RESEARCH PROJECT REPORT

ON

“A STUDY ON GROWING USE OF

VARIOUS MODES OF DIGITAL
PAYMENTS AFTER DEMONETIZATION”
SESSION :( 2017-2018)

Submitted in partial fulfillment of the degree of

MASTER OF BUSINESS ADMINISTRATION

Dr A.P.J. ABDUL KALAM UNIVERSITY, LUCKNOW

UNDER THE GUIDANCE: SUBMITTED BY:

DR. PEEYOOSH GOYAL MAYANK RATNAKAR
ASSISTANT PROFESSOR MBA: IV SEM

KHANDELWAL COLLEGE OF MANAGEMENT

SCIENCE & TECHNOLOGY, BAREILLY

1
 CERTIFICATE

This is to certify that Mayank Ratnakar, a student of MBA IV Semester has

completed his Research Project Report titled “A STUDY ON GROWING

USE OF VARIOUS MODES OF DIGITAL PAYMENTS AFTER

DEMONETIZATION” assigned by MBA Department under my supervision.

It is further certified that he has personally prepared this report that is the result

of his personal survey / observation. It is of the standard expected to MBA

student and hence recommended for evaluation.

SUPERVISOR

DR. PEEYOOSH GOYAL

K.C.M.T.

2
 DECLARATION

I, MAYANK RATNAKAR, a student of KHANDELWAL COLLEGE OF

MANAGEMENT SCIENCES, BAREILLY hereby declare that this project

Report is the record of authentic work carried out by me during the academic

year 2018 and has not been submitted to any other university or institute

towards the awards of any degree .An attempt has been made by me to provide

all relevant and important details regarding the topic to support the theoretical

advice with concrete research evidence. This will be helpful to clean the fog

surrounding the various aspect of the topic. I hope that this project will be

beneficial.

MAYANK RATNAKAR

MBA IV SEM

3
 ACKNOWLEDGEMENT

This extensive endeavor, bliss and euphoria that accompany the successful

completion of task that would not be completed without the expression of

gratitude to the people who made it possible. I take this opportunity to

acknowledge all those who guided, encouraged and helped me in winding up

this project.

I am very thankful to my guide who gave me guidance throughout my Project

completion. I would like to extend my feelings of gratitude towards my mentor

for his constant guidance, support and correcting where I was wrong..

Last but not the least; I would like to extend my deep sense of gratitude and

thanks to my Parents, Friends and God in successful completion of this project.

MAYANK RATNAKAR

MBA IV SEM

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 TABLE OF CONTENTS

CHAPTERS PAGE NO.

1. CHAPTER 1: INTRODUCTION

INDIAN BANKNOTE DEMONETISATION

ADVANTAGE OF USING DIGITAL PAYMENTS

2. CHAPTER 2: MODEL OF DIGITAL PAYMENT SYSTEM

E CASH

3. CHAPTER 3: E WALLETS IN INDIA

E-WALLET

FEATURES OF E–WALLET

ADVANTAGES OF E-WALLET:

E-WALLETS IN INDIA

4. CHAPTER 4: DIGITAL PAYMENT PROCESS

DEBIT CARDS

CREDIT CARD PROCESSING

5. CHAPTER 5: OBJECTIVES OF STUDY

6. CHAPTER 6: RESEARCH METHODOLOGY

7. CHAPTER 7: DATA ANALYSIS AND INTERPRETATION

8. FINDINGS

9. SUGGESTION

10. CONCLUSION

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11. BIBLIOGRAPHY

12. QUESTIONNAIRE

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 CHAPTER 1:

INTRODUCTION

7
 CHAPTER 1: INTRODUCTION

INDIAN BANKNOTE DEMONETISATION

On 8 November 2016, the Government of India announced the demonetisation

of all 500 (US$7.80) and 1,000 (US$16) banknotes of the Mahatma Gandhi

Series. The government claimed that the action would curtail the shadow

economy and crack down on the use of illicit and counterfeit cash to fund illegal

activity and terrorism. The sudden nature of the announcement—and the

prolonged cash shortages in the weeks that followed—created significant

disruption throughout the economy, threatening economic output.

Prime Minister of India Narendra Modi announced the demonetisation in an

unscheduled live televised address at 20:00 Indian Standard Time (IST) on 8

November. In the announcement, Modi declared that use of all 500 and 1000

banknotes of the Mahatma Gandhi Series would be invalid past midnight, and

announced the issuance of new 500 and 2000 banknotes of the Mahatma Gandhi

New Series in exchange for the old banknotes.

The BSE SENSEX and NIFTY 50 stock indices fell over 6 percent on the day

after the announcement. In the days following the demonetisation, the country

faced severe cash shortages with severe detrimental effects across the

economy. People seeking to exchange their bank notes had to stand in lengthy

queues, and several deaths were linked due to the rush to exchange cash.

Initially, the move received support from several bankers as well as from some

international commentators. The move has also been criticised as poorly

8
planned and unfair, and was met with protests, litigation, and strikes against

the government in several places across India. Debates also took place

concerning the move in both houses of parliament. The move is considered to

have reduced the country's GDP and industrial production.

BACKGROUND

The Indian government had demonetised bank notes on two prior occasions—

once in 1946 and then in 1978—and in both cases, the goal was to combat tax

evasion by "black money" held outside the formal economic system. In 1946,

the pre-independence government hoped demonetisation would penalise Indian

businesses that were concealing the fortunes amassed supplying the Allies in

World War II. In 1978, the Janata Party coalition government demonetised

banknotes of 1000, 5000 and 10,000 rupees, again in the hopes of

curbing counterfeit money and black money.

In 2012, the Central Board of Direct Taxes had recommended against

demonetisation, saying in a report that "demonetisation may not be a solution

for tackling black money or economy, which is largely held in the form

of benami properties, bullion and jewellery." According to data from income tax

probes, black money holders kept only 6% or less of their wealth as cash,

suggesting that targeting this cash would not be a successful strategy.

In the past, the Bharatiya Janata Party (BJP) had opposed demonetisation. BJP

spokesperson Meenakshi Lekhi had said in 2014 that "The aam aurats and

9
the aadmis (general population), those who are illiterate and have no access to

banking facilities, will be the ones to be hit by such diversionary measures."

In June, the Government of India had devised the Income Declaration Scheme,

that lasted till 30 September 2016, providing an opportunity to citizens

holding black money and undeclared assets to avoid litigation and come clean

by declaring their assets, paying the tax on them and a penalty of 45%

thereafter.

PROCEDURE

The plan to demonetise the rupee 500 and rupee 1000 bank notes began six to

ten months prior, and was kept highly confidential with only about ten people

aware of it completely. The logistical processes and preparations for printing the

new rupee 500 and rupee 2000 bank notes began in early-May. The cabinet was

informed about the demonetisation on 8 November 2016 in a meeting called by

the Prime Minister of India Narendra Modi which was followed by Modi's

public announcement about the demonetisation in a televised address.

Televised address

On 8 November 2016, Prime Minister of India Narendra Modi announced the

demonetisation in an unscheduled live televised address to the nation at

20:15 IST. In the announcement, Modi declared circulation of all 500 and

1,000 banknotes of the Mahatma Gandhi Series as invalid effective from the

midnight of the same day, and announced the issuance of new 500

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and 2,000 banknotes of the Mahatma Gandhi New Series in exchange for the

old banknotes.

After Modi's announcement, the Governor of the Reserve Bank of India, Urjit

Patel, and Economic Affairs secretary, Shaktikanta Das explained in a press

conference that one purpose of the action was to fight terrorism funded by

counterfeit notes. While the supply of notes of all denominations had increased

by 40 percent between 2011 and 2016, the 500 and 1,000 banknotes

increased by 76 percent and 109 percent, respectively, owing to forgery. They

said that forged cash was used to fund terrorist activities against India and that

the demonetisation had a counter-terrorism purpose.

Patel also informed that the decision had been made about six months ago, and

the printing of new banknotes of denomination 500 and 2,000 had already

started. However, only the top members of the government, security agencies

and the central bank were aware of the move. But media had reported in

October 2016 about the introduction of 2,000 denomination well before the

official announcement by RBI. This statement has led to much debate, because

the Reserve Bank governor six months before the announcement was Raghuram

Rajan, while the new banknotes have the signature of the newly appointed

governor, Urjit Patel.

Government ordinance

The Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 was issued

by the Government of India on 28 December 2016 ceasing the liability of the

11
government for the banned bank notes, and also imposing a fine up to 10,000

or five times the amount of the face value of the bank notes, whichever is

higher, for people transacting with them after 8 November 2016; or holding

more than ten of them after 30 December 2016. The ordinance also provided for

the exchange of the bank notes after December 30 for non-resident citizens and

others on a case by case basis.

However, Petrol, CNG and gas stations, government hospitals, railway and

airline booking counters, state-government recognised dairies and ration stores,

and crematoriums were allowed to accept the banned 500 and 1,000 bank

notes until December 2, 2016.

Exchange of old notes

People gathered at ATM of Axis Bank in Mehsana, Gujarat to withdraw cash

following deposit of demonetised currency notes in bank on 15 November 2016.

The Reserve Bank of India stipulated a window of fifty days until 30 December

2016 to deposit the demonetised banknotes as credit in bank accounts. The

banknotes could also be exchanged over the counter of bank branches up to a

limit that varied over the days:

 Initially, the limit was fixed at 4,000 per person from 8 to 13 November.

 This limit was increased to 4,500 per person from 14 to 17 November.

 The limit was reduced to 2,000 per person from 18 November.

All exchange of banknotes was abruptly stopped from 25 November 2016.

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International airports were also instructed to facilitate an exchange of notes

amounting to a total value of 5,000 for foreign tourists and out-bound

passengers.

Facts and figures

Up to 97% of the demonetised bank notes have been deposited into banks which

have received a total of 14.97 trillion ($220 billion) as of December 30 out of

the 15.4 trillion that was demonetised. This is against the government's initial

estimate that 3 trillion would not return to the banking system.

Of the 15.4 trillion demonetised in the form of 500 and 1000 bank notes of

the Mahatma Gandhi Series, 9.2 trillion in the form of 500 and 2000 bank

notes of the Mahatma Gandhi New Series has been recirculated as of 10 January

2017, two months after the demonetisation.

Currency demonetised on 8 Nov '16

Currency issued as of 18 Nov '16 [47]

Currency issued as of 28 Nov '16 [48]

Currency issued as of 7 Dec '16 [49]

Currency issued as of 21 Dec '16[50]

Currency issued as of 10 Jan '17 [46]

Currency issued as of 24 Feb '17 [51]

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Withdrawal limits

Cash withdrawals from bank accounts were restricted to 10,000 per day and

20,000 per week per account from 10 to 13 November. This limit was

increased to 24,000 per week from 14 November 2016.

A daily limit on withdrawals from ATMs was also imposed varying from

2,000 per day till 14 November, and 2,500 per day till 31 December. This

limit was increased to 4,500 per day from January 1, and again to 10,000

from January 16, 2017. Limits placed vide the circulars cited above on cash

withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts

stand withdrawn with immediate effect. RBI increased the withdrawal limit

from Savings Bank account to Rs 50,000 from the earlier Rs 24,000 on

February 20, 2017 and then on March 13, 2017, it removed all withdrawal limits

from Savings Bank Accounts.

Exceptions

Under the revised guidelines issued on 17 November 2016, families were

allowed to withdraw 250,000 ( 2.5 lakh) for wedding expenses from one

account provided it was KYC compliant. The rules were also changed for

farmers who are permitted to withdraw 25,000 per week from their accounts

against crop loans.

Prior leakage of information

A fortnight before the official announcement, a news report in the Hindi

daily Dainik Jagran quoting RBI sources mentioned about the coming release

14
of new 2000 rupee note alongside withdrawal of 500 and 1000 rupee

notes.[56][57] Similar news came in The Hindu Business Line on 21 October 2016

which also mentions about coming 2000 rupee note and about possible

withdrawal of 500 and 1000 rupee notes.

A businessman reportedly admitted in an interview that he had received prior

warning of the impending demonetisation from a source in the government, and

that he had sufficient time to convert most of his money into smaller

denominations.

The chairman of the State Bank of India had also openly spoken in April 2016

about the possibility of demonetisation of 500 and 1000 notes.

A BJP MLA from Rajasthan, Bhawani Singh Rajawat, claimed in a video that

'Ambani and Adani' were informed about the demonetisation, and made

arrangements. However, he later said that it was an off-the-record conversation,

and officially denied the comments.

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ADVANTAGE OF USING DIGITAL PAYMENTS

Low cost: The government and companies have been promoting digital

payments by offering lower cost. For example, HDFC Bank has recently waived

of charges on online transactions through RTGS and NEFT. Similarly, you do

not need to pay service tax on card transactions up to Rs 2,000.

Saves time: Transfer of money between virtual accounts usually takes lesser

time than wire transfer or a postal one, which may take may take several days. It

is also better than standing in queues or in lines at a bank or post office.

Convenience: The biggest motivator for digital transactions is the ease of doing

these transactions. With proper access to internet, financial transactions can be

performed anytime and anywhere which attracts people to this segment. These

transactions can be performed from anywhere without the need to be physically

present there.

Low risk: Using digital wallet reduces the risk of losing your physical wallet or

it getting stolen. Online fraud in cyberspace also exists but with proper

measures e-currency is secure.

User-friendly: The government and the wallet companies have been working

on their services and they have come up with much better and user friendly

apps. There is also 24/7 support team to help and deal with any queries.

Controlling expenses: It is also said to be controlling your expenses as you can

automatically keep track of expenses. These accounts contain the history of all

16
transactions representing the money that has been spent which can be checked

anytime. Controlled expenses result into higher investing, suggest experts.

Discounts: In the initial days of demonetisation, the wallet companies lured

customers with attractive offers and discounts which have visibly come down in

the current times. Online websites and portals linked themselves with the

mobile wallets and heavy offers and discounts were given by them. Still, getting

those offers and discounts is one of the reasons of the growing popularity of

online and digital transactions.

The future of digital payments

Demonetisation has given the much required push to digital transactions. But

there is still a long way to go for the digital payment system to become

mainstream. With the government pushing for it and increased adoption by

consumers, companies and experts are hopeful that it will continue to rise in the

future. "We (Indian economy) are in a transition phase, digital mode of

payments and cash will continue to co-exist, and presumably, even flourish

simultaneously moving India towards becoming a 'less-cash' economy" says,

Ravi B Goyal, Chairman & MD, AGS Transact Technologies.

"The push to get the unbanked on a banking platform is the key first step. On

top of that, the penetration of cheaper data services provides the right conditions

for digital payments to explode soon" says, Brijraj Vaghani, Founder and CEO,

Ridlr, an app for cashless transportation. After demonetisation a lot of new

wallets were launched and the existing ones in the market have been performing

17
exceptionally well. "Going forward, we will play a key role in bringing millions

of small merchants to the formal financial ecosystem, and make wealth

management and financial services accessible to them. We believe this is a great

opportunity for us to offer financial services and contribute to the growth of our

country" adds Paytm's Vasireddy.

18
CHAPTER 2: MODEL OF

DIGITAL PAYMENT

SYSTEM

19
CHAPTER 2: MODEL OF DIGITAL PAYMENT SYSTEM

User a payers always spends the money and the merchant receives the money

for the goods or the services he has given to users. In traditional system user

spends his own physical money and merchant receives direct physical money no

third party come in between transaction but in electronic payment system

variety of models are specified by different organization / researchers, which are

summarized here. Ahmad-Reza Sadeghi & Markus Schneider, in Electronic

Payment Systems, presented four types of payment systems electronic cash,

Cheque or credit card, Remittance and Debit orders base system.

E CASH

E-cash Concept

1. Consumer buys e-cash from Bank

2. Bank sends e-cash bits to consumer (after

charging that amount plus fee)

3. Consumer sends e-cash to merchant

4. Merchant checks with Bank that e-cash

is valid (check for forgery or fraud)

5. Bank verifies that e-cash is valid

6. Parties complete transaction: e.g., merchant

present e-cash to issuing back for deposit

once goods or services are delivered

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While many different companies are rushing to offer digital money products,

currently e-cash is cash is represented by two models. One is the on-line form of

e-cash (introduced by DigiCash) which allows for the completion of all types of

internet transactions. The other form is off-line; essentially a digitially encoded

card that could be used for many of the same transactions as cash. This off-line

version (which also has on-line capabilities) is being tested by Mondex in

partnership with various banks.

The primary function of e-cash is to facilitate transactions on the Internet. Many

of these transactions may be small in size and would not be cost efficient

through other payment mediums such as credit cards. Thus, WWW sites in the

future may charge $0.10 a visit, or $0.25 to download a graphics file. These

types of payments, turning the Internet into a transaction oriented forum, require

mediums that are easy, cheap (from a merchants perspective), private (see

Privacy), and secure (see Security). Electronic Cash is the natural solution, and

the companies that are pioneering these services claim that the products will

meet the stated criteria. By providing this type of payment mechnism, the

incentives to provide worthwhile services and products via the Internet should

increase. Another prospective beneficiary from these developments would be

Shareware providers, since currently they rarely receive payments. To complete

the digital money revolution an offline product is also required for the pocket

money/change that most people must carry for small transactions (e.g. buying a

newspaper, buying a cup of coffee, etc...).

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The concept of electronic money is at least a decade old. [Hewitt 1994]

demonstrates that check writing is a pre-cursor to E-cash. When one person

writes a check on his bank account and gives the check to another person with

an account at a different bank, the banks do not transfer currency. The banks use

electronic fund transfer. Electronic money, removes the middleman. Instead of

requesting the banks to transfer the funds through the mechnism of a check, the

E-cash user simply transfers the money from his bank account to the account of

the receiver.

The reality of E-cash is only slightly more complicated, and these complications

make the transactions both secure and private. The user downloads electronic

money from his bank account using special software and stores the E-cash on

his local hard drive. To pay a WWW merchant electronically, the E-cash user

goes through the software to pay the desired amount from the E-cash "wallet" to

the merchants local hard drive ("wallet") after passing the transaction through

an E-cash bank for authenticity verification. The merchant can then pay its

bills/payroll with this E-cash or upload it to the merchant's hard currency bank

account. The E-cash company makes money on each transaction from the

merchant (this fee is very small, however) and from royalties paid by banks

which provide customers with E-cash software/hardware for a small monthly

fee. Transactions between individuals would not be subject to a fee.

22
E-cash truly globalizes the economy, since the user can download money into

his cyber-wallet in any currency desired. A merchant can accept any currency

and convert it to local currency when the cybercash is uploaded to the bank

account.

To the extent a user wants E-cash off-line, all that is necessary is Debit card

technology. The money is loaded onto the smartcard, and special electronic

wallets are used to offload the money onto other smartcards or directly to an on-

line system. Smartcards have been used successful in other countries for such

transactions as phone calls for a number of years. The money could also be

removed from a smartcard and returned to a bank account. Visa is developing a

related product, the stored value card. This card comes in a variety of

denominations, but functions more like a debit card than E-cash.

In essence, E-cash combines the benefits of other transaction mediums. Thus, it

is similar to debit/credit cards, but E-cash allows individuals to conduct

transactions with each other. It is similar to personal checks, but it is feasible for

very small transactions. While it appears superior to other forms, E-cash will

not completely replace paper currency. Use of E-cash will require special

hardware, and while most people will have access, not all will. However, E-cash

presents special challenges for the existing "middlemen" of the current paper

currency society. More and more, banks and other financial intermediaries will

serve simply as storehouses for money, lenders, and processing/verifying

23
 electronic transactions. Personal interaction with a teller, or even visits to a bank

ATM will become obsolete. All one will have to do is turn on his computer.

Electronic Cash Issues

• E-cash must allow spending only once

• Must be anonymous, just like regular currency

– Safeguards must be in place to prevent counterfeiting

– Must be independent and freely transferable regardless of nationality or storage

mechanism

• Divisibility and Convenience

• Complex transaction (checking with Bank)

– Atomicity problem

Security

Security is of extreme importance when dealing with monetary transactions.

Faith in the security of the medium of exchange, whether paper or digital, is

essential for the economy to function.

There are several aspects to security when dealing with E-cash. The first issue is

the security of the transaction. How does one know that the E-cash is valid?

Encryption and special serial numbers are suppose to allow the issuing bank to

verify (quickly) the authenticity of E-cash. These methods are suseptible to

hackers, just as paper currency can be counterfeited. However, promoters of E-

cash point out that the encryption methods used for electronic money are the

same as those used to protect nuclear weapon systems. The encryption security

24
has to also extend to the smartcard chips to insure that they are tamper resistant.

While it is feasible that a system wide breach could occur, it is highly unlikely.

Just as the Federal Government keeps a step ahead of the counterfeiters,

cryptography stays a step ahead of hackers.

Physical security of the E-cash is also a concern. If a hard drive crashes, or a

smartcard is lost, the E-cash is lost. It is just as if one lost a paper currency filled

wallet. The industry is still developing rules/mechanisms for dealing with such

losses, but for the most part, E-cash is being treated as paper cash in terms of

physical security. Companies are making some exceptions when it comes to a

software/hardware failure, but these are supposed to be rare. To help customers

get used to this concept, most companies are limiting E-cash wallets to $500,

reflecting the primary use of E-cash for low value transactions. There is a

benefit to E-cash in the area of theft, however. A mugger or pickpocket would

not be able to make use of another's smartcard without the appropriate

password. Merchants should also lose less cash to employee theft, since the

electronic cash will be inaccessible (or, at a minimum, traceable).

The ultimate area of security is faith in the currency. This, however, would still

be the responsibility of the Federal Government on a systemic basis.

Essentially, the E-cash is merely a representation of hard currency on deposit at

banks. Thus, faith in the system should not falter.

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E-Cash Privacy

Transactions involving paper currency are difficult to trace. If digital money is

to replace paper currency, it must retain certain aspects of this quality.

As information technologies expand, privacy becomes of greater concern.

People are realizing that with every credit card transaction, corporate databases

are becoming larger and larger. By using paper currency, people are able to

exclude themselves from these databases. Therefore, for e-cash to be effective,

it must maintain this privacy function.

DigiCash claims it has developed a system that provides privacy for the user

without sacraficing security for the receiver. If a system is completely private,

the merchant has no way of verifying the validity of the electronic money. The

user would also be unable to have a receipt for the transaction. However,

DigiCash utilizes a one-sided signiture. Basically, the user keeps record of

payments made, but the merchant only receives enough information to allow his

bank to verify the authenticity of the E-cash.

This signiture process is also suppose to deter the criminal element of cash

transactions. Since a record of the transaction is created and kept (by the payee),

extortion, bribes, or other illegal transactions should occur less frequently.

E-Cash Regulation

A new medium of exchange presents new challenges to existing laws. Largely,

the laws and systems used to regulate paper currency are insufficient to govern

digital money.

26
 The legal challenges of E-cash entail concerns over taxes and currency issuers.

In addition, consumer liability from bank cards will also have to be addressed

(currently $50 for credit cards). E-cash removes the intermediary from currency

transactions, but this also removes much of the regulation of the currency in the

current system.

The more daunting legal problem is controling a potential explosion of private

currencies. Large institutions that are handling many transactions may issue

electronic money in their own currency. The currency would not be backed by

the full faith of the United States, but by the full faith of the institution. This is

not a problem with paper currency, but until the legal system catches up with

the digital world, it may present a problem with cybercash.

Advantages of E-Money

 Online Electronic Money

1) Anonymity and untraceability can be maintained: User Id's are kept highly

confidential.

2) No issues regarding "Double spending": Real-time checking of all

transactions makes the possibility of multiple expenditures negligible.

3) No requirement of additional secure hardware: Existing POS (point of sale)

hardwares can be updated and used.

 Offline Electronic Money

1) Portable: This system is fully offline and portable.

27
 2) Anonymity unless double spending: The user is anonymous unless he

commits a double expenditure.

3) Detection of Double Spender: The bank can effectively detect a double

spender.

4) Frequent synchronizations are not required: The bank doesn't need to

synchronize its servers very often. This is mostly done via batch updates.

Disadvantages of E Money

 Online Electronic Money

1) Communication Overheads: Security and anonymity cost become a

bottleneck of the system. This can happen at times during real-time

verifications.

2) Massive Databases: The bank will have to maintain a detailed and

confidential database.

3) Synchronization: The bank needs to synchronize its server every time

transaction is made. It would be insanely impractical to maintain.

 Offline Electronic Money

1) Prevention may not be Immediate: Double spending may not be prevented

effectively and immediately.

2) Implementation Expenditure: the required additional hardware is quite

costly to install.

28
There is another con to consider. E-transactions depend a lot on technology.

Hence, power failure, unavailability of internet connection, undependable

software and loss of records could be a hindrance in your way.

Electronic Wallets

 Stores credit card, electronic cash, owner identification and address

 Makes shopping easier and more efficient

 Eliminates need to repeatedly enter identifying information into forms to

purchase

 Works in many different stores to speed checkout

 Amazon.com one of the first online merchants to eliminate repeat form-

filling for purchases

Using the basic concepts of Embedded Systems, an idea for changing the future

of Cards (Banking, Petro,Health, Televoice, etc.) is proposed in this paper.

Requirement of a special card reader, limited lifetime,acceptance being the main

disadvantages of today’s traditional cards, led to the design of e-Wallet. The

main objective of e-Wallet is to make paperless money transaction easier. The

main idea behind this paper is to bring in a cheaper, more versatile and much

more easily usable kind of a card. Using this e-Wallet the transaction procedure

can be as simple as: the customer goes to the point of sale (POS), does the

purchasing and when it comes to the payment, the customer submits his e-

Wallet to vender who connects it to his terminal (PC).The vender displays the

29
billing information to the customer who finalizes it. The amount in the e-Wallet

is updated accordingly.

Later at periodic intervals, the vender intimates the bank (in case of credit cards)

which transfers the amount from the customer’(s) account to his. The

advantages of e-Wallet are its ease of use (doesn’t require a separate card

reader), ease of maintenance, flexibility, safety, being the primary ones. The

designing of the card is similar to any other embedded card. The designing cost

of the card (e-Wallet) being as low as the price of a pizza. There are ample

enhancements to this application from credit cards to televoice cards. Unlike

traditional cards which are application oriented, all the applications’ software

can be embedded into this e-Wallet which provides multifunctionality.

30
 CHAPTER 3: E WALLETS IN INDIA

E-WALLET:

The main objective of e-Wallet is to make paperless money transaction easier.

The electronic wallet (e-Wallet) is just like a leather wallet as it does the same,

in terms of e-cash. In today’s life where monetary value and security both, go

hand in hand, it is difficult to satisfy customers using the routine cards. The

main idea behind this paper is to bring in a cheaper, more versatile and much

more easily usable kind of a card.

Salient features of e-Wallet are:

 More than 40 years of data retention

 Firewall encrypted security logic

 Compatible with many supporting hardware.

 No separate card reader is required to access our card.

 Polarity reversal indicator is pre-built in our card.

 Reusability of our card is unlimited.

 Multiple card features are incorporated in the same card.

 The random word generator unit generates a random word which replaces

the password (correct password) in the buffers and other terminals with a

random word after the transaction is over. Hence it is almost impossible

to replicate the behavior of the ASIC and thereby obtain the encryption

key or algorithm used.

31
 On Chip Security Power Management: This unit protects the card (ASIC)

against over voltage or under voltage and over frequency or under

frequency of the clock signals given for operation.

 Access Control: Access control unit protects the on chip memory. It

provides address and data bus scrambling and detects any non-standard

attempt to acquire memory access.

 Flash ROM / ROM: Flash ROM stores the instruction set for the

microcontroller unit, the necessary monitor routine programs and the

application code. Here the flash ROM is used because there are 32

available instructions sets for different applications. But only one

instruction set is used. If another instruction set is used the card can be

used for only the specific application.

 EEPROM: EEPROM is used to store the processed data i.e. the balance

amount in the card. This part is of commercial importance as it holds the

monetary information of the card. Also the EEPROM sends the data to be

read for establishing transaction

 RAM: It provides the workspace for both the microcontroller unit and the

crypto co-processor. It’s where the actual comparison of the stored

password (original password) and the given password for transaction to

take place. Only if the given password is the actual password, the access

is given to view the details of the card, deposition, withdrawal are

allowed.

32
  Serial Interface: It has six valid pins CS-chip select, CLK-external clock,

DI-data input, D0-data input, VOC-voltage input, GND-ground. Actually

a parallel printer port is used for interface of the card with PC. But only

the six required pins of the printer ports are activated. Thus the

advantages of parallel and serial communication are utilized. There is no

need for a separate USB.

 RF Interface: This unit provides establishment of transaction using Blue

tooth technology which is our future enhancement.External complexities

are less.

 Internal 16 Bit Address/Data Bus: This provides communication between

different units inside ASIC chip. This ASIC chip is built satisfying ISO

7816 standards.

FEATURES OF E–WALLET:

• Refillable

• Infinite lifetime

• Current balance can be stored and read

• User authentication is provided

• Universal access

• Maximum possible cash

• Cannot be duplicated

ADVANTAGES OF E-WALLET:

Ease of use:

33
  Withdraw or deposit value by telephone

 Pay the exact amount, no fiddling for change

 No signature required

 Immediate payment

 In the future, access points may include mobile phones

Accessibility and convenience:

 Cash machines and telephones give more access points to funds in bank

account

 Available 24 hours / 365 days

 Cash machines and telephones cannot run out of electronic cash

Flexibility:

 Transfer value by telephone

 Pay person to person

 For low or high values

 Multi-currency capability

 No age limit, so suitable for all the family

Safety and control:

 Spend only what you have

 Read your balance

 Load value at home

 Keep track of what you have spent and where

 Customer is traceable if a lost card is found

34
With all the above mentioned features it is definite that the future of cards is

definitely e-Wallet’s. Besides

credit cards, this e-Wallet can also be extended into the following fields,

namely:

 Sim – card

 Petro – card

 Credit – card

 Health – card

 Intelligent web – surfing card

 Insurance – card

 Access – card

 ATM ( provided Reserve Bank of India adopts e – cash transactions )

 Televoice

These are only the few to mention. Due to its ease of adaptability to its

environment, this e-Wallet would certainly change the way people transact

(monetary transactions).

Transaction Procedure:

The e-Wallet cardholder goes to a point of sale (POS) location (normally a

shop, but see other possibilities in the next section) where the e-Wallet is

accepted. Having chosen the goods he wishes to buy, he goes to the cash desk.

Here, the merchant calculates the total value and enters it on the payment

terminal using a keypad. (In many cases, this is done via an automatic link

35
between the cash register and the terminal.) T he terminal then displays the

amount on a small screen facing the cardholder, who confirms the amount by

pressing an "OK" button. In less than a second, the value is transferred from the

e-Wallet to the terminal, and the value remaining in the e-Wallet is adjusted.

This is an off-line transaction. A message is displayed to both the cardholder

and the merchant saying that the payment has been accepted. Periodically, the

merchant connects the terminal to his bank to do a collection that is to transfer

the value collected in the terminal to his bank account. This is an on-line

transaction. The terminal sends a message for each transaction to the e-Wallet

host system, identifying the card number and issuer and the amount. The host

system debits the float account of the issuer and credits the merchant's account.

This typically takes a few seconds per transaction. Merchants can program their

terminals to automatically do collections each day, week or month, or when a

specified value of transactions is reached. If merchants have a number of

terminals (e.g. a vending machine operator, or a large supermarket) then they

can use the "shuttle collection" system, where terminals download their data

onto a special collection card, which in turn then downloads it into a central

terminal, which is then used to perform an on-line collection.

36
E-WALLETS IN INDIA

1. PayTM

PayTM is one of the largest mobile commerce platforms in India, offering its

customers a digital wallet to store money and make quick payments.

Launched in 2010, PayTM works on a semi-closed model and has a mobile

market, where a customer can load money and make payments to merchants

who have operational tie-ups with the company. Apart from making e-

commerce transactions, PayTM wallet can also be used to make bill payments,

transfer money and avail services from merchants from travel, entertainment

and retail industry.

Capitalizing on the scope and growth of India’s education market segment, they

recently partnered with premium educational institutions in India to introduce

cashless payments for fees, bills and other expenses.

2. Momoe

Momoe is a Bengaluru based mobile payments startup that focuses on changing

how customers pay while eating out, travel and shop. Using the Momoe app,

one can store their credit card details and make mobile payments at various

restaurants, grocery stores, apparel, salons and other retail outlets.

The app’s initial foray was into restaurants which attracted many installs due to

the ease of payment options. The users were able to see live tabs, split bills and

pay directly, without having to wait for a physical bill to arrive. Even though its

services are currently available only in Bangalore, due to the growing popularity

37
of the app and investment funds they will soon be expanding their services to

six new cities.

3. PayUMoney

PayUMoney, a Gurgaon-based company that provides online payment solutions

launched its wallet service last year. This e-wallet by PayUMoney enables the

user to store cash and pay for various services and transactions.

In order to differentiate themselves from other players, they provide a wide

range of benefits that include one-touch check out and discounts / cashback

offers on every transaction made. This e-wallet also provides instant refunds on

order cancellations and buyer protect to ensure the right purchase and customer

satisfaction.

4. Mobikwik

MobiKwik is an independent mobile payment network that supposedly connects

25 million users with 50,000 retailers and more. This mobile wallet lets its users

add money using debit, credit card, net banking and even doorstep cash

collection service, which can in turn be used to recharge, pay utility bills and

shop at marketplaces.

Owing to the growing need for convenience, MobiKwik has also recently tied

up with large and small time grocery, restaurants and other offline merchants.

5. Citrus

Citrus Pay is a popular e-wallet app for cash storage, payments and money

transfers. Besides tying up with online service providers from varied sectors,

38
they are now collaborating with Woohoo, a gifting and shopping portal to let its

customers shop at more than 5000 offline stores listed with them.

6. State Bank Buddy

This mobile wallet application was launched by State Bank of India to let users

transfer money to other users and bank accounts, pay bills, recharge, book for

movies, hotels, shopping as well as travel.

This semi-closed prepaid wallet offers its services in 13 languages and is

available for non-SBI customers as well. This app also allows its customers to

set reminders for dues, money transfers and view the mini-statement for the

transactions carried out.

7. Citi MasterPass

Citi Bank India and MasterCard recently launched ‘Citi MasterPass’, India’s

first global digital wallet for faster and secure online shopping.

By using this, Citi Bank Debit And Credit Card Customers become the first in

this country to be able to shop at more than 250,000 e-commerce merchants. It

ensures faster checkout with a single click or touch and stores all your credit,

debit, prepaid, loyalty cards and shipping details in one place.

8. ICICI Pockets

Pockets by ICICI is a digital bank that offers a mobile wallet for its customers.

It provides the convenience of using any bank account in India to fund your

mobile wallet and pay for transactions.

39
With Pockets, one can transfer money, recharge, book tickets, send gifts and

split expenses with friends. This wallet uses a virtual VISA card that enables its

users to transact on any website or mobile application in India and provides

exclusive deals or packages from associated brands.

9. HDFC Chillr

Chillr is an instant money transfer app created by HDFC to simplify money

transfer and payment process for its customers.

Using this mobile payment app, one can transfer money to anyone in their

phone book, thereby cutting out on the hassles of adding a beneficiary. It is

currently available only for HDFC Bank customers and can be used to send

money, recharge, split bills, request funds or transfer and will soon be able to

pay at online & offline stores.

10. LIME

Axis Bank, the third-largest private sector bank launched ‘LIME’, an

application that offers a mobile wallet, payments, shopping and banking

facilities.

This mobile wallet is available for both account & non-account holders and lets

a user add money using his or her credit, debit and net banking details. One can

also share the wallet with their loved ones or pool in funds into a shared wallet

for a particular purpose (Example: Gifts, vacations, etc.)

40
CHAPTER 4: DIGITAL

PAYMENT PROCESS

41
 CHAPTER 4: DIGITAL PAYMENT PROCESS

DEBIT CARDS

A Debit card, chip card, or integrated circuit card (ICC), is any pocket-sized

card with embedded integrated circuits which can process data. This implies

that it can receive input which is processed — by way of the ICC applications

— and delivered as an output. There are two broad categories of ICCs. Memory

cards contain only non-volatile memory storage components, and perhaps some

specific security logic. Microprocessor cards contain volatile memory and

microprocessor components. The card is made of plastic, generally PVC, but

sometimes ABS or polycarbonate. The card may embed a hologram to

avoid counterfeiting. Using Debit cardsis also a form of strong security

authentication for single sign-on within large companies and organizations.

Overview

A "Debit card" is also characterized as follows:

 Dimensions are normally credit card size. The ID-1 of ISO/IEC

7810 standard defines them as 85.60 × 53.98 mm. Another popular size is

ID-000 which is 25 × 15 mm (commonly used in SIM cards). Both are

0.76 mm thick.

 Contains a security system with tamper-resistant properties (e.g. a secure

cryptoprocessor, secure file system, human-readable features) and is capable

of providing security services (e.g. confidentiality of information in the

memory).
42
  Asset managed by way of a central administration system which

interchanges information and configuration settings with the card through

the security system. The latter includes card hotlisting, updates for

application data.

 Card data is transferred to the central administration system through card

reading devices, such as ticket readers, ATMs etc.

Debit card Applications

• Ticketless travel

– Seoul bus system: 4M cards, 1B transactions since 1996

– Planned the SF Bay Area system

• Authentication, ID

• Medical records

• Ecash

• Store loyalty programs

• Personal profiles

• Government

– Licenses

• Mall parking

Credit Cards

 Credit card provides a card holder credit to make purchase up to amount

fixed by a card issuer.

43
 In B2C business, it continues to be the most used form of payment system

given its high convenience.

 Entities that involve in the credit card payment system include

- Card holder

- Merchant (seller)

- Card Issuer (Your bank)

- Acquirer (merchant’s financial institution

- Card Association (Visa, Master Card etc)

- Third party processor

Risk in using Credit cards

 Customer uses a stolen card or account number to fraudulently

purchase goods or service online

 Family members use bankcard to order goods/ services online, but

have not been authorized to do so.

 Customer falsely claims that he or she did not receive a shipment

 Hackers find the ways into an e-commerce merchant’s payment

processing system and then issue credits to hacker card account

numbers.

44
CREDIT CARD PROCESSING

Benefits of electronic payments

Electronic payments can benefit your business by extending your customer

base; boosting cash flow; reducing costs; enhancing customer service and

improving your competitive advantage.

45
Five reasons why Electronic payments improve customer service – the five ‘Cs’

1. Choice – like your competitors, you can offer a wide range of payment

options

2. Convenience – they remove the need for invoices, cheques, cash and BACs

3. Credit – they may allow purchases that would otherwise be delayed

4. Concessions – small discounts to encourage online purchases improve the

perception of value

5. Competitive Edge - if you don’t offer the full range of payment options but

your competitors do, what does this say about your business?

Five reasons why Electronic payments increase profitability

1. Convenience – removing administrative resources required by invoices,

cheques and cash

2. Immediacy – credit cards enable instant purchasing (without delay)

3. Improved cash flow – payment at the time of purchase reduces the pressures

caused by 30-day invoicing

4. Growth – open additional payment channels via the phone, mail order and

Internet and increase your customer base. More customers mean more

revenue.

5. Competitive advantage – match and beat the services of your competitors

and gain the edge

How the Online order process works:

 The customer is not present.

46
 Customer fills online shopping cart with products and proceeds to a virtual

checkout.

 A PSP collects the card details and the total transaction value - you can

compare PSPs using our free online payments comparison tool.

 An acquiring bank then authorizes the transaction.

 The card limit is temporarily reduced by the value of the transaction.

 Goods are dispatched and the transaction value is then captured from card.

 Small transaction costs are also charged by the PSP and acquiring bank.

Payment Acceptance and Processing

 Merchants must set up merchant accounts to accept payment cards

 Law prohibits charging payment card until merchandise is shipped

 Payment card transaction requires:

 Merchant to authenticate payment card

 Merchant must check with card issuer to ensure funds are available

and to put hold on funds needed to make current charge

 Settlement occurs in a few days when funds travel through banking

system into merchant’s account

Main factors when selecting e-payment method

 Availability (bank system, laws and regulations)

 The consideration of size and type of business, type of a target group of

consumers, types of products and services.

 The ability to provide security against fraudulent activity

47
 Being cost effective for low value transaction fees

 Being protective of the privacy of the users

 Easy to use, and being convenient for purchasing on the web based e-

business

Concerns of e-payment mechanism

 Security: Feel secured from being hijacked by unauthorized party or

processes.The need to fill out credit card numbers and other personal

information on the Internet creates unsecured feeling further than the

current transaction.

 Acceptability. A wide range of parties needs to accept payment.

 Convenience. To make small purchase, the action required during a

transaction should minimal.

 Cost

48
 CHAPTER 5:

OBJECTIVES OF STUDY

49
 CHAPTER 5: OBJECTIVES OF STUDY

Objectives of study:

 Find the customer satisfaction relating to growing use of various modes

of digital payments after demonetization.

 To study the awareness of digital payments.

 To study the various modes of digital payments after demonetization.

50
CHAPTER 6: RESEARCH

METHODOLOGY

51
 CHAPTER 6: RESEARCH METHODOLOGY

Research is a common language refers to a search of knowledge. Research is

scientific & systematic search for pertinent information on a specific topic,

infect research is an art of scientific investigation. Research Methodology is a

scientific way to solve research problem. It may be understood as a science of

studying how research is do not scientifically. In it we study various steps that

are generally adopted by researchers in studying their research problem. It is

necessary for researchers to know not only know research method techniques

but also technology.

The scope of Research Methodology is wider than that of research methods.

The research problem consists of series of closely related activities. At times,

the first step determines the native of the last step to be undertaken. Why a

research has been defined, what data has been collected and what a particular

methods have been adopted and a host of similar other questions are usually

answered when we talk of research methodology concerning a research problem

or study. The project is a study where focus is on the following points:

METHODS OF DATA COLLECTION:

PRIMARY DATA:

Survey method -- This method was adopted because it helped in securing detail

information from a sample of respondents. The information received from the

respondents is recorded on a form called the questionnaire. This is only method

to measure attitude & motivation directly

52
SECONDARY DATA:

I have also used the secondary data, which included the written document of the

organization & other places.

 INTERNET

 PAPERS & RECORDS

The data collected from the above mentioned sources helped me in getting

information about the brief history of organization.

SAMPLE PLAN

Descriptive Research- The research design is descriptive in nature. This

research is mainly focused on growing use of various modes of digital payments

after demonetization.

Universe of the Study- Bareilly city U.P.

Sample Size Sample size is the number of elements to be included in a study.

Keeping in mind all the constraints 100 respondents have been selected.

Sampling Technique- Simple convenience.

Sampling Unit- Respondents from different background.

Tools Of Presentation And Analysis- Pie Chart , Bar chart.

RESEARCH DESIGN

A research design is defined, as the specification of methods and procedures for

acquiring the Information needed. It is a plant or organizing framework for

doing the study and collecting the data. Designing a research plan requires

53
decisions all the data sources, research approaches, Research instruments,

sampling plan and contact methods.

DESCRIPTIVE STUDIES

Descriptive research in contrast to exploratory research is marked by the prior

formulation of specific research Questions. The investigator already knows a

substantial amount about the research problem. Perhaps as a Result of an

exploratory study, before the project is initiated. Descriptive research is also

characterized by a Preplanned and structured design.

LIMITATIONS OF THE STUDY

Limitations are influences that the researcher cannot control. They are the

shortcomings, conditions or influences that cannot be controlled by the

researcher that place restrictions on your methodology and conclusions of this

project report are as follow:

1. It was an academic effort and limited to cost, time and geographical area.

2. Numbers of respondents were restricted due to the time factor.

3. Scattering from respondents and dealers.

4. There is a lack of time.

5. Research is limited to Bareilly city.

6. Respondents are from different back ground.

7. Respondents are from different age group.

8. Respondents have different income level.

54
CHAPTER 7: DATA

ANALYSIS AND

INTERPRETATION

55
 CHAPTER 7: DATA ANALYSIS AND INTERPRETATION

1. Gender of respondent

Respondents

Male 60

Female 40

Respondents
Male Female

40%

60%

Interpretation: As per table and graph there are 60% respondents are male and

40% respondents are Female.

56
 2. Occupation of respondents

Respondents

Government employee 3

Private employee 32

Students 64

Respondents
Government employee Private employee Students

3%

32%

65%

Interpretation: As per table and graph there are 3% respondents are

government employees , 32% respondents are Private Employee and 64%

respondents are Students.

57
 3. Age of respondents

Response

10-20 year 18

20-40 year 79

40-60 year 3

Response
10-20 year 20-40 year 40-60 year

3%
18%

79%

Interpretation: As per table and graph there are 18% respondents are from the

age group of 10-20 yr, 79% respondents are from 20-40 yr and 3% respondents

are 40-60 Yr age slab.

58
 4. Marital status?

Response

Married 18

Unmarried 81

Response
Married Unmarried

18%

82%

Interpretation: As per table and graph there are 18% respondents are married

and 81% respondents are Unmarried.

59
 5. Are you aware regarding the functionality of Digital Payments?

Response

Fully aware 23

Partially

aware 75

Not aware 2

Response
Fully aware Partially aware Not aware

2%

23%

75%

Interpretation: As per table and graph there are mostly all respondents are

aware of Digital Payment.

60
 6. Where did u get information about Digital Payments?

Response

Social media 47

Friends 29

Magazine/Television 24

Response
Social media Friends Magazine/Television

24%
47%

29%

Interpretation: As per table and graph there are 47% respondents got

information about digital payment by Social media, 29% respondents says

Friend’s referral and 24% respondents says by television.

61
 7. Do you use Digital Payment services for financial transactions?

Response

Yes 89

No 11

Response
Yes No

11%

89%

Interpretation: As per table and graph there are mostly respondents use digital

payment service for financial transactions.

62
 8. Which mode of digital payment you are using?

Response

Credit card 17

Debit card 42

E-wallet 24

UPI 11

All of above 6

Response

45
40
35
30
25
Response
20
15
10
5
0
Credit card Debit card E-wallet UPI All of above

Interpretation: As per table and graph there are 17% respondents prefer credit

card for payment, 42% respondents says Debit card , 24% respondents uses E-

wallet , 11% respondents says UPI and 6& respondents are using all mode of

digital payment.

63
 9. Which device do you use for making the payment via Digital

payment?

Response

Smartphone 59

Computer 28

Both 13

Response
Smartphone Computer Both

13%

28%
59%

Interpretation: As per table and graph there are 59% Respondents use

Smartphone for making the payment via Digital payment, 28% respondents says

computer and 13% respondents says Both.

64
 10. Which E-wallet do you prefer most of the time?

Response

Paytm 53

Freecharge 14

Mobikwik 23

Google wallet 10

Response

60

50

40

30 Response

20

10

0
Paytm Freecharge Mobikwik Google wallet

Interpretation: As per table and graph there are 53% respondents prefer

Paytm most of the time, 14% respondents says Freecharge, 23% respondents are

in favor of Mobikwik and 10% respondents says Google wallet.

65
 11. What are your purpose of using Digital Payment?

Response

Money Transfer. 43

Recharge 26

Utility &bill payment 19

All of the above 12

Response

45
40
35
30
25
20 Response
15
10
5
0
Money Recharge Utility &bill All of the above
Transfer. payment

Interpretation: As per table and graph there are 43% respondents using Digital

payment for Money transfer , 26% respondents says Recharge, 19% respondents

says Utility and bill payment and 12 % respondents says all from above.

66
 12. What you keep in mind when you use Digital payment services?

Response

Available discount 27

Premium offers 31

Cash back 42

Response
Available discount Premium offers Cash back

27%
42%

31%

Interpretation: As per table and graph there are 27% respondents keep

Available discount in mind while using Digital payment services, 31%

respondents says Premium offers and 42% respondents says Cash back.

67
 13. How often do you use Digital Payment Services?

Response

Daily 9

Weekly 39

Monthly 52

Response

60

50

40

30 Response

20

10

0
Daily Weekly Monthly

Interpretation: As per table and graph there are 9% respondents daily use

Digital Payment services , 39% respondents says Weekly and 52% respondents

says Monthly.

68
 14. How do you rate the Digital Payment that you have used?

Response

Highly satisfied 27

Satisfied 59

Neutral 9

Dissatisfied 3

Highly Dissatisfied 2

Response

60

50

40

30
Response
20

10

0
Highly Satisfied Neutral Dissatisfied Highly
satisfied Dissatisfied

Interpretation: As per table and graph there are mostly all respondents are

satisfied with their Digital payment services.

69
 15. Would you want to continue using Digital Payment Modes?

Response

Very likely 31

Likely 47

Neutral 13

Unlikely 6

Very unlikely 3

Response

50
45
40
35
30
25 Response
20
15
10
5
0
Very likely Likely Neutral Unlikely Very unlikely

Interpretation: As per table and graph there are mostly all respondents likely

continue Digital Payment Modes.

70
 16. Are E-wallet services useful mode of payment?

Response

Strongly agree 27

Agree 53

Neutral 11

Disagree 6

Strongly disagree 3

Response

60

50

40

30
Response
20

10

0
Strongly Agree Neutral Disagree Strongly
agree disagree

Interpretation: As per table and graph there are mostly all respondents are

satisfied with their E-wallet services.

71
 17. Does using E-wallet promotes cashless payment to the next level?

Response

Yes 91

No 9

Response
Yes No

9%

91%

Interpretation: As per table and graph there are mostly all respondents believe

E-wallet promotes cashless payment to the next level.

72
 FINDINGS

1. Found that there are mostly all respondents are aware of Digital Payment.

2. Found that there are 47% respondents got information about digital

payment by Social media, 29% respondents says Friend’s referral and

24% respondents says by television.

3. Found that there are mostly respondents use digital payment service for

financial transactions.

4. Found that there are 17% respondents prefer credit card for payment,

42% respondents says Debit card , 24% respondents uses E-wallet , 11%

respondents says UPI and 6& respondents are using all mode of digital

payment.

5. Found that there are 59% Respondents use Smartphone for making the

payment via Digital payment, 28% respondents says computer and 13%

respondents says Both.

6. Found that there are 53% respondents prefer Paytm most of the time,

14% respondents says Freecharge, 23% respondents are in favor of

Mobikwik and 10% respondents says Google wallet.

7. Found that there are 43% respondents using Digital payment for Money

transfer , 26% respondents says Recharge, 19% respondents says Utility

and bill payment and 12 % respondents says all from above.

73
8. Found that there are 27% respondents keep Available discount in mind

while using Digital payment services, 31% respondents says Premium

offers and 42% respondents says Cash back.

9. Found that there are 9% respondents daily use Digital Payment services ,

39% respondents says Weekly and 52% respondents says Monthly.

10. Found that there are mostly all respondents are satisfied with their Digital

payment services.

11. Found that there are mostly all respondents likely continue Digital

Payment Modes.

12. Found that there are mostly all respondents are satisfied with their E-

wallet services.

13. Found that there are mostly all respondents believe E-wallet promotes

cashless payment to the next level.

74
 SUGGESTION

1. To prevent online banking from remaining customers to prompt this

service through advertising co.

2. After repairing this basic deficiency, banks must ensure that there

services is competitive.

3. Banks is not take more charge from there customers.

75
 CONCLUSION

Now days online transaction are going at very high speed, be it be online

shopping or money transaction, crediting debiting account and online money

management.

So demand fro a better E-payment system is of prime importance and that cant

be without considering E-security.

For any MNC company to survive in the field of E-marketing these two are

most important parameters i.e. E-payment and E-security as they always go

hand in hand. If any one is lacking behind a business would eventually vanish

out as they are interdependent on each other and directly dependent on the

success of the businee.

76
 BIBLIOGRAPHY

 www.google.com

 www.scribd.com

 www.paypal.com

 www.verisgn.com

 www.wikipedia.com

77
 QUESTIONNAIRE

Name………………….

1. Gender of respondent

Male

Female

2. Occupation of respondents

Government employee

Private employee

Students

3. Age of respondents

10-20 year

20-40 year

40-60 year

4. Marital status?

Married

Unmarried

5. Are you aware regarding the functionality of Digital Payments?

Fully aware

Partially aware

Not aware

6. Where did u get information about Digital Payments?

Social media

78
Friends

Magazine/Television

7. Do you use Digital Payment services for financial transactions?

Yes

No

8. Which mode of digital payment you are using?

Credit card

Debit card

E-wallet

UPI

9. Which device do you use for making the payment via Digital

payment?

Smartphone

Computer

Both

10. Which E-wallet do you prefer most of the time?

Paytm

Freecharge

Mobikwik

Google wallet

11. What are your purpose of using Digital Payment?

Money Transfer.

79
Recharge

Utility &bill payment

All of the above

12. What you keep in mind when you use Digital payment services?

Available discount

Premium offers

Cash back

13. How often do you use Digital Payment Services?

Daily

Weekly

Monthly

14. How do you rate the Digital Payment that you have used?

Highly satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

15. Would you want to continue using Digital Payment Modes?

Very likely

Likely

Neutral

Unlikely

80
Very unlikely

16. Are E-wallet services useful mode of payment?

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

17. Does using E-wallet promotes cashless payment to the next level?

Yes

No

81