PROJECT REPORT

( Submitted for the degree of B.COM Honours in Accounting and Finance under the University of
Calcutta)

TITLE OF THE PROJECT

DIGITAL PAYMENT

SUBMITTED BY
Name of the Candidate: SHAMBHU VYAS

Registration Number: 235-1111-0522-17

College Roll Number: 578

C.U Roll Number: 171235-21-0228

Name of the college: TARADEVI HARAKCHAND KANKARIA JAIN COLLEGE

SUPERVISED BY
Name of the Supervisor: Prof. SAPTARSHI CHAKRABORTY

Name of the college: TARADEVI HARAKCHAND KANKARIA JAIN COLLEGE

MONTH & YEAR OF SUBMISSION

June , 2020
Annexure-1B

Student’s Declaration
I hereby declare that the Project Work with the title DIGITAL PAYMENT submitted by me for the
partial fulfilment of the degree of B.COM . Honours in Accounting & Finance under the University of
Calcutta is my original work and hasn’t been submitted earlier to any other University/Institution for
the fulfilment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole part has been incorporated in this report
from any earlier work done by other or by me. However, extracts of any literature which has been
use for this report has been duly acknowledge providing details of such literature in the references.

Signature:

Place : KOLKATA Name: SHAMBHU VYAS

Address:7, BYSAK LANE , 4TH FLOOR,

KOLKATA-7000007

Registration No.-235-1111-0522-17

CU ROLL NO.-171235-21-0228

College Roll No.-578

Annexure-IA

SUPERVISOR’S CERTIFICATE
This is to certify that MR. SHAMBHU VYAS a student of B.Com Honours in Accounting & Finance of
TARADEVI HARAKCHAND KANKARIA JAIN COLLEGE under the University of Calcutta has
worked under my supervision and guidance for her project work and prepared a Project Report with the title
DIGITAL PAYMENT which she is submitting, is her genuine and original work to the best of my knowledge.

Place: Signature:

Date: Name: Prof. SAPTARSHI

CHAKRABORTY

Designation: FACULTY OF THK JAIN

COLLEGE

Name of the College: TARADEVI

HARAKCHAND KANKARIA JAIN COLLEGE
 ACKNOWLEDGEMENT
This is to express my earnest gratitude and extreme joy at being bestowed with an opportunity to get an
interesting and informative project. It is impossible to thank all the people who have helped me in
completion project, but I would avail this opportunity to express my profound gratitude and
indepthness to the following people for all the help they have given me.

I am extremely grateful to our College Principal DR .MAUSAMI SINGH SENGUPTA

Our H.O.D of commerce department Dr. ASIT KUMAR MONDAL , I wish to express my sincere
gratitude to my Project Guide and Co-ordinator Prof. SAPTARSHI CHAKRABORTY who has
given me an opportunity to work on such an interesting project. She proved to be a constant source of
inspiration to me and provided constructive comments on how to make this project better. It is a great
pleasure to express my indepthness to my resopectedtracherseho have enriched my academic
knowledge and outlook.
I am also grateful to my parents who have inspired me to improve the merit of project work after
providing sufficient funds required printing, to bind, etc. for the project work. Credit also goes to my
friends whose constant encouragement let me in good stead.

WITH REGARDS
SHAMBHU VYAS
BCOM 3 YEAR (HONOURS)
 CONTENT
SL No. Chapt Particulars Page
er No. No.
1 1 INTRODUCTION
1.1 The Current Monetary System and Its Drawback 6-7
1.2 Problems of Current Indian Economy 7
1.3 Research Methodology 7
1.3.1 Data collection 7
1.4 Literature Review 8
2 2 CONCEPTUAL FRAMEWORK & NATIONAL SCENARIO
2.1 Digital Economy 9
2.2 Ways of Paying Money 9-12
2.3 Government Initiatives 13-14
2.4 Benefits & Drawbacks of Shifting to a cashless economy
2.4.1 Benefits 14-17
2.4.2 Challenges to be faced 17-18
2.5 Difference between Cash payment and Digital payment. 19
2.6 Demonetization 20
3 3 PRESENTATION,ANALYSIS & FINDINGS
3.1 Secondary Data Analysis 22-26
3.2 Primary Data Analysis 27-38
3.3 Finding & Analysis 39
3.4 Limitations 40
4 4 CONCLUSION & RECOMMENDATIONS
4.1 Conclusion 41
4.2 Recommendations 42
4.3 Bibliography 43
5 Annexure 44-45
 CHAPTER-1
INTRODUCTION

1.1 THE CURRENT MONETARY SYSTEM AND IT’S DRAWBACK

Most economics in the world have a central bank or an authority that reserves the right to
manufacture paper and metal currency and is responsible to assure the bearer of its
assigned value. While this might come across as a fairly easily understandable system at any
instant is guided by the market force of demand and supply and the central authority in
charge regulates the flow of cash into (or out of) the market.
Cash, however, is only the physical instantiation of money. The reason why cash has been a
popular form of exchange for such a long time is because of the tangibility that it provides to
the entire idea of money. But does money really need to have a physical form that people
could identify with?

Perhaps not.
Here are some major drawbacks of cash-
▪ Paper money is of no value outside the country of issue. Gold and silver coins are
accepted even by foreigners, as they have got some instrinsic value.
▪ There is a possibility of the damage to paper. Fire may burn it; if the place is
flooded,toit is gone; it may also be eaten up by white ants.
▪ A serious drawback in paper currency is the ease with which it can be issued. There is
always a danger of its over-issue when the government is in financial difficulties.
▪ Hand to hand currency is favoured by criminals as it does not leave a paper trail.
▪ Monitoring of tax compliance is difficult for the government.
▪ Cash transaction are not traceable in nature,thus providing no transparency. This
leads to corrupt practices and financial crimes such as excessive money laundering.
▪ Cash is expensive to print, inspect, move, store and guard.
▪ Counterfeiting is always going to be a problem as long as paper currency exists.

In wake of the issues highlighted above, some governments are already viewing the use of
cash in a negative light. In fact, according to the U. S. Government, cash payments are now
thought of as ‘suspicious’ activity that needs to be reported to the authorities.
1.2 Problems of the Current Indian Economy
▪ Tremendous population pressure is one of the main Indian Economy problem.
▪ The modern Indian Economy is quiet fragile and unstable.
▪ So much taxes exist that it is tough to even name them all.
▪ Massive unemployment is also a major problem in Indian Economy.

The country of 100 crores in run by the 1.5 crore. This means that the taxation is improper.

1.3 RESEARCH METHODOLOGY

This study is carried out to estimate the status, potential and importance of cashless
economy in the country. My research methodology requires gathering relevant data from
the specified documents and compiling database in order to analyse the material and arrive
at a more complete understanding.
1.3.1 Data Collection
Primary Data

• Consumer survey on cashless India.

Secondary Data

• Articles in internet and newspaper.

Data Collection Tools

• Newspaper
• Questionnaire
• Internet.
1.4 Literature Review
Governments digital push has ushered in new era of digitalization in India. Digitalization is
not just a part of our lives anymore. It is life. How digital economy & its tool impacts society
and in turn , how society shapes those evolving tools is something that will ultimately define
our future. As the digital economy is still evolving, there are obvious questions about this
new economic model that have yet to be answered. Post demonetization in India, some
wonder whether cash will become extinct while others have doubts about digital
transformation in India. In fact, many have asked whether a single globally accepted
currency will emerge.

The purpose of literature review is to extract the essence of the concept related to research.
According to a 2015 report by Price Water House Coopers, India s unbanked population was
at 233 million. Even for people with access to banking , the ability to use their debit or credit
card is limited because there are only about 1.46 million points of sale which accept
payments through cards. A study by Boston Consulting Group and Google in July noted that
wallet users have already surpassed the number of mobile banking users and are three
times the number of credit card users.
 Chapter-2
CONCEPTUAL FRAMEWORK/NATIONAL SCENARIO
2.1 A Digital Economy
Digital Economy refers to an economy that is based on digital computing technologies,
although we increasingly perceive this as conducting business through markets based on the
internet and the World Wide Web. The Digital Economy is also referred to an Internet
Economy, New Economy, or Web economy.
Digital Economy is also called as “CASHLESS ECONOMY”.

2.2 Ways of Paying Money

Prime Minister Narendra Modi made a strong push for a ‘cashless economy’ in his monthly
‘Mann Ki Baat’ radio address. A day later, his office published a number of alternative
payments mode in a series of tweets titled ‘My mobile. My Bank. My wallet. Transactions
without cash.’
Here re the alternatives that the PMO tweeted about:

1. Unified Payments Interface(UPI)

It is asystem that powers multiple bank accounts into a single mobile application,
merging several banking features. It is also caters to the “Peer to Peer” collect
request which can be scheduled and paid as per requirement and convenience,
each bank provides its own UPI App for Android.

How to get it:

• Bank a/c
• Mobile number should be linked with bank a/c
• Smart phone with internet facility
• Debit card for re-setting MPIN
• Download the UPI app on your mobile
• Make your unique ID
• Set your UPI PIN

Advantages:
Transactions can be carried out from any location, between any two individuals.

BHIM
BHIM (Bharat Interface for Money) is a payment app that lets you make simple, easy and
quick transactions using Unified Payments Interface (UPI). You can make direct bank
payments to anyone on UPI using their UPI ID or scanning their QR Code with the BHIM App.
You can also request money through the app from a UPI ID.
BHIM was launched by Hon’ble Prime minister on 30thDec 2016 and within 10 days, the app
had 1 crore downloads Android Play Store and over 2 million transactions across the UPI and
USSD (Unstructured Supplementary Service Data) platforms. This app is developed by the
National Payment Corporation of India (NPCI), a not-for-profit company for providing
retailed payment systems in the country under guidance from Reserve Bank of India.

Benefits:
▪ 1 digital payment app for all the bank accounts.
▪ Money remains in your bank account, so you earn interest.
▪ No charges from using BHIM App Infra, minimal UPI charges from
banks for making transactions.
▪ It is simple, secure and light.
▪ You can create your VPA with just your mobile number or name;
no longer do you have to share account details.
▪ It is independent of bank working hours, so you can make
transactions 24x7 all around the year.
▪ This app allows users to check the current balance in their bank
accounts and to choose which account to use for conducting
transactions although one can be active at any time.
▪ If the 12-digit Aadhaar number is listed as a payment ID, the BHIM
App will not require any biometric authentication or prior
registration with the bank or UPI.
▪ Version 1.3 allows user to use mobile numbers from their contact
book to send money and also save payment addresses for future
use without needing to type the address again. User can also
check the transaction history which only shows transactions
through BHIM.
2. e-Wallet

E-wallet is a feature exclusively for customers who have registered and

established a My Account profile. E-wallet allows you to store multiple credit
card and bank account numbers in a secure environment, and eliminate the
need to enter in account information when making your payments. Once you
have registered and created e-wallet profiles you can make payments faster
and with less typing.
How:
Choose an e-wallet service and download the app.
Register your mobile number.
Link this with your credit card, debit card, or net banking.
Advantages:
There are no geographical limitations when it comes to e-commerce sites. One
can purchase goods from any location.
Saves the consumer time and energy.
Rewards, cash rewards, coupons, and attractive deals are offered by e-
commerce sites.

PAYTM at HIGH
• Paytm, India’s largest mobile payments company and an e-commerce
platform, has said that post demonetization of rupees 500 and rupees
1000 notes, it has touched a record five million transactions a day,
against rupees 2.5- 3 million transactions earlier.
• Paytm wallet can be used to buy goods and avail services online &
offline.
• Paytm wallet can be recharged via net banking and debit and credit
cards.
• Your paytm wallet can have up to rupees 10,000; do KYC for higher
limits.
• Paytm claims to have over 150 million users, making it the biggest online
payment platform in the country.
 • Paytm has total number of users is 450 million till(18/07/2019) in which
number of active paytm users are 130 million (18/07/2019).
• Reported estimated value of paytm is $18 billion (10/05/2019).

3. Cards, PoS
Cards are common in urban areas. PoS stands for ‘Point of Sale’.
These payments can be made by using your debit or credit cards.
How:
One can get a debit card against their bank account, or you can apply
for a credit card.
Set your PIN number (remember your pin).
Swipe your card, enter the amount which is to be paid, punch in your
PIN.
Advantages:
Card payments improve security and it allows hold less cash on your
premises.
Card is reaching a wider customer base.
Cards can be used for online transactions.
Debit card come almost automatically with bank account.
2.3 GOVERNMENT INITIATIVES

Highlights of the incentives announced-

(1) To promote digital payments through use of credit/ debit cards and
mobile phone application / e-wallets etc, the Central government
announced a package of incentives and measures.

(2) NIL Exercise duty on POS devices and all goods for manufactured of POS
devices.

(3) Benefit of lower rate of Income Tax on digital turnover (from 8% -6%) for
small businesses under Section 44AD of Income Tax Act, 1961.

(4) Union Budget (2017-2018): Promoting digital payments (digital

economy) towards less-cash society.

(5) Public Sector Banks (PSBs) not to charge fees for transactions settled on
Immediate Payment Service (IMPS) and Unified Payment Interface (UPI)
in excess of rates charged National Electronic Funds transfer ( NEFT) for
transactions above rupees 1000, with service tax being charged at
actual; For Unstructured Supplementary Service Data (USSD)
transactions above rupees 1000, a further discount of Fifty (50) paise up
to 31.03.2017.

(6) For online payment of toll on national highways using RFID cards/ fast
tags a discount of 10 percent has been offered.

(7) Customers paying payments through online gateways of public sector

general insurance companies will be given a 10 percent discount.

(8) The discount has been 8 percent for the premium of new life policies
made through the portal of Life Insurance Corporation(LIC).

(9) Public dealings with government departments and PSUs through digital
mode will be free of transactions fee and MDR charges.
 (10) Railways has given 5 percent discount on catering,retiring room on
payment by digital mode.

(11)All railway passengers who bought tickets online got free accident
insurance cover worth Rs. 10 lakh.
(12)Monthly and seasonal tickets for suburban railways to offer 0.5
percent discount on digital paymentys.
(13)NABARD gave Rupay card to people who have Kisan Credit Card.

2.4 BENEFITS & DRAWBACKS OF SHIFTING

TO A CASHLESS ECONOMY.
2.4.1 BENEFITS
Advantages of digital transactions
1. Ease of carrying out transactions
This is one of the major benefits of digital payments. For those who
carry out transactions on a daily basis for buying some , or the other
product or service, going digital is quite beneficial. It aids the user by
giving an option that is safer, quick, and convenient during the
travelling time.
It helps the user be free of carrying wads of cash, plastic cards (debit,
credit, etc.) and even helps in letting go of queues for ATM
withdrawals.
Moreover, online payments can be carried out without any hassels
during the times of emergency as it does not require one to be
physically present anywhere for the money to be paid . E.g. Digital
wallets provide a quick, seamless and convenient way for merchants
as well as customers.
This also helps save the immense time of the user so that the user is
able to utilize time for other important tasks / aspects.

2. Provision of Discounts
Going digital can benefit the users in terms of discounts provided to
them for various occasions as well as purchases. For example, for
encouraging people to use the digital method of making
transactions, the government announced a waiver of service tax on
debit card and credit card transactions up to Rs. 2,000.
Such incentives and measures by the government help people be
more digital-friendly, and thus, helps the government keep tabs on
tax evasion.
Moreover, the customer avails the benefits of discounts online every
now & then and gets a fair price for the product/ service needed.
Add to these the cash back offers and discounts offered by mobile
wallets like Paytm as well as the reward points and loyalty benefits
on existing credit and store cards, and it could help improve your
cash flow marginally.
GO DIGITAL GET DISCOUNT
Waiver of Service tax.
Discounts on Fuel purchases.
Discounts on railway tickets on monthly and seasonal suburban
tickets.
Discounts on Rail catering .
Discounts on Highway toll.
Discounts on Premium on payment of Insurance.
Kisan credit card holders got Rupaykisan cards.
3. Better way to observe Spending.
With digital payments being convenient not only in other aspects but
also in terms of keeping a record of the payments done so far, it is
but easy to be accountable. When the payments are made via digital
channel, it is easier to file income tax returns and also is easier to
explain the spends in case of scrutiny.

4. Helps in Better Investments.

As making transactions digitally helps individuals observe their
spending, psychologically speaking, it becomes obligatory to ward off
some of the expenditures. This, in turn, helps increase savings, which
can lead to an increase in investments. Hence, with online payments,
there are better chances of people being able to save more for
investments. More investments lead to more earnings and thus , it
proves to be quite beneficial for the users.

5. Option to deactivate in case of theft or any accident.

Payments have evolved from the barter system to cash to card
payments to digital payments. According to Statista, in India, the
total transaction value of digital payments in 2019 amounts to US$
64,787 million.
Digital Payments have the upper hand over making cash transactions
since a digital payment platform can be blocked immediately in case
of theft. But it is not the same with cash paymengts, since the cash
once gone, has minimal to zero possibility of coming back to you.
Moreover, carrying bundles of cash with oneself while travelling is
never recommended and neither is easy.
6. Small benefits.
Many benefits of digital payments come in small packets. Whether
you carry a bunch of coins with you or not, you have to never worry
about keeping change ready while making payments via the digital
method. Making transactions digitally helps you pay exactly the
amount that is required to be paid, and hence, makes your life much
simpler this way.
While travelling, loss of loss of cash cause an inconvenience , using
digital payment solutions seems a safer and convenient solution.
There is no need to wait in the long lines to make payments, with
digital payments, payments can be done much faster and from
anywhere you want.

2.4.2 CHALLENGES TO BE FACED.

Drawbacks of digital transactions.
1. Internet Connectivity.
Transactions or shopping cannot be held without internet facility.
Therefore, the internet can become a constraint in facilitating e-
commerce activity. However, payments can be done without using
the internet, but then too, for buying a product online you need to
have internet connectivity.

2. Security and threats.

Before doing any online transaction make sure the gateway is highly
secured. Beware of hacking , phishing emails which unknowingly can
take made are frequently initiqated by the banks, but on a failure
side, it can cost you high on your mental peace. It takes at least 3-7
business days for any revert of payment.
Another weak link is the inadequate redressal mechanism. “With the
poor redressal system in India, imagine what a poor rickshaw puller
will do if he has his Aadhaar ID stolen?” asks financial trainer
P.V.Subramanyam. “Given the tedious process and poor grievance
redressal , people will have no easy resources if they lose money
online”. Adds Nagpal. There is no stringent legal process to deal with
this kind or scale of fraud.

3.Costly.
While companies and merchants are giving their customers so much
of discounts on the purchase of goods through digital cash, there are
several hidden costs like maintaining servers,data storage cost,the
requirement of machines which are actually loading heavy cash
burden on them knowingly.

4. Confidential data management.

It is important to know that who will be held responsible for
managing the data. Every time we do transaction our personal
details and card details are being shared with the third party. What if
the data gets leaked? Or it gets misused by the third party itself.
The usage of digital apps can either rapture or accidie your mental
peace. It is thus, necessary to make the use of apps and cards with
precautions and at a place which is having an authorised e-payments
system facility.
2.5
Difference between cash payment and digital payment.
Basis Cash Payment Digital Payment
1. Introduction Cash payment are those Digital payment are
payment which are those payment which
made with paper are made through
currency. banks, e-wallets, apps.
2. Convenience When it comes to In the digital form
handling the cash , it is payments can be made
a hectic process. hassle-free with a swipe
of the card or tap of
your smartphone.
3. time- saving The process in cash The digital payments
payment involves are simpler and time
counting the cash and saving than the
the merchant must conventional cash
place them in the cash system.
register and pay the
balance.
4. Transaction In the cash payment it is The entire list of the
records hard to track and needs transactions is recorded
to be noted down which in the digital payment
makes budgeting a process. The payment
tiring task. The cash bills receipts in digital mode
must be collected and are in the form of e-bills
saved for future that are easier to save.
references.
5. Security Saving bundles of cash Even digital payments
is never advisable. But, are not the safest
using a cash system mode. Identity theft is a
prevent us from over serious threat. Digital
spending . payments have their
own kind of benefits like
the reward points we
earned by the
transactions made.
4. DEMONETIZATION
On 8 November, 2016 , Government of India banned the use of 500
& 1000 currency notes. This step was taken to stop corruption and to
release black money from corrupted people. The move deeply
impacts the working sections of society , drivers , small business men
, cooks, electricians etc. NO CASH scenario boosted cashless payment
within two weeks of announcement of demonetization.
IMPACT OF DEMONETIZATION
It immensely affected the vendors and hawkers all over the country.
After demonetization weekly sales of hawkers and vendors
decreased upto 70%-80%. The main reason for decrease in sales was
shortage of cash, as people facing shortage of cash they switched to
big departmental and retail stores were they could use their cards .
Another big reason was that hawkers and vendors were not having
their bank account and even if they were having bank account it is in
their home town. So it was bit difficult for them to exchange their
500 & 1000 notes with new currency.
Some of them have opened their bank accounts through Jan Dhan
Yojana but hardly had they deposited any of their saving in that
account. They use nto prefer to keep the savings at home to use that
anytime.
 CHAPTER-3
PRESENTATION, ANALYSIS & FINDINGS
The Digital India programme is a flagship programme of the Government of
India with a vision to transform India into a digitally empowered society and
knowledge economy. ‘ Faceless, Paperless, Cashless’ is one of professed role of
Digital India.
Among various sources of digital payment Paytm is one of the most used way
of payment . It is founded in 2010, Paytm started as a prepaid mobile recharge
website. Currently its business is not only limited to recharge but has expanded
as online payment platform including mobile recharge, utility bill payment,
wallet payment and wallet to wallet and wallet to bank transfers for many
leading internet basedncompanies like Bookmyshow, FoodPanda,IRCTC and
many others.
It was founded under the implemented idea of Vijay Shekhar and has got the
first mover advantage in the mobile industry. The company has been backed
by up Alibaba group and Ratan Tata. The firm had raised $575 million from
Alibaba group for a share of 25% in the company.
Paytm is growing faster and they have over 20 million registered users as per
their current data. Their website and mobile app has been transformed into a
fully-fledged e-commerce marketplace offering categories from
elecdtronics,mobile phones,sports & health, home & kitchen, books, baby &
toys and many more categories.
Vijay Shekhar said, “ We do 400,000 orders per day, which is second highest in
the country after IRCTC”. Over 50% of the orders are from the mobile app
making use of the largest mobile commerce platform. An amount of INR 500
crore is allocated for marketing in the year 2015., said the founder.
3.1 Secondary Data Analysis
1. Demonetization’s effect on Paytm.

2014 0
2015 100M
2016 150M
2017 270M

Demonetization's effect on Paytm

300

250

200

150
Profit(in millions)

100

50

0
2014 2105 2016 2017

Interpretation:
India’s Dec. 2016 cash-cut off sparkled a surge in users.
After demonetization the users of Paytm increased a lot. The company gained
lot of profit after this. People started to use this app on their daily basis , this
daily usage of people gave a huge amount of profit to the company.
2. The transaction volume of Paytm in the Financial year 2017-2018 & 2018-
2019.

2016-2017 1.5 billion

2017-2018 2.5 billion
2018-2019 5.5 billion

Paytm Transaction Volume

6

3 Transaction volume (in

billions)
2

0
2016-2017 2017-2018 2018-2019

Date-17/04/2020
Interpretation:
The above Line Graph shows that the ‘transaction volume of the Paytm
company for the Financial Year 2017-2018 & 2018-2019’.
• In the financial year 2016-2017, the company had 1.5 billion of
transaction through their app.
• In the financial year 2017-2018, the company had 2.5 billion of
transaction through their app .
• In the financial year 2018-19, the company had 5.5 billion of
transaction ,which is double from the previous year.
 3. Comparison of monthly active users of Paytm , PhonePe,
Google Pay.

July 2018(in July 2019(in

millions) millions)
Paytm 80 140
PhonePe 23 55
Google Pay 40 25

Monthly Active Users(in millions)

160

140

120

100

80 Jul-18
Jul-19
60

40

20

0
Paytm PhonePe Google Pay

Interpretation:

Paytm has emerged as major financial service in India.

From the above analysis we can see that it is one of the most used app in
India. The monthly active users of Paytm is higher than any other app .
The number of active monthly users increased from last year. The trust of
people towards Paytm has been increased from year to year.
 4. Mobile Payments apps market share, as of March 2019.

Market Share (in%)

Paytm 42.8
PhonePe 33.4
Mobikwik 3.0
BHIM 9.8

Mobile Payments apps market share.

45

40

35

30

25

20 Market Share(in%)

15

10

0
Paytm PhonePe Mobikwik BHIM

Source: KalaGato.co
Interpretation:
From the above analysis , we can see that market share of Paytm as of
March,2019 is 42.8%. PhonePe is second biggest market share occupier ,
following to them BHIM and Mobikwik are 9.8% & 3.0% shares occupier. Paytm
is one of the biggest e-wallet transaction app. This app is easy to handle and to
make payment also, this is the reason behind the huge market share of Paytm.
5. Revenue of Paytm .

Years Profits(in crores)

2015-2016 3.1
2016-2017 813.88
2017-2018 3319
2018-2019 19

Revenue of Paytm
3500

3000

2500

2000

Profit(in cr.)
1500

1000

500

0
2015-16 2016-17 2017-18 2018-19

Interpretation:
From the above Line Graph we can see that the revenue of Paytm at a initial
year is not that much but from the year 2016-2017 it started to gain profit in
huge scale . But in the year 2018-2019 , the profit again take a sharp decline.

3.2 Primary Data Analysis

Q1. Are you aware of Digital India Project?

a. Yes 42
b. No 8

16%

84% Yes
No

Interpretation:

The above Bar Graph shows the Percentage of awareness of Digital India
Project.
• 42 out of 50 respondents are aware about the Digital India
Project.
• 8 out of 50 respondents have no idea about Digital India Project.

Q2. Do you think making India cashless will uplift the standard of living?
 a. Yes 40 80%
b. No 10 20%

Bar Graph

Yes
No
No

Yes

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Interpretation:
The above Bar Graph shows that ‘ making India cashless’ will uplift the
standard of living or not?
• 40 out of 50 respondents think that ‘making India cashless’ will
uplift the standard of living.
• 10 out of 50 respondents think that ‘making India cashless’ will
not uplift the standard of living.

Q3. How frequently you use online transactions app?

 a. More than once in a 6 12%
day.
b. Once in a day. 11 22%
c. Once in a week. 16 32%
d. Once in a month. 17 34%

Pie Chart

more than once in a day

once in a day
once in a week
once in a month

Interpretation:
The above Pie chart shows that ‘how frequently one use online transactions
apps’.
• 6 out of 50 respondents use online transaction app more than once
in a day.
• 11 out of 50 respondents use online transaction app once in a day.
• 16 out of 50 respondents use online transaction app once in a week.
• 17 out of 50 respondents use online transaction app once in a month.
 Q4. Are you aware of Paytm an online transaction app?

A. Yes 46 92%
b. No 4 8%

Pie Chart

Yes
No

Interpretation:
The Pie chart shows above that how many people are ‘ aware of Paytm
app’?

• 46 out of 50 respondents are aware of Paytm an online

transaction app.
• 4 out of 50 respondents are not aware of Paytm an online
transaction app.

Q5. Which is your most preferred online transaction websites?

a. Paytm 39 78%
b. UPI 5 10%
c. BHIM 1 2%
d. Google Pay 5 10%
e. Others 0 0

Column Chart
90%

80%

70%

60%

50%

40% Column Chart

30%

20%

10%

0%
Paytm UPI BHIM Google Pay Others

Interpretation:
The above Column Chart shows that which is the most ‘ preferred online
transaction app ‘ between people.
• 39 out of 50 respondents prefer Paytm as their most preferred
online transaction app.
• 5 out of 50 respondents prefer UPI as their most preferred online
transaction app.
• 1 out of 50 respondents prefer BHIM as their most preferred
online transaction app.
• 5 out of 50 respondents prefer Google Pay as their most preferred
online transaction app.
Q6. Do you prefer online payment?

a. Yes 43 86%
b. No 7 14%

Pie Chart

Yes
No

Interpretation:
The above Pie Chart shows that how many people ‘prefer online
payment’?

• 43 out of 50 respondents prefer online payment.

• 7 out of 50 respondents prefer online payment.
Q7. Do you consider online payment safe ?

a. Yes 40 80%
b. No 10 20%

Bar Graph

No

yes
no

Yes

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Interpretation:
The above Bar Graph shows that how many people consider ‘online
payment safe’?
• 40 out of 50 people consider online payment safe.
• 10 out of 50 people consider online payment not safe.
Q8. How was your first experience with paytm?

a. Excellent 16 32%
b. Good 27 54%
c. Average 5 10%
d. Below average 2 4%
e. Poor 0 0

Pie Chart

excellent
good
average
below average
poor

Interpretation:
The above Pie chart shows the ‘ first experience with paytm ‘ of people?
• 16 out of 50 respondents found paytm excellent as their first
experience.
• 27 out of 50 respondents found paytm good as their first
experience.
• 5 out of 50 respondents found paytm average as their first
experience.
• 2 out of 50 respondents found paytm below average as their first
experience.
• 0 out of 50 respondent found paytm poor as their first experience.
Q9. Will you recommend paytm to your friends and family members?

a. Yes 44 88%
b. No 6 12%

Bar Graph

Yes
No
No

Yes

0% 20% 40% 60% 80% 100%

Interpretation:
The above Bar graph shows the recommendation of paytm to their
friends and family members?
• 44 out of 50 respondents will recommend paytm to their friends
and family members.
• 6 out of 50 respondents will not recommend paytm to their
friends and family members.
Q10. Are you satisfied with Paytm?

a. Yes 41 82%
b. No 9 18%

Pie Chart

Yes
No

Interpretation:
The above Pie chart shows that how many people are satisfied with
Paytm?
• 41 out of 50 respondents are satisfied with paytm app.
• 9 out of 50 respondents are not satisfied with paytm app.
Q11. Are you finding online transaction easier to make payments?

a. Yes 44 88%
b. No 6 12%

Pie Chart

Yes
No

Interpretation:
The above Pie chart shows that does people’ finding online transaction
easier to make payments’ or not?
• 44 out of 50 respondents found online transaction easier to make
payments.
• 6 out of 50 respondent found it difficult to make payments
through online transactions.
Q12. Finally do you think India can achieve cashless society?

a. Yes 36 72%
b. No 14 28%

Pie Chart

yes
no

Interpretation:
The above Pie Chart shows that how many people think that ‘ India can
achieve cashless society’?
• 36 out of 50 respondents think that India can achieve cashless
society.
• 14 out of 50 respondents think that India cannot achieve cashless
society.

FINDING & ANALYSIS

3.3
1. Most of the people are aware of Digital India Project.

2. Making India cashless will uplift the standard of living.

3. Many people using online transaction more than once in a day and also
there are people who use online transaction atleast once in a day.

4. Most of the people are aware of PAYTM –an online transaction app.

5. Most of the people preferred PAYTM to make payment digitally.

6. Most of the people prefer online payment.

7. There are more than 75% people who consider online payment safe.

8. Many people are finding online payment easier to make payments.

9. There are more than 50% people who were having their first
experience with Paytm is good.

10. There are many people who will recommend Paytm to their family
and friends.

11. More than 70% people are satisfied with Paytm.

12. More than 70% people think that India can achieve its goal of Cashless
Society.

13. Revenue of Paytm for the year 2018 is comparatively less than 2019
which means company is doing its best by each passing years.

14. By every passing year transaction volume of Paytm is increasing.

15.Paytm captures 42.8% of market share in its competitive market.
16. Demonetization also helped Paytm alot to increase its users.
3.4

LIMITATIONS

The present study is confined to a minimal sample size and may

not reflect the opinion or response of the entire population in general.
There was only 50 respondents taken for survey. The results of our story
are entirely confined to the responses of the Kolkata citizens and might
deviate in terms of actual population as a whole recommendation given
after the study are entirely dependent on the survey and the secondary &
primary analysis done in the report.
 CHAPTER-4

CONCLUSION & RECOMMENDATIONS

4.1
CONCLUSION

In conclusion , electronic transfer funds have been around for many

years and the economy has greatly benefitted from the technological
advance. An electronic payment system such as credit card has
facilitated monetary transactions and even provides a way to finance
everyday purchases through credit. However, the risk of identity thefts,
privacy issues etc. will always exists. As history has showed us, a new
technology can cause irrational excitement that only leads to
overvalued securities and ultimately end in the financial collapse.
Other electronic payment system such as Paytm , BHIM etc. have a
great impact on Indian movement to achieve cashless society. The app
like this also having some security issues but inspite of the issues they
are working very well . One can understand the apps easily and can use
it for instant payment or for receiving money.
Nonetheless, new functional technology is not yet perfected and
can be very costly. But with new innovation and proper usage, digital
payment can be the key to successful cashless society in India.
4.2

Recommendations
• Indian Government needs to start a literacy programme of digital
payment for rural people.
• It is necessary and also recommended that every citizen of India
must realize that such an important vision cannot be the
governments job alone, people of India have to be an equal
partner in the journey.
• To create awareness about digital India , we have to use
technology to solve problems faced by the Indians .
• There is also need that government should set up high
punishment for the cyber crimes held during transactions.
• The government should also focus on basic need of rural area
before providing them digital activities. These activities should go
directly to the benefitted person.
• The target number to achieve digital India is quite high, but they
can be achieved, especially when rapid pace of innovation is
increasingly making technology more favourable for mass
adaption.
• The government must conduct awareness programme for medium
scale and small scale businessmen to give them knowledge about
digital transactions and how it can help in their business.
• The companies who have created their apps must ensure their
customers satisfaction and also ensure about high security which
to be provided by them.
4.3
BIBLIOGRAPHY
1) www.economicsdiscussion.net
2) www.economicshelp.org.wikipedia
3) www.cashlessindia.gov.in
4) www.tomorrowmakers.com
5)www.wikipedia.com
6) www.google.com
5.
Annexure
Questionnaire
Requested Sir/Madam,

I am student, pursuing B.COM from “TARADEVI HARAKCHAND KANKARIA

JAIN COLLEGE”. I am doing project on DIGITAL PAYMENT. I kindly request
you to cooperate in my research study by kindly filling up the following
questionnaire.

Name:

Age:

City:

1) Are you aware of Digital India Project?

a. Yes , b. No.

2) Do you think making India cashless will uplift the standard of living?
a. Yes, b. No.

3) How frequently you use online transaction apps?

a. More than once in a day. b. Once in a day
c. Once in a week. d. Once in a month.

4) Are you aware of Paytm- an online transaction app?

a. Yes , b. No.

5) Which is your most preferred online transaction website?

a. Paytm b. UPI
c. BHIM d. Google Pay
e. Others.

6)Do you prefer online payment?

a. Yes b. No
7) Do you consider online payment safe?
a. Yes b. No

8) How was your first experience with Paytm?

a. Excellent b. Good
c. Average d. Bad

9) Will you recommend Paytm to your friends and family members?

a. Yes b. No.

10) Are you satisfied with Paytm?

a. Yes b. No

11) Are you finding it easier to make payments?

a. Yes b. No.

12) Finally do you think India can achieve cashless society?

a. Yes b. No.