Online Payment System.docx

A STUDY ON

ONLINE PAYMENT SYSTEM

OF

HDFC BANK LIMITED

Synopsis Submitted by

M.A IMTIAZ AHMED

140317672151

ANWAR UL-ULOOM COLLEGE OF BUSINESS MANAGEMENT

(Affiliated to Osmania University, Hyderabad)

NEW MALLEPALLY, HYDEABAD

Telangana.

2018

INDEX

 INTRODUCTION  REVIEW OF LITERATURE  IMPORTANCE/ NEED OF THE STUDY  OBJECTIVES OF THE STUDY  RESEARCH METHODOLOGY  SCOPE OF THE STUDY  LIMITATIONS OF THE STUDY  REFERENCES  BIBLIOGRAPHY

INTRODUCTION The online system also very common on internet, it works by their retail, credit union, and virtual bank by secure the website to carry out the financial transaction by customers. Some online goods and services are still infancy and going innovations build through the internet growing rapidly as a marketplace for the exchange of both tangible and information goods and services. Besides online marketing and internet usage are growing to be more advanced. Paying is not definitely paper currency on the transaction, because the transaction going substituent with the online payment system or the card. Multitudinous payment mechanisms suitable for use in this marketplace are in several stages of development. This research project’s scope is limited to online payment systems which focused on the needs of consumers. As in usually the case with payment innovations, the success of the smart card will depend on market circumstances and cooperation among the banks. The proper timing of the introduction may depend on consumer readiness to use the new system, which will itself be largely due to prior experience and innovativeness (Andreasen, 1991). The Numerous Payment Systems have been pervasion on the marketplace, the new system prepared to accept by better consumers. To the level that consumers have experience with previous systems, the responsiveness and information of a new payment system will be facilitated. Lastly , this research project is a key of understanding of consumer behavior and their payment choices, and also the factors that influence the consumer choose to use onlinepayment. Moreover, this research project oration the usage of the online payment system provided a brief literature review on online payment and purpose to explain the determinants which affect the usage of users towards online payment system. In late 1970s technology such as Online Data Interchange (EDI) and Online Funds Transfer (EFT) to promote onlinecommerce transactions, authorized to operate in order to promote, such as purchase orders or invoices for online business documents. In 1979, Michael Aldrich contrived a technique as onlinecommerce; the technique was about online shopping to allow consumers and business through online transaction processing to shop from home and to trade with other business. In 1980s the enlargement and receipt of credit cards, automated teller machines (ATM) and telephone.

The first ATM’s machines use of magnetically prearranged plastic, the money could not automatically withdraw from users’ accounts were off-line machines. So the customer would perhaps be apprehensively to let a machine handle their money. But the cards used an encoded magnetic strip, making them safe and reusable. Consequently, just the only customers with good credit history were able to use ATMs. Therefore nowadays the ATM industry Association states that there will 1 billion of users using this transaction in ATMs. Almost 80 percent belong to the private sectors (Commercial Union ATM, 2000). Despite the rapid development of online payment systems, innovative services, but still faces some challenges. Business onlinemarkets as herald fundamental changes in the source and the computer-assisted alternative to existing market arrangements for trading in practice (Malone et al., 1989). Areas of impact include online catalogues, multimedia mail, online payment, brokering services and collaborative engineering. Initial implementations of online commerce have focused on the provision of telecommunications-based infrastructure in support of Internet-oriented services and online payment systems (Kohala Coast, HI 2009). Online payment systems should offer at least as much confidentiality as traditional payment systems currently do. The goal of this requirement is that payment data should not be exploitable in order to obtain more precise or more comprehensive information about involved entities example payer profiles. Thus, confidentiality properties of online payment systems can be distinguished regarding which information they reveal to which parties. Confidentiality of payment information against other parties can be achieved by encrypting communication which is no specific property of payment systems. Note that confidentiality in online payment systems cannot prevent information flows which may happen outside an online payment system among involved parties for example by observing communication networks, or revealing data in further commercial interactions (Fiat, Naor 1990).

REVIEW OF LITERATURE 1. Cheng, Hamid and Cheng(2009) suggested five perceived risks. Physical, performance, psychological, financial and time loss”. Physical risk was then described as a cashless or card loss , Performance indicates a risk that gains additional charges when utilized, Psychological risk was examined as a risk that if a mode of payment is made will affect the perceived image of the user, Time loss risk means it will take more of the time than the alternative mode of payment and finally financial risk which was described as loss meaning if the mode of payment that if used will cause financial loss and might not be refundable or reversible. 2. Srinivasan (2013) stated that success of an onlinebusiness rests on many factors. He defined trust is something that an e business must strive to achieve over a period of time. The author suggested some contributing factors for gaining customer trust are: appeal of the Web site, product or service offerings, branding, quality of service and trusted seals. Trust can be viewed from many angles such as transaction, information content, product, technology and institution. This paper analyses the role of trust from the transaction perspective and highlights the things that an onlinebusiness could do for building customer trust. Factors contributing to trust are not easy to measure. It is developed over time. People trust a business based on their own past experience as well as by third party recommendations. He concluded that the onlinebusinesses are accessible from anywhere at any time, there are additional impediments in building and maintaining trust. The limitation of this paper is that it did not focus much on how a company can enhance the security when doing online commerce. 3. Toñita Perea y Monsuwé, Benedict G.C. Dellaert, Ko de Ruyter (2004) proposed a framework to increase researchers‘understanding of cons mers‘ attitudes toward online shopping in US and Europe and their intention to shop on the Internet. The framework uses the constructs of the Technology Acceptance Model (TAM) as a basis, extended by exogenous factors and applies it to the online shopping context. The review shows that attitudes toward online shopping and intention to shop online are not only affected by ease of use, usefulness, and enjoyment, but also by exogenous factors like consumer traits, situational factors, product characteristics, previous online shopping experiences, and trust in online shopping.7 4. Abdul Naveed Tariq (2009) et.al.conducted a study on ―Assessing the impact of tr st and security factors on cons mers‘willingness for online shopping among the urban

Moroccans. This study attempts to examine the c stomers‘willingness to shop online by taking into account demographic factors as well as trust and security-related factors. A logistics regression analysis was demonstrated and the findings indicate that the customers‘ willingness to shop online is explained by age, trust, security, awareness and piracy factors. The findings of the study also indicates that majority of the respondents intend to shop online. The research outcomes are undoubtedly useful for both the government and online vendors for better understanding online shoppers. The study also facilitates policy-makers to set and develop a better online shopping infrastructure with the technological competitive advantage for both online vendors and consumers.8 5. Baten and Kamil (2001) determined the economic prospects of ebanking as well as demonstrating the scope and benefits of onlinepayments in Bangladesh. 9 Salehi and Alipour examined onlineand onlinepayments in an emerging economy seeking to provide empirical evidence fromindia. 10 James used Statistical Package for Social Sciences (SPSS) to investigate the acceptance of Onlinein Nigeria. The result shows that acceptance of is significantly influenced by Age, Educational Background, Income, Perceived Benefits, Perceived Ease of Use, Perceived Risk and Perceived Enjoyment. 11

NEED OF THE STUDY Online payment refers to the mode of payment which does not include physical cash or cheques. It includes debit card, credit card, smart card, onlinewallet etc. ONLINEcommerce has its main link in its development on–line in the use of payment methods, some of which we have analysed in this work .The risk to the online payments are theft of payments data, personal data and fraudulent rejection on the part of customers. Therefore, and until the use of online signatures is wide spread, we must use the technology available for the moment to guarantee a reasonable minimum level of security on the network. With respect to the payments methods they have been analysed in this work, it is impossible to say that any one of them is perfect, although each one of them has advantages as opposed to others. If the client wants to maintain privacy, then they choose those payment methods which guarantee a higher level of privacy such as ONLINEcash or Net Bill Checks. If the priority is security, they should use, Smart Cards. Both consumers and service providers can benefit from onlinepayment systems leading to increase national competitiveness in the long run. The successful implementations of online payment systems depends on how the security and privacy dimensions perceived by consumers as well as sellers are popularly managed , in turn would improve the market confidence in the system.

OBJECTIVES OF THE STUDY The following objectives have been set for this study: 1. To review the progress of online payment system in India. 2. To evaluate the difficulties faced by Indian banks to create infrastructure for online payment system in India. 3. To study the security measures undertaken by Indian banks for the safety of online payment system.

3

RESEARCH METHODOLOGY

The present study is of analytical and exploratory nature. Accordingly, the use is made of primary data. The primary data is collected with the help of questionnaires from a sample of respondents (100 bank officers and 200 customers) from Hyderabad using the online payment services provided by the various branches of HDFC BANK. The key intention of the study is to evaluate the security and infrastructure measures of online banking adopted so far. Therefore main objective of the study is evaluation of online payment measures adopted in nationalized banks with reference to Hyderabad. 

Primary data: this is first hand information is collected from the respondents associated with selected banks. Structured questionnaire prepared by the researcher and it is filled up by 200 bank customers and 100 bank officers. Respondents‘responses are collected from Hyderabad

SCOPE OF THE STUDY

1. To create awareness about various methods of online payment systems. 2. To create awareness about various frauds of online payments. 3. To motivate people to use online payments systems. 4. To make online payments safe and secure.

LIMITATION OF THE STUDY 1. Study is limited to Hyderabad city only. 2. Which criteria exist for evaluation of online payment systems? 3. Which other criteria can be adopted to evaluate online payment systems? 4.

Is there kept a history of the money transactions data conducting through the online payment systems?

REFERENCE 1. Cheng, A. y., Hamid, N. R. A. and Cheng, E. H. Risk perception of the ONLINEpayment systems: a young adult perspective. 7, 2009 2. S. Srinivasan, Role of trust in e‐business success, Information Management & Computer Security, Vol. 12 Iss: 1, pp.66 – 72, 2013 3. Toñita Perea y Monsuwé, Benedict G.C. Dellaert, Ko de Ruyter, What drives consumers to shop online? A literature review, International Journal of Service Industry Management, Vol. 15 Iss: 1, pp.102 – 121, 2004 4. Abdul Naveed Tariq, BadrEddaoudi, Assessing the impact of trust and security factors on cons mers‘ willingness for online shopping among the urban Moroccans, International Journal of Business & Management Science, Vol.2, Issue 1, pp. 17- 32, 2009 5. MA Baten, AA Kamil, Onlineof economical prospects in Bangladesh, Journal of Internet Banking and Commerce 15 (2), 1- 10., 2010

Websites www.google.com www.yahoo.com www.hdfcbank.com