Study of awareness about E-Payment among the people of Indore (Urban as well as Rural Area)

 

Suraj Sharma

CH Institute of Management and Commerce, Indore (M.P.)

 

ABSTRACT:

Today Electronic payment system is rapidly introduced in our country. It is to make India Digital. In this study we will analyze awareness of e-payment among the people of Indore (Urban as well as Rural area). We are targeting customers, employees, professionals and the social class. E-payment helps to grow economy as well as making the digital India. The strategies are directed towards identifying and analyzing how many people are aware of e-payment and are using the modes of e-payment like using cards, using online payment apps, net banking, mobile banking, Google wallets etc. In this study we will also identify the factors affecting the e-payment modes – like convenience, cost, demography, processing charges, security, risks etc. All these data are collected through a questionnaire. We will show the research result analyzing the responses according to residence, age, income, gender, occupation, and so on. This data help to analyze the proper result for our research work and also help to giving the result for discussion on research work. Demonetization also helps to rapidly change the thing of human mind and they are sift and using the mode of E-payment.

 

 

 

1. INTRODUCTION

This topic is on awareness of E-Payment among the people in Indore. It helps to secure our fund, stability, and cashless. This new mode of payment helps to secure our fund making it cashless. After demonetization e-payment mode has gained momentum. It secures money and saves time. E-payment is always recorded and hence receipted. Therefore there cannot be any erroneous or out of the way unrecorded over payment. This fact helps in growing economy. Habit of e-payment as preferred mode by a large majority of citizens makes the country digital. In this research work we will analyze the country’s digital scenario and alongside make people aware about e-payment modes.

 

It is very essential to eliminate the culture of black money. After demonetization cash payment became very difficult and painful at times. E-payment eased transaction. In 1994 Stanford Federal Credit Union was established as the first financial institution which offered online internet banking services to all its customers. However, first online payment systems weren’t user-friendly at all and required specialized knowledge of encryption or data transfer protocol (5 turning points in the history of e-payments)[1].

 

Demonetization is help to enhancing the growth of E-Payment.. It is essential in the journey towards digital India. After demonetization online money transaction has become stricter than before. Use of online payment is growing. It helps in reducing black money, saves time, reduces risk, GST friendly, convenient etc.

 

1.1 What is an E-Payment?

Full form of E-Payment is Electronic payment. E-Payment is all about payment by the mode of E- Payment like payment by the cards Debit card and Credit card, online payment by the using online apps, E-banking ( Net Banking and Mobile Banking).

 

Another definition is E-Payment is way of payment by using the Internet or Electronic form.  E –Payment basically use for electronic fund transfer or money transfer by the Internet. E-Payment is sunset of E-commerce transaction to include payment for buying and selling of goods and services by the internet. Today E-Payment is very useful and helps to cashless India. Current scenarios E-Payment very helpful for online payment by internet but people are not fully aware about the E-Payment. A lot of mode of E-Payment likes cards, internet, mobile banking, online wallet etc. for this research paper we will promote the E- Payment in Indore city (Urban area as well as rural area). E-Payment in Indore is very essential in this time because after demonetization government policy will introduce digital India. This research basically awareness and gathering knowledge about the E-Payment in local Indore area urban as well as rural. After this study we will help to government for contribution and put afford in digital India.

 

1.2 Methods of E-Payment:

·      Internet Services: For e-payment first of all one needs the service of internet to establish link with the recipient.

·      Cards (Debit card and Credit card): Cards basically use for the collect the payment by electronic form. There are two types of cards Debit card and credit card. Debit card is required to have a Bank account before getting a debit card from a bank. Its plastic cards for use collect money and money has deducted from our bank account. Credit card also plastic card basically use for collect money for our personal uses but money has deducted from our merchant bank. The term debit itself amply clarifies the fact that the transacted money is deducted from the remitter’s saved/banked money, and the term credit refers to the loaned out transaction by the merchant banker, on behalf of the credit account holder, at the point of sale / transaction, which is recovered from the credit account holder later.

·      E-Commerce: Payments in buying and selling of goods and services made using internet services is called e-commerce. E-Commerce refers to the paperless exchange of business information. Electronic Commerce is revolutionizing the way business and consumer transaction across the globe (MURTHYC.S.V., 2009)[2].

All goods and services are buying and selling through the electronic form.

·      E-Banking: E-banking is all about doing all banking transactions using internet service. Mobile Banking and Internet banking are two sides of the same coin. The screens have changes, the sizes have become smaller and banking has become simpler. In mobile banking, services of apps are used through internet between the remitter and the bank whereas in internet banking remission communication is directly between the remitter and the bank through internet.

·      Google Wallets: Google Wallet account is an account linked to an existing debit card or bank account in the United States. This is an easy way to send money through the app, in Gmail, or on the web at wallet.google.com. You can send money to someone using just their email address or phone number — they don't need to have the Wallet app.

·      Online Vendor: Online vendors are vendors who buy and offer products and services online to retail customers and receive payments online. They supply the services online and supply the products through courier services.

·      Online Apps: Online Apps are software applications that help customers safely and securely make online payments to the payee. In this mode of payment also convenience is in time saving and cashless transaction.

 

1.3 Benefits and Impact:

The benefits of e-payment are many. Transactions are always recorded and so money remains secured. One doesn’t have to walk down to the point of sale / purchase. Thus it saves time and exertion. Today the Prime Minister wants to make all government transactions digital. In the course of this study people will get acquainted with e-payment system and its importance to the customers.

 

E-payment system has considerably impacted the way business is done today. Since e-payment requires its users to cast their sight on a website, advertisements of products and services on website have been successful in attracting attention of prospective buyers. After this first part of sales operation is the payment for the purchase of the product. E-payment makes it convenient. The product supplier then sends the product by courier service. So, one doesn’t have to personally visit the product supplier for payment or collection of the product. Cost of advertisement is also considerably low as one doesn’t have to install printed ads at multiple positions in large and different marketing areas spread over different states, countries and continents to cover a wide cross section of customer base. E-payment is beneficial for buying and selling of items from any place using computer, laptop, or mobile phone with internet connection that is essential  (Murthyc.S.V., 2009)[2]. All products and services are available on various websites. There is flexibility to add or remove any product or service any time without wastage of much time and advertisement. Productivity is thus enhanced and hence e-payment is beneficial. Moody’s analytics estimated that higher card usage contributed an additional $296 billion to consumption between 2011 and 2015, (Saluja Dr. Manminder Singh, 2015) [3]or a 0.1% cumulative increase in global GDP during the sample time period  (Mark Zandi, 2016)[4]. The e-commerce facility with enhanced online security of transactions has benefited every one. (Neha Shroff, December 2015)[5]. Demonetization is the latest and the hottest topic in our country and its best benefit is that e-payment service is increasing day by day. E-payment facility helps to smartly tackle the sudden ban on old currencies. Post demonetization is the right time to unleash the full potential of debit cards (What are the positive effects of Demonetization)[6]. Post demonetization higher deposits entailed higher tax collection (Demonetization Impact on Indian Economy)[7]. Further, higher scrutiny compelled increased compliance. It is thus clear to the common man that how e-payment facility has its impact on Indian economy.

 

(Jyoti Vij and Kavita Vij, 2014)[8] Other benefit like unlimited services day and night, very convenient, security, efficient and effective, smart, no time constraint, easy to access via PC, easy way of payment, easy transaction.

 

2. LITERATURE REVIEW:

E-payment means payment through electronic media. E-Payment is wider study the terms e-banking, e-commerce, online payment, online apps, online wallets etc. all come in the ambit of e-payment. Literature on e-payment is generally found in some books of e-commerce, e-banking, some research paper, and some web sites.

 

2.1 E-Payment

(Oladejo, 2016)[9] observed that commercial banks in Nigeria have adopted one form of e-payments or the other. However the pattern of adoption was yet to be substantiated. Therefore the influence of such adoption on profitability of the adopting banks is worthy of exploration. This study focuses on the impact of four (ATM, POS, web/Internet and mobile) e-payments adoption and banks specific variables on profitability of the Nigerian Deposits Money Banks. The aim of this study was to examine the relationship between e-payments systems and banks profits and assess the influence of e-payment adoption on banks profitability measured by profit after tax and return on Assets. The result shows that when bank adopt e-payment systems, their performance level changes. This was reflected in the positive impact between adoption and gross earning of banks. And the negative impact between adoption of e-payment and profit after tax implying that increase in bank size.

 

(Kim Changsu, 2010)[10] reviewed the issues related e-payment security according to customer point of you. That study aim to found the perception of related security and trust on e-payment system and the use of e-payment systems. Result was no evidence of statistically beneficial and relationship between the consumer and quality of transaction that procedures. And also result was very complex to procedure of transaction.

 

2.2 E-banking

(Saluja Dr. Manminder Singh W. M., 2015)[3] studied the impact of e-banking on profitability of Indian scheduled commercial banks and the comparative picture of E-banking on profitability between different banks groups within Indian scheduled commercial banks. This study basically creates for impact of e-banking to fast growing by commercial bank of Indian county. The research objective is to find the difference if any between different bank groups classified as nationalized banks, old private sector banks, new private sector banks and SBI and its associates. They took a sample of 31 banks .The result was found positive. The result also shows significant impact on banks performance and this significance exist only in the group of nationalized bank and old private sector bank. Further more the result implies and concludes that higher the usage of E-banking instruments as ATMs in India, the better the profitability of the banks.

 

(Ahmad, 2005)[11] reviewed the impact electronic banking as the delivery of banking services and products through the use of electronic means irrespective of place, time and distance. Such products and services can include deposit-taking, lending, account management, the provision of financial advice, electronic bill payment, and the provision of other electronic payment products and services such as electronic money. The result was found that many banks’ customers in Nigeria was fully aware of the positive developments in information technology and telecommunications which led to the introduction of new delivery channels for Nigerian commercial banks’ products and services. Customers’ perception of and reaction to these developments was issues of concern to both Government and banking industry.

 

(Shorff Neha, 2015)[5] studied to identify  the awareness and usage of E – Banking Instruments in Semi-Rural Area. Also identified awareness about E-Banking depends on various factors like gender, income, education, occupation, bank account holders. Result was found that the overall satisfaction of customer towards E-Banking included various factor like gender, income, education, occupation. And also chi square test was given 5%level of satisfaction.

 

(Dahlberg, 2007)[12] reviewed  prior literature on mobile payments, analyze the various factors that impact mobile payment services markets, and suggest directions for future research in this still emerging field and also consumer perspective of mobile payments as well as technical security and trust are best covered by contemporary research. The impacts of social and cultural factors on mobile payments, as well as comparisons between mobile payment example e- payment and traditional payment like cash and cheque payment services are entirely uninvestigated issues. The result of study was the mobile payment services need to evolve from limited proprietary solution and to need create the awareness for mobile payment.

 

2.3 E-Commerce

(Sugandha, 2015)[13] observed the various driver of  e- commerce and identify the growth of e-commerce in up an upswing in our Indian country. The aim of that research to analyzed E-commerce as one of the contemporary business trends in India as well as help to grow up our country economy. Result was consisting that the use of e-commerce positively grow up in the future and a lot of customer will be use e- commerce services. And also e- commerce factor successes.

 

3. OBJECTIVE:

To Study of awareness about the E- Payment among the people of Indore city (Urban and Rural area).

To identify difficulties or problems by using the mode of E- Payment and E-Banking system.

To get full acquaintance of E-Payment and advantages for customer.

 

4. HYPOTHESIS:

H₀: E-Payment system difficult to adopt

H₁: E-Payment system not difficult to adopt

H₀: There is no significance of e-payment before demonetization and after demonetization

H₁: There is significance of e-payment before demonetization and after demonetization

5. RESEARCH METHODOLOGY:

Research Design should be done through Questionnaire and with the help of responses. Research Methodology basically uses for how can design research paper and how collect the data every detail given below:

 

5.1. Data Sample:

In this research paper use random sampling method and data should be collect through the Questionnaire. In this research work data was collecting in Descriptive form. 

 

5.1.1. Sample Size:

This research survey I have collected 160 responses and randomly gather the response by the responses’. This data has essential for data analysis and help to find my research problem.

 

5.1.2. Sample Unit:

Its study we will have surveyed from urban area as well as rural area. The target people of Indore City like Self Business/ Owner, Employee, Student and Housewife.

 

5.2. Data Collection:

In this research survey data has collected from two way first primary data and secondary data this data are describe as given below:

 

5.2.1. Primary Data:

In this research work primary data has collected from direct interview, by mail, questionnaire, personal meeting. Basically more responses gather from questionnaire and these responses essential my research work. Data has collected from what app these is latest and help to gather data for my research work.

 

5.2.2. Secondary Data:

In this research work secondary data was collecting through the Internet / web sides, research papers, Journal articles, books, Shodganga and news paper.

 

5.3. Data Analysis:

Data analysis will be finding the truly result of research work. In this research work data has collected through the Questionnaire and 160 responses has done. These responses help to given the best result for research analysis and show which impact has risen.

 

6. DISCUSSION AND RESULT

(Interpretation of tables): 

Declaration of the Actual Result and what should be analysis done by this research work the points should be mention below:

 

 

Table 1: Awareness of Mode of payment in Education sector

 

In the First Table :1 Finding and Showing Awareness about the E-Payment in  different Educational scenarios in primary education only 14.28% people are aware, secondary Education 11.47%, Graduate 58.33% and Post Graduate 43.75% are aware about the mode of e-payment so result is that higher mode of Frequency is Graduate People more using mode of e-payment.

 

 

 

 

Table 2: Awareness of Mode of Payment in Different Residential Area

 

In the Second Table: 2 We have identified how many people are aware about mode of e-payment in difference Residential area 47.61% in urban area and 25% in rural area aware about the mode of e-payment. So result is that in urban area more people are using online mode of payment services.

 

 

 

Table 3: Awareness of Mode of payment by Gender

 

In the Third Table: 3 Finding and Showing Awareness about the E-Payment by the gender ratio 35.84% male and 38.88% female are using the online mode of payment. So result in the favor of female is more using online mode of payment.

 

 

Table 4: Awareness of Mode of payment by Age Factor

 

In the Fourth Table: 4   Finding and Showing Awareness about the E-Payment by the Age Factor 33.07% age of 15-30, 53.84% age of 30-50 and 50% age of above 50 people are aware about the mode of E-payment. So Result is age of 30-50 people are more using online mode of payment services.

 

 

 

Table 5: Awareness of Mode of payment in different Occupations

 

In the Table: 5 We have identified how many people are aware about mode of e-payment in difference Occupation 11.11% in the business, 58.13% employee, 33.33% student and 16.66% housewife using the mode of e-payment. So result is that high percent of employee.

 

 

Table 6: Problem and Difficulties

 

 

In the Table: 6 In this table we have identified which problem and difficulties arise by the using of mode of E-payment and how many percentage which problem faced. 50.3% problem of awareness and knowledge, 22.9% problem of language and 26.8% technical problem. So Actual result is most of people has faced the problem of awareness and knowledge of electronic payment.

 

 

Table7: One-Sample Statistics

 

 

 

In this table:7 We have identified before demonetization the mean of data 1.68 and after demonetization mean of data 2.21 than this study satisfaction the level of data and after demonetization e- payment system expanding and grow up. There is significance of e-payment after demonetization.

 

 

Table 8: T-Tests

 

 

In the table: 8 We have identified the level of study and also put t- test before demonetization 23.467 and after demonetization 30.606 than level of satisfaction is that positive impact of this research work. After demonetization the use of e-payment system rapidly grow up.

 

7. CONCLUSION:

This research work basically analysis the impact of E-Payment in Indore city (urban as well as rural area). Objective of this study is awareness about the e-payment, identify the problem and difficulties and to get full acquaintance of E-Payment by targeting business people, employee, student and housewife and we have collect 160 responses in this study. This study given the significance of my research work and impact of this study is positive. After demonetization mode of e-payment rapidly expanding and performance of customer ratio are increase for using the mode of e-payment but problem is that lack of awareness. If people are aware about the technical so that can will be more used modes of e-payment and also giving the training related technical mode of payment  than sure public  will more using mode of e-payment.

 

And the last this study help to analysis and measurement of how many people has using the mode of E-Payment in Indore City and also help to gather the data of every factor of e-payment. And implication is that providing training and generated the awareness, also providing benefited regards mode of e-payment system, giving the knowledge of electronic mode of e- payment mostly in rural area.

 

8. REFERENCES:

1.     Dominic lucas. 5 turning points in the history of e-payments. Securion pay. Available from: URL:https:// securionpay.com/blog/ 5-turning-points-history-e-payments/

2.     C.S.V. Murthy. E-Commerce. Himalaya Publication House. Dr. Bhalerao Marg, Girgaon, Mumbai. 2009.

3.     Saluja Dr. Manminder Singh, W. M.. Impact of e-banking on profitability of commercial bakns in India. International Journal in Management and Social Science Vol-3;(2015) : 478-483

4.     Zandi Mark, Singh Virendra, Koropeckyj Sophia, Matsiras Paul. The impact of electronic payments.Moodysanalytics. (2016)Availablefrom:URL:https://usa.visa.com/dam/VCOM/download/visa-everywhere/global-impact/impact-of-electronic-payments-on-economic-growth.pdf

5.     Shorff Neha, B. M.. Awareness and Usage of E-Banking Instruments in Semi-Rural Area around Ahmedabad . International Journal of Advance Research in Computer Science and Management Studies , (2015) :42-50.

6.     Manuel Aaron. What are the positive effects of demonetization. Quota.Available from: URL: https://www.quora.com/What-are-the-positive-effects-of-demonetization

7.     MSG Experts team.Demonetization impact in Indian economy. Available from: URL: https://www.managementstudyguide. com/demonetization-impact-on-indian-economy.htm

8.     Jyoti Vij and Kavita Vij, Vinod Vij. Role of  E-banking in current scenario. International Journal of Technical Research and Applications Vol-2; (2014): pp.64-68.

9.     Oladejo, Morufa. E-payments adoption and profitability performance of deposits money banks in Nigeria. IPASJ International Journal of Information Technology (IIJIT) Vol-4 ; (2016): pp.1-9.

10.   Kim Changsu, Wang Tao,K.-S. K.. An empirical study of customers’ perceptions of security and trust in e-payment systems. Electronic Commerce Research and Applications 9, (2010): pp.84-95.

11.   Ahmad, B. D.. The Impact of E-banking on customer satisfaction in Nigeria. Munich Personal RePEc Archive , (2005):pp.1-13.

12.   Dahlberg, Tomi, Mallat Niina, Ondrus Jan, Zmijewska Agnieszka. Past, present and future of mobile payments research:A literature review. Electronic Commerce Research and Application xxx, (2007) : pp.1-17.

13.   Agrawal Dr.Sugandha. E-commerce in India: On an upswing. IJRSI, Vol-II ; (2015) :,pp.40-51.

 

 

 

 

 

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