Title: Impact of Online Payment Methods
Authors: Manas Deshmukh, Ricardo Jathanna, Udatta Palkar. (Roll no – 11,25,39)
Problem Introduction: During the Covid-19 Pandemic the world started to follow social distancing which led to various new Payment Methods, one of which was Online Payment Methods like UPI, Mobile Banking, Digital Wallets (Google Pay, Amazon Pay, Paytm, etc). These payment methods made people change their lifstyle which have become a part of everyone in their day-to-day life. Currently in the world India is the largest Online Payment Method User but with this many issues raised up like lack of security, server problems, less spread among rural areas, restrictions on amount, etc.
Objective: To Understand the underlying issues of the problem.
Literature Review:
1) The study discusses the evolution and significance of digital payments as a core component of financial technology (fintech). Digital payments involve transactions where both the payer and the payee use electronic methods, eliminating the need for physical cash.
Types of Digital Payments:
- Card Payments: Debit, credit, prepaid, and virtual cards are the most common methods.
- Mobile Payments: Transactions made via mobile devices using NFC, QR codes, or digital wallets.
- Electronic Fund Transfers (EFTs): Bank-to-bank transfers and online banking payments.
- Challenges & Adoption Factors:
- Security & Trust: Users prefer secure and reliable payment systems.
- Ease of Use: Simple interfaces and fast transactions boost adoption.
- Perceived Risk & Cost: Fraud concerns and transaction fees can hinder adoption.
- Health & Epidemic Effects: The pandemic drove higher adoption due to reduced physical contact. (2022, Coskun et al)
2) The study explores the adoption and usage of online payment apps among customers, highlighting the rapid growth of digital transactions, particularly after demonetization and government initiatives like UPI, BHIM, and Digital India
- Online payment apps such as Google Pay, PhonePe, Paytm, and Freecharge are widely used.
- Ease of use, security, and convenience are major factors driving adoption.
- Google Pay is the most preferred app, with 84% of respondents using it frequently.
- Security issues and network problems remain key concerns.
- Most users find digital payments time-saving and efficient.
Digital payments have transformed transactions, with increasing adoption across urban areas. However, improving security, reliability, and awareness is essential for continued growth. (2021, Sanjai V. et al)
Data Collection: 5 Questions were framed on Likert Scale to understand the problem and students were approached of Kohinoor Business School. 100 students were surveyed. The Mean, Standard Deviation, Standard Error and Z value was also calculated. These all were calculated for getting the sorted data of the surveyed opinion.
Data Analysis:
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Q5 |
|
Mean |
4.38 |
4.13 |
4.12 |
3.93 |
3.62 |
|
Standard Deviation |
0.93 |
0.92 |
0.89 |
1.09 |
1.16 |
|
Standard Error |
0.29 |
0.29 |
0.28 |
0.35 |
0.37 |
|
Z Value |
14.84 |
12.32 |
12.57 |
8.50 |
5.34 |
|
Result |
Positive |
Positive |
Positive |
Positive |
Positive |
The Following Questions were accepted
Q1. It has become easy to pay via UPI.
Q2. I feel secure while making payments online.
Q3. My expenses have increased due to online payments.
Q4. I prefer online payment rather than cash.
Q5. My data is completely secured while making payments online.
Conclusion:
People Agree that UPI is an easy way of payment.
People Agree to feel secure while making payments online.
People Agree that their expenses have increased due to online payments.
People Agree to preferring online payment rather than cash.
People Agree to completely feeling secured while making payments online.
Reference:
Coskun, Melih, Ebru Saygili, and Mehmet Oguz Karahan.
“Exploring Online Payment System Adoption Factors in the Age of COVID-19—Evidence from the Turkish Banking Industry.”
International Journal of Financial Studies, 2022, 10(2), 39.
DOI: 10.3390/ijfs10020039
2 & Dr. Tr. Kalai Lakshmi (2021). A Study on Usage of Online Payment Apps by Customers. International Journal of Creative Research Thoughts (IJCRT), Volume 9, Issue 5.
