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Students Perception Towards Digital Payment System-A Study With A Special Reference To Mangalore University
Students Perception Towards Digital Payment System-A Study With A Special Reference To Mangalore University
Guest Faculty
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ABSTRACT:
E-commerce is often used to refer to the sale of physical products online, but it can also describe any kind
of commercial transaction that is facilitated through the internet. E-commerce is often confused with e-
business, although they have nothing to do with one another. Digital payment is said to be boon for the user
who wants their transaction to take place electronically. Fast and secure modes of payments ensure trust
among the users. However awareness programs must be done to educate the people who want to pay
through electronic medium. Online payment stands out compared to offline payment as there is no
intermediary between buyer and seller of the goods. Security issues may be the concern for many and lack
trust in online modes is the reason many still prefer cash as a medium of payment. Adoption of digital
payments in India is in a transformation phase. Usually India is a traditionally cash based economy, but now
slowly we see the growth of card based economy. Government of India brought up many schemes for the
development of digital payment such as Aadhaar card enabled or linked payment apps like BHIM, UPI etc.
Main focus of the government is to give digital facility to all the section including urban as well as rural all
over India. Acceptability of digital payment will be on the hands of those who use it. Slowly but surely
electronic mode is replacing traditional mode of payment. Digitally smart India is the way forward in
coming days as everyone should make use of technology for right purpose.
Key words: Digital India, paperless money, online payment, student perception, awareness.
INTRODUCTION:
Modern era has technologically well developed because of E-commerce. E- Commerce is doing business
electronically where there is no scope for physical or traditional system of transaction. More and more
people opt for e commerce mechanism because it ensures accuracy of transaction. When people are
engaging in purchase and sale of goods and services there is need for medium of payment. Paper
transactions are losing its importance as people want to go cashless. Digital payment system is a way of
dealing through electronically equipped medium which helps in making transaction and ensures the safety
of the transactions. Urgency of a man and shortage of a time makes this system important. In digital
payment both payer and payee use digital modes to send and receive money. Generally no hard cash
involved in digital system. Making cash payment is a time consuming process and to avoid this digital
payment system came into existence.
Varies modes of digital payment includes mobile wallet, banking cards such as debit and credit cards, UPI,
mobile banking etc. digital payment system works effectively because they are linked to users bank account.
Whenever the payment is made user will be identified through notification and similarly if can credit is
made to users account he will get an intimation. Mobile wallets are popular among youths as it gives
attractive rewards such coupons, cash back, discount etc. Smart card looks like a plastic card with
microprocessor that can be loaded with funds to make transaction. Benefits of using online modes includes
it attracts clients from all over the world. More efficient transaction can be made with one click. Over the
years bank cards are more popular because they are user friendly. Debit card is generally linked to
customer’s bank account and it is issued to every account holder of the bank. Debit card has details such as
name, expiry, CVN for security of transactions.
Indian government has also taken a step to make India digitally sound and as result promoting cashless India
motive. Nowadays almost everyone has a Smartphone and man is more dependent on technology. Most of
the online transaction can be executed with the help of mobile applications. If a person wants to buy cloth
from online firstly he will visit online shopping sites such as Amazon, flip cart etc. there he will be provided
with the item of his choice then a user make whether to buy a product or not. If he wants buy the product he
needs to place an order and needs to make payment. Payment could through cash or most of the times using
cards such as debit or credit or with the help of mobile wallet. For making transaction through internet
customer need to pay internet handling fees. Suppose if you want to get movie ticket and if you use
application like book my show you need to pay for the service provided. Immediate transfer of money from
one account to another account is possible through net banking where customer is given with unique user id
and password to ensure the safety of the transactions. Train ticket, bus ticket, flight ticket could booked
online and by mere presentation of electronically generated tickets you can make a journey.
Digital payment system influenced man to think differently. It forced a change in man’s traditional
approach. More companies are now coming with digital payment applications for better access such as
Google pay, phone pay, PayPal etc. Users of electronic payment are increasing year after year. Most of the
people are satisfied with digital mode as it is convenient to them. Digital payment considerably reduced the
work of a man as most of the banks we see digital modes of depositing and receiving cash.
LITERATURE REVIEW
1) Peter Gomer(2017) in his research article stated that the financial industry has experienced a continuous
evolution in service delivery due to digitalization. This evolution is characterized by expanded connectivity
and enhanced speed of information processing both at the customer interface and in back-office processes.
Digital Finance encompasses a magnitude of new financial products, financial businesses, finance-related
software, and novel forms of customer communication and interaction to the end users. Digital Investments
support individuals or institutions in investment decisions and in arranging the required investment
transactions on their own by use of the respective devices and technologies. Digital Investments include
mobile trading, social trading, online brokerage, and online trading in the B2C area and high-frequency and
algorithmic trading in the B2B context.
2) Joao Porto de Albuquerque(2016) discovered in his article despite its huge potential, the use of mobile
technology for carrying out payment transactions and replicating monetary features, has only taken off in a
limited number of countries. The fact that mobile payment services are not being provided on a worldwide
scale, suggests that the reasons for the successful cases are not yet fully understood, and as a result, cannot
be easily replicated. This study includes a detailed analysis of 12 primary case studies on existing mobile
payment schemes, as well as a consultation exercise with stakeholders. The main contribution of this study
is to provide a clear account of the knowledge that exists on mobile payments. As a result, it has been
possible to detect serious gaps in this knowledge base (in geographical, methodological and conceptual
areas) and show how future research can make improvements in the field.
3) Kalina S Staykova(2015) stated the payment market has been stable for a number of decades with well-
defined roles (acquirers and issuers), profitable business models (the card schemes) and a dominant design
in which the merchants absorb the costs associated with payments. However, numerous digital payment
solutions, which rely on new disruptive technologies, are emerging on the payment market, transforming the
payment area from being established into a state of flux. This article investigates the various factors that
determine the success of a given solution. To this end, we build a framework to analyze the entry and
expansion strategies of the digital payment solutions. Paper claims that the timing of entry of the first-mover
speeds up the timing of entry of the early follower, thus determining the order of entry.
4) Stefan Henningsson(2014) argued about how digital eco system plays an important role in digital
payments. In digital ecosystems, the fusion relation between business and technology means that the
decision of technical compatibility of the offering is also the decision of how to position the firm relative to
the coopetive relations that characterize business ecosystems. This paper concentrated on development of
the Digital Ecosystem Technology Transformation (DETT) framework for explaining technology-based
transformation of digital ecosystems by integrating theories of business and technology ecosystems. The
framework depicts ecosystem transformation as distributed and emergent from micro-, meso-, and macro-
level coopetition. The DETT framework consists an alternative to the existing explanations of digital
ecosystem transformation as the rational management of one central actor balancing ecosystem tensions.
5) W Ming Yen Teoh(2013), Study was conducted to view the promising growth of e-payment in
Malaysia. The use of e‐payment by the majority of respondents confirms that there is a great potential for
future expansion of such payment devices. The challenge is to ensure that it continues to meet consumers’
expectations which will subsequently lead to its increased adoption and use. Study uses the multiple linear
regressions; it reveals that benefits, self‐efficacy, and ease of use exert significant influences on
consumers’ perception towards e‐payment. However, the insignificant results obtained for trust and
security warrant further investigation.
6) C Kim (2010) identified It is commonly believed that good security improves trust, and that the
perceptions of good security and trust will ultimately increase the use of electronic commerce. In fact,
customers’ perceptions of the security of e-payment systems have become a major factor in the evolution of
electronic commerce in markets. The paper examines issues related to e-payment security from the
viewpoint of customers. The study proposes a conceptual model that delineates the determinants of
consumers’ perceived security and perceived trust, as well as the effects of perceived security and perceived
trust on the use of e-payment systems. To test the model, structural equation modeling is employed to
analyze data collected from 219 respondents in Korea. This research provides a theoretical foundation for
academics and also practical guidelines for service providers in dealing with the security aspects of e-
payment systems.
7) Abdullai Besim (2009)The given economy on payment play vital role in the payment system as mean electronic payment
instruments. Electronic payment system supports the e-commerce activities in general. There are numerous types of electronic payment
instruments in the market today such as credit cards, debit cards as well as electronic banking. The available ATM machines, can participate to
better use of Debit cards from citizens to withdraw money. Withdrawing money from ATM machines can lead to extra savings from banks,
because, they use less paper to document transactions uses more and more cards in everyday payments and other transactions, there are many
other factors that influence the use of electronic payment instruments.
8) Sumanjeet S(2009) EFT based payment system came into existence. It was first electronic based
payment system, which does not depend on a central processing intermediary. An electronic fund transfer is
a financial application of Electronic Data Interchange (EDI), which sends credit card numbers or electronic
cheques via secured private networks between banks and major corporations. To use EFT to clear payments
and settle accounts, an online payment service will need to add capabilities to process orders, accounts and
receipts. But a landmark came in this direction with the development of digital currency the nature of digital
currency or electronic money mirrors that of paper money as a means of payment. As such, digital currency
payment systems have the same advantages as paper currency payment, namely anonymity and
convenience.
9) Jennifer Rowley(2008) indicated that as the importance of digital content to business and society grows
it is important seek a holistic perspective on the definition and nature of digital content marketing (DCM).
Along the journey it becomes evident that a recurrent theme in DCM is customer value, and this leads into
the second major contribution of the article, an exploration of the notion of customer value in digital content
marketplaces. Digital content is defined as: 'bit-based objects distributed through electronic channels'. A
structured analysis is conducted on the basis of a set of questions in order to surface some of the unique
characteristics of digital content marketing. The analysis is informed by a literature review, and the
exploration of numerous web sites which deliver different types of digital content. The conclusion
summarizes the unique characteristics of digital content, and associated consequences for digital content
marketing. It focuses on the impact of the difficulty in developing a notion of 'value' in the context of digital
content, and its consequences for value chain structures, pricing strategies, marketing communications and
branding, and licensing and digital rights management. In addition, the customer's experience of digital
content is influenced by all stakeholders in the value chain as well as requiring the customer to participate in
learning and co-creation of the experience.
10) Ching A and Hayashi F(2007). In any given transaction, a consumer will have any number of options as to how to
pay for the purchase. Consumers will choose their transactional medium according to the relative costs and benefits
of using one method over another. Consumer payment choice is influenced by various factors. Previous research has
highlighted three important sets of factors such as consumer characteristics, payment method attributes, and
transaction characteristics. Consumer characteristics, such as age, income, and educational level, have shown to be
correlated with the use of payment methods in the previous literature. Payment method attributes may also be
important factors when consumers choose a payment method. Some payment instruments have distinctive
attributes. For example, cash gives consumers anonymity, and credit cards provide liquidity at least until the next
billing date. Other attributes, such as transaction time, security, ease of use, control spending, and so on, also vary
by payment methods.
1) To identify the degree to which students believes that using digital payment would enable him to
increase his trust.
2) To know the perception of students towards the security of digital wallet.
3) The degree to which a user gets influence from other to use digital wallet.
4) To understand the awareness of the students on the usage of digital payments.
5) To know insight of respondent towards cashless payment system.
RESEARCH METHODOLOGY
The quality of work depends upon the methodology adopted for the study and the process of collecting,
synthesizing and analyzing of the information. The validity of the systematic work depends upon the proper
sampling, collection of data, and interpretation of the data and formulation of conclusion.
COLLECTION OF DATA:
Data was collected through both primary and secondary data sources.
1. PRIMARY DATA
The data for the study is taken from the students of Mangalore city. Study largely comprises age group of 18
to 23 years. The primary data and information is collected from students with the help of questionnaire.
Sample size was 81.
2. SECONDARY DATA
For the purpose of the study data has been taken from various websites magazines and news papers. Many
research papers and articles on the topic is been analyzed for the better presentation of the study. Study is
based on self analysis.
Sample size taken for the study is 81 and convenience sampling method was used.
DATA ANALYSIS
Analysis:
Above table clearly indicates that 40.7% of respondents were male and 59.3% of respondents were female.
Analysis:
Above table clearly indicates 4.9% of respondents belong to the below 18 year age group where as 95.1%
of the respondents belong to the 18 to 29 year age group and none belong to age group of 30 and above.
.Analysis:
Above table clearly indicates 67.9 % respondents were post graduates, 25.9% respondents were graduates
and 6.2% of respondents were of pre university level. None belong to SSLC and research scholar group.
Yes 78 96.3
No 3 3.7
Total 81 100
Analysis:
The above table clearly indicates 96.3% of respondents were well aware of digital payment system and rest
has less knowledge about it.
Cash 22 27.2
Total 81 100
Analysis:
Above table indicates 72.8% of respondents use digital mode and 27.2% of respondents use cash mode as a
medium of payment.
Table & Chart No- 3.6: Demonetization is the main reason to switch from cash to digital money in
India:
Yes 48 59.3
No 6 7.4
May be 27 33.3
Total 81 100
Analysis:
Above table indicates 59.3% of respondent agrees that demonetization is a main reason for switch from cash
to digital money. However 7.4% of respondent disagrees with it and 33.3% of the respondents are not sure
about it.
Analysis:
It is clear from the above table 86.4% of the respondent (70) prefers to use debit and credit card as a primary
mode of digital payment. Second most used mode of payment is mobile wallet 33.3% (27). Internet banking
is popular among 28.4% (23) respondent which comes third on our analysis. 23.5% of People prefer UPI,
13.6% people use BHIM but USSD and POS are rarely used by the respondents.
From the above table it is clear that 35.8 % of respondents acquired knowledge from friends, 30.9% of
respondents from advertisement, 25.9 % of respondents through self knowledge and rest 7.4% of
respondents from family.
Analysis:
Above table indicates 43.2 % of respondents use digital payment modes once in a month, 32.1% uses
weekly basis, 14.8% uses very rarely and 9.9% uses digital payment on daily basis.
It is clear from above table 45.7% of agrees that cashless payments were comfortable to be used on daily
basis where as 8.6% disagree with it. 29.6% have neutral opinion and 12.3% of respondents strongly agree
and 3.8% strongly disagrees with it.
Excellent 13 16
Good 54 66.7
Fair 14 17.3
Poor 0 0
Total 81 100
Analysis:
From the above table it shows 66.7% of the respondent rates good to the security where as 16% give
excellent rating and 17.3% feel it is pretty average.
Analysis:
Time saving is the main reason for preference of digital payment as 76.5% of respondent agrees follows by
less procedure 32.1%, discount and reward 30.9%, safety 23.5%, easy tracking of spends 19.8%.
Analysis:
Biggest concern towards digital payment is a security issues 59.3% followed by lack of technological
awareness 25.9%. 13.6% of the respondent feels that poor internet is the concern and 1.2% feels cost as a
concern.
Analysis:
The above table indicates 59.3% of respondents use debit/credit card in emergencies followed cash 17.3%
and Net banking 16%. Respondents rarely use cheque and e wallet during emergencies.
Table 15: People will hardly use cash to make purchase in few years:
Analysis:
50.6% of respondent agrees with the statement people will hardly use cash to make payment in coming
years and 19.8% strongly agree but 18.5% show neutral opinion. 8.6% disagree and 2.5% strongly disagree
with the statement.
Table 16: Lack of awareness is the main reason for lesser application of digital payment in India:
Yes 11 13.6
No 70 86.4
Total 81 100
Analysis:
Above table indicates that 86.4% of the respondents feel lack of awareness is the reason for lesser
application and 13.6 feels against it.
Table 17: Advertisement or offer shown in digital payment distracts the user:
Analysis:
From the above table 35.8% of respondents share neutral opinion, 28.4% agrees that advertisement and
offers distracts the user, 24.7% disagrees with the statement and 8.6% strongly agree with it. Only 2.5% of
the respondent strongly disagrees with the statement.
Table 18: Digital payment system stops illegal activities better than paper payment system:
Analysis:
Above table indicates that 45.7% of the respondent says digital payment stops illegal activities but 16%
have adverse opinion and 38.3% of respondent not sure about it.
Table 19: Benefits influencing the customer to opt for digital payment system:
Analysis:
From the above table it is clear that customer opt for digital payment system mainly because of cash back
61.7% followed by Discount 30.9%. However coupon and gift play minute role while opting for digital
payment system.
Findings:
Using digital payment saves considerable amount of time as there is less procedure involved in it.
Security issues are the biggest threat to digital payment system.
Debit and credit cards are major means of payment mode in emergencies.
In coming years digital payment will cover all areas and cash transactions are slowly sidelined.
Majority of the respondent is of the opinion that less awareness program and education is cause for less
implementation of digital payment in India.
Majority of respondents are not sure about the distraction caused by advertisement and offers.
Digital payment is a better option as it stops illegal activities better than paper payment system.
Attractive cash back and discount induces the customer to go for digital payment system.
Limitations:
It considers only student opinion and not the opinion of general public
Data is collected with the help of questionnaire as it lacks detailed insight of the problems.
Sample size taken for the study is 81 respondent which basically not large in numbers
The perception of individual differs from one another so which may result in lacking accuracy in
data.
Conclusions and suggestions are given strictly based on student responses only.
Suggestions:
Awareness programs must be done at educational sector in order to educate people about digital
payment system.
As respondents are well aware of the digital payment system as per our findings steps must be taken
to minimize the deficiencies involved in digital payments like security issues, trustworthiness etc.
Many people use cards for all their needs but there is a additional charge on the use of debit or credit
cards. In order to encourage people to engage in digital modes it is important to remove additional
charges for just mere use of cards.
Service provider of mobile wallet, net banking must take into consideration user experience and take
their valuable feedback in order to better their services.
Cash payment is still to be seen everywhere. If government to implement digital system of payment
or cashless society it must act on that behalf by encouraging people to use digital modes and giving
proper incentives.
Different customers have different needs so it is necessary to provide them with number of payment
methods so it gives option to user to select the mode of payment which is best suited to him.
While making payment customer needs to give essential information. There must be a better
mechanism for maintaining the privacy of the information provided by the user.
User friendly atmosphere must be created so that user can be retained to one particular mode of
payment.
Conclusion:
Technology has arguably made our lives easier. One of the technological innovations in banking, finance
and commerce is the Digital Payments. Digital Payments refers to the technological breakthrough that
enables us to perform financial transactions online, thus avoiding hindrances and other hassles. Digital
Payments provides greater freedom to individuals in paying their taxes, licenses, fees, fines and purchases at
unconventional locations and at whichever time of the day, & 365 days of the year.
Due to the developments in digital world each and every activities of human being had changed. As a part of
policy change cash is no longer becoming a mode of transaction. The country needs to move away from the
cash-based towards a cashless (digital) payment system. This will provide multiple advantages like, reduce
currency management cost, track transactions, check tax avoidance or fraud etc., enhance financial inclusion
and gradually integrate the parallel economy with the main stream.
The findings reveal that while people are getting comfortable with cashless payments, some kind of negative
perceptions are holding back many from adopting the new system. The negative perceptions are like
security problems, poor network coverage, and lack of merchant willingness, high transactional costs, lack
of users’ knowledge on technology, defunct POS machines, delayed reimbursement in case of failed
transactions, procedures and financial limits. Convenience in use of cashless transactions and incentive
system are the positive signs for the progress of cashless payments in India. Finally the study concludes that
India may not become a cashless economy unless the perception of the people will be rightly addressed by
the government and the banking institutions. They should pave the way for the safe and secure mean to
cashless transactions.
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