occupational status for better understanding the intension to preference towards UPI
payment services.
• This study was majorly focused on Unified Payment Interface only. In future analysis
to maintain the comparative analysis it is necessary to take some more way of
payments.

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Websites
Digital Payment Systemhttps://www.priyankc.com/
Mobile Wallet Paymenthttps://patents.google.com/patent/US8041338B2/en

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