Chintan Project Mba-4.docx

Executive Summery The main aim of research is to find out consumer behaviour towards online Payment that what is behaviour of people of Gujarat to buy goods online and which mode of payment is more preferred. The objective of this research is to make investigation and analysis for consumer behaviour towards online payment in Gujarat. The project report includes the general information of the E-payment System, Various methods of e-payment, and Major players in e-payment industry. The project also contains the information regarding the Current and future scenario of e-payment in Gujarat details. Here in this research study exploratory research design is selected with convenience sampling method with 100 sample size. Data is collected through primary data collection (through questionnaire) and secondary data collection methods (books, journals, old research reports). Limitations of the study are: People were not ready to fill in the questionnaire. Many of the surveyed people did not reply all the questions. The time period given for study was very limited. The sample size was very small which is may not represent the entire population of Gujarat Region. Area covered for this research is only urban area where people are using internet frequently. Rural area is not covered. On the basis of the present study concludes that due to online payment more customers are satisfied. This research explicitly indicates that online payment is effective. Maximum respondents from Gujarat prefer online payment through paytm. People like to done online payment through paytm as compared to others. Discount offers effects more to customers in online payment.

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General Information

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Background E-payment system is a way of making transactions or paying for goods and services through an electronic medium without the use of check or cash. It’s also called electronic payment system or online payment system. The electronic payment system has grown increasingly over the last decades due to the widely spread of internet-based banking and shopping. As the world advance more on technology development, a lot of electronic payment systems and payment processing devices have been developed to increase, improve and provide secure e-payment transactions while decreasing the percentage of check and cash transaction. With the rapid development of science, computer and network technology, electronic-commerce 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 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, colour and quality. Online payment systems have a very important role in e-commerce. Ecommerce enterprise use online payment systems that refer to paperless monetary transactions, which has revolutionized the business processing by reducing paperwork, transaction costs, and labour cost. Being user-friendly and less time consuming than manual processing, electronic commerce helps a business organisation expand its market reach expansion. (http://www.theseus.fi/bitstream/handle/10024/139600/Yang_Wenjing.pdf?sequence=1&isAl lowed=y )

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What Electronic Payment System is? Electronic Payment is a financial exchange that takes place online between buyers and sellers. The content of this exchange is usually some form of digital financial instrument (such as encrypted credit card number, electronic cheques or digital cash) that is backed by a bank or an intermediary, or by a legal tender. Electronic payment system is a system which helps the customer or user to make online payment for their shopping. E-payment System also known as Digital Payment System.

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Global E-commerce Payment Market Analysis and Forecasts 2018-2025

The demand for e-commerce payment is largely influenced by a number of factors such as availability of several online payment options on e-commerce websites such as e-wallet, debit & credit cards, net banking etc. increasing banking population worldwide; and rising smartphone adoption coupled with increasing internet penetration. Furthermore, the growth of cross-border ecommerce provides a potential opportunity for the e-commerce payment market.

The e-commerce payment market is fragmented with the presence of several payment gateway providers and the competitive dynamics in the market is expected to change during the upcoming years. E-commerce players are considering several factors before reaching a final decision to select a payment gateway service provider for their online business. These factors include ease of on boarding, attractive pricing, a range of payment options, merchant & enduser centric features, strong customer support and availability of Omni channel. Integration of such features under one suite of gateway solution will create significant opportunities for the companies to leverage an increasing growing ecommerce market.

(https://globenewswire.com/news-release/2018/09/10/1568358/0/en/Global-E-commercePayment-Market-Analysis-and-Forecasts-2018-2025-Lowering-Entry-Barriers-In-thePayment-Service-Market-Together-with-Technological-Advancement-will-CreateFavourab.html)

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India Digital Payment Systems Market Indian payments industry is largely dominated by cash-based transactions. The banking industry in the country was majorly branch-based till 2014. Later, there was a considerable growth in the branch-less channels of banking, which has further explored into digital payments in both rural and urban regions. Indian digital payments industry is expected to reach $700 billion by 2022 in terms of value of transactions. It is expected that more than 80% of the urban population in India will adopt digital payments as a part of their routine by 2022 and 70% of the retail chains will adopt the same. The reduced transaction charges and the degree of ease of cash transfers associated with the electronic fund transfers and mobile banking will further drive the growth of digital payment systems in India. Also, the Indian Government is bringing positive policy framework such as Goods and Services Tax (GST), financial inclusion, improving digital infrastructure, launching payment systems such as aadhar enabled payments, UPI, and others which are supporting the digital payments industry. In 2016, Indian Government made a significant move, i.e. demonetization, to curb black money circulation within the country and to increase digital payment penetration. It is a phenomenal step made by India towards improving cashless economy, resulting in sharp increase of several digital payment channels in the country.

(Source: https://www.reuters.com/brandfeatures/venture-capital/article?id=12775)

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Methods of E-payment

Methods of E-payment

Credit Payment System

Credit Card

E-wallet

Cash Payment System

Smart card

Direct debit

E-check

E-cash

Storedvalue card

(Chart:1)

 E-payment methods could be classified into two areas, credit payment systems and cash payment systems. 1. Credit Payment System Credit Payment  Credit Card: A form of the e-payment system which requires the use of the card issued by a financial institute to the cardholder for making payments online or through an electronic device, without the use of cash.  E-wallet: A form of prepaid account that stores user’s financial data, like debit and credit card information to make an online transaction easier.  Smart card: A plastic card with a microprocessor that can be loaded with funds to make transactions; also known as a chip card.

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2. Cash Payment System  Direct debit: A financial transaction in which the account holder instructs the bank to collect a specific amount of money from his account electronically to pay for goods or services.  E-check: A digital version of an old paper check. It’s an electronic transfer of money from a bank account, usually checking account, without the use of the paper check.  E-cash: It is a form of an electronic payment system, where a certain amount of money is stored on a client’s device and made accessible for online transactions.  Stored-value card: A card with a certain amount of money that can be used to perform the transaction in the issuer store. A typical example of stored-value cards are gift cards. (Source: https://securionpay.com/blog/e-payment-system/)

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Advantages and disadvantages of electronic payment systems Time savings Money transfer between virtual accounts usually takes a few minutes, while a wire transfer or a postal one may take several days. Also, you will not waste your time waiting in lines at a bank or post office. Expenses control Even if someone is eager to bring his disbursements under control, it is necessary to be patient enough to write down all the petty expenses, which often takes a large part of the total amount of disbursements. The virtual account contains the history of all transactions indicating the store and the amount you spent. And you can check it anytime you want. This advantage of electronic payment system is pretty important in this case. Reduced risk of loss and theft You cannot forget your virtual wallet somewhere and it cannot be taken away by robbers. Although in cyberspace there are many scammers, in one of the previous articles we described in detail how to make your e-currency account secure. Low commissions If you pay for internet service provider or a mobile account replenishment through the UPT (unattended payment terminal), you will encounter high fees. As for the electronic payment system: a fee of this kind of operations consists of 1% of the total amount, and this is a considerable advantage. User-friendly Usually every service is designed to reach the widest possible audience, so it has the intuitively understandable user interface. In addition, there is always the

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opportunity to submit a question to a support team, which often works 24/7. Any way you can always get an answer using the forums on the subject. Convenience All the transfers can be performed at anytime, anywhere. It's enough to have an access to the Internet. Having specified the well-known advantages of electronic payment system, it is necessary to mention its drawbacks: Restrictions Each payment system has its limits regarding the maximum amount in the account, the number of transactions per day and the amount of output. The risk of being hacked If you follow the security rules the threat is minimal, it can be compared to the risk of something like a robbery. The worse situation when the system of processing company has been broken, because it leads to the leak of personal data on cards and its owners. Even if the electronic payment system does not launch plastic cards, it can be involved in scandals regarding the Identity theft. The problem of transferring money between different payment systems Usually the majority of electronic payment systems do not cooperate with each other. In this case, you have to use the services of e-currency exchange, and it can be time-consuming if you still do not have a trusted service for this purpose. Our article on how to choose the best e-currency exchanger greatly facilitates the search process. The necessity of Internet access If Internet connection fails, you cannot get to your online account (Sources:https://unichange.me/articles/advantages_of_electronic_payment_systems)

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Major Players in E-payment System Wallets Companies in India 2018

1. Paytm PayTM is easily the top Digital Wallet in India today. Both by brand familiarity and user adoption. They had crossed 200mn installs in early 2017 and marching towards their target of growing to 500mn users. They have the largest network of offline merchants. One can easily call them the “Whatsapp” of the digital wallet space. Anyone using digital wallets will be using them.

2. MobiKwik MobiKwik slowly but steadily grew to become the 2nd largest digital wallet by its shear strength of user-experience and online merchant integrations. They keep growing and give a strong competition to Paytm. 3. Phonepe PhonePe started as UPI payment app and later was acquired by Flipkart to be launched as a digital wallet for the ecommerce giant. It definitely has a lot of smart people behind the app as a first time user will find the app really easy to use. Do use them if you shop often on Flipkart and pay bills online.

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4. Freecharge Freecharge is a great story in the Digital Wallet world due to the transformation journey it has travelled. What started as a service to provide physical coupons for online mobile recharges over years got bought over by Snapdeal and also pivoted to a complete digital payments platform. However, even with a young and fresh branding, they never could capture a user’s imagination like others. This wallet always

feels like an afterthought when

making online transactions. But it’s still a great app to have for transactions and offers.

5. Airtel Money Airtel Money easily has one of the largest user bases. However, most of the transactions on the platform is limited to Airtel bill payments for mobile, broadband and other services. You can absolutely use it for online transactions like others but most users do not.

6. JioMoney JioMoney like airtel happens to be available for a large user base due to sheer VOIP revolution Jio is driving in the country. They still have a long way to go in terms of integrations and offers.

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7. Google Pay Google Pay is the fast, simple way to pay online, in stores and more. Book a trip, grab a meal, see a show, and enjoy new experiences – all without your wallet. Getting started on the web or with the app is easy. Just add a card, and you’re ready to go.

8. Ola Money Ola Money which is the payment wallet offered along with the OLA cab booking app has a large user adoption due it being one of the market leaders in the mobility space. However, most people use it for paying Ola bills or keeping money for cab rides.

9. Amazon Pay Amazon Pay is one of the newest entrants in this space and grown quickly piggy-backing on the popularity of the Amazon e-commerce platform. Like PhonePe this wallet is a must-try if you use Amazon for shopping.

10.PayZapp

This digital wallet is by HDFC bank which like SBI is a major player. They focus on simplified one-click

payments

extremely simple.

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which

makes

using

it

What is E commerce? E-Commerce (Electronic Commerce or EC) is the buying and selling of goods and services, or the transmitting the funds or data, over an electronic network primarily the internet.

Indian E-commerce: Being driven by a young demographic profile, increasing internet penetration and relative better economic performance, India e-commerce revenue is expected to jump from $30billion in 2016 to $120 billion in 2020, growing at an annual rate of 51%, the highest in the world, according to a joint ASSOCHAM (Associated Chambers of Commerce and Industry) Forrester study paper.

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E-commerce Industry in India:  Internet penetration in India grew from just 4 per cent in 2007 to 35.03 per cent in 2017, registering a CAGR of 24.23 per cent between 2007 and 2017.  As of December 2017, internet penetration in India’s urban areas stood at 64.84 per cent and 20.26 per cent in the rural areas.  Urban India with an estimated population of 444 million as per 2011 census already has 295 million using the internet as of December 2017.  Rural India, with an estimated population of 906 million as per 2011 census, has 186 million internet users as of December 2017. There is therefore a great opportunity for increasing penetration in the rural areas.  Analysis of ‘Daily Users’ reveal that both in Urban and Rural India, the younger generations are the most prolific users of internet.  Rising internet penetration is expected to drive ecommerce growth in India.  The Indian e-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second largest ecommerce market in the world by 2034.  The e-commerce market is expected to reach US$ 64 billion by 2020 and US$ 200 billion by 2026 from US$ 38.5 billion as of 2017.  With growing internet penetration, internet users in India are expected to increase from 481 million as of December 2017 to 829 million by 2021.  Rising internet penetration is expected to lead to growth in ecommerce.  India’s internet economy is expected to double from US$125 billion as of April 2017 to US$ 250 billion by 2020, majorly backed by ecommerce.

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E-Payment Systems in E-commerce Online payment is a form of electronic payment, which is provided by a third party payment interface between banks for real-time payment. Compared with the traditional payment, online payment systems are more convenient, fast, efficient and economical. Users can use their own PC or mobile phone with Internet to complete the entire payment process in a very short time. Online banking is a very common way of online payment systems. For example, when users want to shop online. The user must open an online bank account. This payment is directly paid by credit card or even debit card. And now thirdparty online payment systems such as PayPal are also very popular in ecommerce. Third party payment is an independent organization, which provides the network payment mode for transaction platform between bank and online payment platform. Third party payment mode is like a credit intermediaries to supervise and support between online business and the bank. First of all, for the customer third-party online payment companies can provide a variety of online payment systems. Especially for small and medium enterprises. Online payment system provides a convenient payment platform to do trade with customers. For the customer, it does not only give a chance for quick payment after shopping online, but it also avoids the risk of money transfer. Online payment allows the banks to expand their business and allocate the resources on development and maintenance.

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Review of Litereture

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1. E-Payment System on E-Commerce in India (Karamjeet Kaur Int. Journal of Engineering Research and Application) ISSN: 2248-9622, Vol. 5, Issue 2, (Part -1) February 2015, pp.79-87)

1. Karamjeet Kaur

2. Dr. Ashutosh Pathak

E-commerce provides the capability of buying and selling products, information and services on the Internet and other online environments. In an ecommerce environment, payments take the form of money exchange in an electronic form, and are therefore called Electronic Payment. E-Payment system is secure there should be no threat to the user credit card number, smart card or other personal detail, payment can be carried out without involvement of third party, It makes E payment at any time through the internet directly to the transfer settlement and form E-business environment. Studied have been carried out on E-Payment system .E-Payment system an integral part of electronic commerce. An efficient payments system reduces the cost of exchanging goods and services, and is indispensable to the functioning of the interbank, money, and capital markets. Questions are related to E-Payment systems in which given options are Agree, Disagree, Strongly disagree, and strongly agree, Neutral. After analysis and comparison of various modes of electronic payment systems, it is revealed that it is quite difficult, if not impossible, to suggest that which payment system is best. Some systems are quite similar, and differ only in some minor details. Thus there are number of factors which affect the usage of ecommerce payment systems. Among these entire user base is most important success of e-commerce payment systems also depends on consumer preferences, ease of use, cost, industry agreement, authorization, security, authentication, non-refutability, accessibility and reliability and anonymity and public policy. (Source: https://www.ijera.com/papers/Vol5_issue2/Part%20-%201/M502017987.pdf)

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2. Current and Future Scenario of E–Payment System in India (International Journal of Business Management) Available at www.ijbm.co.in ISSN NO. 2349-3402 VOL. 2(1), 2015 1. Rajinder kaur

2. Rupinder kaur

The electronic payment system is on online based system. The emergence of ecommerce has created new financial needs that in many cases cannot be effectively fulfilled by the traditional payment systems. Recognizing this, virtually all interested parties are exploring various type four categories: Online Credit Card Payment System, Online Electronic Cash System, Electronic Cheque System and Smart Cards based Electronic Payment System. This system is managed by reserve bank of India(RBI) .It is doing its best to encourage alternative method of payment which will bring security and efficiency to payment system .In future Electronic Payment Industry has an extensive potential for growth considering the growth of Internet.

(Source: http://www.ijbm.co.in/downloads/vol2-issue1/33.pdf)

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3. Analysis on Online Payment Systems of E-commerce Wenjing Yang Bachelor’s Thesis Autumn 2017 Business Information Technology Oulu University of Applied Sciences

With the rapid development of science, computer and network technology, electronic-commerce (e-commerce) has become a routine part of human life because it is convenient for customers, particularlyS in Business to Customer (B2C) commerce. The customer can place orders at home and thus save time. Online payment systems have a very important role in e-commerce and they are used to complete e-commerce transactions. The purpose of this thesis is to introduce current state, the challenges and future expectations of online payment systems in China and Europe and especially in Finland. The theoretical background discusses history of e-commerce, the current situation of e-commerce and the methods of online payment systems used in e-commerce in Europe and China. In the research section, various types of customer opinions of online payment are studied by using questionnaire survey. The results of the research show that nowadays online payment systems are popular. All the respondents have experience on online payments. Debit card (Visa or MasterCard) and Net Bank are the most popular online payment systems, not only in Europe but also in China and other countries. The second one is third-party online payment systems. PayPal is more popular in Europe. The two main factors contributing to choosing online payment system are convenience and the quickness of transaction. Technical problems and vulnerability to cyber-crime are the main pros of online payment system. (Source:http://www.theseus.fi/bitstream/handle/10024/139600/Yang_Wenjing.pdf?seque nce=1&isAllowed=y) 20

4. E-Commerce and Online Payment in the Modern Era (International Journal of Advanced Research in Computer Science and Software Engineering) Volume 7, Issue 5, May 2017 1. Momin Mukherjee 2. Sahadev Roy

Face-to-face exchange of goods between the two sides conducted before the beginning of recorded history. Always there are some security problems in traditional payment system. After that electronics payments system brought out a huge revolution. Though modern technology digital documents can be copied perfectly, duplicate signature of anybody is possible. Name of the Buyers can be linked with each payment, to eliminate the secrecy of money. Without proper and high-quality security system somehow e-commerce will not work anymore. On the other hand a very well designed electronics payment system can provides high label security then the traditional payment. In this article we discussed about the different process, benefits, and security related issue of electronic payment system. (source:https://www.researchgate.net/publication/318930849_E Commerce_and_Online_Payment_in_the_Modern_Era)

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5. A Survey on E-Payment Systems: Elements, Adoption, Architecture, Challenges and Security Concepts (Indian Journal of Science and Technology June 2017) 1. Muddassir Masihuddin 2. Burhan Ul Islam Khan

Objectives: This paper is aimed at investigating and increasing awareness about various concepts related to Electronic Payment Systems (EPS) including its advantages, challenges and security considerations. The proposed study also evaluates the adoption of e-payment systems and the resulting impact on economy of a nation. Methods/Statistical Analysis: In this paper, a comprehensive survey on all the aspects of electronic payment was conducted after analysis of several research studies on online payment systems. The most recent references and information have been explored in order to gain significant information about electronic payments systems. Findings: From the study conducted, it can be elucidated that despite various issues that usage of electronic payment systems pose, these are identified as a positive step towards the economic development of a nation. Nevertheless, its full potential can be realized only by raising its awareness among people. Applications/Improvements: With the advancement in technology and popularity of Internet, the perception of making online transactions is bound to gain momentum. In the future, the payment modes currently used and supported shall see a declining trend owing to the numerous benefits offered by electronic payment systems. (Source:https://www.researchgate.net/publication/318111118_A_Survey_on_EPayment_Systems_Elements_Adoption_Architecture_Challenges_and_Security_Conce pts)

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6. The Study of Electronic Payment Systems (International Journal of Advanced Research in Computer Science and Software Engineering) Volume 6, Issue 7, July 2016

-Mamta -Prof. Hariom Tyagi -Dr. Abhishek Shukla

Electronic payments are financial transactions made without the use of paper documents such as cheques. Electronic payments include debit card, credit card, smart card, e-wallet, e-cash, electronic cheques etc. E-payment Systems have received different acceptance level throughout the world; some methods of electronic payments are highly adopted while others are relatively low. This study aimed to identify the issues and challenges of electronic payment systems and offer some solutions to improve the e-payment system quality.

(Source:http://ijarcsse.com/Before_August_2017/docs/papers/Volume_6/7_ July2016/V6I7-0135.pdf)

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7. A Study on the Perception of Customers towards ECommerce and E-Payments in Local Survey (MIT- SOM PGRC KJIMRP Vol. 1 – Issue 01) Mrs. R. Kavitha*, Thushar. S**, Raameshwar. S***, Sanjai. J****

Electronic commerce or e-commerce refers to a wide range of online business activities for products and services or the transmission of funds or data over an electronic network. A variety of applications are used in conducting the ecommerce such as online shopping, carts and catalogs, electronic data interchange. The trust in E-commerce mainly depends upon the online payment system which allows a customer to make payment to the online merchant or service provider. Consumers are becoming more and more comfortable in making online transactions and are concerned about conducting electronic business transactions and the risks involved that have a vital impact on the transition of electronic business. Increasingly more consumers are migrating to Electronic-commerce to make electronic bill payments, to pay for information online, to purchase products, services. This paper deals mainly with consumers’ willingness to conduct Electronic-commerce and their knowledge of the security measures used in online transactions. This study reveals the customer’s perception towards e-commerce and e-payments. The study is conducted among 100 respondents and a description of the research process is provided. The major factors and interpretations are then discussed, providing a clear picture of the findings, after which the conclusion of the study is drawn. (Source:https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7& ved=2ahUKEwi_7ubs5LfAhVLu48KHeDDBjgQFjAGegQIBBAC&url=http%3A% 2F%2Fkhoj.mitsom.edu.in%2Findex.php%2FKHOJ%2Farticle%2Fdownload%2F 107480%2F75717&usg=AOvVaw3GmFfXhbB5RY1VDNfCW1OP)

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8. Determinants of Customers’ Acceptance of Electronic Payment System in Indian Banking Sector – A Study (International Journal of Scientific & Engineering Research, Volume 5, Issue 1, January-2014) - Sanghita Roy, Dr. Indrajit Sinha Internet is perhaps one of the most important tools to businesses and individuals in the recent world economy. Globalization, financial liberalization and technology revolution have opened the door of new and more efficient delivery and processing channels as well as more innovative product and services in banking industry. With increased educational qualification and growing wealth consumers’ need and expectations are continually changing and they are involving themselves more and more in their financial decisions. After deregulation and reforms in Indian Banking scenario payment systems like Debit Card, Credit Card, ECS, EFT, RTGS, NEFT have offered variety of services to the customers. Despite the growth of electronic payment system over physical check-based system, its rate of adoption in India especially in Metro cities like Kolkata has been relatively slow. Its slow adoption rates raise many questions.. The aim of the study is to determine the factors influencing consumer’s adoption on the light of Technology Acceptance Model. Survey based questionnaires are designed and Factor Analysis is used to find reliable and consistent factors. Proposed model illustrates the level of fulfillment of each acceptance factors and therefore predicts its adoption and indicates areas of improvement

(Source:https://www.ijser.org/researchpaper/Determinants-of-Customers-Acceptanceof-Electronic-Payment.pdf)

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9. The Effect of Electronic Payment on Customer Satisfaction (Vol-3 Issue-3 2017) -Dr. Nitin Gupta

-Ms. Aditi Yadav

Retail electronic payment system has progressed in the recent years in various countries. We find that India is no exception .Reserve Bank in its Vision statement has set the objective to proactively promote electronic payments with an objective towards cash less society. The formation of National Payments Corporation (NPCI) in the year 2009 has set the stage for development of retail electronic payments which offers enormous opportunity to move towards cashless and less cash society. Using T test, with an objective to assess the contribution of NPCI, we find that significant difference exist in products such as electronic clearing, ECS (Debit), National Electronic Funds Transfer (NEFT), and Card Products when we compare the period after formation of NPCI and before formation of NPCI. Various innovative products, such as Immediate Payment Services (IMPS), National Automated Clearing House (NACH) and Prepaid Instruments (PPI), were launched after the formation of NPCI. There is enormous opportunity since the ratio of retail electronic clearing to systematically important payments such as Real Time Gross Settlement and CCIL grew from 1 percent in the year 2005-06 to 3 present in the year 20132014. I intend to discuss with you all about a silent revolution that has been sweeping the country. It is about the payment systems in India. I said 'silent revolution'. That is because, the payment systems have been evolving and changes have been continuous over the last 35 years, it has rarely got noticed as a revolutionary change. Let us see how it evolved and beneficially impacted settlement of economic transactions of common persons and businesses and how it is now poised for still larger impact. (Source:http://ijariie.com/AdminUploadPdf/The_Effect_of_Electronic_Payment_Syste m_on_Customer_Satisfaction_ijariie5639.pdf)

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10. A Study on Problems and Prospects of E-Payments in Tirupur City, Tamilnadu (Volume: 3 | Issue: 12 | Dec 2013 | ISSN - 2249-555X) -S. NAMASIVAYAM - M.PRAKASH - G.BARANI KARUNAMBIGAI

Commerce (the trading of goods) has been a major impetus for human survival since the beginning of recorded history and beyond. The mass adoption of the Internet has created a paradigm shift in the way businesses are conducted today. The past decade has seen the emergence of a new kind of commerce: ecommerce, the buying and selling of goods through human-computer interaction over the Internet. Business is done electronically and there is no longer a need for physical currency or goods to conduct business. The success of electronic commerce depends upon effective electronic payment systems. The focus of this study is to identify and explain the problems and prospects of e-payments .A number of solutions have been proposed based on the problem and discussed on the prospects of electronic payment system.

Source:https://www.worldwidejournals.com/indian-journal-of-appliedresearch-(IJAR)/file.php?val=December_2013_1385986185_cc62d_26.pdf)

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11. A Survey of Awareness about Security in E-payment System (International journal of Mechanical Engineering and Information Technology) -Deepak Mathur E-commerce provides the capability of buying and selling products, information and services on the Internet. In an e-commerce environment, payments take the form of money exchange in an electronic form, and are therefore called Electronic Payment. E-Payment system is secure, there should be no threat to the user credit card number, smart card or other personal detail, payment can be carried out without involvement of third party, It makes E payment at any time through the internet directly to the transfer settlement and form E-business environment. Studied have been carried out on E-Payment system. An efficient payments system reduces the cost of exchanging goods and services, and is indispensable to the functioning of the interbank, money, and capital markets. Questions are related to E-Payment systems in which given options are agree, disagree, strongly disagree, and strongly agree, Neutral. After analysis and comparison of various modes of electronic payment systems, it is revealed that it is quite difficult, if not impossible, to suggest that which payment system is best. Some systems are quite similar, and differ only in some minor details. Thus there are number of factors which affect the usage of e-commerce payment systems.

(Source: https://igmpublication.org/ijmeit%20issue/v5-i3/1%20ijmeit.pdf)

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12. Customers Intention to Use Electronic Payment Systems in India -A Study (International journal of Arts, Humanities and management studies) Radhika R*, & Dr. Florence John**,

Indian banking industry is gradually moving towards adopting the best practices with a number of changes. Most of the banks have begun to take an innovative approach towards Electronic Payment systems with the objective to reduce cashless banking. The Various Innovations in Banking through payment systems are Debit and Credit cards, Electronic clearing services (ECS), National Electronic fund transfer (NEFT), Immediate Payment Service (IMPS), Real time gross settlement (RTGS) and many more. The present article focuses on the changing Banking trends from paper based systems to Electronic payment systems. This study analysed the awareness, usage and the benefits of using electronic payment systems in banking with the help of primary and secondary data collection. However, the findings can help the Indian commercial banks to enhance the technological payment systems in order to improve the business performance and economic growth.

(Source: http://ijahms.com/upcomingissue/06.12.2016.pdf)

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Research Methodology

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Introduction The term Research is used to describe an entire collection of information about a particular subject. Research is defined as human activity based on intellectual application in the investigation of matter. The primary purpose for applied research is discovering, interpreting and the development of methods and systems for advancement of human knowledge on a wide variety of scientific matter of our world and the universe.

Research Methodology has many dimensions. It includes not only the Research method but also considers the logic behind the methods used in the context of the study. We know how important it is for our corporate clients to keep their finger on the pulse of fluid market dynamics and stay on top of economic and market trends. Research is simply the process of arriving as dependable solution to a problem through the planned and systematic collection, analysis and interpretation of data. “A careful investigation or inquiry especially through search for new facts in any branch of knowledge”

The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own purpose, we may think of research objective as falling into a number of following broad groupings:  To gain familiarity or achieve a new insight toward a certain topic  To verify and test important facts  To analyse an event and process  To portray accurately the characteristic of particular individual, situation or a group 31

Problem Statement In our fast moving world, people find it very difficult to manage their time on fulfil their commitment. Payments are done through electronic interactive communication channels. So everyone can complete their payment work very smartly without wasting the time. This drives the people to utilize their time effectively. The main purpose of this study is to know the Current scenario of E-payments in Gujarat. From this study, problems of the respondents and the facilities required by them can be known. The problem statement is given as under: “A research study on Current and Future Scenario of E-payment in Gujarat.”

Scope of the Study The project has been undertaken with a view of studying the “A research study on Current and Future Scenario of E-payment in Gujarat”. The study was carried out to collect data from the respondents using a well framed questionnaire. With the help of that the findings and suggestions have been made.

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Objective of the Study  To know about the current and future prospects of online payment system to the customer.  To know the factors that influences in E- Payments.  To know the problems faced by the respondents.  To analyse the satisfaction level of respondents.  To find the problem and solution of electronic payment system on individual customer.

 To makes the comparison between traditional and electronic payment system.  To identify consumers’ preference towards different websites.  To examine the impact of transaction related factors including convenience, security, costs, incentives and procedures on cashless transactions in Gujarat.

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Research Design Research design specifies the methods and procedures for conducting a particular study. A research design is the arrangement of conditions for collection and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is broadly classified into three types as:  Exploratory Research Design  Descriptive Research Design  Causal Research Design

I have chosen the exploratory research design.

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Data Sources  Primary data The study based mainly on Primary data. Primary data have been collected through the issue of questionnaire to the customer in Jamnagar City. Personal observations and discussions with the customers also helped to understand the problems and prospects of E-Payments. o For E.g. interview method, observation method, questionnaires, schedules etc.

 Secondary data Secondary Data are those which have already been collected by someone else and which have already been passed through the statistical process. o The literature review is a secondary data type. The source includes books, periodicals, websites, and printed literature. o For E.g. published data like in books, magazine, newspapers, internet, past reports public reports etc.

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Data Collection Instrument

There are several methods of collecting date like,

Interview

Observations

Data Collection Method

Experimentation

Questionnaire

(Chart-2)

Here I have selected Questionnaire method for “A research study on Current and Future Scenario of E-payment in Gujarat.”

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Sample Design Sample Size: The questionnaire was circulated to 100 respondents of various payments made by the customers within Gujarat.

Sampling Method: Random sampling

Non Random sampling

Probability sampling is a sampling Nonprobability

sampling

is

a

technique, in which the subjects of method of sampling wherein, it is the

population

get

an

equal not known that which individual

opportunity to be selected as a from the population will be selected representative sample.

as a sample. Sampling Methods

Simple Random sampling

Judgement sampling

Stratified sampling

Quota sampling

Cluster sampling

Panel sampling

Multi-stage sampling

Convenience sampling

Area sampling

Snow ball

I have selected Non Random Convenience sampling method from the above methods of samplings. (Table-1)

Sample Unit: People who resident within Gujarat.

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Data Analysis & Interpretation

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1. Are you aware about the Electronic Payment? Particular

%

Number of Respondents 98% 98 2% 2 100% 100

Yes No Total (Table-2) 2%

Yes

No 98%

(chart-3)

Interpretation: Form the above chart, we can analyse it as out of 100 respondents 98 respondents are aware about the Electronic Payment. So we can say that the use of electronic payment in Gujarat is increased day by day.

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2. Which are the areas that you getting Awareness about epayment? Particular

%

Number of Respondents 53% 53 39% 39 8% 8 100% 100

Advertisement Friends Relative Others Total (Table-3)

8% Advertisement

Friends 39%

Relative

53%

Others

(Chart-4)

Interpretation: Form the above chart, we can analyse it as out of 100 respondents 53 respondents

getting

Awareness

about

e-payment

through

advertisement. So we can say that in Gujarat more people getting information of E-payment through the advertisement. And second major source of getting awareness about e-payment in Gujarat is friends of respondents.

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3. Which online payment do you know? Particular

%

Credit Card E-wallet Smart card Direct debit All

56% 78% 30% 52% 2%

Number of Respondents 56 78 30 52 2

(Table-4)

All

2%

Direct debit

52%

Smart card

30%

E-wallet

78%

Credit Card

56% 0%

20%

40%

60%

80%

100%

(Chart-5)

Interpretation:

From the above chart, we can analyse it as out of 100% respondents 78% respondents know the use of E-wallet. So we can say that the respondents in Gujarat are more used of ewallet for online payment. As per the respondents opinion awareness of smart card is less compered to e-wallet.

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4. Which online Payment do you used regularly? Particular

%

Paytm Google Pay MobiKwik Phonepe Freecharge Amazon pay Yono SBI Other

93% 43% 10% 25% 15% 34% 1% 1%

Number of Respondents 93 43 10 25 15 34 1 1

(Table-5) Other

1%

Yono SBI

1%

Amazon pay

34%

Freecharge

15%

Phonepe

25%

MobiKwik

10%

Google Pay

43%

Paytm

93% 0%

20%

40%

60%

80%

100%

(Chart-6)

Interpretation:

From the above chart, we can analyse it as out of 100% respondents 93% respondents used Paytm regularly for online payment. And second major use for online payment is google pay as per respondent’s opinion.

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5. How much do you spend via online payment monthly? (% of your Expense) Particular

%

Number of Respondents 31% 31 42% 42 18% 18 7% 7 2% 2

Less than 10% 11% to 25% 26% to 50% 51% to 75% More than 75% (Table-6)

More then 75%

2%

51% to 75%

7%

26% to 50%

18%

11% to 25%

42%

Less then 10%

31% 0%

10%

20%

30%

40%

50%

(Chart-7)

Interpretation: From the above chart, we can analyse it as out of 100 respondents 42 respondents are 11% to 25% spend via online payment monthly. The main reason of low online transaction in Gujarat is people more believed in cash transaction. But as per current scenario of India is people transfer to digital India.

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6. Which is more important to CONVENIENCE or PRIVACY?

you

Particular

in

e-payment

%

Number of Respondents 5% 5 31% 31 64% 64 100 100

Convenience Privacy Both are equally important Neither Total (Table-7)

5% Convenience 31%

Privacy Both are equally important Neither

64%

(Chart-8)

Interpretation: From the above chart, we can analyse it as out of 100 respondents 64 respondents believed that in E-payment transaction Convenience and Privacy both are equally important. So we can say that in e-payment transaction only convenience or only privacy is not important as per the respondent’s opinion both are equally important.

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7. What are the reasons for not using E-payment? Particular

%

Lack of Security and Safety Cyber Crime Hacking Problems Problem of Internet Connection Charges of Online Transaction Lack of Infrastructure Illiteracy Lack of Incentives

69% 35% 57% 19% 9% 42% 7% 10% 7%

Number of Respondents 69 35 57 19 9 42 7 10 7

(Table-8)

Lack of Incentives

7%

Illiteracy

10%

Lack of Infrastructure

7%

Charges of Online Transaction

42%

Connection

9%

Problem of Internet

19%

Hacking Problems

57%

Cyber Crime

35%

Lack of Security and Safety

69% 0%

10%

20%

30%

40%

50%

60%

70%

80%

(Chart-9)

Interpretation: From the above chart, we can analyse that more people in Gujarat believed that the main reasons for not using e-payment are Lack of security & safety, Hacking Problem and Charges of online transaction. So we can say that these reasons are affected to respondents for not using E-payment.

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8. What are the factors that responsible for increasing usage of E-payment?

No. Questions

Strongly Agree Neutral Disagree Strongly agree disagree E-Payment System saves your 76 17 4 3 0 time and money. It provides a legal record of 27 61 10 2 0 business communications. A greater choice for consumer 22 45 27 5 1 and merchant in the way they send and receive payment. The trend is buying goods and 14 60 18 5 2 services over the internet from online shop. E-Payment provides greater 33 44 17 3 2 freedom to individual in paying their taxes, licenses, fee, funds etc. Hacker can access to digitized 14 55 25 1 4 information and record of Epayment.

1 2 3

4

5

6

(Table-9) 80

76

70

61

60

60 50

55 Strongly agree

45

44

40

33 27

30 20 10

Agree 25

22

17

14

10 4 3

0 1

Neutral

27

5

2 0

0

2

3

18

17 5

1

4

5

(Chart-10) 46

Strongly disagree

14 3 2

2

Disagree

1

6

4

Interpretation:

1. From the above chart, we can analyse that out of 100 respondents 76 respondents are strongly agree in E-Payment System because it help to saves his time and money. So we can say that it is very important factors compared to other factors that responsible for increasing usage of E-payment. 2. From the above chart, we can analyse that out of 100 respondents only 27 respondents are strongly agree that usage of e-payment is it provide legal records of business communication. And 61 respondents are agree that e-payment provides a legal record of business communications. So we can say that in future it is very important factors that responsible for increasing usage of E-payment. 3. From the above chart, we can analyse that out of 100 respondent’s majority of respondents are agree that e-payment is a greater choice for consumer and merchant in the way they send and receive payment. So we can say that day by day epayment transaction is increasing in Gujarat. 4. From the above chart, we can analyse that more number of respondents are agree that The trend is buying goods and services over the internet from online shop is increasing. So we can say that e-commerce is very important factor that responsible for increasing usage of E-payment. 5. From the above chart, we can analyse that majority of respondents are agree and strongly agree that second major important factor is E-Payment provides greater freedom to individual in paying their taxes, licenses, fee, funds etc. so we can say that this factor is responsible for incising usage of epayment.

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9. Do you think that using your mobile or making cashless payments will increase the chances of suffering from fraud or theft? Particular

%

Yes No Maybe

53% 11% 36%

Number of Respondents 53 11 36

(Table-10)

36%

Yes

No 53%

Maybe

11%

(Chart-11)

Interpretation: From the above chart, we can analyse it as out of 100 respondents 89 respondents believe that using his mobile or making cashless payments will increase the chances of suffering from fraud or theft. This is biggest problem faced by respondents toward the use of epayment. So we can say that this thinks are decreasing the use of epayment.

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10. Sometime some hidden charges are there when doing online transaction. Is that affects your online Purchasing next time? Particular

%

Yes No

79% 21%

Number of Respondents 79 21

(Table – 11)

21% Yes No 79%

(Chart – 12)

Interpretation: From the above chart, we can analyse it as out of 100 respondents’ 79 respondents believe that sometime some hidden charges are there when doing online transaction is that affects his online purchasing next time. So we can say that some hidden charges are there when doing online transaction that affect online purchasing next time by respondents.

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11.

Do you refer to use E-payment to others?

Particular

%

Yes No

80% 20%

Number of Respondents 80 20

(Table – 12)

20% Yes No 80%

(Chart – 13)

Interpretation: From the above chart, we can analyses that out of 100 respondents 80 respondents refer to use E-payment to others. So we can say that this thing help to increasing awareness about e-payment in Gujarat. And also it increases the usage of e-payment in future.

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12. Satisfaction of the users towards usage of E-payment services Very satisfied

Satisfied

Neutral

51%

18%

30%

Dissatisfied 1%

Very dissatisfied 0%

(Table – 13)

1% 0% 18% 30%

Very satisfied Satisfied

Neutral Dissatisfied Very dissatisfied

51%

(Chart – 14)

Interpretation: From the above chart, we can analyses that out of 100 respondents only 30 respondents are very satisfied and 51 respondents are satisfied toward usage of E-payment services. So we can say that respondents in Gujarat are more believed in cash transaction compared to online transaction.

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Hypothesis Testing

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ANOVA (SINGLE FACTOR) 1. H0: There is no significant difference between the opinions of different age group with respect to factors responsible for increasing usage of E-payment. H1: There is a significant difference between the opinions of different age group with respect to factors responsible for increasing usage of E-payment.

Following are the factors that responsible for increasing usage of E-payment.  E-Payment System saves your time and money  It provides a legal record of business communications.  A greater choice for consumer and merchant in the way they send and receive payment  The trend is buying goods and services over the internet from online shop.  E-Payment provides greater freedom to individual in paying their taxes, licenses, fee, funds etc.  Hacker can access to digitized information and record of E-payment.

Anova: Single Factor SUMMARY Groups Column 1 Column 2 Column 3 Column 4

Count

Sum 9 67 21 3

177 1293 425 56

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Average 19.66667 19.29851 20.2381 18.66667

Variance 19.25 9.151967 5.090476 4.333333

ANOVA Source of Variation Between Groups Within Groups Total

SS 16.48396 868.506 884.99

df

MS

F

P-value

F crit

3 5.494653 0.607349 0.611824 2.699393 96 9.046938 99

Interpretation: In this hypothesis, comparison has to be done between the opinions of different age group with respect to factors responsible for increasing usage of E-payment. As the comparison is between more than two samples, we preferred to apply ANOVA (SINGLE FACTOR) TEST. From the above table, we can see that Fcalculation vale i.e. - 0.607349 is less than F-critical value i.e.-20699393 so null hypothesis is accepted and alternate hypothesis is rejected. Hence, we can say that there is no significant difference between the opinions of different age group with respect to factors responsible for increasing usage of E-payment.

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ANOVA (SINGLE FACTOR) 2. H0: There is no significant difference between the opinions of different % level of monthly expenses via online payment with respect to factors responsible for increasing usage of E-payment. H1: There is a significant difference between the opinions of different % level of monthly expenses via online payment with respect to factors responsible for increasing usage of E-payment.

Following are the factors that responsible for increasing usage of E-payment.  E-Payment System saves your time and money  It provides a legal record of business communications.  A greater choice for consumer and merchant in the way they send and receive payment  The trend is buying goods and services over the internet from online shop.  E-Payment provides greater freedom to individual in paying their taxes, licenses, fee, funds etc.  Hacker can access to digitized information and record of E-payment. Anova: Single Factor SUMMARY Groups Column 1 Column 2 Column 3 Column 4 Column 5

Count 31 42 18 7 2

Sum 592 832 367 129 31 55

Average 19.09677 19.80952 20.38889 18.42857 15.5

Variance 7.623656 4.304297 4.369281 38.28571 112.5

ANOVA Source of Variation Between Groups Within Groups Total

SS

df

MS

F

P-value

F crit

1.829989

0.129427

2.467494

63.31207

4

15.82802

821.6779

95

8.649241

884.99

99

Interpretation: In this hypothesis, comparison has to be done between the opinions of different % level of monthly expenses via online payment with respect to factors responsible for increasing usage of E-payment. As the comparison is between more than two samples, we preferred to apply ANOVA (SINGLE FACTOR) TEST. From the above table, we can see that F-calculation vale i.e. 1.829989 is less than F-critical value i.e.- 2.467494 so null hypothesis is accepted and alternate hypothesis is rejected. Hence, we can say that there is no significant difference between the opinions of different % level of monthly expenses via online payment with respect to factors responsible for increasing usage of Epayment.

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Findings & Suggestions

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Findings  98 % of the respondents are aware about e-payment.  53% of the respondents getting Awareness about e-payment through advertisement.  78% of the respondents know the use of e-wallets for online payment.  93% of the respondents preferred use paytm wallet regularly.  42% of the respondents are spending via online payment 11% to 25% monthly.  64% of the respondents believed that in E-payment transaction Convenience and Privacy both are equally important.  69% of respondents are believed that the main reason for not using epayment is Lack of security & safety.  76% respondents are strongly agreed in E-Payment System because it helps to saves his time and money.  61% respondents are agreeing with the statement that e-payment provides a legal record of business communications.  45% of the respondents are agree with the statement that e-payment is a greater choice for consumer and merchant in the way of send and receive payment.  60% respondents are agree with the statement that The trend is buying goods and services over the internet from online shop is increasing.  44% respondents are agree with the statement that E-Payment provides greater freedom to individual in paying their taxes, licenses, fee, funds etc.  55% respondents are agreeing with the statement that Hacker can access to digitized information and record of E-payment.  89% respondents believe that using his mobile or making cashless payments will increase the chances of suffering from fraud or theft. 58

 79% respondents believe that sometime some hidden charges are there when doing online transaction is that affects his online purchasing next time.  80% respondents refer for the use E-payment to others.  30% respondents are highly satisfied and 51% respondents are satisfied for the usage of E-payment services.

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Suggestions  Risk perception for online payment should be reduced.  Organised seminar that help for creating awareness about e-payment services.  Increasing safety and security for e-payment transaction.  Customers are now using so many social networking websites so online payment services should advertise their products in social networking websites.  To make online shopping more preferable, online sellers should make design of website more attractive so people more converted to online payment.  As discount offers are more influential factor in online payment decision, promotional efforts by company should be more on discount offers.

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Limitation of the Study

There are always some drawbacks or hidden faults found in any kind of activity we perform. Following are some noted limitations for my research study:  The study cannot give the accurate results because the sample size is very small.  No human being is perfect so there are some un-noticeable mistakes while conducting survey.  The project was time bound, so research was limited.  Respondent may not have given bias free answer.  Data analysis and interpretation done may not be that strong due to small sample.

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Conclusion

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Conclusion On the basis of the present study concludes that due to online payment more customers are satisfied. This research explicitly indicates that online payment is effective. Maximum respondents from Gujarat prefer online payment through paytm. People like to done online payment through paytm as compared to others. Discount offers effects more to customers in online payment. As per respondents opinion Privacy and convenience both are equally important for online payment.

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QUESTIONNAIRE I Chintan Kodinariya and Parag Akbari students of JVIMS MBA College, Jamnagar is carrying out the project entitled on “Current and Future Scenario of E-payment in Gujarat”. All information provided in this survey will no means reflect the identity of the participants. It will be kept strictly confidential and will be used merely for academic purposes. Please Make () your response to indicate your preference.

1. Name: ___________________

2. Gender: Male

Female

3. Age Group: Below 20 Years 21 to 30 Years 31 to 40 Years Above 40 Years

4. Educational Qualification: SSC HSC Graduate Post Graduate Other

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5. Are you aware about the Electronic Payment? Yes

No

6. Which are the areas that you getting Awareness about e-payment? Advertisement Friends Relative Others

7. Which online payment do you know? (Multiple Choice) Credit Card E-wallet Smart card Direct debit Other___________

8. Which online Payment do you used regularly? (Multiple Choice) Paytm Google Pay MobiKwik Phonepe Freecharge Amazon pay Other_________

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9. How much do you spend via online payment monthly? (% of your Expense) Less than 10 % 11% to 25% 26% to 50% 51% to 75% More than 75%

10.Which is more important to you in e-payment CONVENIENCE or PRIVACY? Convenience Privacy Both are equally important Neither

11. What are the reasons for not using E-payment? Lack of Security and Safety Cyber Crime Hacking Problems Problem of Internet Connection Charges of Online Transaction Lack of Infrastructure Illiteracy Lack of Incentives 66

12. What are the factors responsible for increasing usage of E-payment? Questions

Strongly

Agree

Neutral

Disagree Strongly

agree

disagree

E-Payment System saves your time and money. It provides a legal record of business communications. A greater choice for consumer and merchant in the way they send and receive payment. The trend is buying goods and services over the internet from online shop. E-Payment

provides

greater

freedom to individual in paying their taxes, licenses, fee, funds etc. Hacker can access to digitized information and record of Epayment.

13. Do you think that using your mobile or making cashless payments will increase the chances of suffering from fraud or theft? Yes No I don’t know 67

14.Sometime some hidden charges are there when doing online transaction. Is that affects your online Purchasing next time? Yes No

15.Do you refer to use E-payment to others? Yes No

16. Satisfaction of the users towards usage of E-payment services Strongly agree

Agree

Neutral

Disagree

Thank You….

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Strongly disagree

Bibliography  BOOKS:  Kothari CR., “Research methodology, methods and techniques”, second Edition, new age international publisher, New Delhi.  Schiffman, Kanuk& Ramesh Kumar. Consumer Behaviour, 10th Edition, New Delhi, Pearson. Year of publication 2010.  Kotler, Philip. Marketing Management, 13th Edition, New Delhi, Dorling Kindersley (India) Pvt. Ltd. Year of Publication 2009.

 WEB SITES:

 www.globenewswire.com  www.reuters.com  www.worldwidejournals.com  www.securionpay.com  www.researchgate.net  www.researchgate.net

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