Journal of Management Engineering and Information Technology (JMEIT) 2394 - 8124 Volume -3, Issue- 3, Jun. 2016, ISSN: Website: www.jmeit.com | E-mail: [email protected]|[email protected] An Empirical Study about the Awareness of Paperless E-Currency Transaction like E-Wallet Using ICT in the Youth of India Pawan Kalyani Pawan Kalyani,, MRES [email protected] Abstract: When we talk about the transaction in earlier times when there was no currency system, people used to In Indian financial system 19 nationalized commercial banks, work on barter system, later on people started transaction SBI group of 06 banks including State Bank of India, 14 old in terms of currency notes /coins. In the modern digital age and 07 new private sector banks and 32 foreign banks are people are using money in many form to pay the bills like dealing banking business as on March, 2012. The through credit card, debit card, using Internet and Mobile mechanization and computerization of banking were started devices. In today’s era people are making transaction from 1985 by the first phased plan of bank automation in India. digitally over the internet. People are purchasing, making Now in India, 97 percent of public sector bank branches, cent transactions through mobile devices, ATM, Credit cards, percent private and foreign banks are computerized. These Bitcoin, E-wallet, third party like PayPal etc. they feel banks are offering lots of ICT based banking service to bank convenience, easy to use design for transaction and customers and using modern technology to internal business perceived usefulness of the system. This paper is focusing operations. Many CBS [Central Banking System] branches are upon the paperless e-currency transaction that is getting operating in India, user can transact its money from any branch. popular all over the world, India is a growing market for After financial reform period 1991, various foreign and new the world and many services and products are available private sector banks are entering in Indian banking industry online and they accept payments online, but how many with their high-tech banking services. It leads to competition of people are actually relaying on it, how many people are ICT based banking services in Indian banking system and using it for making payments moreover, the study is based creates efficiency. For the further developments the Reserve on the questionnaire responded by respondents. Bank of India (RBI), Institute for Banking Research and Keywords: E-wallet, ICT, Paperless Currency, Youth, Development of Technology has continuously trying to India, Mobile Banking, E-commerce. enhance the system by required facilities to banking and financial institutes in India. I.INTRODUCTION In the early 1990s the business and consumer world Country has many systems to take care of its growth and encountered a new way of conducting trade business, which development efficiently and effectively, the financial system of was named electronic commerce (e-commerce). Over the years any country is one of the most important one consists of electronic commerce has evolved into a popular and banking and non-banking financial institutes, these institutes acknowledged way of conducting business. E-commerce has are providing various types of financial services to the become especially important in two interrelated dimensions, customers. In the financial services, financial clearing and fund namely business-to-consumer (B2C) and business-to-business transfer service is most important service than other services. (B2B) e-commerce. Business to-consumer e-commerce is Payment systems improve financial intelligibility, stimulating enabling customers to have an increasing influence on products business growth and consumption. Many business transaction created, how products are customized, and how services are depends upon it. The success of the banking system has depends delivered. Ecommerce offers customers convenient shopping upon the efficient and quality of clearing system of the industry. methods for products, information and services, electronic Everyday thousands of crore rupees are transacted by the banks. banking, and personal finance management. It is making it If we look at the worldwide this system has changing drastically easier for consumers to find the desired products and services, with technological advancements. Information and match them more precisely to their requirements, and compare Communication Technology (ICT) have become a mean for prices, (Vulkan, 2003). Several business models have been improvement of financial system worldwide. In India, most of developed to support various customers’ needs, among them are banks and financial institutions are offering ICT based financial online portals, content providers, transaction brokers and products and services to improve their business efficiency and community creators. speed of services e.g. called e-banking, internet banking, electronic fund transfer, electronic clearing, mobile banking The most popular definition of e-commerce is based on the etc. online perspective of the conducted business. E-commerce All rights reserved © www.jmeit.com 18 Journal of Management Engineering and Information Technology (JMEIT) 2394 - 8124 Volume -3, Issue- 3, Jun. 2016, ISSN: Website: www.jmeit.com | E-mail: [email protected]|[email protected] provides the capability of buying and selling products, At this stage the situation with the development of online EPSs information and services on the Internet and other online is far from ideal. A survey on electronic money developments environments. As for any trading activity, the issue of safe and by the Bank for International Settlement reports a rather low reliable money exchange between transacting parties is level of EPSs use, even in the most advanced countries, (BIS, essential. In an e-commerce environment, payments take the 2000). According to the European Central Bank, the proportion form of money exchange in an electronic form, and are of online payments among cashless payment instruments in the therefore called electronic payments. Electronic payments are European Union is rather low. The report admits that although an integral part of e-commerce and are one of its most critical there has been a lot of discussion on the use of EPSs and their aspects. Generally defined, electronic payment is a form of a importance “it is still not a widely used medium”, (ECB, 2001). financial exchange that takes place between the buyer and seller The lack of customer demand, the diversity of technological facilitated by means of electronic communications. An e- standards and the lack of support by financial institutions are commerce electronic payment is a financial exchange that takes mentioned among the reasons preventing the development of place in an online environment, (Kalakota & Whinston, 1997). electronic payment systems, (ECB, 2003). Electronic payment systems (EPSs) are summoned to facilitate Some experts estimate that about 85% of all Internet the most important action after the customer’s decision to pay transactions are done with credit cards that were not originally for a product or service – to deliver payments from customers designed for the Internet, (Philippsohn & Thomas, 2003). to vendors in a most effective, efficient and problem-free way. According to a survey by marketing research firm Jupiter The role of e-commerce electronic payment systems is pivotal Research, credit cards are still the dominant payment method for future of ecommerce, whose further growth depends on the for online purchases, accounting up to 95% of online timely development of EPSs. The development of new types of transactions in the United States, (Jupiter Media Metrix, 2000). e-commerce purchasing relationships and business models has This demonstrates still low user acceptance of alternative created the need for new ways of money exchange and new electronic payment systems, designed specifically for e- EPSs. For instance, online auctions, (Ribbers & Heck, 2004), commerce. [10] has spurred the necessity for person- to- person payment systems to allow online money exchange between individuals. Certain types of information products and services require IV. TARGET CUSTOMERS small payments and micropayments. Businesses would like to sell information content that costs very little, accumulating Financial institutions are providing many services to the people, revenues with high turnover. E-commerce EPSs can be these includes Internet banking, mobile banking, NEFT, RTGS designed for selling specific types of products, for example for etc. in this study the author is exploring the target customers trading copyrighted online content, such as music. Another who are actually using these services, when these services are unforeseen earlier requirement is conducting e-commerce using offered by banks, B2B transactions are mostly benefited, when wireless mobile devices, such as mobile phones or personal B2C transaction started booming due to various online schemes digital assistants (PDA). The need for paying with mobile and offers by online companies like Flipcart, SnapDeal, devices has urged the development of payment systems for Amazon, EBay etc. mostly young generation got their mobile electronic commerce, (Laudon & Traver, 2002). In addition, ecommerce provides the possibility to enhance current attraction, now a days, everyone has smartphone with Internet payment systems or substitute them with online variants. connection and many companies