A Minor Report
on
“Consumer Perception of
Digital Payment Mode”
Submitted in partial fulfilment of the requirements
for the degree of
Master of Business Administration (MBA)
Supervisor Submitted By
Prof. Abhijeet Singh Pushpendra Singh
Dr. Arun Kumar Student, 2 Sem
Deshmukh Session :2022-24
DECLARATION
I Pushpendra Singh declare that the report of the project work
“Consumer Perception Digital Payment Mode” submitted at
Institute of Management Studies, Banaras Hindu University as part of
Minor Project IB-219 , are of my own efforts and has not been
presented before in this manner. Also conclusion derived from the
research is based in the material collected by myself.
(Signature of the Candidate)
Pushpendra singh
MBA IB
Date:
2
Certificate by guide/supervisor
This is to certify that the project report entitled “Consumer perception of
digital payment mode” is carried out by Mr. Pushpendra Singh (Roll
No:22423BIB039). This project was carried under my supervision as a part of
the award of Degree in MBA–IB II Semester of Institute of Management
Studies, Banaras Hindu University, Varanasi. To the best of my knowledge, the
report is the outcome of the candidate’s individual efforts.
I wish all the success to the candidate.
Signature of the Guide(s)
Project Mentor: Dr. Arun kumar Deshkmukh
(Assistant Professor, FMS (IM), BHU)
Signature: _____________
Date __________
Project Mentor: Dr. Abhijeet Singh
(Assistant Professor, FMS (IM), BHU)
Signature: _____________
Date: __________
3
ACKNOWLEDGMENT
It gives me great pleasure to express my gratitude for the invaluable
help that many individuals provided to me in completing this report
successfully. I have started project research on the subject of
"Consumer perception of Digital Payment Mode " as part of my
MBA-IB curriculum. I would like to convey my sincere thankfulness to
my esteemed guides Dr. Arun Kumar Deshmukh Sir and Dr. Abhijit
Singh Sir for her guidance and sustained support in helping me to
complete my project. Also, I would like thanks to my seniors Shivansh
Shrivastava Sir and Prakhar Bajpai sir they kind help in various stages.
And thanks to my friends. and it is great pleasure and thankfulness to
my father Phoolsingh Dandotia they have shared own experience
about own thesis. and kind help various stage.
4
Table of Contents
DECLARATION ......................................................................................................................................... 2
Certificate by guide/supervisor ............................................................................................................. 3
ACKNOWLEDGMENT .............................................................................................................................. 4
Abstract .................................................................................................................................................. 6
INTRODUCTION ...................................................................................................................................... 7
LITRATURE REVIEW ................................................................................................................................ 9
RESEARCH METHODOLOGY ................................................................................................................. 11
Research Objective ........................................................................................................................... 11
Research Design ............................................................................................................................... 11
DATA TABULATION AND ANALYS ........................................................................................................ 12
Objective & Hypothesis ........................................................................................................................ 15
FINDINGS .............................................................................................................................................. 17
CONCLUSION ........................................................................................................................................ 17
limitations ............................................................................................................................................. 18
References ............................................................................................................................................ 20
5
Abstract
This research project aims to examine the impact on demographic factor. Of
digital payment. The study utilizes a sample of responses. The adoption and
use of digital payment modes have become important as more consumers shift
towards cashless transactions. Demographic factors such as age, income,
education level, and gender have been identified of digital payment adoption.
This paper aims to analyse the impact of demographic factors on the adoption
of digital payment modes, focusing on Pai graph and statistical analysis Chi -sqr
of survey data. The findings suggest that younger consumers, and males are
more likely to adopt digital payment modes.
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INTRODUCTION
This Project is about the Consumer Perception of Digital Payments mode.
Digital Payments were encouraged by Government of India after the
announcement of demonetization on 8th November [Link] this Digital world
Computer and humans created very golden opportunities in a technical area.
The financial and business sectors have benefited from these technologies and
increase in online connectivity. A growing number of online users has resulted
in the development of virtual world concepts and the emergence of a new
business phenomenon. As a result, new types of trading process, methods of
transactions, and currencies have emerged. In the world of information
technology, there are many different types of advances, one of which is in the
field of economics. The introduction of cashless transactions is an example of
economic development that has occurred as a result of the development of
information technology that allows innovation in the payment system. When
trading goods or services. Mobile users can now use their mobile phone to
make money transactions or payments utilizing programmes loaded on the
phone. There are numerous methods for electronic payment transactions,
including payment cards, digital wallets, and employing electronic money as a
means of payment through ATM, Credit card Debit card at restaurants,
supermarkets, and other payment locations. Consumer views can also be
greatly influenced by security issues, such as the risk of fraud or data breaches.
Also, Consumers may find more attraction in digital payment mode that are
simple and dependable than in ones that are difficult to mistakes.
Furthermore, another significant variable that significantly affects Consumer
Perception digital payment mode. Customers could favour digital payment
options with reduced transaction costs or additional incentives like cashback or
rewards programmes. In general, how consumers view digital payment mode
will determine how they are used and adopted. Businesses and regulators may
develop and implement digital payment systems that satisfy customer
demands and preferences by understanding the affect consumer perception.
TYPES OF DIGITAL PAYMENT MODE
Online or mobile wallets: - They are used with smartphone apps and the
internet. Money may be recharged on the app using debit or credit cards, as
well as through net-banking. The monthly limits for consumer and merchant
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wallets are each set at Rs. 20,000 and Rs. 50,000, respectively, after self-
declaration and Rs. 100,000, respectively, following KYC verification.
Credit Card :- The credit card information consists of the card number,
name of the cardholder, expiration date, signature, and CVC code, among
other things. A credit card's biggest feature is that it is not connected to a bank
account. Hence, rather than taking money out of your bank account when you
swipe your credit card, your credit card limit is used instead.
Debit Card :- The credit card information consists of the card number, name
of the cardholder, expiration date, signature, and CVC code, among other
things. A credit card's biggest feature is that it is not connected to a bank
account. Hence, rather than taking money out of your bank account when you
swipe your credit card, your credit card limit is used instead.
UPI :- In order to encourage a cashless society and mobile banking, National
Payments Corporation of India (NPCI) has launched the Unified Payment
Interface (UPI), a new payment interface. A system called Unified Payments
Interface (UPI) enables users of several bank accounts to access various
financial services, such as merchant payments and cash transfers, using a
single mobile application. Using the UPI payment app to send and receive
money is similar to using your smartphone to send and receive text messages.
A user does not need to install several banking apps on their smartphone. With
only one UPI payment app, a user may link all of their bank accounts without
having to remember or type their banking user IDs or passwords. On the
mobile platforms of Android, Windows, and iOS, each Bank has its own UPI
App (s). Virtual Payment Address (VPA) of the receiver and Mobile Banking
Personal Identity Number are the details needed for UPI-based transactions
(MPIN). Money may be sent and money can be gathered by sharing VPA.
Mobile Wallet: - Digital currency can be carried in a wallet. You may transfer
money to a mobile wallet online or by linking your credit card or debit card
details on a mobile device. You can pay using your smartphone, tablet, or
smart watch instead of a traditional credit card while making transactions.
Exam:- Paytm, Phone Pay, G-pay, Free charge, Mobikwik, mRuppee, Airtel
Money, Jio Money, SBI Buddy, Citrus Pay, Axis Bank Lime, ICICI Pockets,
AmazonPay etc.
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Mobile banking- It is provided by all banks to their customers where the
customers need to download the application of the bank and they cause it for
making transactions. For using such application on should have a smartphone.
There are many more types of digital payment available in our country and
across the globe we have talked about a few which are known to people.
LITRATURE REVIEW
Omaima Bamasak (2011) : This Research conducted in Saudi Arabia by
Bamasak revealed that m-payment has a promising future. Users of mobile
phones were found to be quite concerned about the security of mobile
payment transactions and the unlawful usage of mobile phones to make
payments. Consumers' top worries about the adoption of digital payment
solutions were security and privacy, which showed that mobile wallet
acceptance among consumers in Finland was still in its early phases of the
innovation-decision process.
Sanghita Roy, Dr. Indrajit Sinha (2014), discussed in their paper that in
India there has been a sudden surge in the usage of digitalised payment. But
still there is almost 90% transactions which are done through paper currency.
They had used the TAM (Technology Acceptance Model) in this study to find
out the factors which are strengthening the e-payment system the factors are
innovation, incentives, and legal frame work and customer convenience.
Dennehy & Sammon (2015) has analyzed how in the 21st century the
usage of digital payment has increased over the years. The main focus here
was to find out how where will in the digital payment system in future stand.
Many papers have been examined to find out what are the views regarding the
digital payment system. With the passage of time the technology has been
shifting very fast so with the innovation of technology the aim was to make
people familiar with digital payment. The merchants also got a new platform to
invest so as to cater the customers. Data was collected by following empirical
method i.e. survey, interviews, etc. Lastly the study was only focused on
Google data base that was a limitation about the study.
Pandey and Rathore (2018) in their study discussed the impact of digital
payment system. Due to modernisation and globalisation it was very important
for the people to accept the modern method of payment. The study is based
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on secondary data and various literatures from past papers and government
data. All data collected has been analysed and used to find the impact and
adoption of digital payments by the people.
Pushpa S. Abbigeri and Rajeshwari M. Shettar (2018) talked about how
the Digital India flagship program attracted large number of people to start
using digital wallets , which people started to use as there was lots of cash
back offers and coupons. After the digital India flagship program a lot of mobile
wallet companies entered India and other methods such as UPI, NEFT to a
surge. The initiative taken by the government and RBI was being accepted by
the people as they were using such methods.
Shivathanu B. (2019) in his study adoption of digital payment system in the
era of demonetization emphasised on how the digital payment system was
used by the people or accepted by the people during demonetization. It was
based on a conceptual framework where the sample size was [Link] data
analysed suggested that behavioural intentions and innovation resistance had
an impact on the actual usage.
Ravi (2019) has shown that rural regions in India make up two-thirds of the
population, making them crucial to the growth of the economy. With the
advent of Technology and communication, it is anticipated that by 2020, rural
areas would account for half of all Internet users in India. In remote areas,
digital wallets should be utilised so that residents are aware of their
importance and the advantages they will enjoy. The Indian government has
also taken the initiative to educate rural residents about digitization. In India,
technological adoption has always lagged behind that of other nations, but
when it comes to digital wallets, our nation is following suit in its transition to a
cashless [Link] urban people have adopted the digital system of payment,
now it’s time for the rural people too. If the rural people are made aware
about digitalization soon it will roll out all over India. The best step that the
National Payments Corporation of India has taken is that digital wallet will
work on all mobiles with or without internet.
Priyanka Malik*, Gurinder Singh, Seema Sahai, Chitra Bajpai, Richa
Goel and Chitra Krishnan : it can be said that the scope of cashless society
is expanding in today’s reality and digital payment is one the segments of
cashless society whose degree is expanding progressively.
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RESEARCH METHODOLOGY
Research Objective
• To analyse the impact of demographic factors on adoption of digital
payment mode.
• To identify the consumer perception towards the digital payment.
Research Design
This research will use a quantitative research approach to collect and analyse data on
consumer perception of digital payment modes. A survey questionnaire will be used to
collect data from a sample of the target population.
Sampling technique: This research will use the target population will be stratified based
on age, gender, education, and income levels.
Sample size: The sample size is of 50 respondents, whose opinion forms the base of this
study and its analysis.
Data Source: The data used for study was primary data. Primary data is collected from
various respondents through questionnaire designed for this study.
Data Analysis: The data collected was visualized using Pie charts and graphs, Excel is used
for performing Chi Square test.
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DATA TABULATION AND ANALYS
Age of Responses
22% of the respondents are in the age of 26 and none of the
respondent was of the age less than 17 -18 years old. Only 1 of each
respondent from the age of 45 and this is the highest age in this
survey .
Gender of Response
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From the chart it can be seen that there are more male respondents
than female respondents. Male 72% and Female 28%
Education Qualifications of Response
60 % of the responses are graduation, 26 % of the responses are
Master‘s degree , 8 % of responses are secondary education student
4% of Ph.d .
Profession
From this pie chart, majority of the response 64 % are students and
22 % of the response are private employee and 8% Govt. Sector
Employee.
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which payment App you used?
From this bar graph, we can deduce that Phonepay 64% is the most
preferred Digital Payment App, and preferred least payment app
Mobikwik 2% .
Which digital payment mode do you prefer the most?
Now this Bar chart we can see UPI 92% is the most preferred digital
payment mode. And online banking16% least preferred payment
mode. And 2% are can’t preferred
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Objective & Hypothesis
To analyse the impact of demographic factors on adoption of digital
payment mode.
H0 – Age demographic factor doesn’t affect the uses of Digital
Payment mode.
H1 – Age demographic factor affect the uses of Digital Payment
mode.
H0 – Gender factor doesn’t affect the uses of Digital Payment mode.
H1 – Age demographic factor affect the uses of Digital Payment
mode.
1:-Age
Sum of How secure do you feel while using digital Column
payment modes? Labels
Row Labels 1 2 3 Grand Total
1 6 6
2 1 22 33 56
3 14 45 59
4 4 3 7
(blank)
Grand Total 1 40 87 128
1 0.05 1.88 4.08 6
2 0.44 17.50 38.06 56
3 0.46 18.44 40.10 59
4 0.05 2.19 4.76 7
(blank)
Grand Total 1 40 87 128
chi sq value 0.295989577
Chi Sqr Value 0.295
It shows that uses of digital payment mode is affected by age of
consumer perception and hypothesis is accepted.
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2. Gender
Count of How secure do you feel while using digital Column
payment modes? Labels
Row Labels 1 2 3 Grand
Total
Female 1 4 9 14
Male 16 20 36
Grand Total 1 20 29 50
Row Labels 1 2 3 Grand
Total
Female 0.28 5.60 8.12 14
Male 0.72 14.40 20.88 36
Grand Total 1 20 29 50
Chi Sqr Value 0.269981081
Chi sqr value : 0.269
It shows that uses of digital payment mode is affected by Gender of
consumer perception and hypothesis is accepted.
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FINDINGS
I observe that UPI (92%) is the most preferred Digital Payment Mode followed
by Debit/Credit card , Mobile Wallets, Online Banking are the least preferred
Digital Payment Mode. Also I observe that most preferred digital app is
Phonepay (64%) and least app is mobilwik .I show that I have put the test of
Chi-square and observe that uses of digital payment mode are affected by Age
of consumer perception and hypothesis is accepted. Because value is Chi-sqr
value 0.295989577 and It shows that uses of digital payment mode is affected by
Gender of consumer perception and hypothesis is accepted. Because value is
0.269981081
The all factor Perceived Behavioural Control will affect significantly consumer
perception uses of Digital Payment mode.
CONCLUSION
The research report, we tried to find consumers perception Digital payment
mode. After studying different research papers, I identified three demographic
factors from the Literature review that are considered. These demographic
factors are Age, Gender, Education. From the result obtained by doing the Chi-
sqr test analysis, also Analysing the impact of demographic factors on the
adoption of digital payment modes can provide valuable insights into the
factors that influence consumers Perception digital payment mode. By
formulating a hypothesis and collecting data on demographic factors and
adoption rates. Overall, understanding the role of demographic factors in
digital payment adoption can help businesses better meet the needs of their
customers and improve the adoption and use of digital payment modes.
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limitations
there are a few limitations to consider when studying how demographics affect
digital payment adoption. These include issues with the sample used, potential
inaccuracies in the data collected, the inability to establish causality, the
rapidly changing nature of technology, the impact of external factors, and the
limited scope of the study. These limitations may affect the generalizability and
reliability of the findings, and should be taken into account when interpreting
the results.
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Suggestions
Based on the analysis of the impact of demographic factors on the adoption of
digital payment modes, the following suggestions can be made:
If you are Digital payment providers should focus on targeting younger
consumers, as they are more likely to adopt digital payment modes. Digital
payment mode should also be aware of the impact of external factors such as
government policies and economic conditions on adoption, and adjust their
strategies accordingly.
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References
1. Bamasak O (2011) Exploring consumers acceptance of mobile payments-an
empirical Study. International Journal of Information Technology,
Communications and Convergence 1: 173-185.
2. Ravi, S. (2017). “Digital payments system and rural India: A review of
transaction tocashless economy”, 5(3),May,169-173
3. Pandey.A And Rathore.A.S.(2018),” Impact and importance of digital payment
in India”. International journal of creative research thoughts – ijcrt. April 6-7,
2018.
4. Singh., S. (2017). “Study on consumer perception of Digital Payment
mode”,Journal ofInternet Banking and Commerce”, 22(3), December.
5. Dr. Pallavi Pattan* & Meenal Agrawal** A study of consumer’s perception
towards frequently use of types of e-payment system in indore division”.
IJRAR- International Journal of Research and Analytical Reviews, Volume 5,
issue 2,April – June 2018.
6. ●Sivathanu, B. (2019), "Adoption of digital payment systems in the era of
demonetization in India: An empirical study", Journal of Science and
Technology Policy Management, Vol. 10 No. 1, pp. 143-171
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payment-systems-in-india-14797
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