004 Study on Perception of consumer towards digital payment PDF

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A STUDY ON PERCEPTION OF CONSUMER TOWARDS DIGITAL PAYMENTS WITH SPECIAL REFERNCE TO GOOGLE PAY IN TRICHY CHAPTER -1 INTRODUCTION 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. Ecommerce 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. Google Pay (stylized as G Pay; formerly Pay with Google and Android Pay) is a digital wallet platform and online payment system developed by Google to power in-app and tap-to pay purchases on mobile devices, enabling users to make payments with Android phones, tablets or watches. The study is attempted to analyze the customers’ perception towards mobile wallet with special reference to Google pay. The study was done based on well-structured questionnaire with150 respondents in Tiruchirappalli. The problem area of this survey is determine the factors influencing customers towards Google pay and those factors will help the marketers to formulate their strategies towards Google pay.

INTRODUCTION As part of the ‘Digital India’ campaign, the government aims to construct a ‘digitally empowered’ economy that is ‘Faceless, Paperless and Cashless’. There are different types and modes of digital payments. Some of these include the use of debit/credit cards, internet banking, mobile wallets, digital payment apps, Unified Payments Interface (UPI) service, Unstructured. The mobile wallet, which is called M- wallet, digital wallet, or E wallet, refers to a mobile technology that is used identical to a real wallet. It admit customers to purchase their products online with greater ease. Google Pay is a digital wallet platform and online payment system developed by Google. Google pay makes it easy to keep track of purchases, redeem loyalty points and get personalized suggestions to help the customers to save time and money. Information and communication technologies growth is persuading the people and supporting the achievements of human society as a whole. Achievements of human society are supported by available huge amount of information and awareness about the usage of various, facilities. Digitization has broken the traditional boundaries of society and provided creative dynamic wings for the growth of business. Digital revolution is enabling people to lead life with ease and to make convenient financial transactions. Banks are eagerly adopted the e-payment system as a method of financial transactions and created a tool of convenient monetary transactions. E-payment one the prominent pillars of e-commerce and became a part and parcel of system of e-commerce. Efficient implementation of monetary policies and transactions in money market depend on e-payment system. Financial and economic system of the country is influenced by the system of e-payment. E-payment became a monetary instrument to people to do their economic activities. E-payment is a part of economic infrastructure and playing a vital role in liquid transactions. E-payment system enabled settlement infrastructure to transfer from one person to another person in a short amount of time. Creating an e-payment infrastructure can be a great platform for future growth. Modern era has technologically well-developed because of E-commerce. ECommerce 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. E-PAYMENT: E-payment is a method of making payment through electronic network. Digital payments are payments directly to payee from payer bank account by using security features. E-payments are financial transactions between buyer and seller through online. E-payments based on digital financial instruments and backed by banks. The Payment and Settlement Act, 2007 has defined Digital Payments. As per this any “electronic funds transfer” means any transfer of funds which is initiated by a person by way of instruction, authorization or order to a bank to debit or credit an account maintained with that bank through electronic means and includes point of sale transfers; automated teller machine transactions, direct deposits or withdrawal of funds, transfers initiated by telephone, internet and, card payment. In broad terms, European Central Banks (ECB) defines e-payment as ‘a payments that are initiated, processed and received electronically’. E-payment has becoming an efficient means of payment in today’s trade world. . This is due to its competence, suitability and appropriateness. India has lagged behind in adopting other technologies but joined other countries in digital payment revolution especially in the financial sector. E-payment is a updated system of making payments using electronic network. E-payment are made through payer bank to payee by using security features. After demonetization role of digital payments has considerably enhanced. E-payments has become a parallel system of payment along with traditional system of payment. Digital India initiatives supporting the electronic payment system and there is a need to build solid infrastructure for digitalization. This paper efforts to discuss to understand the meaning of epayment and satisfaction level of customer towards e-payment. CUSTOMER SATISFACTION TOWARDS E-PAYMENT E-payment systems are important mechanisms used by individual and organizations as a secured and convenient way of making payments over the internet and at the same time a gateway to technological advancement in the field of world economy. In addition, it has also

become the major facilitating engine in e-commerce through which electronic business success relied upon. Electronic payment system had also brought about efficiency, fraud reduction and Innovativeness in the world payment system. Despite the merits of epayment it is essential to measure the satisfaction of consumers for further corrections.

CHAPTER SCHEME The chapter is study is divided into four chapter including CHAPTER –I The first chapter consist of introduction. CHAPTER –II The second chapter deals with literature review. CHAPTER –III The third chapter deals with research methodology. CHAPTER –IV The fourth chapter deals with data analysis and interpretation. CHAPTER – V The fifth chapter deals with findings, suggestion and conclusion.

CHAPTER 2 LITERATURE REVIEW Are Digital wallets The New currency?" in this investigations let us know in a period of digitalization, the examination intends to contemplate the client recognition, utilization design inclinations and fulfillment level with respect to advanced wallets in view of an investigation of 52 respondents. It additionally recognizes the hindrances and difficulties to the selection of the same. 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. 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. 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. 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. W Ming Yen Teoh (2013), Study was conducted to view the promising growth of epayment 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. 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. 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 ecommerce 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. 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. 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. 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 c...