CHAPTER I

INTRODUCTION

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1.1 INTRODUCTION

Mobile banking is a service provided by a bank or other financial institution that allows its
customers to conduct financial transactions remotely using a mobile device such as a smartphone
or tablet. Unlike the related internet banking it uses software, usually called an app, provided by
the financial institution for the purpose. Mobile banking is usually available on a 24-hour basis.
Some financial institutions have restrictions on which accounts may be accessed through mobile
banking, as well as a limit on the amount that can be transacted. Mobile banking is dependent on
the availability of an internet or data connection to the mobile device.

Transactions through mobile banking depend on the features of the mobile banking app provided
and typically includes obtaining account balances and lists of latest transactions, electronic bill
payments, remote check deposits, P2P payments, and funds transfers between a customer's or
another's accounts. Some apps also enable copies of statements to be downloaded and sometimes
printed at the customer's premises.From the bank's point of view, mobile banking reduces the
cost of handling transactions by reducing the need for customers to visit a bank branch for non-
cash withdrawal and deposit transactions. Many apps have now emerged to provide mobile
banking services. It helps the user to make all electronic transactions. This can include
purchasing items on-line with a computer or using a smartphone to purchase something at a
store.

Unified Payments Interface (UPI) is an instant real-time payment system developed by National
Payments Corporation of India facilitating inter-bank transactions. The interface is regulated by
the Reserve Bank of India and works by instantly transferring funds between two bank accounts
on a mobile platform.Unified Payments Interface is a real time inter bank payment system that
allows sending or requesting money. Any UPI client app may be used and multiple bank
accounts may be linked to single app. Money can be sent or requested with the Virtual Payment
Address (VPA), mobile number , Account number and IFSC, Aadhar,QR code

UPI uses existing systems, such as Immediate Payment Service (IMPS) and Aadhaar Enabled
Payment System (AEPS), to ensure seamless settlement across accounts. It facilitates push (pay)
and pull (receive) transactions and even works for over-the-counter or barcode payments, as well
as for multiple recurring payments such as utility bills, school fees and other subscriptions.

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Once a single identifier is established, the system allows mobile payments to be delivered
without the use of credit or debit cards, net banking or any need to enter account details. This
would not just ensure greater safety of sensitive information, but connect people who have bank
accounts via smartphones to carry out hassle-free transactions. Overall, UPI implies fewer cash
transactions and potentially reduces the unbanked population.

1.2 STATEMENT OF PROBLEM

Mobile banking is new and broader concept.UPI application plays a big role in mobile banking.
It is becoming a very common practice and it is important to analyse the pros and cons of such
banking applications. This study aims to study the concept of UPI applications, its growth and
impact on college students.

1.3 IMPORTANCE OF STUDY

UPI application are the most common and recent trend in banking application using now a days
today and it seems more easy and convenient for customers .College students are also using
different types of UPI applications for their daily transactions .This project is conducted for
analyzing the satisfaction of using UPI application among college students .

1.4 SCOPE OF THE STUDY

The study aims at getting a view about use of UPI applications among college students. This
study has been undertaken to analyze the reach of these applications in college students and
highlight the applications. This research also gave importance to major problems faced by the
users while undertaking banking transactions through these UPI applications.

1.5 OBJECTIVES OF THE STUDY

 To analyze the customer usage of UPI application.
 To identify the benefits and problems faced by the users.
 To study the customer satisfaction towards UPI application.

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1.6 RESEARCH HYPOTHESIS
 H0 : There is no significant difference between convenience towards UPI Payment system
and recommending UPI Applications to others
 H1 : There is significant difference between convenience towards UPI Payment system
and recommending UPI Applications to others

1.7 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problems. It may be
understood as a science of studying how research is done scientifically.

Descriptive research includes surveys and fact findings, enquiries of different kinds. The major
purpose of descriptive research is description of the state of affairs, as it exists at present.
Analyze the collected data and suggest some measures. Both primary and secondary data has
been collected. The researcher used the survey format to collect the required data for analysis
which is deal as an employee survey. This chapter also describes the method of data collected
and the tool of analysis used for the study of collected and tool of analysis used for the study.

RESEARCH DESIGN

Research design is the specification of methods and procedures for acquiring the information
needed. The research design selected for this project study is descriptive. A descriptive research
is a fact finding investigation. The data needed for the study are collected through observation,
interview and questionnaire.

SAMPLE DESIGN

Population is also used to refer to a set of potential measurement or values including not cases
actually observed but those that are potentially observable sampling design covers all the aspect
of sampling such as a system of collection, preparation of sampling frame, size of sampling etc.

SAMPLING

Sampling is the process of selecting units (e.g., people, organizations) from a population of
interest so that by studying the sample we may fairly generalize our results back to the
population from which they were chosen.

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METHODS OF SAMPLING

In this study simple random simple method is used for collect information from the respondent.
Simple random sampling is purest and the most straight forward probability sampling strategy. It
is also the most popular method for choosing a sample among population for a wide range of
purposes. In simple random sampling each member of population is equally likely to be chosen
as part of the sample.

SAMPLE SIZE
For the purpose of selecting a sample for the study simple random sample is used. Sample size is
50 students all over Mananthavady Region.
SOURCES OF DATA
For any statistical enquiry the data can be collected from two sources primary and secondary.

Primary data
Primary data are those which are collected a fresh and for first time. Primary data is collected
through questionnaire, Observation and interview.
Secondary data
The secondary data are those which have already been collected by someone else. Secondary
data is collected from records, magazines, files and broachers.

TOOLS FOR DATA COLLECTION

The structured questionnaire is constructed on the basis of previous research studies,
opinions of experts. Percentage analysis is used to assess the agreement levels of factors
affecting customer satisfaction, drawbacks of traditional methods, advantages of online methods
and other comparative studies.

1.7 LIMITATIONS OF THE STUDY

 The data collection had been done within a limited time period, which is insufficient for a
study.
 All limitations of sampling may be present.
 It is limited to Mananthavady Region, thus can‘t give a generalization to other regions.
 Not every respondent could fill their questionnaire on their own due to language problem,
and also lacked time.

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 CHAPTER II
REVIEW OF LITERATURE

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Somanjoli Mohapatra (2017) In their study reported that the single interface across all NPCI
systems besides creating interoperability and superior customer experience. The UPI seeks to
make money transfers easy, quick and hassle free. The proliferation of smart phones, the
availability of an online verifiable identity, universal access to banking and the introduction of
biometric sensors in phones will proactively encourage electronic payment systems for ushering
in a less-cash society in India.

Radhika Basavaraj Kakade, Prof. Nupur A. Veshne (2017) In their study reported that the
UPI has made digital transaction for individuals as easy as sending text messages. Service is
available 24X7, not like RTGS or NEFT which don‘t work on holidays or during non-banking
hours. This will bring enormous efficiency in the system and help India become a truly cashless
economy.

Roshna Thomas, Dr. Abhijeet Chatterjee (2017) The study reported that UPI is a tool with
compatible features that can make monetary transactions easy and affordable to the customers
though it is difficult to sideline the challenges. A strong Aadhar platform (UID) combined with
statistics for the country pertaining to increased financial inclusion, Smartphone adoption and
telecom subscription indicate positive prospects for UPI whereas competition from mobile
wallets and possible cases of failure from banks to overcome technical errors especially relating
to the front-end platform designed by them may negatively impact the scope of this innovative
payment tool.

Ravish Rana (2017) In their study reported that adoption of digital payment is influenced by the
education level of the customer. If a person has studied beyond matriculation and internet savvy,
he or she will be inclined to use the digital payment mode. It was also found that in the
areas/region where education level is high such as Delhi NCR and other metropolitan area, the
possibility of acceptance of digital payment is much higher. The growth of users of Smartphone
and internet penetration in such area also facilitated the adoption of digital payment.

Barker (1992) in his study, Globalization of credit card usage: The case of a developing
economy‖ investigate the attitude of Turkish consumers towards credit cards, and the approach
of card issuers by surveying two samples of 200 card holders and non-holders. The better
educated, middle aged members of the upper middle class seem to be the prime target; the most

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important reasons for using a credit card were ―case of payment‖, followed by ―risk of carrying
cash‖, Non holders do not carry credit cards because they do not know much about it; informal
sources of information appear to be more influential than mass media advertising in penetrating
the market; proposes that the usage and the administration of credit cards are influenced very
much by the infrastructure of the country and hence, credit card companies have to modify their
marketing and administrative procedures rather than following a standardized approach.

Natarajan and Manohar (1993) ―Credit Cards–an Analysis‖. A study has been attempted to
know that to what extent the credit cards are utilized by the cardholders and the factors
influencing the utilization of credit cards. The study is confined to cards issued by the Canara
Bank. A random sampling technique is used to collect the data. Ten components i.e. numbers of
purchases, shops, percentage of purchases, place, frequency, type of product, type of services,
cash withdrawal facilities, add on facility, insurance schemes are identified and used for the
measurement. Chi square test has been conducted to know the level of utilization. For this, both
personal and nonpersonal factors also have been taken into consideration. Chi square test reveals
that sex, age, educational qualification of card holders has no relationship with utilization of Can
Card. While occupation, income, employment status of spouse, mode of getting card has
relationship with utilization of Can Card.

Vora and Gidwani (1993), ―Plastic at a premium‖ show the usage facilities and varieties of
cards. The research shows that credit card is extremely useful to those people who use it as to
increase their purchasing power through the plastic card. Different cards provide the different
packages to attract the customers like teleticketing, discounts, insurance coverage and provide
reward points etc.

Mathur and George (1994), ―Use of credit-cards by older American‖ shows the usage behavior
pattern of older people with credit card spending. Using a large national sample of respondents
from different age groups, finds that older adults use credit cards as frequently as younger adults
when circumstances and opportunities for consumption in both groups are similar. Contrary to it,
the commonly held belief that older people do not use credit cards, the data suggests the need for
practitioners to stop thinking about consumer targets in terms of age and focus more on
circumstances that determine one‘s likelihood to use credit cards. Factors such as income,
employment, retirement status, shopping habits should be considered. While credit card usage

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may overall decline with age, certain segment of mature consumers continue making use of
credit cards throughout the life. The data in the present study suggests alternative criteria like
income and employment status, for appealing to mature Americans. Targeting older consumers
on the basis of age might not only alienate them but is also likely to reach fewer prospective
customers.

Simon and Victor (1994), ―Customers‘ Risk Perceptions of Electronic Payment Systems‖ finds
that one reason for the slow adoption rate of electronic fund transfer at point-of-sale (EFTPoS) is
that consumers perceive that EFTPoS has a higher level of risk than other traditional payment
methods. Study shows that EFTPoS has the lowest physical risk and highest financial risk, the
credit card has the lowest psychological risk and highest time loss risk, while cash has the
highest physical risk and lowest performance risk. Physical risk, financial risk and time loss risk
for cash payment are significantly higher when purchase is large while performance risk for
EFTPoS and credit card payment is significantly higher when the purchase is small. Users of
EFTPoS have a significantly higher level of perceived financial and time loss risk than non-
users, while non–users have higher level of psychological risk.

Almeida (1995), ―The Future in cards‖ shows that credit card business is booming as more than
1.1 million Indians have credit cards with them. Their numbers are expected to grow at an even
faster pace as issuing banks get aggressive. Studies show that more than 4000 business
establishments in the country accept credit cards. The country now provides all the ingredients
for a healthy credit cards industry: a rapidly expanding, increasingly acquisitive middle class, a
growing yen for travel and entertainment sophisticated merchant establishment and greater
transparency in financial system. Acquiring banks for business from merchant establishment has
brought the commission down and if the issuing bank happens to be also the acquiring bank, it
get the entire merchant discount. Finally, no payment system can ever replace cash in India on a
wide spread basis.

George (1995), ―The card majors lead the way‖ shows that VISA and Master Card play a major
role in any international payment system. Both VISA and Master Card act also as franchisers,
lending their names to member banks‘ card and acting as guarantor of payment to merchants
willing to accept the cards. For this and for handling transactions, VISA and Master card charge
a fee which varies from country to country, but is approximately 3 cents (90 paisa) per

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transaction. They are card clearing agencies. VISA and Master card each have nearly 22000
banks all over the world as their members and handle several million transactions each day. This
gives them a transaction handling capability unmatched by any individual bank. They are not
credit card companies but function on the line to provide a global network that allows
authorization, clearing and settlement of card transactions, both of credit and debit cards.

Torbet and Marshall (1995), ―One in the eye to plastic card fraud.‖ Paper explores the potential
use of behavioral and physiological biometric techniques in the battle against credit card fraud in
the retail environment. It discusses different techniques such as automatic speaker, dynamic
signature verification, fingerprint, facial recognition, retinal and iris scanning, hand and finger
geometry. Author feels that while biometric technologies have the potential to reduce plastic card
fraud there are several problems which must be addressed before they can be used in retail
environments, like the recognition performance, speed of use, usability, customer acceptance,
device cost are considered along with industry standards for biometric devices.

Worthington (1995), ―The cashless society‖ paper describes the cashless society, where clumsy
and expensive-to handle coins and notes are replaced by efficient electronic payments initiated
by various types of plastic cards is a tantalizing prospect for the twenty-first century. Some of the
interested parties stand to gain more than others if the cashless society becomes a reality. Paper
outlines the rationale of those who are keen to promote the cashless society and the implications
for marketers charged with winning consumer acceptance for payment by plastic card.

Joshi (1996), ―Variants in plastic.‖ Author analysis that card issuers seeks to introduces the
emerging payment card technology like debit and smart cards. Credit cards are being gradually
revolutionised by various factors: introduction of customers– friendly technology, a competitive
marketing environment, the rise of the financially sophisticated consumer who avoids paying
interest and the emergence of new competitors. The concept of debit cards as a new emerging
payment system has gained acceptance in the Asia-Pacific region in past few years. Being a new
concept, mass acceptance is gradual and not instantaneous.

Balazs Vinnai, general manager, digital channels, misys (2016) says that ―it is critical for
banks to consider new digital channels as part of an intergrated strategy and evolve from first to
second generation digital banking: switching digital from a supporting role, to the primary sales

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and communication channel foe banks‖. Says Vinnai, ―Reengineering process around the
customer is not easy but banks must embrace digital banking to remain competitive and relevant.

Ambarish Salodkar(2011) discusses that there are numerous applications like paytm,
freecharge, mobiquick etc. These applications can be downloaded and used for different purpose
like making bill payment, doing online shopping and recharging phones etc. Some of these
applications have their own portals a person can perform all the above mentioned and many
more tasks via app itself. In all the applications a person has to link his credit or debit card
number with the application to make use of services provided by spp. This paper, also discuss
different characteristics, various need and risk of electronic payments. The author agrees on the
fact that e-wallets allows the users to enjoy comfortable and easy going platform to shop and
pay, that too in minimal possible time.

Trilok Nath Shulka (2008) tells that with the advent of technology, smart phones have grabbed
the attention of a wide variety of customers. By using smart phone it becomes easier for people
to use web application more. It has becomes a convenient platform for users to transfer money in
fraction of seconds. The credit goes to various government agencies that motivated and
reinforced people for using smart phones and this is how people are contributing towards digital
India. Telecom companies have also proved as a helping hand by providing 3G and 4G
technology for faster transaction.

Hem Shweta (2013) states that smart phones have spread all over the markets and people have
now stated to make different kinds of payments through mobile phones. He also explores various
challenges faced by digital wallet users. Customers, banks and financial institutions are benefited
by use of digital wallets. Tech-savvy customers are increasing at a tremendously faster speed.

Doan (2011) illustrated the adoption of mobile wallet among consumers in Finland as only at
the beginning stages of the innovation decision process. Doing payment via mobile phone has
been in use for many years and now set to explode. Also mobiles are increasingly being used by
consumers for making payments.

Mallat (2014) studied consumer adoption of mobile payments in Finland. Study found that
mobile payment is dynamic and its adoption depends on lack of other payments method and
certain other situation.

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Slozko & Pello (2015) E-payment system are important mechanisms used by individual and
organizations as a secured and convenient way to making payments over the internet and at the
same time a gateway to technological advancement in the field of world economy.

Nitsure (2014) in his paper observed that the problems being faced by developing countries like
India in the adoption of E-banking initiatives due to low dissemination of information
technology the paper highlighted the problems such as security concerns, rules, regulations and
management. In India there is a major risk of the emergence of a digital split as the poor are
excluded from the internet and so from the financial system.

Blattberg, Eppen, and Liebermann (1981), Gupta (1988), Neslin, Henderson, and Quelch
(1985), Shoemaker (1979), Ward and Davis (1978), and Wilson, Newman, and Hastak (1979)
find evidence that promotions are associated with purchase acceleration in terms of an increase
in quantity purchased and, to a lesser extent, decreased inter purchase timing. Researchers
studying the brand choice decision-for example, Guadagni and Little (1983) and Gupta (1988)-
have found promotions to be associated with brand switching. Montgomery (1971), Schneider
and Currim (1990), and Webster (1965) found that promotion-prone households were associated
with lower levels of brand loyalty.

Blattberg, Peacock, and Sen (1976, 1978) describe 16 purchasing strategy segments based on
three purchase dimensions: brand loyalty (single brand, single brand shifting, many brands), type
of brand preferred (national, both national and private label), and price sensitivity (purchase at
regular price, purchase at deal price). There are other variables that may be used to describe
purchase strategies, examples are whether the household purchases a major or minor (share)
national brand, store brand, or generic, or whether it is store-loyal or not. McAlister (1983) and
Neslin and Shoemaker (1983) use certain segments derived from those of Blattberg, Peacock,
and Sen but add a purchase acceleration variable to study the profitability of product promotions.

Davis (2002) adds that brands should be managed as assets using a top down approach where
senior executives embrace the concept that marketing should have a leading seat at the strategy
table and use the brands to drive key strategic decisions. Also if senior executives are vocal and
show commitment to the brands, then employees within an organization will start taking
ownership of the brand.

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Thaler (1985), it is viewed that the price consumers‗ use as a reference in making purchase
decisions as the price they expect to pay prior to a purchase occasion. Further, the expected price
may also be called the "internal reference price" (Klein and Oglethorpe 1987) as opposed to an
external reference price such as the manufacturers' suggested list price. Finally, a brand is on
price promotion when it is offered with a temporary price cut that is featured in newspaper
advertising and/ or brought to consumers' attention with a store display sign.

Specifically, during a price promotion, they are apt to perceive a price "gain" and react
positively; correspondingly, when the deal is retracted, they are apt to perceive a price "loss" and
are unlikely to purchase the brand. Neslin and Shoemaker (1989) offer yet another alternative
explanation for the phenomenon of lower repeat purchase rates after promotional purchases.
They argue that the lower repeat purchase rates may be the result of statistical aggregation rather
than actual declines in the purchase probabilities of individual consumers after a promotional
purchase. Specifically, "if the promotion attracts many consumers who under non promotion
circumstances would have very low probabilities of buying the brand, then on the next purchase
occasion the low probabilities of these consumers bring down the average repurchase rate among
promotional purchases".

Applying Helson's (1964) adaptation-level theory to price perceptions, Sawyer and Dickson
(1984) suggest that price promotions may work in the short run because consumers may use the
brand's regular price as a reference and then are induced by the lower deal price to purchase the
brand. However, frequent temporary price promotions may also lower the brand's expected price
and lead consumers to defer purchases of the brand when it is offered at the regular price.

Tversky and Kahneman (1974) have shown that people rely on a limited number of heuristic
principles that reduce complex tasks of assessing probabilities and predicting values to simpler
judgmental operations. In some cases, people may anchor and adjust their forecasts by starting
with a preconceived point and weigh that point heavily in arriving at a judgment. When the
frequency of past price promotions is "very low," consumers identify a price promotion offer as
an exceptional event and may not modify the brand's expected price. The brand's expected price
then will be anchored around the regular price because of insufficient adjustment. In other cases,
people may arrive at a judgment on the basis of how similar or representative the event is to a
class of events. Therefore, when a brand is price promoted "too often," consumers come to

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expect a deal with each purchase and hence expect to pay only the discounted price on the basis
of its representativeness.

Davis, Inman, and McAlister (1992) also examine the difference between pre and post
promotion brand evaluations at the individual level but find no evidence that price promotions
affect evaluations for frequently purchased branded packaged goods. Across three promoting
brands in each of four different product categories, evaluators of promoted brands in the post
promotional period are not found to be lower than in the pre promotional period, The studies by
Scott and colleagues indicate that promotions have a damaging effect on post trial evaluations,
whereas Davis, Inman, and McAlister's study suggests that the impact of promotions on brand
evaluations in these packaged goods categories is, on average, nonexistent.

Rao and Monroe (19B8) find evidence that, with increased product familiarity, people
increasingly used intrinsic (versus extrinsic) product quality cues to make quality judgments. The
greater the amount of other information available, the smaller will be the effect of price on
perceived quality (Rao and Monroe 1988). Because price promotions reduce price and because
lower prices are associated with lower quality, we predict that when other information diagnostic
of quality is not available, offering price promotions will lead to inferences of lower quality.

Similarly, Lichtenstein and Bearden (1986) examine product, circumstance, and person
attributions for a promotion. They find that product attributions were valenced negatively, for
example, "because the car is inferior" and "because the car has poor styling." Therefore, if
consumers undertake attributional thinking when exposed to a price promotion and if these
attributions are to the brand, the attributions are more likely to lead to unfavourable brand
evaluations.

Consistent with this logic, in the context of reference prices, Lichtenstein and Bearden (1989)
find that consumers' price perceptions were dependent on the consistency of merchants' price
claim policies. Consumers should find promotional behaviour more informative of a brand's
quality when it is inconsistent with past behaviour than when it is consistent.

Priya Raghubir and Kim Corfman (1991) found that price promotions affect pre trial brand
evaluations and do so unfavourably, but only in some specific conditions. The moderators
identified were past promotional history, individual expertise in the category, and perceptions of

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how common promotions are in an industry, both manipulated within an industry and examined
across industries. Specifically, (1) offering a promotion is more likely to lower a brand's
evaluation when the brand has not been promoted previously, compared with when it has been
frequently promoted;

Given these results, Davis, Inman, and McAlister's (1992) finding that promotions do not
affect brand evaluations can be understood better. They study categories with which consumers
had considerable prior experience and in which promotions were common. Furthermore, the
brands they examine had been promoted in the past (prior to the experiment).

Mobley et al. (1988) found that 25 percent and 50 percent discount claims elicited 21 percent
and 45 percent perceived price reductions, respectively. Following Urbany et al. (1988), It has
been suggested that discounting occurs when consumers doubt the credibility of the advertised
savings, but instead of completely rejecting it they reduce it to a level deemed more reasonable.

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 CHAPTER III
THEORETICAL FRAMEWORK

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AN OVERVIEW ON UPI PAYMENT SYSTEM
E-Payment or electric payment is any digital payment transaction involving currency transfer
between two or more parties. In simple context, an e-payment transaction may be defined as one
in which monetary value is transferred electronically or digitally between two entities as
compensation for the receipt of goods and services. An entity refer to a bank, business, and
individual consumer

Digital payment is not a single instrument but rather an umbrella term that is applied to many
instrument used in various ways. The origin of digital payment is associated with the beginning
of the internet which changed the world as nothing before. If there is no internet, there wouldn‘t
be e-service and online stores. Due to wide spread of internet based shopping and banking,
digital payment system grew fast. With technology development many digital payment
companies have been established to increase, improve and offer secure e-payment transaction

Unified Payment Interface (UPI) is an instant real time payment system developed by National
Payment Corporation of India (NPCI) facilitating inter-bank transaction. The interface is
regulated by the Reserve Bank of India (RBI) and works by instantly transferring funds between
two bank accounts on mobile platform

UPI allows sending or requesting money. Any UPI client app may be linked to single app.
Money can be sent or requested through Virtual Payment Address (VPA), Mobile number,
Aadhar, Account number and IFCS, QR code which has enclosed VPA, Account number and
IFCS or Mobile number. There are a number of key features that are offered by the interface.
The user can access balance and transaction histories along with sending and receiving money

On April 11, 2016 two years ago UPI was launched by NPCI. On August 16, 2018 UPI 2.0 was
launched the new digital payment platform comes with a wide range of new features. UPI 2.0 is
now supported by all major Indian banks including State Bank of India (SBI), HDFC Bank, Axis
Bank, ICICI Bank, IDBI Bank, RBL Bank, YES Bank, Kotak Mahindra Bank, Indusind Bank,
Federal Bank and HSBC. UPI 2.0 enables users to link their overdraft accounts to the digital
platform. Users were also able to pre-authorize transaction by issuing one time mandate for
specific merchants. 2.0 Version included a feature to view and store the invoice for the
transactions.

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The website of NPCI lists the bank that facilitate UPI Banks here are termed as payment service
provider (PSP) and issuers. PSP includes those banks which have their own mobile application
and issuers includes banks which don‘t have their payments interface and rely on third party
software for transaction using UPI

The UPI was designed for the mobile apps. A Banking mobile application can adopt this
platform to give its facilities. There are various banking applications which work on this system.
The NPCI itself has made his own mobile applications, BHIM (Bharat Interface for Money).
Some of the popular applications are Paytm, Google Pay, PhonePe etc. In this project I studied
about some of the UPI apps and the customer satisfaction of using UPI applications

FEATURES OF UPI APPLICATIONS

Immediate Transfer

The Unified payment system transfers fund immediately from one account to another. This
transfer facility is available round the clock and on all days. There is no outage, strike, or
holiday.

Single App for Any Bank Account

It is the only payment system which gives you the power to access the SBI bank account. A UPI
app from the ICICI Bank can access your SBI bank account. Google Pay (Tez) is not related to
any bank still, it can access your bank account. Similarly, BHIM app can link any of your bank
accounts.

UPI ID or Virtual Payment Address

It gives you the facility to get money to a UPI ID or virtual payment address. You can make a
VPA of your UPI app. When someone transfers money to this VPA, the money directly goes to
the linked bank account. Because of the UPI ID, you are not required to share your bank account
details. This system of UPI ID works among all the UPI apps.

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Multiple Ways to Pay

Besides UPI ID, you can also send money using bank account number and IFSC. It is the same
old method. The UPI apps also give you the options of mobile number and QR code to send the
money. Thus there are three ways to send the money.

Payment to QR code

UPI also supports the payment to QR code. In fact, a QR code the app identifies the recipient.
Further, you can pay money to that recipient. The shopkeepers and merchant use this QR code to
get payments.

Split Bill

The UPI app gives you the facility to split the bill among many people. It is useful when many
people want to pay to a single person. The system equally splits bill among the named payers.

One Time Mandate

The UPI App also gives you the facility of the one-time mandate. In this facility, you can
schedule a payment for the further. In this system, you can set a maximum limit for the transfer.
The biller can itself draw the amount without your further permission. It is very useful in case of
regular payments such as bills and rent.

Easy to Use

You know that using a banking app is easier than internet banking. The UPI has made it further
simpler. The fund transfer through it is simple due to the following reasons.

 You can open app by entering easy to remember PIN.

 You are not required to add a beneficiary previously. You can immediately transfer
money to anyone. There is no compulsory wait period.
 The final authentication is also PIN based. You have to enter the UPI PIN to approve the
payment. There is no alphanumeric transaction password.

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It Is Free

The NPIC does not charge anything for the Unified payment system. It is freely available to the
participating banks. Everyone is trying to keep this system free so that people can widely use this
new mode of digital transaction. However, in future banks may charge some amount for using
their apps

REQUIRMENTS

For using UPI apps you have to fulfill following conditions;

 You must have a savings or current bank accounts.
 The bank should have a registered mobile number.
 You should have a debit card.
 The mobile number should be active on your current handset.
 There should be some balance to send SMS.
 To use UPI mobile app, you must have a smartphone.
 The smartphone should have Android or IOS operating system. 90% smartphone use this
operating system.
 You should have data pack to avail its services.

HOW TO USE UPI APP

The use of UPI starts with download. As usual android users can download it from the Google
play and iPhone users from the App store.

Registration

After the download, when you open the UPI app, the registration process begins. This process
may be slightly different for different apps. However, you have to go through the following
process.

 Selection of language.
 Selection of SIM if there are 2 SIM in phone.
 Permission to access messaging, phonebook, calling and media gallery.
 Setting the PIN to open App.

20
Choose UPI ID

The good feature of UPI is that bank account number is not required for payment. You can use a
virtual payment address instead of the bank account. One can send money to your VPA and
would receive it into the bank account, when you first time use this app, it asks you to set the
UPI ID. You set the ID of your choice. The process is similar to the Email address setting.

Add Bank Account

Once, you give permission to use messaging, the UPI app sends an SMS to the server. On the
basis of this SMS, the system finds out your mobile number. The mobile number is again used to
find out those bank accounts which are linked to the number. Through this process, the UPI
server ascertains your linked bank account number. After registration, you have to link a bank
account to the app. This process has two steps.

 Choose your bank from the list. There are 58 banks which supports this system. All, big
banks are the part of it.
 If you have more than one account in a bank, you would see the account number of both
the account. You should choose the desired account.

You can add all of bank accounts. However, you have to choose one default bank account. This
account would be used to send and receive money. If you want to change the account, you must
change the default account. It is one tap across

Generate UPI PIN

You cannot directly pay from your bank account. Rather, you need to authenticate before the
payment. This authentication is necessary for security so that no one can misuse your app.

This authentication is done through the UPI PIN. It is a 4 digit PIN which is required whenever
you pay to someone. Your Every Bank Account would have its own UPI PIN. You must use PIN
accordingly.

You can generate or reset PIN from the app itself. To generate the PIN, you have to enter last 6
digits of your debit card number and validity of the card in MM/YY format.

21
BEST UPI APPS

PAYTM

Paytm is an Indian e-commerce payment system and digital wallet company, based out of
NOIDA SEZ, India. Paytm is available in 10 Indian languages and offers online use-cases like
mobile recharges, utility bill payments, travel, movies, and events bookings as well as in-store
payments at grocery stores, fruits and vegetable shops, restaurants, parking, tolls, pharmacies and
education institutions with the Paytm QR code. California based PayPal had filed a case against
Paytm in the Indian trademark office for using a logo similar to its own on 18 November 2016.
As of January 2018, Paytm is valued at $10 billion. As per the company, over 7 million
merchants across India use this QR code to accept payments directly into their bank account. The
company also uses advertisements and paid promotional content to generate revenues. Paytm
was founded in August 2010 with an initial investment of $2 million by its founder Vijay
Shekhar Sharma in NOIDA, a region adjacent to India's capital New Delhi. It started off as a
prepaid mobile and DTH recharge platform, and later added data card, postpaid mobile and
landline bill payments in 2013.

By January 2014, the company launched the Paytm Wallet, and the Indian Railways and Uber
added it as a payment option. It launched into E-commerce with online deals and bus ticketing.

22
In 2015, it unveiled more use-cases like education fees, metro recharges, electricity, gas, and
water bill payments. It also started powering the payment gateway for Indian Railways.

In 2016, Paytm launched movies, events and amusement parks ticketing as well as flight ticket
bookings and Paytm QR. Later that year, it launched rail bookingsand gift cards.

Paytm's registered user base grew from 11.8 million in August 2014 to 104 million in August
2015. Its travel business crossed $500 million in annualised GMV run rate, while booking 2
million tickets per month.

In 2017, Paytm became India's first payment app to cross over 100 million app downloads. The
same year, it launched Paytm Gold, a product that allowed users to buy as little as ₹1 of pure
gold online. It also launched the Paytm Payments Bank and ‗Inbox‘, a messaging platform with
in-chat payments among other products. By 2018, it started allowing merchants to accept Paytm,
UPI and Card payments directly into their bank accounts at 0% charge. It also launched the
‗Paytm for Business‘ app, allowing merchants to track their payments and day-to-day settlements
instantly. This led its merchant base to grow to more than 7 million by March 2018.

The company launched two new wealth management products - Paytm Gold Savings Plan and
Gold Gifting to simplify long-term savings. It launched into gaming and investments, partnering
with AGTech to launch a mobile games platform Gamepind, and setting up Paytm Money with
an investment of ₹9 Crores to bring investment and wealth management products for the Indians.
In August 2015, Paytm received a license from Reserve Bank of India to launch a payments
bank. The Paytm Payments Bank is a separate entity in which founder Vijay Shekhar Sharma
will hold 51% share, One97 Communications holds 39% and 10% will be held by a subsidiary of
One97 and Sharma. The bank was officially inaugurated in November 2017 by the Indian
Finance Minister, Arun Jaitley. The inauguration ceremony featured prominent banking
personalities including former RBI Executive Director PV Bhaskar, Saama Capital Director Ash
Lilani and former Shriram Group Director GS Sundarajan. It is set to launch over 100,000
banking outlets across India by end of 2018Paytm Payments Bank has appointed veteran banker
Satish Kumar Gupta as its new Managing Director and CEO.

23
FEATURES OF PAYTM

Payment Bank

It is a payment bank. The RBI has permitted this type of bank recently. These banks can only
deposit money and facilitate the fund transfer. These can‘t lend money or issue a credit card.
There would be only saving account and current account. Therefore you would not find all
banking services in a payment bank.

Till now there are 5 payment banks in India. These are Airtel Payment bank, Postal payment
bank, Fino payment bank, Paytm payment bank and Jio payment bank.

Easy Account Opening

You can open an account in paytm bank from the paytm app. The account opening process is
user-friendly and you can complete it within 2 minutes. However, you still need physical KYC
verification for the paytm bank as well. You can fill the KYC form in the app itself. The paytm
representative would visit your house to complete the KYC formalities. You would need an
identity and address proof for the KYC.

No Minimum Balance

All regular banks require a minimum balance in the saving account. If you don‘t maintain the
minimum balance, there can be a penalty. But, Paytm bank doesn‘t charge such penalty. You are
free to keep zero balance in your Paytm bank account.

Free Online Transaction

The paytm payment bank is useful for online transactions. It does not charge for any online fund
transfer. The transfer can be through the UPI, IMPS or NEFT. However, UPI transaction charge
is zero from the regular banks as well. But bank charge fees for IMPS and NEFT transaction. In
the paytm bank, it would be free.

24
No Penalty for Breaking FD

The paytm bank is not entitled to open an FD account. However, it is opening FD account in
partnership with the Indusind bank. Thus your FD account would be opened in the Indusind. The
paytm would be the facilitator. You don‘t need to visit the indusind branch. You can fetch the
money from this FD account as required. It would be like a sweep account of the SBI.

In fact, the paytm bank would itself open an FD account if your deposit amount exceeds 1 lakh.
A paytm bank can‘t keep more than 1 lakh in saving account.

Free SMS Alert

It is a welcome feature. The paytm bank does not charge for the SMS alert. While other regular
banks charge up 25/month for the SMS alerts

No Cheque, No DD

The paytm payment bank does not issue a chequebook. It means you can‘t payment. Similarly,
you can‘t get Demand draft from the paytm bank. To do this task, you have to go to the regular
bank. However, in future, you can expect the chequebook. But you would have to pay for it.

25
GOOGLE PAY

Google Pay (stylized as G Pay; formerly Pay with Google and Android Pay) is a digital wallet
platform and online payment system developed by Google to power in-app and tap-to-pay
purchases on mobile devices, enabling users to make payments with Android phones, tablets or
watches. Google Pay (stylized as G Pay; formerly Pay with Google and Android Pay) is a digital
wallet platform and online payment system developed by Google to power in-app and tap-to-pay
purchases on mobile devices, enabling users to make payments with Android phones, tablets or
watches. Google Pay uses near field communication (NFC) to transmit card information
facilitating funds transfer to the retailer. It replaces the credit or debit card chip and PIN or
magnetic stripe transaction at point-of-sale terminals by allowing the user to upload these in the
Google Pay wallet. It is similar to contactless payments already used in many countries, with the
addition of two-factor authentication. The service lets Android devices wirelessly communicate
with point of sale systems using a near field communication (NFC) antenna, host-based card
emulation (HCE), and Android's security.

26
Google Pay takes advantage of physical authentications such as fingerprint ID where available.
On devices without fingerprint ID, Google Pay is activated with a passcode. When the user
makes a payment to a merchant, Google Pay does not send the credit or debit card number with
the payment. Instead it generates a virtual account number representing the user's account
information. This service keeps customer payment information private, sending a one-time
security code instead of the card or user details.Google Pay requires that a screen lock be set on
the phone. It has no card limit.

Users can add payment cards to the service by taking a photo of the card, or by entering the card
information manually. To pay at points of sale, users hold their authenticated device to the point
of sale system. The service has smart-authentication, allowing the system to detect when the
device is considered secure (for instance if unlocked in the last five minutes) and challenge if
necessary for unlock information. Spring CEO Alan Tisch said Google Pay improves mobile
shopping business by supporting a "buy button" powered by Google Pay integrated within
vendor's creative design.[15Originally launched as Android Pay, the service was released at
Google I/O 2015. Android Pay was a successor to and built on the base established by Google
Wallet which was released in 2011.It also used technology from the carrier-backed Softcard—
Google had acquired its intellectual property in February 2015. At launch, the service was
compatible with 70% of Android devices, and was accepted at over 700,000 merchants. Google
Wallet still powered web-based Play Store purchases and some app-based peer-to-peer
payments, for instance in Gmail.

On September 8, 2016 it was reported that UK banks TSB and Santander will participate "over
the coming weeks". Android Pay was launched in Singapore on June 28, 2016, and in Australia
on July 14, 2016. Android Pay launched in the Republic of Ireland on December 7, 2016 and is
initially available to customers of AIB and KBC. The service works with both credit and debit
cards.

In 2016, Google began a public trial in Silicon Valley of a related mobile app called Hands Free.
In this system, the customer does not need to present a phone or card. Instead, a customer
announces they wish to "pay with Google" and give their initials to the cashier, who verifies their
identity with a photo previously uploaded to the system. The customer's phone will only
authorize payment if its geographic location system indicates it is near a participating store.

27
On September 18, 2017, Google launched an UPI-based app Tez in India.[26] On August 28,
2018, Google rebranded Tez to Google Pay

On January 8, 2018, Google announced that Google Wallet would be merged into Android Pay,
with the service as a whole rebranded as Google Pay. This merger extends the platform into web-
based payments integrated into other Google and third-party services. The rebranding began to
roll out as an update to the Android Pay app on February 20, 2018; the app was given an updated
design, and now displays a personalized list of nearby stores which support Google Pay.

On December 21, 2018, Google Payment, obtained an e-money license in Lithuania - the license
will enable Google to process payments, issue e-money, and handle electronic money wallets in
the EU.

FEATURES OF GOOGLE PAY

Based on UPI

The Google Pay app is based on the UPI Payment system. Thus you would find all the features
of UPI in this app as well as you know that UPI is a payment interface developed by the NPCI.
This system facilitates the instant fund transfer between number is not mandatory to use this
system.

This system works on the mobile number linked to the bank accounts. And money is transferred
from one bank account to another. The apps only work as a facilitator. You can pay money
instantly to a bank account. This system works 24 hours a day and in all the 365 days a year.
Thus, there is not a possibility of delay

Made By Google

The Google has made this app specially for India. The backing of Google makes it unique. The
Google has used its technology power and money power to make it successful. You would find
some unique feature in the Tez because of Google

The Google has provided the special Tez shield to make this app safe. It uses artificial
intelligence to prevent frauds.

28
Mobile Recharge

The Google Pay (Tez) can be also used to the recharge the mobile number. You can see all the
plans of telecom companies in the Tez itself. Like all the other features, the mobile recharge is
also very simple and needs very little time.

The repeat recharge through the Tez is quite easy as you are not required to fill any information
further. Even you can choose the same recharge amount only by tapping on the past transactions

Many Bank Accounts

The Tez gives you the facility to link several bank accounts. This single app can be used for
multiple bank accounts. But at a time, you have to set one bank account as default. However, you
can change your default bank account at any time.

Cash Mode For Nearby People

The Google pay has a unique feature the ―Cash Mode‖. This mode makes fund transfer easy to
the nearby people. In this mode, you are not required to enter any information of the payee.
Weather it is UPI ID, bank account number or mobile number.

In the Cash Mode of Tez, you would be able to identify the nearby people in your Tez screen. It
is similar to choosing the Wifi network or Bluetooth devices. The Google is using sound
recognition technology for this type of transfer.

Bill Payment Facility

The Tez is one of the few UPI apps which give the facility of bill payments. Even BHIM App
does not offer the bill payment facility.

Through this app, you can pay bills for electricity, DTH, mobile, gas, etc.. There are more than
100 billers listed. In fact, the Tez has adopted the Bharat Bill Payment System. This is also an
NPCI promoted system to make Bill Payment easy and cheap.

The bill payment facility if Tez also tells you the billed amount of your registered billers. Thus
you are not required to find out the bill amount.

29
Offers and Rewards

The Google Pay gives you various offers and rewards. Lakhs of people have earned good money
by using the Tez apps.

Send Money Easily To Contacts

It is further easy to send money if the sender and receiver both use the Google Pay app. The
identification of receiver is very easy by using the mobile number and email IDs. Hence, when
you select a contact, the Google pay ascertains the identity by tallying mobile number and email
address. On the basis of identification, it sends money to the receiver. In this method, as well,
you don‘t enter any information for fund transfer.

Free of Cost

Like other UPI app, the Google pay is also free. It does not charge a paisa for the payment. The
NPCI does not charge anything for providing the UPI system to the Tez and other apps. The
Google also, do not charge anything for the use of its app.

30
PHONEPE

PhonePe is a financial technology company headquartered in Bangalore, India. It was founded in

December 2015 It provides an online payment system based on Unified Payments Interface
(UPI), which is a new process in electronic funds transfer launched by National Payments
Corporation of India (NPCI).It is licensed by the Reserve Bank of India for issuance and
operation of a Semi Closed Prepaid Payment system. It is licensed by the Reserve Bank of India
for issuance and operation of a Semi Closed Prepaid Payment system.

PhonePe received its license to operate on 26 August 2014 and began operations in December,
2015. However, in April 2016, the company was acquired by Flipkart. Flipkart's Vice President
in Marketing, Sameer Nigam was assigned as their new CEO.

In August 2016, the company partnered with Yes Bank to launch a UPI-based mobile payment
app, based on the government-backed UPI platform.

On 14 January 2017, ICICI bank blocked PhonePe transactions, citing the reasons that it did not
meet the NPCI guidelines. Initially, on 19 January 2017, NPCI instructed ICICI to allow UPI
transactions via PhonePe. During this period, Airtel too blocked PhonePe transactions on its
platforms. A day later, on 20 January 2017, NPCI renounced the previous instructions citing the
reason that PhonePe indeed violated the UPI norms.

After this, PhonePe closed its operations on Flipkart's website, to align itself with the terms
stated in the updated verdict from NPCI. By February, 2017, PhonePe resolved the issues with
ICICI.

31
FEATURES OF PHONEPE

All-in-One solution

PhonePe can be used anywhere in India and for every transaction. This makes it dynamic and
very expedient to business users, as they only have to access one app to request payments from
their client, to send salaries to their employees, and to pay their utility bills.

Multiple Payment Options

PhonePe gives users multiple options for the sources of their funds. This can be UPI, their credit
or debit card, or their bank accounts. This flexibility allows users to be dynamic and lets them
make certain every source is in the green.

Direct Top Ups

For faster transactions, users can transfer funds from their accounts to their digital PhonePe
wallets. This means the app does not have to access linked accounts and cards foe every
transaction. This method is also more secure for daily payments and fund transfers.

Intuitive POS

Aside from facilitating online fund transfers, PhonePe also helps merchants accept payments in
their stores. The solution has a dedicated POS device that can be used for in-store transactions.
This reduces the waiting time of customers at the register and allows business to serve more
buyers. With this solution, companies and customers alike can rest assured that every transaction
is secured as each device is linked to only one merchant. Plus, payment only succeeds once the
customer enters their PIN on the app.

Multi-Language Interface

English and Hindi are not the only languages Ph onePe speaks. The app is also available in Tamil,
Marathi, and Bengali enabling native the speakers of those languages to navigate the app comfortably and
seamlessly.

32
 CHAPTER IV
ANALYSIS AND INTERPRETATION

33
 Table 4.1
Gender Wise Classification

Gender No of Respondents Percentage

Male 24 48
Female 25 50
Transgender 1 2
Total 50 100
Source: Primary Data
Chart 4.1
Gender Wise Classification

Male
48
Female
50 Transgender

Inference: From the above figures it can be seen that majority (50%) of the respondents are
females, 48% of them are males and rest 2% of them are under transgender category.

34
 Table 4.2
Age Wise Classification

Age No of Respondents Percentage

Below 18 1 2
18 to 22 25 50
22 to 26 15 30
26 to 30 4 8
Above 30 5 10
Total 50 100
Source: Primary Data
Chart 4.2
Age Wise Classification

60

50
50

40

30
30
Percentage

20

10
10 8

2
0
Below 18 18 to 22 22 to 26 26 to 30 Above 30

Inference: From the above figures it can be seen that majority (50%) of the respondents are
under the age group of 18 years to 22 years. 30% of the respondents are under 22 to 26 years of
age group, 10% of them are above 30 years of age group. 8% of them are under 26 to 30 years
age group, 2% of them are under below 18 years age group.

35
 Table 4.3
Geographical Are Wise Classification

Area No of Respondents Percentage

Rural 28 56
Semi urban 16 32
Urban 6 12
Total 50 100
Source: Primary Data

Chart 4.3
Geographical Are Wise Classification

12

32 56 Rural
Semi urban
Urban

Inference: From the above figures it can be seen that majority (56%) of the respondents is from
rural Area. 32%of them are from Semi urban and ret 12% of them are under Urban Area.

36
 Table 4.4
Income Wise Classification

Income No of Respondents Percentage

Below 10000 5 10
10000-25000 22 44
25000-50000 16 32
Above 50000 7 14
Total 50 100
Source: Primary Data
Chart 4.4
Income Wise Classification

44
45

40

35 32

30

25
Percentage
20
14
15
10
10

0
Below 10000 10000-25000 25000-50000 Above 50000

Inference: From the above figures it can be seen that majority (44%) of the respondents have
10000-25000 as their monthly income. 32% of them have 250000-50000, 14% of them are have
above 50000 and rest 10%of them have below 10000 as their monthly income.

37
 Table 4.5
Occupation Wise Classification

Occupation No of Respondents Percentage

SSLC 0 0
Plus two 4 8
Graduation 19 38
Post Graduation 15 30
Professional 8 16
Others 4 8
Total 50 100
Source: Primary Data
Chart 4.5
Occupation Wise Classification

38
40
35
30
30
25
20 16
15 Percentage
8 8
10
5
0
0

Inference: From the above figures it can be seen that majority (38%) of the respondents have
graduation as their educational qualification. 30% of them are post graduates, 16% of them have
professional degrees, 8% of them have plus two as their qualification and rest 8% of them have
other than these qualifications.

38
 Table 4.6
Opinion on awareness about UPI Applications

Opinion No of Respondents Percentage

Yes 50 100
No 0 0
Total 50 100
Source: Primary Data
Chart 4.6
Opinion on awareness about UPI Applications

Yes
No

100

Inference: From the above figures it can be seen that majority (100%) of the respondents has
awareness on UPI Applications.

39
 Table 4.7
Preferences on Various UPI Applications
UPI Applications Rank Mean
Rank I Rank II Rank III Rank IV Rank V value
Google Pay (Tez) 36 6 3 3 2 4.42
Phone Pe 11 25 8 6 0 3.82
PayTM 9 13 20 7 1 3.44
Mobikwik 4 4 7 27 8 2.38
Others 6 4 5 7 28 2.06
Source: Primary Data
Chart 4.7
Preferences on Various UPI Applications

4.42
4.5
3.82
4
3.44
3.5

3
2.38
2.5 2.06
Mean Value
2

1.5

0.5

0
Google Pay Phone Pe PayTM Mobikwik Others
(Tez)

Inference: From the above figures it can be seen Majority of the respondents prefers Google Pay
as their UPI application, because it shows a higher mean value of 4.42 compared with others.

40
 Table 4.8
Last App Used Before Month

UPI Application No of Respondents Percentage

Google Pay (Tez) 35 70
Phone Pe 8 16
Pay TM 5 10
Mobikwik 0 0
Others 2 4
Total 50 100
Source: Primary Data
Chart 4.8
Last App Used Before Month

80
70
70

60

50

40
Percentage
30

20 16
10
10
4
0
0
Google Pay Phone Pe Pay TM Mobikwik Others
(Tez)

Inference: It can be analyzing from the above table that majority (70%) of the respondents Used
Google Pay in the Last Month and still continue with that.16% of them replayed it as Phone Pe,
10% of them say it as PayTM, and rest 4% of them use other UPI applications in the last Month.

41
 Table 4.9
Convenience towards various types of transactions

Types of Level of convenience Mean

transaction More Convenient Neutral Less Inconvenient value
Convenient Convenient
Cash 16 18 9 6 1 3.84
Payment
UPI 40 7 2 1 0 4.72
transaction
Source: Primary Data
Chart 4.9
Convenience towards various types of transactions

3.84
Cash Payment
UPI transaction
4.72

Inference: From the above figures it can be seen that majority of the respondents says that UPI
Transactions are the most convenient type of transaction because it shows a higher mean value of
4.87 compared to Cash payment transaction method.

42
 Table 4.9.1
Convenience towards cash payment

Level of convenience No of Respondents Percentage

More Convenient 16 32
Convenient 18 36
Neutral 9 18
Less Convenient 6 12
Inconvenient 1 2
Total 50 100
Source: Primary Data
Chart 4.9.1
Convenience towards cash payment

40 36
35 32

30

25
18
20 Percentage
15 12

10

5 2

0
More Convenient Neutral Less Inconvenient
Convenient Convenient

Inference: From the above figures it can be seen that majority (36%) of the respondents say that
cash payments are convenient type of transaction,32% of the opinioned it as the most convenient
one. 18% of the respondents have a neutral opinion on this. Around 14% of the respondents have
negative opinion on this.

43
 Table 4.9.2
Convenience towards UPI payment

Level of convenience No of Respondents Percentage

More Convenient 40 80
Convenient 7 14
Neutral 2 4
Less Convenient 1 2
Inconvenient 0 0
Total 50 100
Source: Primary Data
Chart 4.9.2
Convenience towards UPI payment

80
80

70

60

50

40 Percentage
30

20 14

10 4 2 0
0
More Convenient Neutral Less Inconvenient
Convenient Convenient

Inference: From the above figures it can be seen that majority (36%) of the respondents says that
UPI Payments are the most convenient type of transaction,14% of the opinioned it as the
convenient one. 4% of the respondents have a neutral opinion on this. Even if the method is
convenient 2% of the respondents say it as less convenient one.

44
 Table 4.10
Preferred services availed through UPI Applications
Services Rank Mean
Rank Rank Rank Rank Rank Rank Rank Rank value
I II III IV V VI VII VIII
Money 10 8 9 6 5 5 4 3 5.32
Transfer
Mobile 10 9 5 7 6 4 5 4 5.16
Recharge
Bill 7 5 6 5 9 8 4 6 4.52
Payments
DTH 9 9 8 4 5 6 5 4 5.1
recharge
Insurance 1 2 4 6 8 8 10 11 3.26
Payments
Movie 3 6 9 6 4 5 8 9 4.12
Ticket
Booking
Conveyance 4 3 5 8 8 7 5 10 3.92
Ticket
booking
Online 6 8 4 8 5 7 9 3 4.6
Purchase of
Products
Source: Primary Data

45
 Chart 4.10
Preferred services availed through UPI Applications

1 Mean Value

Inference: From the above figures it can be seen that majority of the respondents prefer UPI
Application for Money Transfer as a service. It shows a higher mean value of 5.32.

46
 Table 4.11
Preferred Reason for choosing UPI Applications

Reasons Rank Mean

Rank I Rank II Rank III Rank IV Rank V Rank VI value
Easy Access 39 8 0 1 0 2 5.58
Easy to use 34 1 2 0 1 2 4.42
Variety of 21 6 9 1 0 3 3.96
Services
Trust 12 19 11 5 1 2 4.6
worthiness
Less 18 18 7 2 3 2 4.8
procedures
Cash back 26 10 6 1 0 6 4.78
offers and
discounts
Source: Primary Data
Chart 4.11
Preferred Reason for choosing UPI Applications

5.58
6
4.6 4.8 4.78
5 4.42
3.96
4
3
2
1
Mean Value
0

Inference: From the above figures it can be seen that majority of the customers
prefer UPI Application for Easy Access, it shows a higher mean value of 5.58.

47
 Table 4.12
Frequency of using UPI Applications

Frequency No of Respondents Percentage

Very frequently 20 40
Frequently 26 52
Occasionally 2 4
Rarely 1 2
Never 1 2
Total 50 100
Source: Primary Data
Chart 4.12
Frequency of using UPI Applications

60
52

50
40
40

30 Percentage

20

10 4
2 2

0
Very Frequently Occasionally Rarely Never
frequently

Inference: From the above figures it can be seen that majority (52%) of the respondents are
frequently use UPI Applications. 40% of them use very frequently, 4% of them use it
occasionally, 2% of them are use rarely, and 2% of them have never used these kind of
applications.

48
 Table 4.13
Level of satisfaction towards various features of UPI Application

Features Level of satisfaction Mean

Highly Satisfied Neutral Dissatisfied Highly value
Satisfied Dissatisfied
Mode of payment 30 18 2 0 0 4.56
Services Offered 19 28 2 1 0 4.3
Safety 13 26 9 2 0 4
Access Charges 7 22 17 1 3 3.58
Cash back and 16 24 7 2 1 4.04
discount
Source: Primary Data
Chart 4.13
Level of satisfaction towards various features of UPI Application

5 4.56
4.3
4.5 4 4.04
4 3.58
3.5
3
2.5 Mean value
2
1.5
1
0.5
0
Mode of Services Safety Access Cash back
payment Offered Charges and discount

Inference: From the above figures it can be seen that majority of the respondents are satisfied
with Mode of payment of UPI Application it shows a higher mean value of 4.56.

49
 Table 4.13.1
Level of satisfaction towards Mode of Payment

Opinion No of Respondents Percentage

Highly Satisfied 30 60
Satisfied 18 36
Neutral 2 4
Dissatisfied 0 0
Highly Dissatisfied 0 0
Total 50 100
Source: Primary Data
Chart 4.13.1
Level of satisfaction towards Mode of Payment

70
60
60

50

40 36

30 Percentage

20

10
4
0 0
0
Highly Satisfied Satisfied Neutral Dissatisfied Highly
Dissatisfied

Inference: From the above figures it can be seen that majority (around 96%) of the respondents
is satisfied with Mode of payment of UPI Application. 4% of them have a neutral opinion on
this.

50
 Table 4.13.2
Level of satisfaction towards Services Offered

Opinion No of Respondents Percentage

Highly Satisfied 19 38
Satisfied 28 56
Neutral 2 4
Dissatisfied 1 2
Highly Dissatisfied 0 0
Total 50 100
Source: Primary Data
Chart 4.13.2
Level of satisfaction towards Services Offered

60 56

50

38
40

30 Percentage

20

10 4
2
0
0
Highly Satisfied Neutral Dissatisfied Highly
Satisfied Dissatisfied

Inference: From the above figures it can be seen that majority (around 94%) of the respondents
is satisfied with serviced offered by UPI Application. 4% of them have a neutral opinion on this
and 2% of them are dissatisfied with this opinion.

51
 Table 4.13.3
Level of satisfaction towards Safety

Opinion No of Respondents Percentage

Highly Satisfied 13 26
Satisfied 26 52
Neutral 9 18
Dissatisfied 2 4
Highly Dissatisfied 0 0
Total 50 100
Source: Primary Data
Chart 4.13.3
Level of satisfaction towards Safety

60
52

50

40

30 26
Percentage
18
20

10 4
0
0
Highly Satisfied Neutral Dissatisfied Highly
Satisfied Dissatisfied

Inference: From the above figures it can be seen that majority (around 78%) of the respondents
is satisfied with Safety of UPI Application. 18% of them have a neutral opinion on this and 4%
of them are dissatisfied with this opinion.

52
 Table 4.13.4
Level of satisfaction towards Access Charges

Opinion No of Respondents Percentage

Highly Satisfied 7 14
Satisfied 22 44
Neutral 17 34
Dissatisfied 1 2
Highly Dissatisfied 3 6
Total 50 100
Source: Primary Data
Chart 4.13.4
Level of satisfaction towards Access Charges

44
45

40
34
35

30

25
Percentage
20
14
15

10 6
5 2

0
Highly Satisfied Neutral Dissatisfied Highly
Satisfied Dissatisfied

Inference: From the above figures it can be seen that majority (around 58%) of the respondents
is satisfied with Access charges of UPI Application. 34% of them have a neutral opinion on this
and around 8% of them are dissatisfied with this opinion.

53
 Table 4.13.5
Level of satisfaction towards Cash back and discount

Opinion No of Respondents Percentage

Highly Satisfied 16 32
Satisfied 24 48
Neutral 7 14
Dissatisfied 2 4
Highly Dissatisfied 1 2
Total 50 100
Source: Primary Data
Chart 4.13.5
Level of satisfaction towards Cash back and discount

48
50
45
40
35 32

30
25 Percentage
20
14
15
10
4
5 2

0
Highly Satisfied Neutral Dissatisfied Highly
Satisfied Dissatisfied

Inference: From the above figures it can be seen that majority (around 80%) of the respondents
is satisfied with Cash back and discount by UPI Application. 14% of them have a neutral opinion
on this and around 6% of them are dissatisfied with this opinion.

54
 Table 4.14
Level of agreement towards various Statements

Features Level of Agreement Mean

Strongly Agree Neutral Disagree Strongly value
Agree Disagree
UPI Provide 35 13 2 1 0 4.7
Convenient Way of
Payment.
UPI Facilitate 25 22 2 1 0 4.42
Transfer and
Payment of money
from any point.
UPI Offers more 17 24 6 2 1 4.08
cash back and
discount rewards.
UPI Provide 15 27 7 1 0 4.12
flexibility and easy
tracking of
spending.
UPI reduces 27 19 3 1 0 4.44
frequency of
traditional Payment
system.
Source: Primary Data

55
 Chart 4.14
Level of agreement towards various Statements

4.8
4.7
4.7
4.6
4.5 4.42 4.44
4.4
4.3
4.2 4.12
4.08
4.1
Mean value
4
3.9
3.8
3.7
UPI Provide UPI Facilitate UPI Offers UPI Provide UPI reduces
Convenient Transfer and more cash back flexibility and frequency of
Way of Payment of and discount easy tracking of traditional
Payment. money from rewards. spending. Payment
any point. system.

Inference: From the above figures it can be seen that majority of the respondents agree with the
statement UPI provide convenient way of payment it shows a higher mean value of 4.7.

56
 Table 4.14.1
Opinion on UPI Provide Convenient Way of Payment

Opinion No of Respondents Percentage

Strongly Agree 35 70
Agree 13 26
Neutral 2 4
Disagree 0 0
Strongly Disagree 0 0
Total 50 100
Source: Primary Data
Chart 4.14.1
Opinion on UPI Provide Convenient Way of Payment

70
70

60

50

40

26 Percentage
30

20

10 4
0 0
0
Strongly Agree Neutral Disagree Strongly
Agree Disagree

Inference: From the above figures it can be seen that majority (around 96%) of the respondents
is agree with the opinion on UPI Provide convenient way of payment. 4% of them have a neutral
opinion on this.

57
 Table 4.14.2
Opinion on UPI Facilitate Transfer and Payment of money from any point

Opinion No of Respondents Percentage

Strongly Agree 25 50
Agree 22 44
Neutral 2 4
Disagree 1 2
Strongly Disagree 0 0
Total 50 100
Source: Primary Data

Chart 4.14.2
Opinion on UPI Facilitate Transfer and Payment of money from any point

50
50
44
45
40
35
30
25 Percentage
20
15
10
4
5 2
0
0
Strongly Agree Neutral Disagree Strongly
Agree Disagree

Inference: From the above figures it can be seen that majority (around 94%) of the respondents
is agree with the opinion on UPI Provide convenient way of payment. 4% of them have a neutral
opinion on this and 2% of them are disagree with this.

58
 Table 4.14.3
Opinion on UPI Offers more cash back and discount rewards

Opinion No of Respondents Percentage

Strongly Agree 17 34
Agree 24 48
Neutral 6 12
Disagree 2 4
Strongly Disagree 1 2
Total 50 100
Source: Primary Data

Chart 4.14.3
Opinion on UPI Offers more cash back and discount rewards

48
50
45
40
34
35
30
25 Percentage
20
15 12

10
4
5 2

0
Strongly Agree Neutral Disagree Strongly
Agree Disagree

Inference: From the above figures it can be seen that majority (around 82%) of the respondents
is agree with the opinion on UPI offers more cash back and discount rewards. 12% of them have
a neutral opinion on this and around 6% of them are disagree with this.

59
 Table 4.14.4
Opinion on UPI Provide flexibility and easy tracking of spending

Opinion No of Respondents Percentage

Strongly Agree 15 30
Agree 27 54
Neutral 7 14
Disagree 1 2
Strongly Disagree 0 0
Total 50 100
Source: Primary Data
Chart 4.14.4
Opinion on UPI Provide flexibility and easy tracking of spending

60 54

50

40
30
30 Percentage

20 14

10
2
0
0
Strongly Agree Neutral Disagree Strongly
Agree Disagree

Inference: From the above figures it can be seen that majority (around 84%) of the respondents
is agree with the opinion on UPI Provide flexibility and easy tracking of spending. 14% of them
have a neutral opinion on this and 2% of them are disagree with this.

60
 Table 4.14.5
Opinion on UPI reduces frequency of traditional Payment system

Opinion No of Respondents Percentage

Strongly Agree 27 54
Agree 19 38
Neutral 3 6
Disagree 1 2
Strongly Disagree 0 0
Total 50 100
Source: Primary Data
Chart 4.14.5
Opinion on UPI reduces frequency of traditional Payment system

60 54

50

38
40

30 Percentage

20

10 6
2
0
0
Strongly Agree Neutral Disagree Strongly
Agree Disagree

Inference: From the above figures it can be seen that majority (around 92%) of the respondents
is agree with the opinion on UPI reduces frequency of traditional Payment system . 6% of them
have a neutral opinion on this and 2% of them are disagree with this.

61
 Table 4.15
Amount of Money spent through UPI transaction

Amount Spent No of Respondents Percentage

Below 1000 13 26
1000-2000 20 40
Above 2000 17 34
Total 50 100
Source: Primary Data
Chart 4.15
Amount of Money spent through UPI transaction

45
40
40
34
35

30
26
25

20 Percentage

15

10

0
Below 1000 1000-2000 Above 2000

Inference: From the above figures it can be seen that majority (40%) of the respondents spent
1000-2000 in a monthly through UPI Applications. 34% spent above 2000, and rest 26% of them
spent below 1000 through UPI.

62
 Table 4.16
Opinion on continue using UPI Application

Opinion No of Respondents Percentage

Very Likely 27 54
Likely 20 40
Neutral 3 6
Unlikely 0 0
Very unlikely 0 0
Total 50 100
Source: Primary Data

Chart 4.16
Opinion on continue using UPI Application

60 54

50
40
40

30 Percentage

20

10 6
0 0
0
Very Likely Likely Neutral Unlikely Very unlikely

Inference: From the above figures it can be seen that majority (54%) of the respondents very
like to continue the use of Application, 40% of them are likely to continue its use and rest 6% of
them have a neutral opinion on this.

63
 Table 4.17
Opinion on Suggesting of UPI Application

Opinion No of Respondents Percentage

Very Likely 27 54
Likely 22 44
Neutral 1 2
Unlikely 0 0
Very unlikely 0 0
Total 50 100
Source: Primary Data
Chart 4.17
Opinion on Suggesting of UPI Application

60 54

50 44

40

30 Percentage

20

10
2
0 0
0
Very Likely Likely Neutral Unlikely Very unlikely

Inference: From the above figures it can be seen that majority (54%) of the respondents very
like to suggest UPI Application to others, 44% of them are likely to continue its use and rest 2%
of them have a neutral opinion on this.

64
 Table 4.18
Opinion on obstacles while using UPI Applications

Opinion No of Respondents Percentage

Yes 29 58
No 21 42
Total 50 100
Source: Primary Data
Chart 4.18
Opinion on obstacles while using UPI Applications

58
60

50 42

40
Percentage
30

20

10

0
Yes No

Inference: From the above figures it can be seen that majority (58%) of the respondents face
obstacles while using UPI Payment application. 42% of them have negative opinion on this.

65
 Table 4.19
Problems while using UPI Application

Opinion No of Respondents Percentage

Safety and Security Problems 2 4
Authentification Problems 10 20
Server error 21 42
Network Problems 9 18
Pending for verification 8 16
Total 50 100
Source: Primary Data

Chart 4.19
Problems while using UPI Application

42
45
40
35
30
25 20
18
20 16
15
10 4
Percentage
5
0

Inference: From the above figures it can be seen that majority (42%) of the respondents marked
server error as the problem they are facing while using of UPI Application. 20% of them are
marked it as Authentication Problems, 18% of them are marked network problems, 16% of them
are marked Pending for verification and rest 4% of them marked it as safety and security
problems as the problems they are faced while using UPI Application.

66
 Table 4.20

Overall opinion about UPI Application

Opinion No of Respondents Percentage

Very Good 23 46
Good 27 54
Poor 0 0
Total 50 100
Source: Primary Data
Chart 4.20
Overall opinion about UPI Application

60 54

46
50

40

Percentage
30

20

10
0
0
Very Good Good Poor

Inference: From the above figures it can be seen that majority (Around 100%) of the
respondents marked positive opinion on the overall satisfaction about UPI application.

67
Hypothesis

 H0 : There is no significant difference between convenience towards UPI Payment system

and recommending UPI Applications to others
 H1 : There is significant difference between convenience towards UPI Payment system
and recommending UPI Applications to others
Table 4.21
Result of ANOVA
Convenience of UPI Apps and recommendation

Sum of Mean Degree of F value P

squires Squire freedom Value
Between groups 5.705 1.902 3 9.969 0.00035
Within groups 8.775 .191 46
Total 14.480 49

Result : The result of ANOVA as per above table revealed that there is significant difference
exist between between convenience towards UPI Payment system and recommending UPI
Applications to others as the p value is less than 0.05.

68
 CHAPTER V
FINDINGS, SUGGESTIONS AND CONCLUSION

69
FINDINGS

 Majority of the respondents are females.

 Majority of the respondents are under the age group of 18 years to 22 years.
 Majority of the respondents is from rural Area.
 Majority of the respondents have 10000-25000 as their monthly income.
 Majority of the respondents have graduation as their educational qualification.
 Majority of the respondents has awareness on UPI Applications.
 Majority of the respondents prefers Google Pay as their UPI application,
 Majority of the respondents Used Google Pay in the Last Month and still continue with
that.
 Majority of the respondents says that UPI Transactions are the most convenient type of
transaction.
 Majority of the respondents say that cash payments are convenient type of transaction,
32% of the pinioned it as the most convenient one.
 Majority of the respondents says that UPI Payments are the most convenient type of
transaction.
 Majority of the respondents prefer UPI Application for Money Transfer as a service.
 Majority of the customers prefer UPI Application for Easy Access.
 Majority of the respondents are frequently use UPI Applications.
 Majority of the respondents are satisfied with Mode of payment of UPI Application.
 Majority of the respondents is satisfied with Mode of payment of UPI Application.
 Majority of the respondents is satisfied with serviced offered by UPI Application.
 Majority of the respondents is satisfied with Safety of UPI Application.
 Majority of the respondents is satisfied with Access charges of UPI Application.
 Majority of the respondents is satisfied with Cash back and discount by UPI Application.
 Majority of the respondents agree with the statement UPI provide convenient way of
payment.
 Majority of the respondents is agree with the opinion on UPI Provide convenient way of
payment.

70
 Majority of the respondents is agree with the opinion on UPI Provide convenient way of
payment.
 Majority of the respondents is agree with the opinion on UPI offers more cash back and
discount rewards.
 Majority of the respondents is agree with the opinion on UPI Provide flexibility and easy
tracking of spending.
 Majority of the respondents is agree with the opinion on UPI reduces frequency of
traditional Payment system.
 Majority of the respondents spent 1000-2000 in a monthly through UPI Applications.
 Majority of the respondents very like to continue the use of Application.
Majority of the respondents very like to suggest UPI Application to others.
 Majority of the respondents face obstacles while using UPI Payment application.
 Majority of the respondents marked server error as the problem they are facing while
using of UPI Application.
 Majority of the respondents marked positive opinion on the overall satisfaction about UPI
application.

71
SUGGESTIONS

 Government Should Take Initiatives for aware the importance of UPI applications in this
Era by advertisements, campaigns to the public.
 Government should also train public (Both Customers and Shop keepers) on how to use
these kinds of applications.
 UPI Applications should ensure the security of their Customer‘s transactions by taking
sophisticated security back end measures.
 UPI Application should solve their server errors which occur always by enabling higher
band width along with security.
 UPI Applications should be more user friendly along with security to use all age
customers.

72
CONCLUSION
Study on customer satisfaction of UPI application among college students reveals that majority
of UPI application users are satisfied with the safety, convenience, attractive facility ensured by
the application. There has been a significant reduction in depending bank branches for doing
routine transactions after the introduction of UPI application.

Majority of the respondent use UPI application for fund transfer many respondents are in the
view that speedy settlement of transaction is one of the main attractions of doing transaction is
one of the main attraction of doing transaction via UPI application. Ease and convenient platform
for fund transfer from anywhere at any time attract most of the people in using UPI application.
But still some of the respondents are not using any UPI applications. The main reason for them is
lack of confidence. This can be solved through providing awareness programs about UPI
application. Most of the users are ready to suggest its utility to their friends and relatives.

This project would be valuable aid to understand the customer satisfaction as well as problems
facing by them while using their UPI applications and it is clear from the findings that youth are
aware of the new technology and use of UPI applications.

73
BIBILIOGRAPHY

 Research methodology : Dr K Venugopalan

 Modern banking : Dr K Venugopalan, Dr Abdul Assis Koroth
 Wikipedia
 Upipayments.co.in

74
 Appendix
Questionnaire
1. Name :

2. Gender ?

Male Female Other

3. Age?

Below 18 18 to 22 22 to 26

26 to 30 Above 30

4. Residential Area?

Rural Semi urban Urban

5. Monthly family income?

Below 10000 10000 to 25000 25000 to 50000

Above 50000

6. Occupation ?

SSLC Plus two Graduation

Post-graduation Professional Others

7. Are you aware about UPI applications?

Yes No

75
8. Which app do you prefer mostly for E-payment? (Rank the following)

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Google Pay

Phone PE

PayTM

Mobi wike

Others

9. What was the last app you were using before one month?

Google Pay Phone PE PayTM

Mobi Wike Others

10. Please indicate your level of convenience to the following transactions?

More Convenient Neutral Less Inconvenient

Convenient Convenient

Cash
Transaction

UPI
transaction

76
11. What are the services you are availing through the UPI apps ?

Money transfer Mobile Recharge Electricity Payment

DTH Recharge Insurance payments Movie ticket booking

Conveyance ticket booking Online purchase of products

12. Why do you prefer the UPI application for making transactions? (Rank the following)?

1 2 3 4 5 6

Easy
access

Easy to use

Variety of
services

Trust
worthiness

less
procedures

Cash back
offers and
discounts

13. How often do you use the UPI apps?

Very Frequently Frequently Occasionally

Rarely Very rarely

77
14. Given below some statements please tick appropriate column according to your degree
of satisfaction

Highly Satisfied Neutral Dissatisfied Highly

Satisfied Dissatisfied

Mode of
payment

Service
offered

safety

Access
charges

Cash back
& discount

15. Please indicate your level of agreement towards the following?

Strongly Agree Neutral Disagree Strongly

Agree Disagree

UPI provide
convenient
way of
payment

UPI
facilitate
transfer &
payment of
money from
any point

UPI offers
more cash
back &
discount
rewards

78
 UPI provide
flexibility
and easy
tracking of
spending

UPI reduce
frequency of
traditional
payment
system

16. How much money do you spent through UPI in last month

Below 1000 1000-2000 Above 2000

17. Would you want to continue using this app?

Very likey Likely Neutral

Unlikely Very unlikely

18. Would you like to suggest friends to use this app?

Very likey Likely Neutral

Unlikely Very unlikely

19. Did you come across any obstacles while using UPI apps?

Safety & security problems Authentication problems

Server error Network problems
Pending for verification Others
20. Your overall opinion about service of UPI apps?

Very Good Good Poor

79