INFOKARA RESEARCH ISSN NO: 1021-9056

GPAYTM- ANYTIME ANYWHERE PAYMENT

Ms.S. Sindujaa, II MBA, SRMIST, Vadapalani e mail id: [email protected]

Dr.S.Gayathry Professor, Department of Management Studies, SRMIST, Vadapalani e mail id: gayathry69@.com

ABSTRACT

Digital payment is a type of payment that is done through electronic modes where both the payer and payee use digital modes to send and receive money. Hence it is also called as electronic payment. Here no hard cash is involved as all the transactions are completed online. Thus it is an instant and convenient way to make payments. The money transfers happen automatically from one account to other and there is no need to physically visit the bank.In this paper a detailed study has been conducted to understand the increasing usage of technology in financial sector and the exponential growth of digital payments in the recent times. A comparative analysis has been done about the different digital payments methods available, in particular Pay and . This helps understand their pros and cons, customer usage, preference and scope for improvement.Several issues and suggestions have been discussed to help improve customer satisfaction.The critical evaluation done helps in understanding the process of increasing digitalization in the payment systems and the vitalrole played byfintech in the future of banking sector.

KEYWORDS- Digitalization, electronic payment, fintech

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GPAYTM- ANYTIME ANYWHERE PAYMENT

1.1 INTRODUCTION

Digital payment is a type of payment that is done through electronic modes where both the payer and payee use digital modes to send and receive money. Hence it is also called as electronic payment. There are various types and modes of digital payments like use of cards, internet banking, mobile wallets, digital payment applications, UPI- Unified Payment Interface service, USSD- Unstructured Supplementary Service Data, mobile banking,etc. they provide customers the ability to make payments from anywhere and at anytime. Post demonetisation in India, people slowly started embracing digital payments and merchants, shop owners have started accepting payments through the digital mode. It is step in the right direction towards cashless economy.

1.2 NEED AND IMPORTANCE OF THE STUDY

The study helps in understanding the increasing usage of various digital payment methods by the people. Analysis has been done to find out the features, causes and effects for the same both in the long and short term. It has been causing big changes in the financial sector as well as the economy in general. The comparative study of payment applications helps understand their customer usage and preference, pros and cons and their scope for improvement. the digital payment ecosystem is predicted to be the next big thing and is exponentially growing in the recent times.

1.3 OBJECTIVES OF THE STUDY

 To check the knowledge and awareness level of the people about the digital payment methods  To find out the usage and preference of different payments methods  To discuss the various issues and suggestions based on the findings of the study

1.4 REVIEW OF LITERATURE

The previous works on digital payment methods have been analysed and research gaps have been identified. An attempt has been made to review and understand the works of individual researchers, articles, journals, etc.

Neharika Sobti (2019) -The purpose of this paper is to explore the antecedents of the behavioural intention and adoption of services. This is done by examining the diffusion of mobile payment technology within an extended framework of the Unified Theory of Acceptance and Use of Technology (UTAUT) model. The study attempts to extend the UTAUT model further by introducing three more constructs, namely- perceived cost, perceived risk and demonetization effect. The key results indicates that behavioural intention, demonetization and facilitating conditions have a positive and significant impact on the adoption of mobile payment services in India. Age acts as a moderating variable consistently across three models, implying that younger users give more importance to effortless interface of mobile payment services and get more influenced by peers and society that shapes their intention to use mobile payment services

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Agrata Gupta, Chun Xia (2018) -The chapter studies the role of Financial Technology (FinTech) in disrupting the existing traditional banking system. This technology revolution allows us to have a banking system based on values that serve customers better, reduce risk to the society and improve returns for the shareholders. India is witnessing a strong amount of FinTech deals in 2017 and it is being driven by payment and lending solutions. The chapter dives into the challenges Asian banks are facing because of this disruption. Now more than ever, is the important role governments and central banks of each nation play to assess the path these start-ups are headed on and this will unfold the landscape of banking in Asia a few years down the lane.

Jonas Hedman, Felix B. Tan, Jacques Holst, Martin Kjeldsen (2017) - Recent innovations in payment instruments have fundamentally changed the ways we pay. These innovations, such as mobile/SMS payments and online banking, contain features that are likely to influence how people choose to pay. The purpose of this paper is to understand the factors that impact payers’ choice of payment instruments. A four-category taxonomy of payments was developed. The authors refer to the taxonomy as the 4Ps: the purchase, the payer, the payment instrument, and the physical technology. The findings suggest that payers view payment instruments in a much broader sense, including context, control, or cultural beliefs. Consequently, the authors suggest that researchers try to understand the essence of an innovation before assuming any economic rationalism in human or organizational behavior. The authors also urge researchers to understand the underlying meaning behind constructs of interest; as this study has shown that concepts like context and convenience have many different interpretations.

2.1 METHODOLOGY Information for the study was collected from both primary and secondary sources. Primary datawas collected through a survey of a sample of 57 respondents across different age groups, gender, location and occupations. Secondary datawas collected from various online sources, books and journals. The study is confined only to digital payment applications in particular g pay and paytm.

2.2 G PAY- ORIGIN AND GROWTH

Google Pay is the search company’s electronic wallet and payment service offering. It enables users to pay for transactions with Android devices. Google wallet was the company’s first mobile payment system, developed for android devices in 2011. In 2015, it was renamed as Android Pay, with Google Wallet refocused to strictly peer-to-peer payments. In 2018, Google announced that Google wallet would join other payment offerings under branding. Google wallet was then renamed . Users link credit or debit cards to their Google Pay account, which is used for making the transactions. It uses near field communication technology to interact with payment terminals. This service works with hundreds of banks andpayment providers.

G pay generates a unique encrypted number instead of actual card number when registering the transaction. This service keeps information private, sending a one-time security code instead of the card or user details. Protection is done by a world class security system that helps detect fraud and prevents hacking. Thus it has become the simplest and safe way to send or receive money with no fees, recharge mobile or pay shopowners. Its popular feature is the reward in form of scratch cards which go straight to the bank account. Its usage and preference has increased tremendously in the recent years due to the aforesaid features.

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2.3 PAYTM- ORIGIN AND GROWTH

It is an Indian e-commerce payment system and financial technology company, based out of Noida, India. The founder is Vijay Shekhar Sharma. It’s available in 11 Indian languages and offers online use-cases like mobile recharges, utility bill payments, travel, movies and events bookings as well as in-store payments at stores and shops with the Paytm QR code. It was started in 2010 as a prepaid mobile recharge platform and later added data card, post paid and landline bill payments in2013.

In 2014, Paytm wallet was launched and entered into e-commerce with online deals and bus ticketing. In 2015, it unveiled more use-cases like education fees, metro charges, gas and also powering the payment gateway for Indian railways. After 2016, it diversified more with movies, events, gold,payments bank, mall, business app, automated tax payments and gamepind. It was awarded the most outstanding startup of the year award at Forbes leadership awards 2016. In May 2019 it partnered with to launch credit cards.

3.1 RESULTS AND DISCUSSION

 Based on gender

TABLE 3.1.1

Gender Digital payment usage MALE 63.2 % FEMALE 36.8 %

Digital payment usage

MALE FEMALE

There are totally 57 respondents to the survey out of which 63.2% are males and rest 36.8% are females.

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 Based on age

TABLE 3.1.2

Age bracket Digital payment usage

< 20 yrs 7 20- 30 yrs 45 > 30 yrs 5

Digital payment usage

> 30 yrs

20- 30 yrs digital payment usage

< 20 yrs

0 10 20 30 40 50

There is a wide range of age groups from 17 yrs to 52 yrs old with majority usage in the age bracket of 20-25yrs.

 Based on user preference

Table 3.1.3

Application Digital payment usage

G pay 37 Paytm 9 Others 11

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Digital payment usage

40

30

20 digital payment usage

10

0 g pay paytm others

Majority 64.9% use G pay and next highest is for Paytm at 15.8%. There are also other applications used in small percentage like , , , , etc.

 Based on time period

Table 3.1.4

Usage period Digital payment usage

< 1 yr 27 1-5 yrs 26 > 5 yrs 4

Digital payment usage 30

25

20

15 digital payment usage 10

5

0 0 1 2 3 4

Majority of 47.4% have been using only less than ayear. Next highest is 1-5 years with 45.6% .

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 Based on awareness

Table 3.1.5

Source Digital payment usage

Friends and family 38 Media 14 Others 5

Digital payment usage 40 35 30 25 20 15 digital payment usage 10 5 0 friends and media others family

Many of them got to know about it through friends, relatives, news or advertisements.

 Based on rating

Table 3.1.6

Values Rating 2 2 3 7 4 37 5 11

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Rating

40 35 30 25 20 rating 15 10 5 0 2 3 4 5

Majority of 64.3% have rated 4 out of 5 for usage experience. The next highest is 19.6% for rating of 5 out of 5. This shows better customer satisfaction.

PROS-  The users mainly prefer these payment applications due to speed, instant transfer and convenience.  There are no extra charges for the transactions along with cashbacks and discounts offered for each transaction.  High security is also maintained for the accounts details.easy and user friendly  They are becoming more and more widely accepted at all shops and retail stores.

CONS-  Many users have specified the problem of privacy and safety of their data in the online platform as a major issue.  There are also many instances of server error and network problems which leads to faulty payments  Some have cited the issue of delayed refund in case of payment failure  Some have also stated the definite need for GPS as a problem

SUGGESTIONS-  Many have stated the need to increase the acceptabilityof these payment systems in all retail stores  There is a need to improve server and network quality to ensure correct and safe payments  The provision of periodic statements helps keep track of the transactions by the customers  Some have stated the need to increase the payment limit and customer care service can also be enhanced.

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3.2 FINDINGS OF THE STUDY-

A comparative analysis of G pay and Paytm has been done. Based on the results it has been observed that G pay is more preferred than Paytm in the given sample. This trend is observed across both the genders and also various age groups. Majority of the respondents have highly rated the overall usage experience for applications. The pros and cons of them from user point of view have been listed. Suggestions to improve the performance have also been given.

Chi square test- independence of attributes

H0: age and usage are independent H1: age and usage are not independent

Observed Expected (O-E) (O-E)^2 (O-E)^2/E 24 24.91 -0.91 0.8281 0.033244 52 24.91 27.09 733.8681 29.46078 17 24.91 -7.91 62.5681 2.511766 23 24.91 -1.91 3.6481 0.146451 25 24.91 0.09 0.0081 0.000325 22 24.91 -2.91 8.4681 0.339948 22 24.91 -2.91 8.4681 0.339948 24 24.91 -0.91 0.8281 0.033244 21 24.91 -3.91 15.2881 0.613733 21 24.91 -3.91 15.2881 0.613733 21 24.91 -3.91 15.2881 0.613733 26 24.91 1.09 1.1881 0.047696 25 24.91 0.09 0.0081 0.000325 24 24.91 -0.91 0.8281 0.033244 21 24.91 -3.91 15.2881 0.613733 24 24.91 -0.91 0.8281 0.033244 25 24.91 0.09 0.0081 0.000325 26 24.91 1.09 1.1881 0.047696 29 24.91 4.09 16.7281 0.671542 24 24.91 -0.91 0.8281 0.033244 44 24.91 19.09 364.4281 14.62979 24 24.91 -0.91 0.8281 0.033244 22 24.91 -2.91 8.4681 0.339948 22 24.91 -2.91 8.4681 0.339948 21 24.91 -3.91 15.2881 0.613733 22 24.91 -2.91 8.4681 0.339948 23 24.91 -1.91 3.6481 0.146451 25 24.91 0.09 0.0081 0.000325 25 24.91 0.09 0.0081 0.000325 26 24.91 1.09 1.1881 0.047696 22 24.91 -2.91 8.4681 0.339948 25 24.91 0.09 0.0081 0.000325 21 24.91 -3.91 15.2881 0.613733 23 24.91 -1.91 3.6481 0.146451 23 24.91 -1.91 3.6481 0.146451

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24 24.91 -0.91 0.8281 0.033244 25 24.91 0.09 0.0081 0.000325 49 24.91 24.09 580.3281 23.29699 26 24.91 1.09 1.1881 0.047696 37 24.91 12.09 146.1681 5.867848 23 24.91 -1.91 3.6481 0.146451 18 24.91 -6.91 47.7481 1.916825 30 24.91 5.09 25.9081 1.040068 25 24.91 0.09 0.0081 0.000325 21 24.91 -3.91 15.2881 0.613733 19 24.91 -5.91 34.9281 1.402172 24 24.91 -0.91 0.8281 0.033244 18 24.91 -6.91 47.7481 1.916825 23 24.91 -1.91 3.6481 0.146451 28 24.91 3.09 9.5481 0.383304 18 24.91 -6.91 47.7481 1.916825 18 24.91 -6.91 47.7481 1.916825 22 24.91 -2.91 8.4681 0.339948 39 24.91 14.09 198.5281 7.969815 18 24.91 -6.91 47.7481 1.916825 30 24.91 5.09 25.9081 1.040068 21 24.91 -3.91 15.2881 0.613733

E= 24.96551724 Summation of (O-E)^2/E= 106.4858 (calculated value) Table value= 79.08 Calculated value> table value Hence, H0 rejected and H1 accepted

Thus age and usage are not independent. There is a close relation between ages of the users and usage of digital payment applications. The users in age bracket of 20-30 years are more likely to be using them than others. Therefore, there exists a close correlation between these two attributes based on the results of the chi square test.

4.1 CONCLUSION-

Digital payments have increased more than ten times since 2014 especially after the demonetisation process and the Digital India programme.. The recentNandanNilekani report has also recommended measures regarding the same. Various new technologies like NFCs, RFID, AI, MDR, etc. the data security and privacy issues need to be addressed soon. In the international scenario, many developed countries are getting already fully digitalized. Thus India is in the right direction towards digitalization process especially in the fintech sector.

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5.1 REFERENCES

1. Neharika Sobti (2019)- “Impact of demonetization on diffusion of mobile payment service in India”, Journal of Advances in Management Research, ISSN: 0972- 7981,Publication date: 27 March 2019

2. Agrata Gupta, Chun Xia (2018)- “A Paradigm Shift in Banking: Unfolding Asia’s FinTech Adventures”, Banking and Finance Issues in Emerging Markets, ISBN: 978- 1-78756-454-1, eISBN: 978-1-78756-453-4, ISSN: 1571-0386, Publication date: 4 October 2018

3. Jonas Hedman, Felix B. Tan, Jacques Holst, Martin Kjeldsen (2017)-“ Taxonomy of payments: a repertory grid analysis”, International Journal of Bank Marketing, ISSN: 0265-2323, Publication date: 6 February 2017

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